A single judge bench of the Kerala High Court today ordered the chairman of Cochin Port Trust (CPT) to conduct an enquiry into the alleged unilateral hike in terminal handling charges at the International Container Transshipment Terminal (ICTT).
Considering a petition filed by the Seafood Exporters Association of India (SEAI), Justice PN Raveendran directed the chairman to take immediate remedial measures on the issue.
The court also said the port should not collect charges above the rates fixed by the Tariff Authority of Major Ports (TAMP) from the users. This should be ensured by CPT and its chairman.
The bench also issued notices to CPT, TAMP, DP World, Steamer Agents Association and some of the individual steamer agents to file their counter affidavits.
A sharp increase in THC has badly hit the exim business of Kerala and other southern states. According to Anwar Hashim, president, SEAI, the increase in THC could be justified if the exporters were actually getting the benefits of an international terminal from the ICTT.
Because of the absence of required draft at the terminal, mother ships are still evading Kochi and it is working just as a feeder port even after five months of commissioning.
According to exporters, the TAMP-approved terminal handling charges at the port are Rs 8,600 per container whereas the steamer agents are charging Rs 18,500.
Hashim alleged that working like a cartel, the shipping lines are collecting exorbitantly high charges from the exporters and importers. The terminal handling charges are levied on shippers (exporters / importers) by the shipping lines for the costs borne by them at the port of shipment or destination to move / handle containers.
TAMP periodically fixes the rates in consultation with the port users. Once the charges are fixed, service providers are not authorised to deviate from it.
Exporters have also been paying the shipping lines Rs 1,000 to Rs 3,500 for providing the bill of lading. The bill of lading is a receipt given by the carrier after accepting the goods for shipment. It is to be provided like a railway receipt or transport receipt. Even the Bill of Lading Act and Carriage of Goods Act do not mention that charges can be levied for providing the receipt.
SEAI said that earlier there were no charges for issuing this receipt. Around 5-6 years back, the service providers started charging a nominal fee of Rs 50-200 for the receipt. Now this has gone as high as Rs 3,500. Several rounds of discussions were held between the port users. CPT and the Steamer Agents Association in order to sort out these issues, but consensus could not be evolved.
Describing their stand on the issue, Santhosh Kumar, president, Steamer Agents Association, said TAMP had approved the increase in THC when the terminal was shifted to Vallarapadam.
The charges for electricity for reefer containers is now being charged from the Shipping Lines and this is being charged as THC from the shippers. Earlier, this was charged directly from the shippers by DP World, the operators of Rajiv Gandhi Container Terminal.
The power charges come to around Rs 8,000 per reefer container as DP World had enhanced the tariffs. The charges for bill of lading have also been enhanced due to increase in office expenses, he said.
