CHENNAI: The Union Ministry of Shipping has directed all major ports across the country to waive off user charges of various segments of the trade for the entire lockdown period. But private container terminal operators in Chennai Port and a section of container freight station (CFS) operators are reluctant to follow the diktat of the shipping ministry.
“The lockdown measures and associated disruptions in logistics chains have impacted ports and port users. There has been a drop in imports and exports volume, delays in evacuation of cargo and cash flow issues resulting in inability of port users, concessionaires and other stakeholders to fulfil their obligations to port authorities and lenders,” the ministry wrote in its letter dated April 21, while directing all major ports to waive off various user charges for the lockdown period.
The waiver includes storage charges, lease rentals and license fee, penalties and remission of charges to public private partnership (PPP) concessionaires. In addition, ports are to allow interest free deferment of port charges for 60 days of marine dues and vessel-related charges for Indian coastal vessels among others. Further, ports are to allow extensions for completion of works for projects underway under PPP mode, besides waiver of penal charges. “Storage charges in a port are cascading. Today, although Customs are working, transporters are not. Hardly 1% of the trucks in India are plying on the roads now and how do we take the cargo out? So, waiver of storage charges will help. But the terminals operating under PPP model are refusing to give this concession. The Port of Singapore and Dubai Port have refused. The port has to threaten them to implement the ministry’s directive,” said a port user.
“The lockdown measures and associated disruptions in logistics chains have impacted ports and port users. There has been a drop in imports and exports volume, delays in evacuation of cargo and cash flow issues resulting in inability of port users, concessionaires and other stakeholders to fulfil their obligations to port authorities and lenders,” the ministry wrote in its letter dated April 21, while directing all major ports to waive off various user charges for the lockdown period.
The waiver includes storage charges, lease rentals and license fee, penalties and remission of charges to public private partnership (PPP) concessionaires. In addition, ports are to allow interest free deferment of port charges for 60 days of marine dues and vessel-related charges for Indian coastal vessels among others. Further, ports are to allow extensions for completion of works for projects underway under PPP mode, besides waiver of penal charges. “Storage charges in a port are cascading. Today, although Customs are working, transporters are not. Hardly 1% of the trucks in India are plying on the roads now and how do we take the cargo out? So, waiver of storage charges will help. But the terminals operating under PPP model are refusing to give this concession. The Port of Singapore and Dubai Port have refused. The port has to threaten them to implement the ministry’s directive,” said a port user.
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