The Hindu Business Line : Dedicated oil jetties at New Mangalore Port — Tariff Authority approves ad hoc wharfage rate for MRPL cargo

THE Tariff Authority for Major Ports (TAMP) has approved an ad hoc wharfage rate of Rs 63 per tonne for 2003-04 for the cargo handled at the two oil jetties dedicated for the Mangalore Refinery and Petrochemicals Ltd (MRPL) at the New Mangalore Port Trust (NMPT).

"This Authority approves an ad-hoc wharfage rate of Rs 63 per tonne on cargo handled during 2003-04 at jetties No.10 and 11 at the NMPT subject to determination of final wharfage charges based on actual and admissible costs," a gazette notification issued by TAMP on February 21 said.

Since the proposed ad-hoc charge is mutually agreed between the two parties and also recognising the fact that such a rate is only going to serve as an interim rate subject to fixation of final rate, this Authority is inclined to approve the proposal without resorting to an elaborate analysis of the cost details, TAMP has stated in the notification. MRPL's facilities at Mangalore includes two dedicated oil jetties equipped to handle ocean tanker deliveries of crude oil procured from national oil companies in Saudi Arabia and Iran and off-take of refined products.

The ad-hoc wharfage rate of Rs 63 per tonne for the year 2003-04 is lower compared with the ad-hoc rate of Rs 71 per tonne approved for the year 2002-03. The fixation of final wharfage rates for jetty No 10 for the years 1996-97 to 2001-02 is pending. In this regard, TAMP had advised NMPT to submit a suitable proposal in consultation with MRPL (now a subsidiary of ONGC), by November 30, 2003. "The NMPT has not submitted the revised proposal so far. The NMPT is again advised to file an agreed proposal for fixation of wharfage rate for jetty No 10 for the years 1996-97 to 2001-02. This proposal can also include the final wharfage rates for jetties No 10 and 11 for the year 2002-03," TAMP has directed.

The fixation of wharfage rates for the two oil jetties dedicated for MRPL at NMPT has been a bone of contention between the two parties resulting in litigation. MRPL had filed a writ petition in the Karnataka High Court against the TAMP order dated July 19, 2000 challenging the issue of allowing Return on Investment (RoI) on NMPT assets for the period 1996-2000.

NMPT had also filed a writ petition in the Karnataka High Court seeking a review of the March 21, 2002, TAMP order rejecting the review petitions filed by NMPT on credit back of vessel-related income, credit back of escrow account interest and credit back of depreciation of repayment of loan in the computation of wharfage rate. However, the Karnataka High Court through an interim order had allowed NMPT the liberty to fix wharfage rate in accordance with the Memorandum of Understanding (MoU) signed with MRPL, for the subsequent period.

Meanwhile, the NMPT is planning to undertake dredging operations designed to increase the draft at the port to about 16 metres which will help large crude carriers to call at the port, thereby reducing transportation costs for MRPL, Government official said.

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Dedicated oil jetties at New Mangalore Port — Tariff Authority approves ad hoc wharfage rate for MRPL cargo

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