10% busy season charge on container traffic roils trade

06 Oct 2023 CW Team

Trade dissatisfaction is mounting in response to the Indian Railways' recent decision to impose a 10 percent Busy Season Charge on container traffic, with private ports and terminal operators actively seeking a reversal of the levy, which came into effect on October 1st.

Kevin D'Souza, the President of the Indian Private Ports & Terminals Association (IPPTA), a prominent industry advocacy group, expressed concerns in a letter dated October 5th addressed to Sushil Kumar Singh, the Joint Secretary of the Ministry of Ports, Shipping, and Waterways. Singh, an officer from the Indian Railway Service of Mechanical Engineers (IRSME), is currently on deputation to the Ministry of Ports, Shipping, and Waterways.

D'Souza underscored the significance of rail transportation as the fastest and most efficient means of moving cargo to and from terminals and ports to the hinterland. He voiced apprehensions that the additional levy would lead to a shift of container traffic from rail to road, potentially causing adverse effects on the overall dwell time of import cargo at terminals and ports, ultimately driving up logistics costs.

This growing discontent within the trade highlights the ongoing challenges faced by stakeholders in the wake of the newly imposed charge. The debate surrounding the Busy Season Charge underscores the complexities of balancing the interests of various parties in the realm of Indian logistics and transportation.

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