The Hindu Business Line : Tariff body asks JNPT to intervene in transhipment rates issue

The Tariff Authority for Major Ports has asked the Jawaharlal Nehru Port Trust to probe the allegations that the private terminal, NSICT, has stopped handling transhipment cargo.

This follows the complaints from Indian coastal shipping operators that the terminal has not been accepting their vessels.

In a letter sent to the JNPT, the TAMP has taken note of the objections raised by the Container Shipping Lines Association, India (CSLA) and the Indian Coastal Conference on the same.

Letters to tamp

The CSLA in its letter to the TAMP said, “NSICT (Nhava Sheva International Container Terminal) has apparently declined to handle transhipment traffic unless lines are prepared to pay a higher rate than that mandated by the tariff authority.

Further, those lines involved reported that in the event that they declined to pay the higher rate requested by NSICT, then the terminal would not handle their transhipment business, apparently on the grounds that the rates now in force are insufficiently remunerative.”

Letter from ICC also expressed similar woes.

“TAMP has already promulgated tariff for transhipment of container from the JNPT, NSICT and Gateway Terminals. JNPT and GTI are continuing to permit our vessels to berth and load transhipment containers at their respective terminals for the Mumbai Port but not NSICT,” the letter stated.

NSICT charges

It also mentioned that due to cessation of Mumbai transhipment containers by NSICT, the cargo destined for the Mumbai port are getting delayed.

When contacted, an official from the JNPT confirmed the letter from the TAMP. He said it would be too early to give exact details. “We are in the process of replying to the explanations sought by tariff authority,” he said.

On the other hand, Mr Ganesh Raj, Senior Vice-President (Indian Sub-continent), Dubai Port World, said, “We had a dialogue with the JNPT on the same (transhipment rates issue) and we have given our view.”

On question of what conclusion has been reached on the issue, Mr Raj said, “There is no issue.” NSICT is run by Dubai Port World, Dubai. Currently, it is managed under a build-operate-transfer agreement set up with the JNPT.