Mundra port ups waterfront royalty by 20%

Operations at Mundra International Container Terminal (MICT), a leading non-major port in Gujarat, are set to be dearer, as it has hiked waterfront royalty (WFR) rates by 20 per cent.

As a result of the hike, container shipping lines will have to pay WFR rates of Rs 120 per 20 ft loaded containers and Rs 180 for 40 ft containers. Royalty for a 20 ft empty container is Rs 30, while it is Rs 45 for a 40 ft container.

Industry analysts pointed out that this increase will incur additional costs to shipping lines, which will, in turn, be transferred to shippers. WFR is a charge levied by Gujarat Maritime Board (GMB), a state-run body, on ports coming under its management for using the waterfront of Gujarat coast.

MICT, which operates container terminal at Mundra Port, handles over 50,000 twenty ft container per month. Irked by the rise in WFR, representatives of shipping lines said: "Waterfront is used by a terminal. In that case, the WFR should be absorbed by a terminal. Moreover, other ports under GMB are not charging this."

"There is no tariff authority for minor ports unlike Tariff Authority for Major Ports (TAMP). More levies will come in future if there is no tariff regulator," they added.

When contacted, MICT senior executives said the terminal has nothing to do with WFR as royalty collected from the lines directly go to GMB according to the concession agreement signed between Gujarat Adani Ports (GAPL) and GMB.

According to the existing guidelines of GMB, the WFR can be increased every three years. MICT has also said that it is reserving the right to revise the WFR in line with any subsequent change in GMB tariff.