Chennai, June 2: High port charges at Chennai led to the diversion of cargo worth Rs 500 crore to Vizag, Kochi and Tuticorin ports during the last fiscal.

The Central Board of Excise and Customs had fixed a target of Rs 5,700 crore for Chennai port from Customs collection. The port was able to reach only about Rs 5,200 crore for 1996-97.

According to shipping industry sources, Chennai port charges, compared to other major ports, barring Mumbai, were on the higher side.

Back-of-the-envelope figures show Vizag charges are lower by about 40 per cent while Tuticorin rates are 30 per cent less than Chennai. Kandla Port charges are roughly 50 per cent lower. Mumbai Port rates are the highest with Chennai a close second.

Trade sources feel that port rates in Mumbai are justifiable given the higher cost index the sources added.

Chennai's loss is proving to be the southern ports' gain. Tuticorin is a case in point having notched a 25 per cent rise in cargo handled last year.

Containers are required to reach Chennai port 48 hours before the scheduled arrival of the vessel. Tuticorin, which does not impose any such restrictions, is fast becoming a favourite with shippers. In fact, Tuticorin is attracting cargo from Bangalore and Tirupur which is ordinarily despatched from Madras.

The latest move by the Chennai Port Trust to cut container time at the container freight station (CFS) has miffed the trade.

Earlier, the port had a 10-day ceiling for keeping containers at the port CFS. Now, containers are transported to freight stations situated about 15 to 20 km away from the port. This adds to the delay in movement of cargo, C&F agents say. Moreover, the trade feels that the existing port facilities are inadequate and need to be beefed up.

Port sources blame the centre for the step-motherly treatment meted out to the Chennai port. Many of the expansion projects taken up over the past three years are hanging fire and others have been stalled.

For instance, the extension of the container terminal by 290 meters with ADB funding was taken up by the port more than two years. Also, the much-talked about Rs 2,000-crore outer harbour project may never see the light of the day, port officials fear.

Apart from this, the Chennai port heads are being changed at frequent intervals.

Steamer agents say, ``the diversion of cargo to other ports is leaving us to watch out business fade into the horizon.'' If no action is taken, it could trigger off an exodus of shipping, steamer and C&F agents to neighbouring port cities, one analyst felt.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.