The Hindu Business Line : Row over ICD box handling rates — Separate tariff proposals sought from NSICT, JNPT

THE Tariff Authority for Major Ports (TAMP) has advised JNPT and NSICT to formulate individual proposals for fixing separate rates for the ICD container handling activity at the rail yard jointly operated by them at the port.

The advice has come in a Gazette notification issued by TAMP on February 3 after the tariff regulator declined to be drawn into a dispute between JNPT and NSICT, run by P&O Ports, over the charges for the containers handled by NSICT for JNPT at the rail side Inland Container Depot (ICD) facilities.

JNPT has six rail tracks for ICD handling out of which rail track Nos 1,2,6 and 8 are being handled by JNPT while 4 and 5 are being used by NSICT.

Both the container terminals handle ICD containers (in- as well as out-bound) belonging to each other at their rail sidings when a train is placed.

JNPT claims that through a mutual agreement, the two parties had decided to charge Rs 400 for 20-foot containers and Rs 600 for 40-foot containers as lift-on/lift-off charges for the boxes handled at their respective rail lines. But NSICT disagrees with this claim.

"In spite of our repeated reminders, JNPT has failed to produce any document to show that there is a separate agreement between the two parties on the rate to be charged for handling ICD containers," NSICT has stated.

The tariff for providing various services including the charges for lift-on/lift-off activities carried out by rail mounted gantry cranes/reach stakers at JNPT and NSICT were identical till October 2000.

But in November 2000, TAMP notified a separate tariff for NSICT with 16 per cent increase as compared to JNPT tariff. Following this, NSICT had decided to bill JNPT at the revised tariffs in the same way that it charged shipping lines, arguing that the new tariffs approved by TAMP for NSICT applied for all its customers, including JNPT boxes.

Accordingly, the lift-on/lift-off rates as per NSICT tariff for ICD handling were revised to Rs 464 for 20-foot containers and Rs 696 for 40-foot containers.

However, JNPT had contested that the new NSICT rates do not apply to the boxes handled by NSICT on behalf of JNPT.

"Giving an extra benefit to NSICT in respect of JNPT containers handled at their tracks without any additional service being rendered by them does not arise. The question of additional payment is not at all relevant and is not acceptable to JNPT," the port trust has said.

Moreover, JNPT is recovering from shipping lines Rs 400 for 20-foot containers and Rs 600 for 40-foot containers as lift-on/lift-off charges and it would be highly unfair if JNPT has to pay NSICT Rs 464 for 20-foot boxes and Rs 696 for 40-foot boxes for similar services.

"It would be unfair for JNPT to pay NSICT more than what JNPT recovers from shipping lines for boxes handled. This is against the spirit of the mutual agreement," JNPT has pointed out.

Besides, the treatment of NSICT towards JNPT on the same line of terminal-user relationship pattern is not appreciable as JNPT has entered into an agreement with NSICT for operating a separate container terminal.

But NSICT says that the argument of JNPT that NSICT tariff should not apply to JNPT since JNPT is the licensee is "incorrect."

"In our opinion, TAMP tariff is applicable to all the users of the service, including the ports," NSICT has stated.

With both the parties sticking to their stands, NSICT had approached TAMP for clarification and interpretation on the vexed issue.

After considering the case, TAMP issued an order stating that "this authority is not in a position to confirm the contention of NSICT about the rate for the containers handled by them for JNPT at the rail side ICD facilites." It is appropriate for both JNPT and NSICT to take immediate action to formulate proposals for prescribing ICD container handling rates at the rail yard, it said.