NSB, which met at Kandla in Gujarat last week, was also of the opinion that the little relaxation made in the cabotage law to encourage containerisation had not reaped enough benefits. The amendments in the cabotage law will expire in April 1999.

The law was amended in 1992 for five years and it allowed foreign companies to move containers along the Indian coast. The amendment had one pre-condition that the containers should have directly come into the country of export without any transhipment.

For instance, if a ship brought 10 containers from Germany to India without breaking the journey in between, it could transport thesefrom the major port to smaller ports along the coast.

Almost all countries have reserved their coastal trade for domestic companies. Interestingly, even developed nations like the United States have strict cabotage restrictions which demand that their coastal vessels should be built, managed and registered in the US only, sources said.

The NSB, in its 98th meeting, also proposed boosting coastal shipping so that it could be used as a mode of domestic transport. "Coastal shipping will not only relieve the already over-burdened rail and road transport but will also be environment-friendly," sources said. According to them, the board will suggest ways and means to remove procedural hurdles including pricing of the bunkers so that the benefits of coastal shipping could be fully exploited.

The board also referred to the growing incidents of ship wrecks at coasts. In Mumbai alone, eight ships wrecks had occurred recently of which three were in the jurisdiction of the major ports. Disposing off the wrecks wasa problem because unless it took place in the territorial waters of a port, the shipping company could not pass the liability to the insurance company.

This was because the wreck was not identified as a legal liability in the Merchant Shipping Act, sources said.

The National Shipping Board (NSB), the apex advisory body to the government on the shipping industry, has geared up to increase productivity of seafarers.

The board, in its recent meet at Kandla, noted that Indian crew had not been performing up to the mark in contrast to levels seen on foreign vessels. The members of the NSB, including shipowners and the seafarers union, will soon identify the reasons for this and submit a report suggesting possible ways to improve productivity.

The NSB will, thereafter, present these recommendations to the Director General of Shipping and hold a seminar to discuss the issue, sources said. "Our crew have been receiving low wages and do not enjoy income tax exemption extended to seafarers on foreign vessels,"said a shipowner.

According to him, NSB has recognised the need to allow the private sector in setting up mercantile maritime training institutes. The board also wishes to revise the syllabus of the existing institutes to meet the latest changes in the maritime world including the STCW (standards of training certification & watchkeeping) 1995 amendments which will come into force from August 1, 1998.

In order to prevent explrecruitment agents, NSB has proposed an act for manning agents. According to sources, the act will be akin to the intermodal transportation act.

The board, which has 22 members, will also be making recommendations on increasing containerisation from the existing level of 30-35 per cent. "The board is contemplating an integrated approach towards containerisation such as setting up container freight stations, easing port procedures and facilitating quick movement of all the import and export containers", sources said.

In line with the sentiment of the shipping community to providecargo support to the domestic fleet, NSB has reiterated national support to the industry. This will come in the form of backing the industry for movement of liquified natural gas (LNG) and giving priority to domestic shipowners in movement of cargoes. LNG imports are expected to commence from around 2002 in India.

"Transportation of LNG is a highly capital-intensive and technically sophisticated area. The sector does not have cross-trade and it becomes all the more important for countries to support companies engaged in this trade", sources added.

As regards the Vallarpadam container terminal proposal made by one of the members, NSB has asked for a detailed study on the issue. The project, which will cost around Rs 2,000 crore, involves setting up a transhipment port at Vallarpadam near Kochi.