Chennai Port Announces Container Rail Promotion Scheme With Concessions

Chennai:

Port Wings News Network:

With a view to expand Chennai Port’s hinterland rail connectivity by attracting Container Train Operators (CTOs) and Shipping Lines to establish new rail services on presently unserved or under-served corridors, Chennai Port Authority (ChPA) has introduced new scheme — Chennai Port Container Rail Promotion Scheme (CPCRPS) — a time-bound promotional concession scheme.

According to the notification issued by the port’s Traffic Department, the Scheme is open to any other Container Train Operator licensed to operate scheduled container rakes to/from Chennai Port, as well as Shipping Lines (container lines/owners) routing EXIM/Coastal container traffic through the Port.

The concession is available for establishment of new rail services to destinations presently unserved, or identified by ChPA for network expansion, including Hyderabad, Mysore/GCCK, Delhi (Tughlakabad/Loni), Coimbatore/Pollachi, and any other ICD so identified. The existing, established Bengaluru (ICD Whitefield) and Tondiarpet corridors are not covered under this Scheme.

Concession on Port Railway Charges

A flat 80% concession is offered on Port Railway Charges (Haulage Charges and Terminal Handling Charges) for eligible new corridor rail traffic. CTOs availing this concession should pass on 80% of the waiver amount to the container lines/cargo owners, retaining 20% for themselves, and furnish a written undertaking to this effect at the time of joining the Scheme.

Concession on Vessel Related Charges (VRC)

To further encourage Shipping Lines to route container traffic by rail, an additional concession on Vessel Related Charges – over and above the existing VRC concession under the Scale of Rates – is offered to container vessels carrying EXIM/Coastal empty/laden rail-bound containers per voyage, as follows:

(i) 200 to 299 rail-bound containers per voyage – additional 5% VRC concession;

(ii) 300 to 399 rail-bound containers per voyage — additional 7.5% VRC concession;

(iii) 400 rail-bound containers per voyage and above – additional 10% VRC concession.

Tenure and Review

According to officials, the Scheme will initially operate for a period of three years on a pilot basis with effect from the date of Trade Notice, and will be reviewed every six months. Continuation of the concession to any participating CTO/Shipping Line will be subject to satisfactory performance at each such review, and ChPA reserves the right to suspend or withdraw the concession in case of misuse or non-achievement of committed volumes.

CTOs and Shipping Lines interested in availing the benefits of the Scheme are requested to approach the Traffic Department, Chennai Port Authority, with their proposal for a new rail service/corridor, including the proposed minimum rake frequency/TEU commitment.

On acceptance, the Port will execute a Memorandum of Understanding (MoU) with the applicant CTO, setting out the applicable concession, the committed minimum volumes, and the terms of review, prior to commencement of the concession.