The Hindu Business Line : Tuticorin Port announces cut in marine charge for mainline vessels

The concessional vessel-related charge effective July 1 will bring down basic marine charges by 65 per cent for the mainline container vessels calling these ports.

The 65 per cent concession charge will cover the elements of port dues, pilotage fee and berth hire charges. The reduced marine charges are intended to make the port cost competitive vis-à-vis other international seaports such as the Colombo port in Sri Lanka and enhance transhipment through Tuticorin.

Tuticorin Port Trust official circles maintain that the effective reduction in the marine charge for the mainline container vessels will come to 57 per cent as the concession would not be applicable to that part of the charge covering the deep draught element (dredging levy on port dues, pilotage fee and berth hire charges).

Official sources told Business Line that the concessional charge has been offered in pursuant to the decision from the Union Shipping Ministry to make certain Indian sea ports attractive to the mainline vessels in terms of port charges.

The mainline container ships to benefit from the lower marine charges are those vessels of more than 1800 TEUs capacity touching destinations beyond Singapore/Port Klang on the East and Suez Canal/Cape Town on the West.

As for the vessels other than the mainline vessels calling the Tuticorin port, they would be offered a 10 per cent reduction in the basic marine charge as a trade incentive by the Tuticorin Port Trust. The concessions are subject to review after six months.

The restructuring of marine charges for the mainline vessels has been made in view of the pleas from shippers who, besides seeking increased service by mainline vessels, were also complaining on the higher transaction costs for their export shipment. The sources said that due to the concessional charges being introduced, the Tuticorin Port would be incurring a revenue loss of Rs.4.5 crore annually.

However, the sources feel that the number of mainline vessels touching the port too is expected to go up in the coming months.