Trade Resources Policy & Opinion The Kolkata Port Trust Is Now Planning to Impose Royalty on Cargo Service Providers

The Kolkata Port Trust Is Now Planning to Impose Royalty on Cargo Service Providers

Business Standard reported that after deciding to claim damages from the Haldia Bulk Terminals, the Kolkata Port Trust is now planning to impose royalty on cargo service providers at the Haldia Dock Complex.

A senior official said that with this move, the port authorities hope to overcome the losses it incurred due to the exit of ABG Haldia Bulk Terminals from berth No 2 and 8 at HDC on October 28th.

The Kolkata Port Trust has also sought legal opinion on the matter before it sends the proposal to the shipping ministry for their consent, as mandated by the Major Port Trusts Act.

Mr K Mohandas former shipping secretary said that “All tariffs have to be decided by the Tariff Authority for Major Ports. Kolkata has had a major problem of expensive cargo handling due to the port’s riverine nature.”

The Kolkata Port Trust is in a tough financial situation with increase in expenditure and fall in cargo volumes due to economic slowdown. Its liability towards the pension fund alone is around INR 3,200 crore.

Currently, the handling agents do not have to pay any royalty to the Kolkata Port Trust, for the cargo handled by them. Without the consent of TAMP and the Central government, the Kolkata Port Trust cannot go ahead with its plan to levy any such charge.

Besides, the Kolkata Port Trust board is also likely to negotiate the issue of retrenched workforce at HBT operated berths with the handling agents.

Source: http://www.steelguru.com/indian_news/Kolkata_Port_Trust_to_impose_royalty_on_cargo_handlers/296932.html
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Kolkata Port Trust to impose royalty on cargo handlers
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