The Hindu Business Line : Mumbai port concern over proposed congestion surcharge

MUMBAI port has been caught by surprise by the congestion surcharge that the container shipping lines' platform, India Pakistan Bangladesh Ceylon Conference (IPBCC), has proposed for April.

Mumbai port officials say that as there is no congestion at the port, the congestion surcharge is unwarranted. "There is no congestion at Mumbai port and there is no case for a surcharge. The conference should suspend the proposed surcharge on containers handled at port," a port official pointed out.

While suspending a congestion surcharge of $14 per twenty-foot equivalent units (TEUs) for March, IPBCC has proposed the $8 surcharge for containers handled at Mumbai region, including Mumbai port and Jawaharlal Nehru Port Trust for April.

IPBCC had, however, said that the surcharge would be imposed after a final review during the month end. "The port does not suffer from congestion either on water-side for berthing of vessels or on land for storage of containers. In fact, berths are waiting for container vessels at Mumbai port," the official clarified.

Sources said the container berths at the port at present had an average berth occupancy of only 40 per cent, while utilisation of its container yards and container freight stations did not exceed 50 per cent.

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