The terminal operator, DP World had approached the Tariff Authority of Major Ports (TAMP) for effecting a 14 per cent hike in the rate. The present charge is Rs 2,500 per twenty equivalent unit (TEU).
However, the TAMP approved only a 10 per cent increase. The revision is expected to come into effect from August 1 and will be valid till December 31, 2009.
While the operator said the hike in the rate was based on the return on capital employed, inflation, efficiency gains and prepayments, users termed the hike "unjustified". Ship operators said since CCTL's traffic had grown by nearly 30 per cent every year for the last two-three years, the handling charge ought to go down.
The Madras Chamber of Commerce said a rate revision on account of inflation would contribute to inflationary tendencies on account of the increased cost of service(s), leading to a vicious cycle.
The claim by CCTL regarding their efficiency exercise on the service users is totally unacceptable, say shipping companies. The entire trading community had to accept the revised procedures for accepting containers from off-dock container freight station out of necessity and compulsions which are beyond the users' control.
The Chennai and Ennore Ports Steamer Agents Association (CEPSAA) at CCTL is facing constraints in handling more volumes due to lack of additional equipment and yard space.
CEPSAA members said the rate-hike proposal was an admission of having reached the saturation level and the only way to increase profitability for the company was by enhancing the tariff, which he said was unjustified.
