Financial Daily from THE HINDU group of publications
Tuesday, May 13, 2003
Financial Daily from THE HINDU group of publications Tuesday, May 13, 2003 |
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Logistics
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Shipping All major ports to adopt hourly basis berth hire rates from June Sajeev Kumar V.
KOCHI, May 12 THE Tariff Authority for Major Ports (TAMP) has decided to introduce hourly berth hire charges instead of the existing 8-hour basis rates in all the major ports with effect from June 1. Apart from berth hire, a similar hourly unit would be followed for levying anchorage fee, mooring fee, roadstead charges etc, which were linked with the duration of stay of a vessel at such facilities. The hourly berth hire charges have already been introduced in Chennai in October 2002. The Tuticorin Port had also started implementing hourly berth hire with effect from April 1, a notification issued by TAMP said. The hourly charge rates have been introduced taking into consideration the request from port users. One of the stated positions of TAMP was rationalisation and simplification of the tariff structure in all the major ports. It had earlier decided to introduce the hourly charges from April 1. However, the decision was later postponed to June 1 in view of the objections raised by various ports, as they required a longer period to implement the proposed arrangement. Earlier, TAMP had reduced the unit of berth hire charges from the then existing 24 hours to 8 hours in all the major ports in 2000. Further rationalisation of the unit of berth hire charges has been taken up recently and all the major ports and users had been consulted in this regard. The common reason cited by all the ports, which had objected to the proposed arrangement, is the possible revenue loss to them. Moreover, the ports had to deploy more manpower to monitor vessel for charging per hour vessel charges at anchorage point, which would increase its cost of service. According to TAMP, berth hire is a fee for occupation of a berth and vessels should pay such a fee only for the time it occupies the facility. There does not appear to be any logic in requiring the vessel to pay even for the period after it has the left the berth only on account of system of charging. It has to be recognised that the loss cited by the ports are, in fact, a possible reduction in their revenue. It is to be admitted that the relevant revenue accrual is due to a not so reasonable arrangement. The issue raised by some of the ports about the requirement of adjustment of rates in view of the cost plus method adopted deserves consideration. The reduction in revenue, if any, would only be a temporary phase. The actual financial position of a port would be reviewed at the time of the next general revision of tariffs at the respective port. If an internal review carried out by the port reveals any major financial loss, such ports can come with a proposal for revision of the existing vessel related charges ahead of schedule. It is understood that the issue of high marine charges at the major ports in the country has also caught the attention of the Union Government. The proposed adjustment in the unit of charging would definitely help to some extent in reducing the existing marine cost besides rationalising the tariff arrangement. Moreover, it would mean payment as per actual services rendered.
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