Kochi port extending concession given to mainline vessels

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

29 Dec 2007

The Cochin Port Trust has decided to extend the concession of 50 per cent on all vessel-related charges granted to all mainline vessels with international ports of call on a trial basis up to March 2008 following the request from shipping lines. On a representation made by Pacific International Lines, the Board of Trustees of the port approved the request of the company to extend the concession of 50 per cent on all vessel-related charges to all the mainline container vessels with international ports of call in any of the ports in America, Europe, Africa, Australia and in China. Besides, the eligibility criteria of minimum 25,000 GRT and 2,500 TEU capacity granted for mainline vessels has also been withdrawn. Earlier, the Port Trust Board had offered a 50 per cent discount on vessel-related charges to mainline vessels with effect from September 1, 2006. This concession will be applicable to all container vessels of GRT 25,000 and above, having capacity of 2,500 TEUs and above and connecting ports in the US, Europe or China. However, the feeder operators in Kochi protested against the preferential treatment given to mainline vessels by the port management, saying that they are also playing a major role in developing the port to the outside world. Feeder operators are operating in the port for the last 20 years. The benefits given to mainline vessels should be extended to feeder vessels to provide a level playing field, a senior official in a feeder operating company said. According to port officials, servicing a mainline vessel is the dream of every container port in this part of the world. With a draft of 12.5 metres at the Rajiv Gandhi Container Terminal and a substantial rebate of 50 per cent in the marine charges for mainline vessels, the dream is expected to be realised soon. The discount scheme will directly benefit the mainline operators by way of big savings in vessel related charges and extra steaming time due to the ideal geographic location of Kochi on the main sea route. With mainline vessels calling at Kochi, the need for transhipment of containers at hub ports in neighbouring countries could be eliminated. Direct calls will also help exporters and importers efficiently plan their ‘just in time’ shipments by avoiding delays or rollover of containers at the hub ports, the officials said.A mainline vessel call to Kochi is also more logical in view of the proximity of the hinterland of Coimbatore, Pollachi, Tirupur, Erode, Karur, Dindigul and Namakkal.