Mixed response to Tuticorin Port's offer of concessions

The recent announcement in the Web site of the Tuticorin Port Trust offering incentives to raw cashew vessels avoiding Kochi port has evoked mixed response among the shipping and trade circles here.

While majority of the port users have resented the statement of Tuticorin port authorities, some of the users attributed it to competition between neighbouring ports in the country.

A top official in the port pointed out that competition between the Government-owned departments is essential and a healthy race will help the growth of the two organisations.

At the same time, making a precondition not to visit a particular port while announcing such incentives is not the right way, he added.

But a former senior port official said that even though it is unethical, it could not be said that it is illegal.

In a competitive environment, he said these types of strategies could be expected from any port. Kochi has take up proper marketing initiative and reduce rates to woo importers.

Considering the surge in the raw cashew imports, he suggested that the Kochi port take up aggressive marketing efforts and reduce charges.

There is an impression among the trade circles that the rates at Kochi are too high compared to the neighbouring ports. The port officials should step in to counter this by scaling down the rates, he said.

Senior sources said that the offer of TPT is totally unethical at a time when the ports are approaching the TAMP to increase the scale of rates.

There is no harm in reducing the rates to attract cargo. But there is no point in instructing vessels not to visit a particular port as a condition to avail such concessions.

He, however, pointed out that the Kochi port can take credit from the offering of TPT as it considers Kochi as its major threat in the days to come in terms of cargo handling as well as vessel arrivals.

A trade union leader in the port said that these concessions and rebates form part of marketing the port.

Such healthy competition between major ports is not something to be alarmed about, especially in the case of raw cashew, as the processing centre - Kollam is roughly equidistant from both Kochi and Tuticorin.

Until recently, competition was between shipping companies. Now every port had started its own strategy for competition.

Hence, Kochi should also compete by installing top class cargo handling equipment and facilities. The port should also aim to attract especially dry bulk and break bulk ships.

Source: World Cargo News