The under-performance of Vallarpadam terminal seems to have not deterred the DP World from proposing a rate hike at the Kochi International Container Transhipment Terminal (ICTT) this year.

The company has sent a proposal to the Tariff Authority for Major Ports (TAMP) for a 7 per cent hike in terminal handling charges, with effect from January 1. A letter to this effect reaching here says the proposed tariff will have a validity period of three years, up to March 2019.

However, the TAMP has sought the comments of the shipping fraternity before conducting a joint hearing to discuss the issues.

According to shipping circles, the proposed move comes at the most inappropriate time when a slowdown in the sector have already started impacting the trade, which is looking for more cargo support from the hinterland, and more mainline vessel calls to the ICTT.

Kochi is already among the costliest ports in the region and any hike in rates will lead to reduction in cargo, impacting Kochi Port’s revenue drastically, said CS Kartha, the Cochin Chamber of Commerce and Industry, president.

Exim trade through Kochi has been stagnant for quite sometime and the revision, if implemented, will only serve to further deplete the cargo handled by the Kochi port. “Instead of proposing a cost-based revision, a market-based correction will be more realistic”, he said.

Cargo diversion Prakash Iyer, trustee, Kochi port, said the move would hit the shipping trade here, forcing them to divert their cargo to neighbouring ports. When the cost goes up, it will affect the port’s operations, forcing lines to stop taking free on-board contracts, he added.

The proposal will also send a negative image of Kochi at a time when the Kerala government has taken steps to smoothen trade flows at Walayar check post from the hinterland of TN, he said.

Related Topics
comment COMMENT NOW