19th port
CoPT to take hard
look at THCs & vessel-related charges
Competitive
tariffs seen vital to make Vallarpadam ICTT a major hub
Deterrence spotted in cabotage
law too
The Cochin Port Trust (CoPT) is
considering a revision of the various Port charges to offer a level-playing
field to the Vallarpadam international container transhipment terminal (ICTT) so
as to make it a hub.
The ICTT is scheduled for
commissioning in June.
DP World, which is operating the
Rajiv Gandhi Container Terminal here, has also urged CoPT to urgently relax the
cabotage law and take measures to ensure competitive tariffs so that the new
terminal becomes viable as an international transhipment facility rather than be
just a feeder port to Colombo.
A note prepared by CoPT recently
pointed out that the emergence of the Port as a transhipment hub for the country
and a maritime gateway to the South depended on the competitive advantages that
it can offer to the global container trade.
At present, Dubai, Singapore and
Colombo act as transhipment hubs for as much as 80 per cent of the India-bound
cargo.
Therefore, the development of the
ICTT here as a hub capable of handling large ships will certainly attract a
major share of this cargo now being handled by these foreign ports.
But for this to happen, the
terminal handling charges (THCs) and vessel-related charges should be
competitive and for this, necessary relaxations have to be effected in the
cabotage law to attract foreign vessels.
At the Port Trust meeting,
members representing trade interests pointed out that the existing rates were
high compared with other ports. Even the proposed 40 per cent hike in
vessel-related charges was the highest in the country.
A comparison of the
vessel-related charges and THCs at Cochin with various Indian and international
ports revealed that the charges here were substantially higher.
CoPT has maintained that the
higher rates were inevitable due to the huge amount being spent on dredging and
other activities.
A review is required not only to
reduce the Port charges, but also to revise the THCs collected by the ICTT to
sustain the competitive environment.
Container traffic at Major Ports
has grown rapidly at 16 per cent over the last five years from 3.71 million TEUs
in 2003-04 to 7.7 million TEUs in 2008-09.
This growth is expected to
continue and, by 2013-14, the country is projected to handle 12.4 million TEUs.
However, inadequate facilities,
distance from international shipping routes and draught restrictions at most of
the ports prevent mother vessels from berthing, creating a bottleneck to
transhipment cargo.
Natural depth and proximity to
international shipping routes are the two most important criteria for the
success of most transhipment hubs.
The other important factors are
location, hinterland connectivity, tariffs and contracts with major shipping
lines.
A competitive tariff structure is imperative to
retain trade patronage and prevent it switching over to competing ports.
Source : Exim News Service -
Kochi, March 9
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