The Hindu Business Line : New Concor rates expensive, confusing: NISAA

TRADE and shipping lines have protested the Railway Ministry's decision to introduce the telescopic cost structure for movement of containers by the state-owned Container Corporation of India Ltd (Concor).

Following a circular issued by the Railway Ministry on the new annual haulage charges, Concor has issued a notice to trade on August 28 and 30 intimating the new rates for moving containers to and from the ports.

"Though the new rates are based on the telescopic cost system as compared to the existing flat rate per TEU per km, the over-all increase is very substantial and huge," a container shipping line official told Business Line. As per the telescopic cost system, the customer will be charged less for moving boxes over longer distances and vice-versa.

However, the new rates have given way to "utter chaos" among trade since there are so many distance slabs and a slew of permutations and combinations for calculating the tariff.

The Northern India Steamer Agents Association (NISAA) has written to Concor stating that the new system of levying tariffs for moving containers is "most confusing, difficult to understand and implement".

Given this confusion, the trade is in a fix on how to charge and what to charge from their customers.

"In an age of simplification, this is totally unimaginable," a NISAA official said.

"Moreover, the increase in rates is ill-timed and improper as the trade is going through a tough time with regard to problems facing the inland container depots in Northern India and the congestion surrounding the gateway ports of JNPT and NSICT, resulting in extra costs. At this time, an increase is a very touchy matter," the official said.