The Kochi Port has constituted a committee to look into the issues connected with ‘high’ handling charges at the port and also at the ICTT Vallarpadam.
A decision on this was taken at the board of trustees meeting following widespread complaints from port users on high handling charges, forcing them to divert their cargo to neighbouring ports.
The management is also seeking the reasons behind the high charges at a time when it has taken special efforts to attract bulk and break-bulk cargoes to the port, considering its geographical advantages.
Besides two top officials from the port, the panel comprises representatives of steamer agents, labour trustees, clearing and forwarding agencies, seafood exporters and other stakeholders.
The committee is expected to submit the report within a month of collecting data from other ports. Issues connected with the higher charges in Kochi were given priority at the board meeting.
The port trust officials maintained that the charges in Kochi are in accordance with the Tariff Authority for Major Ports (TAMP) regulations. However, it often goes up three- to five-fold compared to neighbouring ports due to various reasons such as loading and unloading, storage and packing charges, etc. The committee will examine all these aspects in cargo-handling and come out with a report that is expected to facilitate growth as the higher charges are reportedly affecting the port’s growth.
Sources in the trading fraternity say the cost of handling fertilisers in Kochi is Rs 1,726 a tonne whereas in Tuticorin Port it is Rs 848 per tonne.
This has forced the Union Fertiliser Ministry to discontinue the routing of fertiliser imports through Kochi meant for the public sector FACT. It is pointed out that the rate of fertiliser handling in major ports is below Rs 1,000, the sources said.
The Tuticorin Port handles around 12 lakh tonnes of fertilisers a month.