The Hindu Business Line : Vizag port scraps levy on private workers

THE Visakhapatnam port has taken a significant step towards sharpening its cost-effectiveness by deciding to dispense with the system of collection of levy on engagement of labour from the cargo handling private pool workers with effect from January 1, 2003.

According to a senior port official, the Vizag Dock Labour Board (DLB) used to collect levy on the dockworkers and private pool workers employed by stevedoring and other agencies for cargo handling operations.

As part of its efforts to offer more cost-effective services to port users, the VDLB had submitted a proposal to the Ministry of Shipping for allowing it to dispense with the system of collection of levy on behalf of private workers or any other agencies. With the Ministry giving its approval recently, the DLB management has decided to implement the scheme from January 1, 2003.

"This is a major step towards reduction in the cost of cargo handling operations at Vizag port, which will enable importers and exporters to have more competitive and cost-effective services here, as compared to other ports," the official said.

This decision will reduce the cost of handling for almost every major cargo that comes to the port by a significant margin. It has been estimated that the thermal coal handling cost, for example, will now come down by about Rs 55 per tonne.

According to the official, DLB is also planning to whittle down the levy on the registered and unregistered workers of the board in a phased manner to further reduce the cost of handling. "Our ultimate goal is to make Vizag port a levy-free port in the near future," the official said.

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