Monday, 13 January 2014 00:00
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Kochi, (The New Indian Express): The exporters/importers using the International Container Transhipment Terminal (ICTT) will have to pay more for services at the terminal from this month with DP World, the operator of the terminal, deciding to introduce a 3% hike in Terminal Handling Charges (THC).
THC is levied on shippers (exporters/importers) by shipping lines for the costs borne by them at the port of shipment or destination to move/handle containers.
This could be a blow to the ICTT, which already has the label of being a high-cost port. Commissioned in February 2011, the first and the only international transhipment terminal, ICTT has not handled cargo to its capacity so far.
It may be recalled that high charges have been one of the prime reasons cited by shipping lines for not sending cargo to Kochi. Charges at Cochin Port and Vallarpadam Terminal are already much higher than any other port.
DP World officials confirmed the decision to hike the charges. “The hike in charges at 3% is nominal and is being introduced in accordance with the conditions stipulated by the Tariff Authority for Major Ports (TAMP).
DP World has the permission to receive terminal handling charges every year,” said a top-level official of the company. He added that 3% increase would cause a hike of 150-160/TEU.
Cochin Chamber of Commerce and Industry president C.P. Mammen urged the DP World management to desist from implementing the proposed tariff increase keeping in mind the interests of Exim Trade.
“The Dollar-Rupee exchange rate fluctuations in recent months have already played havoc with businesses and their projections. The Exim trade here has been badly affected and any increase in rates now will only add to the burden,” Mammen added.
