The Hindu Business Line : Tuticorin Port announces new incentive scheme

The trade will have to bring in more cargo compared with 2003-04 since the incentives are applicable to the increase in volume, according to a press release.

The port is offering a 10 per cent rebate on wharfage for a 10 per cent increase in volume of traffic in individual cargo over 2003-04; a 20 per cent rebate for a 10-20 per cent increase and 30 per cent if the increase is higher than 20 per cent. The rebate will be applied on the total cargo if the increase is more than 100 per cent.

For individual items of cargo to qualify for the rebate, the total volume of the cargo handled during 2003-04 must be exceeded. For the shipper to be entitled to the rebate, the firm must exceed the tonnage in the respective cargo over last year.

Rebate will be allowed from the date it exceeds that of the previous year, and all shippers and consignees will get the refund on a pro rata basis subject to the total rebate not exceeding the rebate on increase in volume of individual cargo.

For new cargo, a 25 per cent rebate on wharfage will be given subject to a minimum of 5,000 tonnes.

The reduced licence fee, Rs 4.25 a sq. metre a month and Rs 2.12 a sq. metre a fortnight, for storage of timber outside the port security wall will continue.

The open land inside the security wall will be provided for stocking and selling imported bulk cargo at a concessional rate linked to incremental volume. The rebate is Re 1 a sq. metre a month for an increase of 10 per cent, Rs 2 for 20 per cent, and Rs 3 for more than 20 per cent.

To encourage steamer agents to bring in more vessels, they will get 10 per cent on the increased marine income that they generate provided the total marine income of the port increases over that of 2003-04 subject to a ceiling of 10 per cent of the incremental income.

In addition for commodities for which CHLP labour is used, the rebate on levy will be 25 per cent of the incremental volume up to 10 per cent, 35 per cent of the incremental volume for 10-20 per cent; and 50 per cent if the incremental volume is more than 20 per cent. The rebate percentage will be applicable to the whole quantity above 100 per cent.

The rebate will be allowed provided the total volume of cargo subject to CHLP levy, excluding thermal coal, salt and Zone B cargo, showing an increase over the previous year.

The port is also offering a 10 per cent rebate in marine charges to the vessels exclusively carrying raw cashew nuts. Direct call by container vessels carrying raw cashew nuts from Africa would attract marine charges as applicable to main line container vessels irrespective of GRT and number of calls. The concession announced earlier on storage of raw cashew nuts — 10 free days with demurrage charged thereafter in the incentive scheme for 2003-04 — would continue until modified by the board.

A rebate of 50 per cent in wharfage on raw cashew may be offered on the entire quantity imported.

In addition to the incentive scheme, the port will consider entering into an understanding with the shippers to match the cost of handling with that of neighbouring ports for any cargo.

If the importers bring in new equipment for cargo handling, the incentive will take into account the volume of cargo, incremental volume and investment. These rebates and concessions will be in force up to March 31, 2005, in Zone A.