Port tariffs for coastal ships to be cut 40%
Move to allow shipping to compete with road, rail transport
| The government is slashing port tariffs by up to 40 per cent for ships sailing in coastal waters to enable them to compete with rail and road transporters. |
| The move aims at rescuing the coastal shipping sector, which has been sinking for the past 2-3 years. |
| To bring about the changes, the shipping ministry will issue instructions to the Tariff Authority for Major Ports (TAMP) to lower vessel and cargo-related charges. The charges will also be de-linked from the fluctuations in foreign currency. |
| In 2000-01, coastal cargo formed 31 per cent of the total traffic at the country's major ports. It fell to 28.06 per cent in 2001-02 and touched a low of 26.8 per cent during the last financial year. |
| Government officials, however, admit that the moves may have limited impact because cargo-related charges are fixed by private operators and freight forwarders, and do not come under the TAMP. |
| Controlling cargo-related charges is possible only if a regulatory body is set up to monitor terminal handling charges levied by private agencies. |
| Simultaneously, the government is hoping to boost the amount of cargo carried on inland waterways. It is holding talks with the Food Corporation of India to divert a part of the 3.5 million tonnes moved to Bihar and West Bengal to inland waterways. |
| Currently, most of this is moved by rail. The Central Inland Water Transport Corporation also plans to carry 50,000 tonnes of cargo with Patna as the focal point through the recently launched fixed schedule services on the National Waterway I. |
Hoping for a smooth sail
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First Published: Feb 13 2004 | 12:00 AM IST