MUMBAI, India -- India's Tariff Authority for Major Ports has rejected a proposal by India Gateway Terminal, the private terminal operator at the Port of Cochin, to reduce free storage time for laden containers.
India Gateway, operated by DP World, earlier proposed to reduce free time from the existing seven days to three in an effort to ease congestion at the terminal.
"Most of the users/user organizations as well as Cochin Port Trust have strongly objected to the proposal of the India Gateway Terminal to reduce free period of laden containers," the authority said in its order.
At a joint hearing held earlier, the authority asked terminal management to address various concerns raised by users, particularly lack of adequate storage facilities in and around the port, and submit a fresh proposal for its consideration.
In its initial application, the terminal argued that the extra dwell time enjoyed by import laden boxes was the primary reason for the yard congestion and lower productivity. It said the reduction in the number of free days would discourage importers from using the terminal yard to store containers and encourage them to remove containers to facilities outside the terminal or process clearance of containers more promptly.
Cochin handled 226,808 TEUs in fiscal 2006-07, up 12 percent from 203,112 TEUs in 2005-06. Volume in July totaled 17,627 TEUs compared to 13,812 TEUs in June.