IPPTA Urges Indian Railways To Roll Back 10% Busy Season Charge On Container Traffic

Mumbai, Oct 6 (KNN) The Indian Private Ports & Terminals Association (IPPTA) have shown its resentment against the Indian Railways’ decision to impose a 10 per cent busy season charge on container traffic.

In a letter to Sushil Kumar Singh, Joint Secretary, Ministry of Ports, Shipping, and Waterways, the association president Kevin D’Souza pointed out that that the extra levy would lead to conversion of container traffic from rail to road.

“Increase in road movement can adversely impact the overall dwell time of import cargo at the terminals/ports thereby increasing the logistics cost,” he said.

D’Souza highlighted that the slower evacuation of import containers from terminals/ports can also lead to congestion which can further increase the overall logistics cost. He urged the Ministry of Ports, Shipping, and Waterways to take up the matter with the Ministry of Railways for “reconsidering” the levy on container traffic.

The new levy, according to IPPTA, will raise the cost of haulage paid by container train operators to the Indian Railways. “As this increase is in the form of a surcharge, all container train operators are likely to add this to their customer levies with immediate effect as well,” D’Souza said.

Infrastructure at ports and terminals is being geared towards increasing the rail coefficient, per the National Logistics Policy. “A step like this could act detrimental to the initiative and investments”, he said.

Further, conversion of container traffic from rail to road will adversely impact the Co2 emission and our commitment towards carbon neutral,” D’Souza added.

The extra levy will raise the logistics costs for the Indian industry reeling under a slower demand from western nations, say industry sources.

The container train operators under the banner of the Association of Container Train Operators (ACTO) have opposed the 10 percent Busy Season Charge, listing the impact it will have on India's export-import trade in general and the container industry in particular.

Singh, an officer of the Indian Railway Service of Mechanical Engineers (IRSME), is on deputation to the Ministry of Ports, Shipping, and Waterways.  (KNN Bureau)