DP World mulls 3.5% hike in Kochi terminal charges
The global slump in the shipping sector and decline in cargo doesn’t appear to be acting as a deterrent for DP World in increasing tariffs at the Kochi port from the New Year, reported The Hindu.
The company is gearing up for a 3.48 per cent hike in terminal handling charges, as approved by the Tariff Authority for Major Ports (TAMP), from January 1.
India Gateway Terminal, which operates the Vallarpadam ICTT, has already informed shipping lines and the trade, citing that the rate increase is already part of the tariff set up in 2010.
At a time when the port management is making all out efforts to attract ships and business volumes, the shipping fraternity in Kochi feels that the decision of the terminal operator has come at the most inappropriate time.
They point out that shipping lines and exporters are facing severe hardships on account of the European and the US recession.
The trade at Kochi suggested that the terminal operator should retain the current tariff for one more year till the market is ready to absorb another cost escalation. Last year also, the company had made a similar hike in tariffs.
A senior port official said that handling of containers at the port has witnessed a drop, especially for transhipment cargo, this year due to various reasons connected with the shipping sector.
There has been a two percent drop in container arrivals to Vallarpadam terminal.
During April to November, the port handled 230,000 TEUs against 238,000 TEUs in the corresponding period last year.
The shipping trade should be given one month notice of such an increase so as to get sufficient time to file the revised tariff with various agencies in the US and Europe, the sources in the shipping fraternity said.
Meanwhile sources in the marine industry have requested the terminal operator to wait for at least two years for a hike in terminal handling charges as the seafood export sector is facing a dip in quantity terms.
There has been a 16 per cent drop vis-a-vis last year due to world economic recession, he added.