Kandla Port mulls congestion charges

Come April 20, exporters and importers shipping passing cargoes through Kandla Port will have to shell out $100 per 20-foot container.

Feeder ships, which ferry cargoes from small port to main ports where bigger vessels are calling and vice versa, operating at Kandla Port will have to pay a congestion surcharge of $100 per laden container owing to severe berthing delays and low productivity at the port.

This congestion surcharge is going to impact all shipments to and from Colombo, Dubai and various ports in the Indian sub-continent. The container terminal is operated by ABG Heavy Industries-promoted ABG Kandla Container Terminal (ABGKCTL).

Shipping lines say the congestion is primarily due to poor infrastructure and the terminal operator was only able to carry out seven moves (unloading or loading a container) against the promised 20 moves per hour.

ABG had outbid Gammon India and United Liner Agencies to win the mandate to develop this terminal on a BOT (Build Operate Transfer) basis.

"The terminal has no backupyard to store containers. It has got only two mobile harbour cranes, three top lifters, 12 trailers and a yard space for just 3,500 20-foot containers. The turnaround of vessels has increased and in certain cases the vessels have stayed for five days, which is detrimental to vessel operators and exporters," said a shipping line executive.

Vessels, that were supposed to be cleared in 24 hours, took 66 to 106 hours. For instance, vessels such as Dubai Gold docked at Kandla Port on March 28 and was discharged on April 3.

When contacted, Saket Agarwal, Managing Director, ABG Heavy Industries, said: "The operational efficiency is improving at the port. The main reason for congestion is the delay in other ports. Consequential delays are affecting the port adversely."

Rufes Kumar, operations manager, ABGKCTL, admitted that there were teething problems during the initial days adding "Now we are addressing those by adding proper infrastructure."

"We have also requested feeder operators to withdraw the proposed congestion surcharge. We will be adding two Rubber Tyred Gantry Crane by May-end. To add, we will be adding more trailers shortly," Kumar added.

Meanwhile, shipping line associations are planning to take up the matter with the Ministry of Shipping saying, "The vessels are getting delayed by more than 24 hours to 36 hours since the operations have taken over by ABGKCTL."

ABG had taken over the operations in June 2006.