In Port News 20/03/2015
Fears of possible diversion of cargo from Kochi and apprehension among stakeholders have stopped the launch of the direct billing system at the container transshipment terminal here. The port authority announced the introduction of the new billing system in October.
A letter from Port Trust Chairman to the terminal operator and steamer agents here on Monday said the decision to introduce the new billing system was meant to reduce charges at the ICTT here, which was higher than that in other ports.
The new billing system was also meant to bring about transparency in the charges being levied.
The Chairman’s letter went on to say that the decision to introduce the new billing system was taken in the belief that the terms of delivery in the BL (Bill of Lading) would remain the same. But it was found that terms of delivery were being changed by several shipping lines.
The other stakeholders, who supported the introduction of the direct billing system, have now expressed apprehensions “regarding increase in charges by other service providers” as well as deposits to be maintained with the ICTT and the procedural hassles arising from the change in the billing pattern, the Chairman said in his letter.
He also said there were fears that the change in the terms of delivery may lead to diversion of cargo from Kochi to other ports. Because of these reasons, the present billing system would continue subject to provisions that only the terminal operator was authorised to levy terminal handling charges and other service providers should not use this “nomenclature” while billing for other services.
Service providers other than the terminal operator should show their charges separately from the terminal handling charges in a transparent manner. These terms have been set by Kerala High Court in the order of July 2011.
The Chairman’s letter also said that incidence of double service tax should be avoided and that energy and monitoring charges for reefer containers should be actuals, billed directly to the shipper or consignee by the terminal operator.
