Come January and shippers in Kochi will have to shell out more to move their goods. DP World, the operator of Vallarpadam port, has decided to hike the terminal handling charges (THC) from January 1. The Tariff Authority for Major Ports (TAMP) has allowed the International Container Transhipment Terminal to increase THC by 3.48 per cent.
DP World officials confirmed that the proposed hike would be according to the TAMP directive, which approved a 3.48 per cent increase in tariff charges for five years. Last year also the company had made a similar hike in rates.
According to shippers, the proposed hike may prove unproductive at a time when cargo volumes are not promising and mainline vessels not calling at ICTT. The container throughput at the terminal has never reached the levels projected, and in recent times, it has even seen a drop due to various reasons, shippers said.
The tariff at Kochi port is the highest in the country and any further increase may result in diversion of cargo to other ports, they added.
C. P. Mammen, President of the Cochin Chamber of Commerce and Industry, said the dollar to rupee exchange rate fluctuations has already played havoc with businesses and their projections. Any increase in rates will only add to their burden.
If we are to make the port more and competitive, it is in our best interests to refrain from any tariff increases for now. Such initiatives can be considered only when the port achieves self sufficiency, he said.
Even though Kochi port has taken several steps to subsidise the exim trade through various initiatives by offering rebates, he said the terminal has never extended any relief to the trade by any tariff discounts.
V. S. Pradeep, President, Cochin Customs House Agents Association, said the increase in rates would only drive away cargo to neighbouring ports and dampen the prospects of ICTT due to escalation in transaction costs. The rates being levied at ICTT are higher than the tariffs at Colombo port.