Maritime News India : On October 16, 2024, the Indian Cabinet approved the Coastal Shipping Bill, 2024, marking a significant legislative shift in the country’s maritime landscape. One of the key changes introduced by this bill is the repeal of Part XIV of the Merchant Shipping Act, 1958, with the exception of Section 411A.
Repeal of Part XIV of the Merchant Shipping Act, 1958
Part XIV of the Merchant Shipping Act has governed coastal shipping in India for decades. However, with the evolving needs of the maritime sector and the increasing importance of coastal trade, the government recognized the necessity for a more streamlined and specialized regulatory framework. The repeal of this outdated section allows for the establishment of modern guidelines tailored specifically to enhance coastal shipping efficiency and competitiveness.
Key Features of the Coastal Shipping Bill, 2024
- Standalone Regulatory Framework: The bill introduces a dedicated legislative structure for coastal shipping, enabling clearer regulations and enhanced operational efficiency in the sector.
- Mandatory Licensing for Foreign Vessels: The bill requires foreign vessels to obtain licenses from the Director General of Shipping, ensuring that only compliant and qualified vessels operate within India’s coastal waters.
- National Coastal and Inland Shipping Strategic Plan: The legislation aims to develop a comprehensive strategic plan that integrates inland waterways with coastal transport, promoting a seamless logistics network.
- Transparency and Information Sharing: Establishing a National Register of Coastal Shipping enhances transparency, allowing better oversight and information exchange between regulators and industry stakeholders.
- Flexibility in Penalties: The bill introduces a schedule of penalties that enables the Central Government to revise fines without needing amendments, facilitating quicker responses to compliance issues.
Implications for the Maritime Industry
The repeal of Part XIV and the enactment of the Coastal Shipping Bill, 2024, signal a new beginning for India’s maritime industry. By providing a modern regulatory framework, the bill is expected to boost investment, encourage domestic participation, and enhance overall competitiveness in the coastal shipping sector. Furthermore, it aligns with the government’s vision of sustainable economic growth and the promotion of Make in India initiatives.
As the Coastal Shipping Bill progresses through Parliament, it is poised to reshape the maritime transport landscape, making it more efficient and better equipped to meet the demands of a rapidly evolving global trade environment.
Part XIV of the Merchant Shipping Act, 1958, specifically dealt with coastal shipping in India. This section provided the regulatory framework governing the transportation of goods and passengers by sea within Indian coastal waters. Here are some key aspects of Part XIV:
Key Features of Part XIV:
- Definitions and Scope: It defined what constituted coastal shipping, including the carriage of goods and passengers between ports within India.
- Licensing Requirements: Part XIV established requirements for the licensing of vessels engaging in coastal shipping, ensuring that operators met specific standards and regulations.
- Regulation of Vessels: It outlined the safety, operational, and environmental standards that vessels had to comply with while operating in coastal waters.
- Crew Regulations: The section included provisions regarding the qualifications and licensing of crew members on coastal vessels, ensuring they met safety and competency standards.
- Penalties for Non-Compliance: It set forth penalties and enforcement mechanisms for violations of the regulations established under this part, aimed at maintaining safety and compliance in coastal shipping operations.
Limitations of Part XIV:
While Part XIV provided a foundational legal framework, it became increasingly seen as outdated in light of modern shipping practices and the growing potential of coastal trade. This led to calls for a more streamlined and flexible approach, ultimately resulting in the formulation of the Coastal Shipping Bill, 2024, which seeks to repeal this part while retaining essential provisions for contemporary maritime needs.
The repeal is intended to facilitate a more efficient regulatory environment, encourage investment, and promote the growth of the coastal shipping sector in India.
Comparing Part XIV of the Merchant Shipping Act, 1958, and the Coastal Shipping Bill, 2024
The Indian maritime sector is on the brink of a significant transformation with the recent approval of the Coastal Shipping Bill, 2024. This new legislation aims to replace Part XIV of the Merchant Shipping Act, 1958, which has long governed coastal shipping in India. Here, we explore the key differences and implications of this transition.
1. Regulatory Framework
Part XIV of the Merchant Shipping Act, 1958:
- Provided a broad and often rigid regulatory framework for coastal shipping.
- Included various provisions governing safety, crew qualifications, and vessel standards, but lacked specificity for modern practices.
Coastal Shipping Bill, 2024:
- Establishes a standalone regulatory framework tailored to the contemporary needs of the coastal shipping industry.
- Aims for streamlined regulations, enhancing operational efficiency and promoting ease of doing business.
2. Licensing Requirements
Part XIV:
- Mandated licensing for vessels engaged in coastal shipping but often lacked clarity and flexibility in its criteria.
Coastal Shipping Bill, 2024:
- Introduces mandatory licensing for foreign vessels, allowing the Director General of Shipping to impose specific conditions, including nationality requirements for crews and stipulations for Indian-built components.
