MUMBAI, January 30: Exports through the Jawaharlal Nehru Port Trust (JNPT) at Nhava Sheva will come to a standstill from February 1 in protest against the suspension of the operations at the port's buffer yard announced by the port management.Several trade organisations including the Indian Merchants' Chamber (IMC), All India Importers and Exporters Association (AIIEA), Western India Shippers Association (WISA) and the Bombay Customs House Agents Association (BCHAA) have given a port-boycott call on Thursday.
According to BCHHA president Mark S Fernandes, chief manager (operations) of the port has issued a public notice (no. 179) on January 21 announcing stoppage in receiving factory stuffed container shipments at the buffer yard.
The port authorities suspended the operations at buffer yard which in turn resulted in the stoppage in receipt of the containerised export cargo, sources claimed.
The controversial notice now issued by the port authorities was preceded by the earlier notice no. 1940 of July30, 1997 when the operation at the buffer yard was suspended leading to confrontation between the port management and the export community.
The notice issued on January 21 is apparently at the instance of the Tariff Authority for Major Ports (TAMP). The buffer yard at JNPT is managed by the Central Warehousing Corporation (CWC). Sources allege that the CWC's handling of the buffer yard was virtually anti-trade and allegedly a breeding ground for corruption.
Fernandes said the suspension of buffer yard facility at JNPT would result in the factory stuffed export containers being detained on the public road outside the port pending processing of export shipping bills through customs.
Over one lakh factory stuffed export containers are loaded on ships through JNPT annually, Fernandes said. He alleged that the port authorities were being swayed by the shipping lines at the cost of the exporters.
This in turn would force the exporting community to cough up an additional sum of Rs 30 crore annually foreffecting exports through JNPT, Fernandes said. He claimed that it was an international practice to receive factory stuffed containersied export cargo at port's backup yard pending processing of various formalities.
Once the container is brought to the port, it is the responsibility of the shipping companies to arrange for its movement within the port area before being loaded on to the ship. They recover terminal handling charges for doing this job.
Fernandes alleged that shipping companies operating at JNPT were refusing to handle the containers received at the buffer yard though they recovered the costs.
He said the authorities set up the buffer yard at the port at a cost of Rs 4.66 crore. Before this, the import containers were being off loaded within the port area causing congestion at the container yard within the port. This also forced the trade to bear huge amounts toward container detention charges. Fernandes said the shipping lines and the steamer agents were earning a hefty Rs 56 crore perannum through container detention charges from importers.
In August last year, the port authorities allegedly succumbing to the demands of the steamer agents converted the newly paved yard into a export buffer yard as against the original plan of setting up an import buffer yard. While doing so, they did not bother to talk to the trade associations, even for courtesy's sake.
The newly created yard was then used solely for receiving export containers instead of moving the import cargo to the container freight station (CFS). This put an end to the prevailing practice of export containers being received at the container yard within the port which is closer to the loading area.
However, this resulted in an additional burden of Rs 30 crore per annum for the exporting community. The sole beneficiaries of this amount were the shipping lines and the CWC.
The shipping lines and steamer agents said to have refused to accept the trade's request to collect the expenses incurred at the buffer yard alongwith thecollection of freight.
Added to this, the port authorities refused to revert to the old system quo ante, which can permit the receipt of the factory stuffed export containers directly to the port at the container terminal within the premises till the stay order on the TAMP's directive is being obtained.
The trade associations have collectively decided to stop sending their export cargo for loading on to ships at JNPT, which in turn will be directed to other ports from February 1 when the buffer yard facility stands revoked.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
