Southern States
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Tamil Nadu
Privatisation put terminal in deep waters?
By N. Ravi Kumar
CHENNAI, DEC. 6. Nearly a week after privatisation of the Chennai port container terminal, there are indications that traders' dreams of better efficiency and service are turning sour.
An immediate fallout of the below-normal container handling operations at the terminal could be another increase in congestion surcharge levied by feeder vessel operators, the trade and the Chennai Customs House Agents Association fear.
The Port Trust formally handed over the terminal to the Chennai Container Terminal Limited, part of the Australian- based operators - `P and O' - on Friday last after the Madras High Court verdict in a case filed by the terminal employees.
A section of the trade believed that the move would solve problems including frequent labour strife which had an adverse impact on the business. But another group feared that it would lead to a monopoly. In tune with the apprehensions, even before taking over the terminal, the CCTL sent a proposal to the Tariff Authority for Major Ports, seeking an upward revision of user charges. The TAMP is yet to announce its decision.
This is precisely the point that the Chennai Customs House Agents' Association president, Mr. P. S. Krishnan, cited while accusing the CCTL of levying charges which were not in practice when the Port Trust operated the terminal.
Mr. B. R. Dujari, president, Southern India Shippers Association, said the pile-up of containers would only lead to a further increase in congestion surcharge now levied at $125 on each container. Denying that new charges were imposed on users, a senior CCTL official said there was little space available inside the terminal to inspect (de-stuff) containers.
Admitting that normalcy in operations was yet to be restored, the official blamed it on the `extremely poor equipment', some of them in damaged condition when the CCTL got them from the Port Trust. Moreover, the backlog in containers was there even before the takeover and the company had informed the trade and the users well in advance, he added. It would take about two weeks for the situation to improve. However, a senior official of the Port Trust said the equipment were being operated almost till they were handed over to the CCTL. Perhaps, the present situation was merely because of some teething problems.
Trucks laden with containers waiting at Royapuram for their turn to enter the Chennai port terminal. - Photo: K. Pichumani.
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