MUMBAI/CHENNAI, July 5: The Madras Port Trust has starting clearing the congestion at Chennai port following a storm of protest from shipping lines and exporters. Matters had reached a head in the last week of June, when turnaround time touched 12 days and feeder vessels servicing the port started to levy a congestion surcharge of $100 per TEU.The berthing delay resulted in the feeder operators losing about $5,000 per day towards higher charges that they pay to the owners of the ship. A delay of even a week meant that the operator would lose $35,000 but in many cases the delay was much longer.
With shipping lines deciding to pass on the costs, exporters were the worst hit. According to an industry source, with freight rates falling sharply and costs climbing, the shipping lines are in no position to absorb the hike.
Also, they see the issue as one of gross inefficiency on part of port management for which they see no reason to pay. The worst hit have been the exporters. The Federation of Indian ExportOrganisations (FIEO) has estimated the loss to exports at $50,000. At a time when the garment and leather industry has been hit by greater competition from SE Asian countries, whose currencies have depreciated, the added cost has come as a blow to exporters based in Tirupur and in and around Chennai.
While a couple of feeder services had stopped calling on Chennai port, the shipping lines were also considering withdrawing their services to Madras Port until matters improved, especially since there is plenty of business from Thailand and Malaysia to both Europe and the US.
Docks manager of Madras Port Trust R Manivel attributed the congestion to a recent 10-day strike by tug masters. It was during this period that container vessels from Singapore and Colombo began to accumulate. However, according to industry sources, the strike only compounded the congestion problem which the port has faced for several months now.
The problem started when two container berths which had been leased to a private shippingline, came up for re-tendering. The port took its own time over the matter. Following a high court judgment asking the Madras Port Trust to speed up matters, the management decided to close off the berths, causing congestion in other parts of the port.
The port management is now taking concerted efforts to sharply bring down the turnaround time. Workers have been put to work round the clock to speed up turnaround time.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
