The central government has announced its decision to relax the Cabotage restrictions for shipment of export-import containers for the Vallarpadam International Container Transshipment Terminal (ICTT).

The Cabotage regulations are related to the right to operate sea, air and other transport services within the particular area. The Union Ministry of Shipping has announced that the relaxation is relating to the 100 per cent radiological scanning of containers. The authorities will still have to follow regulations of International Ship and Port Facility Security (ISPS) Code and existing Union government instructions

The Cochin Port Trust already operates a 100% radiological scanning facility for containers. Traders have welcomed the announcement of the Shipping Ministry. They said that the move will allow the terminal to compete better with the other transhipment hubs in the area.

It is believed that the move will benefit Export-import trade in the country by reducing the transit time upto seven days and reduce international freight up to $300 per container. The shipment of containers have risen in the country significantly during the years but other ports such as Colombo, Singapore, Salalah and Jebel Ali have benefitted from the growth instead of those within the country.

The government is looking to create infrastructure and lay down regulations that will allow the ports in the country to compete with others in the region.