CBI lens on port contractors after loading fee dispute

PMO has asked the shipping ministry for details of appointments of stevedores - those who move goods on and off ships - and the fees charged by them at the major ports

Ruchika Chitravanshi New Delhi
Last Updated : Jul 03 2014 | 1:58 AM IST
The government has started cracking down on alleged corruption in charging , loading and unloading fees and hiring of hands for such operations at the country's 12 major ports.

The Prime Minister's Office (PMO) has asked the shipping ministry for details of appointments of stevedores - those who move goods on and off ships - and the fees charged by them at the major ports. The Central Bureau of Investigation (CBI) has not lodged a complaint but has started an informal inquiry into the matter at the Kolkata Port Trust, asking the vigilance office at the port to provide details of these operations. Other major ports, too, have received the questionnaire referred by the PMO and have to furnish their replies to the shipping ministry. Cargo handling operations are carried out by private agencies, called handling agents, who are issued licences at the discretion of the port authorities.

In a complaint by Mansukh D Vasava, a BJP member of Parliament from Gujarat, it was alleged private handling agents at the ports were violating the Major Port Trusts Act. These people allegedly charge shippers rates not approved by the government and do not share revenues with the landlord port.

Major ports' have contended stevedores are appointed by private operators and there is no provision in the Act for any revenue sharing with the ports. "We are completely out of the picture," said R P S Kahlon, chairman of Kolkata Port Trust. "This is a complaint raised by a distressed employee through another MP and there is no merit in it."

Major ports, which compete with privately operated non-major ports, also claimed if they were to charge any stevedoring fee, it would make their operations costlier. "Already we are facing stiff competition from our neighbouring ports as we are more expensive. This would further put us at a disadvantage," Kahlon added.

Non-major ports such as Dhamra, Mundra and Gangavaram operate in a free-market tariff system, while tariffs at the government-owned 12 major ports are governed by the Tariff Authority of Major Ports (TAMP).

A year ago, the shipping ministry had directed the Kolkata port to formulate a scheme for collection of royalty from cargo handling agents through an open and transparent auction. However, this was not implemented as a policy decision by the government to bring stevedores under the TAMP and a revenue-share model was still in the works.

Queries sent by the shipping ministry to the major ports include details of appointment of stevedores and if they comply with provisions of the Major Port Trusts Act, the criteria for appointment, period of licence, fees charged and if the charges are approved by the board of trustees.
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First Published: Jul 03 2014 | 12:41 AM IST

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