Chennai Port to waive Port Rail & Terminal Handling charges

The waiver, applicable for Chennai–Bengaluru segment, will be valid from Nov 16 through March 31, 2017

Chennai: In a bid to ease congestion on the road and to increase rail share of container traffic between Chennai and Bengaluru, the Chennai Port Trust on Friday decided to extend waiver of port rail charges and terminal handling charges to companies. Chennai Port will waive port-rail charges between Chennai and Bengaluru to increase share of container rail service and ease road congestion, which has been a major factor affecting the port.

The waiver will be ₹125 a twenty foot equivalent unit (TEU) for haulage and ₹22.97 a tonne as terminal handling charge to Container Corporation of India (CONCOR) for its container train operations on the Chennai-Bengaluru sector. Chennai Port Trust (CPT) traffic authorities said that this waiver will come into effect from the date of issuance of trade notice by CONCOR, indicating their proportional reduction in their rail tariff and valid up to March 31, 2017.

The CPT has announced a waiver from March 2016 for three months on a trial basis. Based on the inputs, similar waiver has been announced towards haulage and terminal handling charges for the Bengaluru sector during this period.

Accordingly, CPT will extend this waiver to all the container train operators. The move is expected to reduce the carbon footprint, road congestion and delays. The waiver will take effect on November 16 and will be valid till March 31, 2017.

The minimum reduction in rail charges will be around ₹450 a TEU, says a press release from ChPT. According to a study by Boston Consulting Group, there is a potential to target 2.5 lakh TEUs for conversion from road to rail in the long term at the Chennai port. At present, out of total container handling, nearly 93 per cent moves by road and the rest by rail, said a senior ChPT official.

In March, on a trial basis ChPT announced a similar concession for three months with Concor announcing a waiver of ₹160 a TEU (haulage) and ₹22.97 a tonne (terminal handling charge) in the Chennai-Bengaluru sector. The cost reduction was passed on to the trade. Similarly, the cost reduction will be passed on this time too, the official said.

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