3. Integration with Inland Waterways
Part XIV:
- Did not address the integration of inland water transport with coastal shipping, limiting the potential for a seamless logistics network.
Coastal Shipping Bill, 2024:
- Mandates the development of a National Coastal and Inland Shipping Strategic Plan to enable efficient movement of goods via a combined water-based transport system, promoting a holistic approach to maritime logistics.
4. Transparency and Information Sharing
Part XIV:
- Offered limited provisions for transparency and information sharing between regulators and industry stakeholders.
Coastal Shipping Bill, 2024:
- Establishes a National Register of Coastal Shipping to enhance transparency, facilitating better oversight and information exchange, including data on foreign vessels licensed for coastal operations.
5. Flexibility in Penalties
Part XIV:
- Imposed penalties for violations, but amending these provisions often required lengthy legislative processes.
Coastal Shipping Bill, 2024:
- Introduces a Schedule of Penalties, allowing the Central Government to revise fines without amending the Act, providing greater adaptability to changing circumstances and compliance challenges.
The transition from Part XIV of the Merchant Shipping Act, 1958, to the Coastal Shipping Bill, 2024, represents a pivotal shift in India’s maritime policy. By establishing a modern, flexible, and integrated regulatory framework, the new bill aims to unlock the full potential of India’s coastal shipping sector, promoting economic growth, sustainability, and job creation. As the bill moves through Parliament, it holds the promise of reshaping the maritime landscape and positioning India as a key player in global shipping.
Historical Context of Exploitation in Coastal Shipping
Coastal shipping in India has been a critical component of the economy, facilitating trade and connecting communities. However, it has also been marked by systemic exploitation of various groups, including:
- Small Fisherfolk and Coastal Communities: The livelihoods of small-scale fishermen have been threatened by the expansion of ports and industrial activities along the coast. For instance, in Gujarat and Maharashtra, large-scale port developments, such as those at Mundra and JNPT, have led to the displacement of local fisherfolk, stripping them of access to traditional fishing grounds and forcing communities into economic insecurity.
- Migratory Workers: The fishing and shipping industries heavily rely on seasonal migrant workers who often endure low wages, long hours, and unsafe working conditions. Many of these workers operate in the informal sector, leaving them without legal protections or avenues for recourse. This vulnerability exacerbates their economic instability and prevents them from improving their circumstances.
- Indigenous Communities: Indigenous populations living in coastal areas have faced displacement due to industrial projects. Their traditional knowledge and cultural ties to the land are often overlooked in favor of economic development, leading to the erosion of their cultural identity and livelihoods.
- Women in Coastal Communities: Women play vital roles in the coastal economy, particularly in fish processing and marketing. Despite their contributions, they often encounter significant barriers to accessing resources, training, and decision-making roles. Gender-based discrimination further marginalizes them within both the economic and social frameworks of coastal communities.
- Labor Exploitation in Fisheries: Reports of labor exploitation within the fishing industry highlight a troubling reality: many workers endure harsh conditions, inadequate pay, and lack of rights. Such exploitative practices not only affect their immediate well-being but also contribute to a culture of impunity for those who violate labor laws.
Safeguards in the Coastal Shipping Bill, 2024
The Coastal Shipping Bill, 2024, is expected to address some of these concerns through various provisions, although the effectiveness of these measures will depend on implementation:
- Regulatory Framework: By establishing a clearer and more modern regulatory framework, the bill aims to enhance the operational standards of coastal shipping, potentially improving working conditions for laborers.
- National Coastal and Inland Shipping Strategic Plan: This plan is expected to promote the integration of inland and coastal shipping, which may provide better opportunities for local communities and fishermen by improving access to markets.
- Transparency Measures: The establishment of a National Register of Coastal Shipping may facilitate better oversight and accountability, potentially protecting the rights and interests of marginalized groups.
- Job Creation and Economic Opportunities: The bill’s focus on promoting coastal trade may create new job opportunities for local communities, although there must be a concerted effort to ensure these jobs are accessible and equitable.
Remaining Concerns
While the Coastal Shipping Bill offers potential safeguards, concerns remain about whether these groups will truly benefit or continue to be marginalized:
- Implementation and Enforcement: The effectiveness of the bill hinges on strong implementation and enforcement mechanisms to ensure that the rights of vulnerable groups are protected.
- Stakeholder Engagement: Meaningful engagement with coastal communities, fishermen, and labor representatives is crucial for developing policies that address their needs and concerns.
- Economic Disparities: Without proactive measures, there’s a risk that the benefits of increased coastal trade may disproportionately favor larger corporations, leaving small operators and local communities at a disadvantage.
While the Coastal Shipping Bill, 2024, contains provisions that could help safeguard historically marginalized groups, its success will depend on effective implementation and genuine engagement with these communities to ensure they are not left as victims in the evolving maritime landscape.