Financial Daily from THE HINDU group of publications
Thursday, Jul 08, 2004
Financial Daily from THE HINDU group of publications Thursday, Jul 08, 2004 |
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Logistics
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Shipping FACT discontinues barge services of Mumbai co V. Sajeev Kumar
Kochi , July 7 THE public sector FACT has discontinued transportation of liquid ammonia through barges by a Mumbai-based company owing to high costs involved in it. Though FACT has not given any official letter to Ardeshir B. Curtsetji and Sons (ABC & Sons) in this regard, sources in FACT said that it had stopped awarding of the work since last April, as the transportation cost through inland waterways is very high compared to road movement. The sources pointed out that the existing rate of ammonia movement from Udyogamandal Division to Ambalamedu in Cochin Division is Rs 2,017 per tonne whereas by road it would be around Rs 150 per tonne, i.e., a difference of more than Rs 1,800. FACT transports around 1.85 lakh tonnes a year and the savings could, thus, be around Rs 27 crore. ABC & Sons had obtained the contract for a seven-year period valid till 2008 and had deployed two barges for transporting the cargo. Asked about why FACT had awarded the contract for a huge amount, the sources said that the contract was signed in 1988 and was revised subsequently. There is every possibility that ABC & Sons might approach the court for legal remedy for the violation of agreement. However, FACT has decided to fight the case as the charges quoted by the operator is 10 times that of road transport's. All over the world, water transport is cheaper compared to road, the sources added. Moreover, FACT has taken the decision to move the cargo by road to the Cochin Division through the newly constructed Airport-Seaport road after following all the requirements put by the Union Environment Ministry in the transportation of hazardous cargoes.
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