Shipping lines likely to impose surcharge at JN Port

MUMBAI: Agitated about frequent draught restrictions imposed by Jawaharlal Nehru Port (JNP), container shipping lines in Mumbai have decided to impose a surcharge in order to recover the cost of providing capacity that goes unutilised as a result of the restrictions. The amount of the surcharge, yet to be fixed, will depend on the losses suffered if and when the restrictions get imposed.

Julian Bevis, chairman of Container Shipping Lines’ Association (CSLA), in a communiqué dated May 22, 2007 informed the ministries of shipping and commerce as well as the port trust management the decision of the lines in this regard. He has drawn their attention to several occasions when the issue of the draught in the channel, which gives ships access to the terminals at Nhava Sheva, had been raised in various forums, both at the ministerial level and with the port.

Mr Bevis said, “Last year there was a repetition of the situation where it necessitated the draught restrictions placed by JNPT management. It seems nothing has been done to undertake dredging to ensure adequate draught in the channel.

The lines, however, hope that such a course of action will not be necessary during the coming monsoon. Nonetheless, they feel that they must convey to you that if draught restrictions are applied again, they need to reserve the position to apply an additional charge to recover the cost of providing capacity which cannot be used as a consequence of the draught restriction.”

When contacted SS Hussain, chairman of JNPT said, “The lines are not justified in imposing any such surcharge. There is already a four-year maintenance dredging contract for the approach channel within Mumbai Port and JNPT. Any siltation that may take place is being attended to. So far we have no news of any unusual levels of siltation taking place. However, this is a technical issue and can be considered only after all aspects are attended to.”

A lines spokesman said, “The volumes into and out of Nhava Sheva have now increased to such an extent that any draught restrictions will have a material effect upon the lines’ lifting capability. Therefore, some charge will certainly be necessary if limitations are applied.”

On many occasions when the port trust imposed draught restrictions, lines had to lighten their vessels before bringing them to berthing.

In the past few months there have been instances when ships could not enter JNP because of draught restriction and, accordingly, boxes have had to be dropped at Dubai and also at Colombo, leading to additional costs. If the surcharge is imposed at JNPT, it will be the first of its kind at the port.