Date:20/07/2006 URL: http://www.thehindubusinessline.com/2006/07/20/stories/2006072002410700.htm

Back Kochi port's rate hike proposal worries users

V. Sajeev Kumar

Cargo handling rate may be hiked by 40 pc

Compared with other Indian and transhipment ports, the rates proposed were very high and would affect the business in view of the new projects coming up in the port area.

Kochi , July 19

Various port users have expressed concern at the proposal of Kochi Port to hike its scale of rates, saying that this would turn Kochi into a costlier port.

Their opinion was raised at the joint hearing called by Mr A.L. Bongirwar, Chairman of the Tariff Authority for Major Ports (TAMP), on Tuesday with port users and other interested parties on the proposal to enhance the scale of rates of various cargoes.

The port had proposed an overall increase of 40 per cent in the existing rates of various bulk and break bulk cargoes handled at the port.

The port users were unanimous in their view that the port will become uncompetitive if TAMP sanctions the increase. Compared with other Indian and transhipment ports, the rates proposed were very high and would affect the business in view of the new projects coming up in the port area.

Port users who represented the joint hearing included Steamer Agents, Customs House Agents, various chambers of commerce, Kochi Refineries Ltd and the Container Shipping Lines Association (India).

However, port officials submitted before the joint hearing that the current scale of rates introduced in January 1999 has not been revised so far.

Moreover, it is a mandatory requirement for the port to submit the proposal once in three years.

The revision proposed has been calculated as per the norms laid down in the guidelines of TAMP.

The Container Shipping Lines Association was of the view that vessel-related costs in India is very high especially in comparison with neighbouring competing hubs such as Colombo, Salalah etc and any further increase at this stage is unwarranted.

The level proposed is even higher than that of other competing ports in south India, which could lead to migration of business from Kochi. The TAMP authorities after hearing all the parties will come out with an order.