Increasing competition at the doorstep (read commissioning of Dhamra port) has prompted Paradip Port Trust to launch a multi-pronged strategy to attract more traffic. The essence of the strategy is to improve efficiency, cut costs and rationalise rates.

Giving this information to Business Line , Mr G. J. Rao, Chairman, Paradip Port Trust, indicated that the Tariff Authority for Major Ports (TAMP) had already approved 30 per cent cut in wharfage. “The revised rates will hopefully come into force within a fortnight or so,” he observed.

There was a proposal for rationalisation of other rates depending on cargo inducement. “If any port user offers substantial quantities of additional traffic, over and above what he has been offering so far, we too in turn will offer him attractive rates”, Mr Rao said, emphasising that the incremental volume must be substantial.

Proposal cleared

The port's proposal in this regard, already cleared by the Shipping Ministry, had been placed before the port users for comment. “I'm hopeful of receiving favourable response from the users”, he said.

Asked about the kind of rationalisation being considered for providing volume-based discount, the PPT Chairman replied that several types of rates, including wharfage, land rent and vessel-related charges, were in view. “We'll work out the details and firm up our decisions depending on the feedback we get from the users,” he remarked.

Referring to the competition which, in his opinion, was becoming intense with the emergence of new ports, mostly in the private sector, he said, “the thrust of our strategy therefore has to be how to boost the traffic throughput by whatever means”.

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