Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Adani Ports and SEZ Ltd managing director Karan Adani has approached Kerala Chief Minister Pinarayi Vijayan to support the continuation of cabotage relaxation for Vizhinjam port. The appeal follows the Centre's move to withdraw the 2018 cabotage exemptions that allowed foreign-flag vessels to carry EXIM and empty containers on coastal routes. Industry stakeholders caution that a rollback could impact transshipment volumes, especially as Vizhinjam has emerged as a key hub since beginning commercial operations.
Karan Adani, managing director of Adani Ports and SEZ Ltd, has written to Kerala Chief Minister Pinarayi Vijayan seeking the state government's intervention with the Centre to extend cabotage relaxation for the Vizhinjam International Seaport. The request comes after the Union government decided to withdraw the three general orders issued in 2018 that had relaxed cabotage norms for certain categories of coastal cargo. Advertisement
Under the withdrawn orders, foreign-flag ships were permitted to transport export-import containers meant for transshipment, reposition empty containers, and move select commodities such as agricultural products and fertilisers along India's coast without seeking a licence from the Directorate General of Shipping. The Ministry of Ports, Shipping and Waterways later concluded that the policy had not delivered the intended outcomes of increasing Indian coastal shipping capacity or reducing logistics costs.
In his communication, Adani referred to provisions in the 2015 concession agreement signed between Adani Vizhinjam Port Pvt Ltd and the Kerala government. The agreement includes a clause requiring the state to provide reasonable assistance to obtain exemptions under the Merchant Shipping Act when sought by the concessionaire. State officials have indicated that while this clause existed, it had not been invoked earlier because cabotage relaxations were already in force when the port commenced operations.
Following Adani's request, the Kerala Chief Minister has written to the Centre, underlining the strategic importance of the relaxation for Vizhinjam's transshipment business. Shipping industry sources have pointed out that if cabotage restrictions are fully reimposed, global container lines such as Mediterranean Shipping Company could reconsider their operations at Vizhinjam and divert cargo to competing hubs like Colombo.
Vizhinjam was developed to reduce India's reliance on overseas transshipment ports such as Colombo, Singapore, Port Klang and Jebel Ali. Since starting commercial operations in December 2024, the port has handled over 1.575 million TEUs, with a significant share of volumes coming from MSC-operated vessels. It also became the fastest newly commissioned Indian port to cross the one million TEU milestone.
The Centre, however, has defended its decision by stating that Indian container fleet capacity has remained stagnant and that the expected boost to Indian tonnage did not materialise under the relaxed regime. Officials maintain that the revised approach is aimed at encouraging domestic shipping and long-term capacity creation.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
