The Hindu Business Line : Shipping lines oppose fresh charges at Kochi port

Protest is brewing among the shipping lines in Kochi over the decision of the Tariff Authority for Major Ports (TAMP) allowing India Gateway Terminal (IGT) to levy charges for stowage planning, lashing and unlashing, and supervision of containers at the rate of Rs 350 a container at the port.

Sources in the shipping industry said that the TAMP had not considered the views expressed by the shipping lines while fixing charges, due to the absence of adequate documentary evidence provided by shipping lines.

According to them, the TAMP had given approval for IGT's proposal in toto for the figure of $7.89, which covers onboard lashing and unlashing, stowage, and supervision with retrospective effect from April 1, 2005.

The sources said that the rate for onboard lashing and unlashing work in July 2005 was Rs 225 per box after IGT took over the container terminal operations in April 2005. Later, they subcontracted the work. Even this rate was on the higher side compared to Rs 150 per box charged by the shipping lines after contracting it to vendors.

With the substantial improvement in productivity at the terminal, the actual onboard lashing and unlashing costs for IGT would not be more than Rs 75 per box. As a result, IGT would stand to make huge profit margins. This is not justified, particularly when there is a concerted effort by port users to reduce costs at Kochi, the sources said.

Moreover, they added, there is pending litigation before the Assistant Labour Commissioner as the workers of the private terminal operators doing stowage and supervision activity raised an industrial dispute regarding possible loss of employment.

In these circumstances, if IGT intends to charge shipping lines for stowage supervision, shipping lines would end up paying twice for the same work.

When contacted, senior officials at IGT said that the rates were not unilaterally decided by IGT but notified by the TAMP after considering the views of all port users in a public hearing.

One of the major points addressed by the TAMP was whether IGT is currently providing the most cost-effective solution and it has answered in the affirmative.

The TAMP has specifically commented on the offer of certain agencies that it could provide the services at a cheaper rate but have not been able to substantiate and follow through on the proposal.

The TAMP order is specific about the commencement of the order - from April 1, 2005.

As for the terminal operators' issue, the officials said that the matter has to be settled between the employer and the employee, and since IGT is neither, it has no comments to make.