The last revision in rates was made in 1979. Despite a substantial increase in operational costs, the port has not revised the rates except in 1991 when the port rationalised its various scales.

"We could afford to keep the rates low as there were no fresh investments made by the port," said a port official, adding that the matter has been referred to the Tariff Authority for Major Ports (TAMP). TAMP is a independent authority empowered under the Major Ports Trusts Act, 1963 to sanction tariff rates for all major ports.

The tariff authority will hold a meeting with aggrieved barge owners next week. The licence fee for barge owners has been increased two-and-half times.

"There are lots of anomalies in the new rates. Some of these are chargedwithout even any offering," alleged a barge owner "If we compare the proposed rates with the port's poor infrastructure, the rates will be astronomical," he added.

The barge owners, under the aegis of the Mumbai Barge Owners Association, met on Tuesday to oppose the proposed increase in rates. According to sources, the association is planning to expand its membership to induct barge owners from Gujarat so that the issue is opposed collectively before TAMP. The Gujarat Maritime Board has also reportedly increased the rates recently.

The wharfage charges for cargo handled at Mumbai Ports bunders, including Hay Bunder, Haji Bunder, Malet Bunder and New Ferry Wharf -except the fish jetty, are divided into three types.

The proposed wharfage for the hazardous (export) cargo will be Rs 10 per tonne. It is double for import cargo. The non-hazardous (export) cargo will be charged Rs 6 per tonne and for imported non-hazardous cargo, the wharfage will be Rs 12. The rate for salt will be Rs 3 per tonne.

Demurragecharges for hazardous (import) cargo will be Rs 16 per tonne daily or part thereof. The rates are half for export cargo. For non-hazardous cargo, demurrage will be charged at Rs 4 and Rs 2 for import and export cargo.

As regards licence fees, the rates for barges have been revised upwards from Rs 10 per GRT (gross registered tonnage) to Rs 35/GRT, a 250 per cent increase. The fee is payable monthly.

The fee for fishing vessels and trawlers has been increased from Rs 10/GRT to Rs 15 GRT. Licence fee for vessels using new ferry and other passenger boats has been doubled to Rs 40/GRT.

For the passenger boats using other jetties of the MBPT, the new licence fee will be Rs 15/GRT (Rs 10/GRT), for catamarans and hovercrafts the increase is to Rs 25/GRT (Rs 10/GRT) and for pleasure crafts, the new fee will be Rs 30/GRT.

INSIGHT
A Catch-22 situation

Mumbai Port Trust had little alternative but to increase the wharfage and demurrage charges considering the huge funds required by it formodernisation. But as there are hardly any immediate benefits to the users, they may be justified in opposing the hike. Announcement of the hike could not have been at a worse time. Cargo handling on the port has dropped from 35 million tonne in 1995-96 to 32 million tonnes in 1997-98. This decline has been due to the fact that better facilities are available at JNPT. With new ports (specially private sector) like Gujarat Pipavav, Adani Ports and P&O Port coming up in close vicinity, and much better facilities, the higher charges will drive away traffic to these ports. In short, the hike has put the Mumbai Port Trust in a Catch-22 situation.