The Hindu Business Line : Kochi port's rate revision gets tariff authority's nod

Kochi May 1 The Tariff Authority for Major Ports has issued a notification approving the proposal of the Cochin Port Trust for a general revision of its scale of rates on various cargo handling and vessel related charges.

TAMP has effected an overall increase of 40 per cent in general cargo handling charges and an eight per cent increase for container handling operations carried out by the container terminal operator India Gateway Terminal.

The scale of rates at the port was last revised in December 2003. The validity was prescribed for two years and accordingly it fell due for revision in January 2006.

The port had earlier filed a proposal for general revision of scale of rates, but was rejected by TAMP.

Later, it asked the port to file a comprehensive proposal for general revision.

Handling rates

Trade and industry, however, protested against the TAMP order saying that the general cargo handling rates are on the higher side compared to the neighbouring ports. They added that there is every possibility of diversion of cargo following the notification.

"The port is increasing its rates on one side and at the same time, insisting the trade to reduce the handling cost to attract more cargo. The cargo can be attracted only if the scale of rates and handling charges are competitive," sources in the shipping trade and industry said.

Instead of increasing the rates, the sources pointed out that the port should consider giving various concessions such as volume-based and cargo-based discountsto woo cargo.

Growth rate

TAMP officials had conducted a joint hearing with the various port users before enhancing the scale of rates.

Subsequent to the joint hearing, the port has filed a revised cost estimate with some modifications in the scale of rates.

The port has projected a growth rate of 3.8 per cent and 3.6 per cent respectively in the traffic other than containers for the year 2007-08 and 2008-09.

Likewise, the India Gateway Terminal has also projected a container traffic of 2.65 lakh TEUs and 2.92 lakh TEUs for 2007-08 and 2008-09 respectively.

TAMP also approved the proposal of the port to introduce a penalty at the rate of Rs 6,000 per hour for tanker vessels for overstay at berths, with a view to reducing berthing delays.

The average pre-berthing time in the last two years, in case of liquid vessels is at 24.97 hours and 19.20 hours as against the pre-berthing detention time of all vessels at 13.20 hours and 11.02 hours.

A new condition also proposed to be introduced to facilitate the movement of cargo from wharf premises to custom bonded area before payment of wharfage for the same.

Higher lease rentals have been proposed for utilising such custom bonded area for storage of bulk cargo.

Moreover, a uniform increase of 40 per cent proposed in demurrage charge, hire charges and other equipment license fee.