Vizag port awaits nod for hiking port charges

Visakhapatnam port has proposed an increase in port charges between five and fifteen per cent from the next financial year. The port, which mooted this proposal a few weeks back is waiting for a nod from the Tariff Authority for Major Ports (TAMP) to effect the hike.

"The last time that the port hiked charges was in 2001. Normally, the rates are revised every two years, but this time the port has proposed a revision after a gap of two years and nine months, " K S D Dattu Raju, traffic manager of Visakhapatnam Port, told Business Standard.

The port collects port dues, pilotage charges, berth-hiring charges under vessel related charges and warfage charges, handling charges, ground rentals under cargo related charges from the traders. The port has proposed to hike all these charges from five to 15 per cent.

But the port is anticipating several modifications by to its proposed rates from TAMP. "Actually we want to implement these new charges form 1 April, but it will take another two to three months to implement as the TAMP will take some time to give its approval. TAMP will first gather the local trade views on proposed hikes," K V Gupta, financial advisor and chief accounts officer, Visakhapatnam Port, told Business Standard.

During the last fiscal, the Vizag port income touched around Rs 430 crore. This fiscal it expects a marginal increase in revenue, and another Rs 20-25 crore per year once the proposed new charges are implemented.

However, despite the heavy fall in thermal coal, coking coal and food grains handling, the Vizag port is expecting additional cargo of about 15 lakh tonnes during the current fiscal when compared to last fiscal. "During the last fiscal, Vizag port handled 460 lakh tonnes of cargo and this year we expect to handle at least 475 lakh tonnes. We will cross last year's figure by 21 March," Dattu Raju said.

During the current year, the port registered a shortfall by around 16 lakh tonnes in thermal coal, coking coal and foodgrains handling when compared to last fiscal.