The Kochi Port has constituted a committee to study and compare the rates including overhead charges prevailing at the neighbouring ports in Tuticorin and New Mangalore ports.
The committee comprising Trustees and port officials will also offer recommendations to improve the competitiveness of the port. The formation of the committee comes in the wake of a comprehensive study, which pointed out that the port did not enjoy a competitive advantage vis-a-vis other south Indian major ports on cost or service parameters.
The Board of Trustees, which met recently, pointed out that critical deficiencies such as storage constraints, poor quality of services should be addressed and corrective measures initiated to regain competitive advantage for the port.
Wharfage of coal
The board also resolved to implement the proposal for reduction of 30 per cent on wharfage of coal (including thermal coal) and iron ore pellets, and reduction of 40 per cent on wharfage on iron/steel scrap, gypsum and limestone on an experimental basis for a period of three moths.
The board members were of the view that the port should go for aggressive marketing strategies to make competitive advantage among other ports and it should ensure that the benefits of tariff reduction should reach the targeted customers.
Besides, the enhancement of storage area should be given priority by the port administration.
The port should also improve its infrastructure substantially to enhance the cargo throughput, as high cost is one of the major components that resulted in exorbitant transportation cost incurred for movement of cargo from the port, the members opined.
It may be recalled that the Traffic Branch of the port had carried out the comprehensive study on the subject "Cochin Port-Towards Achieving Competitive Advantage, Need for Strategic Shift", and had made a forecast of the quantum of dry bulk cargo that is likely to be handled in the region during the coming five years.
It also suggested the competitive advantage could be regained only by creating cost advantage through rationalisation of port charges (both cargo related and vessel related), for cargo identified to have higher growth potential and the potential for boosting the pace of economic development.
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