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ISPS Code: Costly challenge for Indian shipping industry
Mumbai, Aug 25: The international ship and port facility security (ISPS) code is posing new challenges for the Indian shipping industry as its implementation will increase the transaction cost and ports will have to pay for ensuring security from the seafront.
Mumbai, Aug 25: The international ship and port facility security (ISPS) code is posing new challenges for the Indian shipping industry as its implementation will increase the transaction cost and ports will have to pay for ensuring security from the seafront.
Further, any laxity in implementation of the International Maritime Organisation (IMO)-mandated security code could adversely affect private and foreign investment in the sector, making it essential for India to brace up for the new regime coming into force from July 01 next.
The mushrooming of global terrorist groups led the IMO to adopt changes to the international convention for the safety of life at sea (SOLAS) in conjunction with the ISPS Code in December 2002.
''India has to develop a ship security plan within a short time. Not complying with the code could be worse as ships would bypass Indian waters. We have no choice - comply with the code requirement or get knocked out from international voyage,'' sources at the Shipping Corporation of India (SCI) said.
The ISPS Code will increase the transaction cost which will be ultimately borne by shippers. To carry out security assessment and develop a ship security plan, a shipping line will have to invest 10,000 dollar per vessel. For installing onboard equipment, a vessel has to shell out an additional 20,000-25,000 dollar per vessel.
Ultimately, for complying with the code, a vessel has to cough out around 35000 dollar per vessel which is into international voyage.
Bureau Report
The mushrooming of global terrorist groups led the IMO to adopt changes to the international convention for the safety of life at sea (SOLAS) in conjunction with the ISPS Code in December 2002.
''India has to develop a ship security plan within a short time. Not complying with the code could be worse as ships would bypass Indian waters. We have no choice - comply with the code requirement or get knocked out from international voyage,'' sources at the Shipping Corporation of India (SCI) said.
The ISPS Code will increase the transaction cost which will be ultimately borne by shippers. To carry out security assessment and develop a ship security plan, a shipping line will have to invest 10,000 dollar per vessel. For installing onboard equipment, a vessel has to shell out an additional 20,000-25,000 dollar per vessel.
Ultimately, for complying with the code, a vessel has to cough out around 35000 dollar per vessel which is into international voyage.
Bureau Report