The Hindu Business Line : Movement of boxes in Tughlakabad-Chennai sector

THE inland haulage charges for moving export boxes from Tughlakabad to the Chennai Container Terminal (CCT) run by P&O Ports, though competitive, is still higher than the one for moving export boxes from Tughlakabad to Nhava Sheva International Container Terminal (NSICT).

The cost differential between Jawaharlal Nehru Port (JN Port) and CCT in terms of inland haulage costs is in the range of around $50, with the latter being costlier.

However, P&O Ports officials say that the slightly higher inland haulage costs on the Tughlakabad-Chennai sector for moving export boxes can be negated by lower ocean freights for sailings to Eastern destinations.

The shipping lines operating on the Chennai-Far East sector have already cut the ocean freight drastically to make Chennai an alternate gateway for Southeast Asia and Far East movements.

The inland haulage cost of moving a twenty-foot equivalent unit (TEU) of 0-9 tonnes from Tughlakabad to CCT is Rs 2,875 higher than that for NSICT, for a TEU of 9-24 tonnes, it is Rs 2,375 higher, for a TEU of 24-27 tonnes, it is Rs 2,775 higher, and for a TEU of 27-30 tonnes, it is Rs 2,075 higher.

In the case of a forty-foot equivalent unit (FEU), it is Rs 6,345 higher than NSICT. The inland haulage costs for moving boxes through Chennai are higher than Mumbai primarily due to the longer distance between Tughlakabad and Chennai, compared with the Tughlakabad-Mumbai sector.

The first direct train service carrying export boxes to Chennai was launched on November 19 from Tughlakabad. The overall cost to a shipping line for moving export boxes to Chennai has been pegged at Rs 24,449 for a 0-9 tonne TEU and a 9-24 tonne TEU, Rs 27,212 for a 24-27 tonne TEU and a 27-30 tonne TEU and Rs 47,031 for a FEU.

The export train moved out from Tughlakabad with cargo destined for China and given the huge demand for exports to Eastern destinations, P&O Ports officials reckon that there would soon be growth in the sector, which will increase the frequency of trains and the traffic volume.

In July, Concor had started direct rail services between Chennai and Tughlakabad to bring imports into Delhi. Starting with a weekly train, the direct import train service from Chennai to Tughlakabad has now increased to a train every alternate day.

"Over 4,000 import TEUs have already moved from Chennai to Tughlakabad in the last four months. In October alone, 16 trains arrived from Chennai carrying 1,386 TEUs. Already 11 trains carrying 956 TEUs have been moved by Concor from Chennai to Tughlakabad in November," a P&O Ports official said.

Almost all major shipping lines and many shippers are already using Chennai as an alternate gateway for imports. "We hope that many of them will also promote the movement of exports with the launch of the direct export train service from Tughlakabad to Chennai," he said.

These movements will reduce the pressure on JN Port where the trade is facing an acute problem of congestion.

Currently, about 3,50,000 TEUs move through JN Port/NSICT for/from Eastern destinations annually. Even if 50 per cent of this traffic were to shift to Chennai, it represents a ready volume of 1,75,000 TEUs per annum.

"Both JN Port/NSICT and Chennai can then actually benefit from the growth rather than only one having to face the burden of growth in the form of congestion, delays and customer dissatisfaction while the other has excess capacity to offer," the official pointed out.

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