In Port News 22/02/2016
Port dues
Chennai port
Annual saving
Source: The Hindu Business Line
Car carrier IDM Symex became the first ship in India to carry automobiles through coastal shipping to Pipavav from Chennai on February 4. But, high port dues make it quite expensive, says the vessel owner Mandeep S Tiwana.
For Roll on-Roll off vessels the port dues are calculated based on Gross Registered Tonnage (GRT).
However, if the rate is based on Dead Weight Tonne (DWT) – vessel’s capacity in weight excluding ship’s weight – or the number of units on board, the port dues could reduce to one-third.
The ports need to adjust the rates to suit the trade, said Tiwana. The GRT for normal vessel is around 66 per cent of DWT but on Ro-Ro vessels, the GRT is at times 400 per cent more then DWT.
IDM Symex’s maiden trip from Chennai to Pipavav cost around ₹1.50 crore. Of this, the biggest component was ₹37 lakh towards port charge at both ends; followed by the ship’s running and maintenance cost, including a crew wage of ₹33 lakh; fuel cost ₹27 lakh and insurance ₹4.28 lakh, he said.
The shippers pay only for wharfage, while fees like pilotage and berth hire charge is borne by the vessel owner. Internationally, other ports make difference on the tariff as in Antwerp where the tanker pays 0.36 cents per GRT while Ro-Ro pays 0.17 cents per GRT, he said. In Indian ports dues for specialised vessels like a car carriers, which stays at the port for around 12 hours, is among the highest in the world.
“If the charges are low, we could drop cars and pick up vehicles at ports like Mumbai and Kochi,” said the master mariner who lives in Singapore.
“Coastal shipping complements well with road and rail for better inter-modal transport. We are not blaming port tariff but highlighting the fact that if we treat all vessels on one scale then we will not go beyond dry bulk or wet trade in our country,” he said.
Hyundai experimented with Symex to use coastal shipping as an alternative mode of transport.
The Chennai Port Trust offered wharfage at an economical rate of ₹500 per unit as against the actual rate of ₹1,200, he said.
“The ChPT surprised me with their support. However, all the stakeholders are not working as a team to make the Ro-Ro coastal service a success. In shipping, speed is the key,” he said.
To breakeven is the responsibility of the owners but there should be level playing field if it has to go through the start-up stage by giving concessions.
In certain countries, direct cash incentive is offered to bring business, he said. According to government estimates, diversion of 5 per cent of cargo transportation to a water-borne mode can result in an annual saving of ₹2,000 crore and a reduction of 6 per cent in harmful chemicals and pollutants.
Despite a coastline of 7,517 km, the share of coastal shipping in India is only around 15 per cent of the local freight as against 43 per cent in the European Union. Commodities carried by coastal shipping include thermal coal, crude oil, iron ore and cement, and this has not changed over the years.
Some of the prominent coastal shipping routes are Chennai to Chittagong/Yangon through Haldia/Kolkata, south-bound cargo from Pipavav/Mundra to Kochi; coal from Kolkata to Kandla and Bhavnagar and inland and coastal movement in and around Goa.
Source: The Hindu Business Line
