REGD. NO. D L -33004/99
The Gazette of India
EXTRAORDINARY
PART III-Section 4
PUBLISHED BY AUTHORITY
No. 310] NEW DELHI, MONDAY. NOVEMBER 26. 2001/AGRAHAYANA 5.1923
(1)
3643 GI/2001 ; THE GAZETTE OF INDIA: EXTRAORDINARY [PART III-SEC. 4] 3 4 THE GAZETTE OF INDIA EXTRAORDINARY PART IE—SEC 41 5 TARIFF AUTHORITY FOR MAJOR PORTS
NOTIFICATION
New Delhi, the 26th November, 2001
No. TAMP/72/2001-CHPT.—In exercise of the powers conferred by Section 49 of the Major Port Trusts Act, 1963(38 f 1963), the Tariff Authority for Major Ports hereby approves the proposal of the Chennai Port Trust for inclusion of the ate of lure charges for Tugs 'Nethaji' and 'Singaravelar' in its Scale of Rates as in the Order appended hereto.
SCHEDULE
Cgs* Wo.TAMPmtttOOI-CHPT
The Chennai Port Trust (CHPT)
Applicant
(Passed on this 5th day of November 2001)
This case rotates to a proposal received from the Chennai Port Trust (CHPT) about
inclusion of the rates of hire charge for Tugs 'Nethaji' and •Singaravelar' in rto Scale of Rate*.
2,1. The CHPT has made the following points in its proposal:
(i). Two tugs namely 'Nethaji' and 'Singaravalar' were acquired on 28 July 1095 and 17
June 1906 respectively.
(|0. The hourly rate of the tugs was Initially fixed at Rs.25,500/- in the year 1998
provisionally, subject to revision. The rate was later revised based on the actual coat
and utilisation of tug* to R*.15,000/- (US $ 714) per hour or part thereof with effect
from 5 November 1990. This rate was fixed on mutual agreement between the CHPT
and Port users and in terms of the (then) existing provision under Book-I, Chapter IX,
Scale D relating to charges for floating crafts, appliances, etc., category II, Note- (2)
of the Scale of Rates (SOR), which reads as below:
*(2). The changes for services and for the uae of the crafts and eppfiancoa not
nwitfonod in the above Scale are arrangod between the Chairman and the
person requiring such services of such crafts or appliances."
(iii) The proposal for Insertion of this rate In tha Scale of Rates has bean approved by the
Board of Trustees of the CHPT in its meeting held on 11 June 2001.
Ibi£i2>cr//±&>I-^X-
6 THE GAZETTE OF INDIA : EXTRAORDINARY
IPAKI IE^-Sti: 41 2.2. In this backdrop, the CHPT hat requested the Authority the rate of Ra.15000/- (US $ 714) per hour or part thereof for both the tugs, 'Nethaji' and 'Slngaravelar' in its SOR under Book-I, Chapter IX, Scale D relating to charges for floating crafts, appliances etc., category as a new serial number 11 (d).
2.3. The CHPT has also requested to maintain confidentiality of the Information furnished
in the cost sheet relating to the working of hire charges.
3.1. A copy of the proposal (excluding the oost statement) was forwarded to all oonoemed
users/representative bodies of port users for comments. The comments received are summarised
below:
The Tamil Chamber of Commerce FTCC)
(I). Since the rate of RB. 15000/- (US $ 714) per hour or part thereof has been arrived at
mutually by the port users and the port; and, it has also been approved by the Board
of Trustees of the port, the proposal of the CHPT may be approved.
(ii). It is to be clarified that the rate of Rs. 15,000/- applies to coastal vessels and US $
714 applies to foreign-going vessels.
The Shipping Corporation of India Ltd. tscn
Comments cannot be offered in the absence of cost sheet
The Channel Steamer Aflenta' Amrodatlon (CSAA)
(i). Till date tug hire charges are included In the Pilotage charges. Separate charges are
levied for the services of additional tugs requisitioned over and above two tugs,
(ii). The CHPT has six tugs viz. SINGARAVELAR, NETHAJI. MATCHLESS, MIGHTY
(2S/30 BHF), PALANI and MANI (20726 BHP). It is not clear why the CHPT is
approaching only for 'NETHAJI' and 'SINGARAELAR' to be considered on an hourly
based charges.
(lit). If fixation of hire charges for these two tugs on an hourly basis Is over and above the
two mandatory tugs available for vassals' movement, and that too, whenever they are
used, then the proposal of the CHPT may be acoeptod.
