The Kochi Port has decided to extend a 50 per cent discount in licence fee for exclusive storage of imported timber logs on an experimental basis for a period of one year.

The discount is proposed to be reimbursed to the licencee once the quantum of import reaches 1,37,000 tones in a year, which is the breakeven point in respect of the concession.

A decision to this effect was taken following the request from stakeholders for the need to take a strategic review of the port's pricing policy for those items of cargo which the port can successfully attract.

Tuticorin Port

The port, at present, handles approximately 60,000 tonnes of timber, whereas the neighbouring Tuticorin Port handles 5.5 lakh tonnes. Moreover, the vessel-related charges and storage charges at Kochi are very high compared to Tuticorin. The ground rent open space/sq metre/month in Kochi is Rs 35, while in Tuticorin, it is Rs 6.40. The stakeholders have been representing for reduction in storage charges which will benefit all the importers of timber logs.

According to port officials, there were certain cargo which had the potential for increased handling through Kochi and the concession fee was designed so that there would be a net increase in the port's gross revenue.

In the case of timber logs, storage charges were identified as a major determinant in the overall cost and 50 per cent reduction on this head could attract cargo to Kochi.

General cargo

The officials pointed out that there are many items of general cargo which can be successfully attracted to Kochi in larger volumes, provided the competitiveness of the port with respect to such cargo vis-a-vis other ports in the region.

Such cargoes include coal, shredded scrap, lime stone, gypsum etc. Even though Q-7, Q-8 and Q-9 berths in the port are high quality berths for such cargo, it needs to be supplemented with competitive storage vessel related and cargo related charges.

Consequent to the vacation of Rajiv Gandhi Container Terminal by DP World on commissioning Vallarpadam Terminal, these three berths are available for general cargo operations which need to be optimally utilised apart from being used for augmenting the CFS and pre-stage facilities.

These berths also have high quality back up area being an erstwhile container yard of about 80,000 sq metre with rail siding which can accommodate full rake operations.

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