Adani Hazira Port introduces extra charges for imports

31 Aug 2023 CW Team

Adani Hazira Port (HPPL), a subsidiary of Adani Ports and Special Economic Zone (APSEZ), announces the implementation of additional fees for container freight station (CFS) operators. Effective from September 8, the port will levy Rs 2,500 on 20 ft containers and Rs 4,000 on 40 and 45 ft containers when import-loaded units are routed to a nominated CFS.

The Container Freight Stations Association of India (CFSAI), representing CFS operators, opposes the decision, labelling it an "arbitrary charge" and asserting that it exploits Adani Hazira Port's dominant position. CFSAI seeks government intervention through social media channels.

Typically, terminal handling charges (THC) are collected from shipping lines by port operators for unloading import containers and subsequent yard movement. Shipping lines then choose a CFS for final delivery. CFS operators contest that Hazira Port offers no added service to justify this extra charge.

These charges may escalate import container clearance expenses by up to 50 per cent, potentially shifting business away from CFS operators as importers prefer direct transactions with the Adani-run EXIM yard. The move coincides with the opening of a new CFS venture by A P Moller-Maersk and a local firm, posing competition to Adani's EXIM yard.

Adani Hazira Port claims the new charges align with their commitment to streamlining CFS operations. The port advises CFS entities to maintain Pre Deposit Account balances for invoicing the import container nomination fees. This development raises questions about the dynamics between port operators, CFSs, and shipping lines in import logistics.

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