(iv). It needs to be ascertained whether the CHPT proposes to bifurcate the Pilotage and
Tug hire charges in the near future.
Container Shipping Linus Association (India) rCBLAI
(i). This is a case for mere insertion of an agreed rate in the SOR.
(ii). The rates had bean arrived at based on actual costs and utilisation of the tugs. The
rates had also been arrived at by the port in consultation with the users of the tugs
which are used for towing barges and lighters, and for service* othe; than berthing
and unberthing of vessels.
(Hi). We support the necessary incorporation.
3.2. A copy each of the comments received from the user-organisations mentioned above
was sent to the CHPT as feed back Information.
4. On a preliminary scrutiny of the proposal, the CHPT was requested to furnish
additional information/clarification on oertain points. Some of the important points, raised are
summarised below.
(i). Justification of the estimated operation and maintenance cost as well as other
overheads with reference to actual expenditure under these heads for the last 3
years.
7 (II). Availability and utilisation norms for these two tugs along with similar details for the last 3 years.
(III). Writton-down capital value of the two tugs as on 31 March 2001.
5. A Joint hearing In this case was held on 5 October 2001 In Chennai. At the joint
hearing the following submission were made:
Chonnal Port Trust (CHFH
(i). There is no move to separate Towage' and 'Pilotage'. This proposal is only about
additional tugs for towing.
(li). All are agreed about the rat*. They are paying at the rate sinoe November 00.
Madras Chambers of Commerce and industry (MCCl) and Hindustan Chamber of
Corrirnoro (HCC)
(I). We agree with the proposal.
6 With reference to the totality of information collected during the processing of this
case, and bearing in mind the arguments advanced at the joint hearing, the following position
emerges:
THE GAZETTE OF INDIA EXTRAORDINARY r P ^ i i1-^ i
(v). Notwithstanding the position explained in paragraph (iv) above, the hire charges can
be taken up for detailed scrutiny at the time of the next general revision / review of the
CHPT tariff which is due In April 2002. We have raised certain observations 0.1 the
costing aspect relating to the hire charges of these tugs, which may serve as a guide
to the CHPT while working out the revised hire charges as a part of its proposal for
the next general revision of tariffs, ft has to be recognised that revision of hire
charges of these tugs can be considered more objectively alongwrth the general
revision of tariffs since it will enable a detailed scrutiny of allocation of various
overheads between connected activities / facilities.
(vi). While proposing revised hire charges for these tugs as a part of its next general
revision of tariff proposal, the CHPT is advised to consider the following relevant
points:
(a). This Authority had also advised some of the major ports, including the CHPT
in a case relating to fixation of hire charges for fork-lift trucks, to work out a
pool rate for equipment / floating craft on the basis of ranges of oapaorty,
rather than for individual equipment. The existing Scale of Rates of the CHPT
prescribes hire charges for different floating craft on individual floating craft
basis. Rationalisation of the Scale of Rates in this regard is necessary apart
from revising and pooling the hire charges for the tugs in reference.
(b). The CHPT has not considered the cost of insurance while working out hire
charges of these tugs. This Issue has been singled out for specific mention
in this Authority's Order dated 26 March 2001 relating to notification of the
revised Scale of Rates of the CHPT. The relevant observation of this
Authority in that case is reproduced below:
"When the Port Trust crane, floating craft, etc., em hired by users,
the Port demands damages and compensations from the hirers, in
case of any accidents or damages to properties and life. The CHPT
is advised to insure auch equipment, oraft, eto., and either include the
insurance cost in the hire charges or lovy it separately as actuals. In
such cases, the damages and compensations, etc., wilt be claimed
from the insurance company and not from the users. It is relevant to
recognise in this context that these equipment and craft are operated
by the Port personnel; and, therefore, there is no scope for their
misuse by the hows. The CHPT Is required to follow this approech in
respect of its equipment and properties while formulating its proposal
for the next general revision of tariffs."
Th" observation already made Is reiterated in this case also.
7. In the result, and for the reasons given above, and based on a collective application
of mind, this Authority allows insertion of the following provision under Book-I, Chapter-IX, Scale-D,
Category I of the Scale of Rates of the CHPT:
| Serial Number and Description (D | Rat* of hire (2) | Period of hire (3) | Minimum (4) | Remarks (0) |
| 11(d) Tugs 'Nethaji' and 'Singravelar' (for towing barges and lighters and tor services other than berthing and unberthlng of Vessels) | R". 15.000/-(for coastal vessels)/714 US Dollars (for foreign-going vessels) | Per hour or part thereof per Tug. |