Kpt To Rationalise Kolkata, Haldia Dock Charges

The massive differences between the existing vessel-related charges at Haldia Dock Complex (HDC) and Kolkata Dock System (KDS) have forced the Kolkata Port Trust to go in for immediate rationalisation of the tariff structure.

Under the present structure of rates, introduced on May 4, the KDS has been placed in a disadvantageous position vis-a-vis the HDC.

The Board of Trustees of KPT is scheduled to pass a resolution in its next board meeting in June proposing rationalisation of rates. This will then be submitted to the Tariff Authority of Major Ports (TAMP), the regulatory body of Major Ports in India.

Following the KPT appeal, TAMP is expected to issue a fresh order notifying the revision of the earlier rates. The differences in rates will not be more than 10 per cent now, sources added.

The rates introduced on May 4 drew criticism from shippers and shipping lines which argued that the May revision would make KDS unviable compared to HDC.

Some quarters also alleged that it was a devious means to reduce KDC to an inland water port as foreign vessels would prefer HDC to KDS.

At present, Haldia carries 75 per cent of the total cargo handled by KPT. One excuse given for the discrepancy was that the special rate for KDS was to help the ailing dock system in Kolkata for meeting liability accrued on account of salary, wages and retirement benefit.

The rates were proposed by the Board of Trustees at its eighth special general meeting on July 14, 2000, and approved by TAMP on March 28, 2001.

However, there were gaps between what KPT proposed and what TAMP approved. For instance, KPT proposed 45 per cent flat increase for berth hiring charges for KDS and HDC.

Instead, TAMP approved 45.85 per cent and 215.77 per cent hike for foreign and coastal vessels respectively as compared to 20 per cent flat reduction for HDC for both foreign and coastal vessels.

Similarly, while pilotage for foreign and coastal vessels for KDS were increased 75.89 per cent and 208.33 per cent as against a flat 25 per cent hike proposed by KPT, no revision was made for HDC.

Due to the revision of rates, net additional income of Rs 67.39 crore (for KDS Rs 44.95 lakh and HDC Rs 22.43 crore) on a projected cargo of 33 million tonne next year was expected.