Cabotage In The Maritime Industry

When considering what would be an all encompassing definition of a word, attention is usually focused on its first usage or original meaning in order to ascertain the right context in which the word was initially used before going to determine the right scenario in which such a word can be applied. Although Cabotage as a maritime term, is coined from the Spanish word 'Cabo' which is interpreted to mean 'the cape', it is more frequently recognized as a French term used to describe sailing from cape to cape within a particular country’s coast, a meaning that can be traced to the French word 'Caboter'. France is a good example of a country that has reaped tremendous benefits associated with a developed coastline. At present the French experience

The coastal and Inland Shipping (Cabotage) Act was passed in 2003 and already investors have started to reap the benefits of its introduction. The shipping industry still remains a key sector in the economy of any country. There are numerous benefits opened to countries that apply protectionist policies to regenerate how the transport business is run within their territory and the importance of these policies is often reflected in the development of the transportation sector which over time evolves to economic prosperity.

If protection should be given in the maritime segments of the transportation sector, Cabotage laws should provide an avenue whereby states can exploit the benefits of domestic coastal trading and guarantee security of investment to prospective investors.

Nigeria is blessed with a coastline of about 870 kilometers and about3000 kilometers of inland waterways. It is also endowed with numerous natural resources. According to a statement issued by the Nigerian Minister of Mines and Steel, Alhaji Musa Sada, Nigeria has over 400 different minerals . A list of the minerals and the states it can be located is listed

Thus once goods and passengers are always available to be shipped and participation in the business of transportation is restricted to Nigerian citizens, by the natural law of supply and demand this immediately creates a vacuum and an assurance that investors willing to participate in the business of transportation in Nigeria is guaranteed to reap the proceeds of their investment. Cabotage guarantees cargoes for indigenous operators who meet the standards set by the administrative authority prior to the commencement of operations. Steady cargo translates into increase of turnover which in turn results into efficiency and credit worthiness. Banks and financial institutions are often prepared to finance individuals when there is a constant demand for the type of services they render with an assurance of steady cash flow. Foreign participation in the Nigerian coast needs to be discouraged as this would lead to competition for local vessel