CHENNAI PORT: Stakeholders meet on surcharge Tuesday

By G Saravanan

Published in The New Indian Express, Chennai on November 8, 2011:

source:http://expressbuzz.com/cities/chennai/Stakeholders-meet-on-surcharge-Tuesday/330959.html

CHENNAI: Pushed to the wall by exim traders on the one side and by the shipping liners on the other in the ‘Chennai Trade Recovery’ (CTR) surcharge issue, the Chennai Port Trust management is organising a meeting of all stakeholders on Tuesday to solve the standoff amicably.

According to sources, besides the port trust’s top officials, stakeholders from the two container terminals — Chennai Container Terminal Limited (CCTL) and Chennai International Terminals Pvt Ltd (CITPL) — Chennai Custom House Agents’ Association  (CCHAA) and Chennai and Ennore Steamer Agents Association (CHENSAA) are expected to attend the meet.
While the exim traders and shipping liners have openly blamed that the Chennai Port management’s inefficiency in providing proper and speedy evacuation of containers from two of its terminals led to the imposition of CTR surcharge on importers and exporters since August, port authorities maintained that the issue is lingering between the traders and the shipping liners and they are not at all linked to it and blaming them for the impasse is totally wrong. Based on congestion in the port, feeder operators and shipping liners since August have imposed CTR surcharge on importers and exporters.

However, the port authorities, after being criticised by the traders and influential trade bodies for not taking any steps to resolve the CTR issue, have issued show-cause notices to shipping liners and asked them to explain why the surcharge was being collected despite congestion has been cleared weeks ago.

According to an official, the port has limited role (or power) in taking any action against the shipping liners, hence only the show-cause notices to them. Citing a classical example of shipping liners’ diktat, a port official seeking anonymity told Express that there is no congestion in the second terminal (CITPL) or any berthing delays. “Despite the prevailing conditions and vacant yard position, shipping liners are collecting CTR surcharge from the importers using the terminal,” the official said.

Minister for Shipping G K Vasan said the setting up of Port Regulatory Authority would only solve such problems at major ports.