The Union government is considering bringing certain components of terminal handling charges (THC) levied in ports under the ambit of the Tariff Authority on Major Ports (TAMP). However, a decision will be taken on this only after discussions with all concerned parties.
"The surface transport and commerce ministries will discuss this issue with shippers, shipping lines, port trusts and all other parties concerned in the next round of meetings. We will examine the possibility of bringing some of the elements of THC under TAMP," said Nripendra Misra additional secretary ministry of commerce in a conversation with Business Standard.He, however, did not specify which elements of THC will be discussed.
THC is levied by shipping lines on shippers (exporters and importers) and is a perennial bone of contention between the two sides. The problem has defied solution for decades despite recommendations made by various committees.
The government has in the last few months launched a fresh initiative to find the solution to this problem.
This is being done as THC results in making India's exports costly. For instance, the THC at Mumbai port for factory stuffed export containers is Rs 4585 per TEU (twenty feet equivalent unit) and at Jawaharlal Nehru Port (JNP) is Rs 3740 per TEU.
"We have been informed that a large part of what is collected as THC by shipping lines is, in fact, paid to the port trusts for various services," Misra added.
THC is collected by shipping lines from shippers for various services which are rendered mostly within port trust premises like transportation, storage and ground rent. Ground rent is paid by the shipping lines to the port trusts.
A section of the shippers are sceptical about the entire exercise. "First, TAMP was not created like the telecom and insurance regulators by an Act of Parliament, but by an amendment to the Major Port Trusts Act, 1963.
Consequently, its powers are restricted. For quite sometime Western India Shippers Association (WISA) has been pressing on thhe basis of legal opinion for referring THC in Mumbai port atleast to TAMP.
In Mumbai port all the activities for which THC is collected is within the precincts of the port trust. Since, TAMP lacks adequate powers this has served as an excuse to various authorities for dragging their feet," said S R L Narasimhan, secretary, WISA.
He also maintians that the issue can be easily resolved without another round of meetings as enough groundwork has already been done in this direction by various committees.
Terminal handling charges are levied by shipping lines on shippers (exporters and importers) and is a perennial bone of contention between the two sides. These charges make India's exports costly
