The decision of Dubai Port (DP) World that operates the International Container Transhipment Terminal (ICTT) at Vallarpadom in Kochi, to impose additional charges for container handling has caused concern among the importers. The Kerala Exporters Forum has decided to raise the issue in the trade meet scheduled to be held in Kochi on Thursday. Port minister Ahmed Devarkovil, PWD minister P A Mohammed Riyas, Cochin Port Trust chairperson M Beena, Customs Commissioner Mohammed Yousaf and Kerala Maritime Board CEO H Dineshan will attend the meeting.
The DP World has informed the exporters that shifting charges of Rs 800 for 20 feet containers and Rs 1,200 for 40 feet containers will be imposed for direct port delivery (DPD) of import containers from October 1. According to DP World, port terminals across India has implemented shifting charges for DPD containers years ago. However, the DP World had deferred the decision to support trade.
“We have been facilitating non-en bloc and DPD for our customers without charging for the same. This is resulting in increased unproductive movements which have increased our operating costs significantly. To continue serving our customers with the highest efficiency, starting 1st October, we will be levying a discounted charge for these services, which is aligned with the prevalent industry practice,” said DP World Cochin CEO Praveen Thomas Joseph.
However, the export community alleges that ICTT is the most expensive port in India. The terminal handling charge at Kochi ICTT is double that of Chennai port. There has been a 500 percent increase in container freight charges recently. There has been a five-fold increase in the charges for export to the US and the export community is worried over the steep rise in expenses. The new charge will add to our burden and exporters will be forced to shift to ports like Thoothukudi and Chennai where rates are low,” said Kerala Exporters Forum president M Hameedali.
Source: The Indian Express