The Hindu Business Line : Protest against rise in box haulage charges

Against the hike
Some shipping lines want the Concor to explain to the trade the rationale behind such sudden high increases and to recover the charges directly from the exporters and importers instead of through the shipping lines and their agents.

Kolkata , March 27

Shipping lines and their agents, both Indian and foreign flag carriers, are up in arms against the Railways and the Container Corporation of India (Concor) for their abrupt decision to jack up container haulage charges from April 1.

The Railways, it is learnt, has announced the hike ranging from five to 200 per cent depending on the distance and the loadability. This will also apply to Concor, which is a subsidiary of the Indian Railways. Which means the cost of operation of Concor too will go up. While Concor is yet to firm up the revised rates and announce them, the indication is that it too in turn will hike rates by at least 30 to 40 per cent, if not more. Also, the revised rates will apply to both domestic and exim (export-import) traffic.

Various steamer agents' associations have already voiced their protest against the proposed hike. While they are not opposed to any sensible and justifiable rate increases with sufficient notice period prior to implementation, to announce an increase like this for implementation within a week's time borders on absurdity, it has been observed.

What is the sanctity of the Railway Minister's repeated announcements on the floor of Parliament and outside that the Railways will desist from freight hikes, they wonder. In 2005-06, the Railways revised upwards haulage charges three times, the last one being in the region of 15 per cent in January this year. Concor, it is learnt, has not been able to pass on the entire range of increases to the customers.

Some shipping lines want the Concor to explain to the trade the rationale behind such sudden high increases and to recover the charges directly from the exporters and importers instead of through the shipping lines and their agents.

This has been done in case of the Concor's inland container depot at Dadri and there have been suggestions to do the same for Tughlakabad ICD.

Several private firms are now planning to launch Concor-type operation during the course of the year.

The Railways decision on steep hike container haulage charges at a time when new operators are set to emerge therefore smacks of indiscretion, it is felt.

In the final analysis, after all, it is the country's trade, both domestic and foreign, that will stand to lose.

The shipping lines and their agents as also other service providers have made it clear they will pass on whatever increases are enforced to the trade, thus blunting the competitive edge of the country's external trade.