TARIFF AUTHORITY FOR MAJOR PORTS

NOTIFICATION

New Delhi, the 27th December, 2001

No. TAMP/78/2001-NMPT — In exercise of the powers conferred by Section 48 of the Major Port Trusts Act,

1963 (3 8 of 1963), the Tariff Authority for Major Ports hereby disposes of the proposal received from the New Mangalore

Port Trust for fixation of ad-hoc wharfage rate for the year 2001-2002 on cargo handled at its oil jetty No. 10 as in the Order

appended hereto..

SCHEDULE

Case NP.TAMP/78/20Q1_-NMPJ

The N«w Mangalore Port Trust

- -

Applicant

(Passed on this 13th day of December 2001)

This Authority had passed an Order on 27 October 1998 on the proposal

made by the New Mangalore Port Trust (NMPT) for fixation of wharfage rate of

Jetty No. 10 for the year 1996-97. This Authority decided on some of the

contentious issues and advised both the NMPT and the Mangalore Refinery

and Petrochemical Limited (MRPL) to jointly rework the calculations along the

lines indicated in the Order.

1.2.

Subsequently, the NMPT submitted a revised proposa' in which it

had mentioned that both the NMPT and the MRPL were unable to irrlve at a

mutually acceptable basis for fixation of wharfage. It had furnished le details

of the NMPT's and the MRPL's calculation and points of diffe ence for

consideration of this Authority. In this backdrop, this Authority consii sred the

revised proposal received from the NMPT and passed another Ordt r on 19

July 2000 setting out the guidelines to be followed for calculation of \A larfage

charges on cargo handled at the dedicated MRPL Jetty. In the said Or 'er, the

NMPT was directed to compute wharfage charges, for the years 1t 96-97,

1997-98, 1998-99 and 1999-2000 in line with the guIdelines~prescribecTb -This""

Authority. It was also advised to get the figures verified by the MRPL tx fore

forwarding the proposal for fixation of wharfage charges to this Authority.

2.1.

The MRPL has filed a writ petition in the High Court of Karnat \ka

against the Order of this Authority.

2.2.

The NMPT has filed three petitions with this Authority requestii g

for review of three principles enunciated in our Order in reference.

THE GAZbTIK OF INDIA: EXTRAORDINARY

[PART in—SEC. 4]

3.1.

The writ petition filed by the MRPL was only about the period

1996-2000. The current proposal made by the NMPT covers the period 2001-

2002 and hence will not be hit by the pending litigation. In any case, the

Karnataka High Court order gives the liberty to the NMPT to proceed to take

action to fix wharfage charges in accordance with the MOU for the subsequent

period. Since the wharfage rate for POL notified in the Scale of Rates of the

NMPT may not pass on to the MRPL the benefit envisaged In the MOU, it

becomes necessary to notify an ad-hoc wharfage rate for 2001 -2002. In a joint

hearing on this matter in Mumbai on 9 November 2001, the various options

available were discussed.

3.2.

Although there were lot of arguments initially, particularly in

respect of reasonableness and admissibility of different cost elements and the

traffic projection, both the NMPT and the MRPL have come to an agreement

insofar as the ad-hoc charges leviable for the year 2001-02 at the joint hearing

held on 9 November 2001. Both the parties have agreed to an ad-hoc rate of

Rs. 71/- PMT for the year 2001-02. Since a mutually agreed rate has evolved

and recognising the fact that such a rate is only going to serve as an interim

rate subject to fixation of final rates, it may not be necessary to analyse in

depth the various objections raised initially by both the parties on costing

principles and figures as well as further scrutiny of various cost elements to

ensure the reasonableness and their conformity with the guidelines already set.

This Authority is, therefore, inclined to approve the ad-hoc rate of Rs. 71/- PMT

for the year 2001-02 as mutually agreed to between the NMPT and the MRPL.

3.3.

As has already been mentioned, review petitions filed by the

NMPT on three specific issues are being processed separately as per the

procedure adopted and will mature for final consideration of this Authority in

due course. The NMPT has further requested that the ad-hoc rate as mutually

agreed to between it and the MRPL may be notified immediately without

waiting for the disposal of Its review petitions. That being so, the ad-hoc rate

for the year 2001-02 as mutually agreed to between the parties is approved

subject to the condition that the final rate for the year 2001-02 as well as ad-

hoc rate for the year 2002-03 will be prescribed based on admissible costs and

principles set.

;

In the result, and for the reasons given above, and based on a

collective application of mind, this Authority approves an ad-hoc wharfage rate

of Rs. 7,1/- PMT on cargo handled during the yean 2001-02 at the dedicated

MRPL Jetty (Jetty No.10) at the NMPT subject to determination of final

wharfage charges based on actual and admissible costs.

S. SATHYAM, Chairman

[AD VTIMV/143/2001 /Exty.]

Printed by the Mmmgcr, Oovt of India Pross, Ring Road, Mayapuri, New Dclhi-110064

and Published by the Controller of Publications, Delhi-110054.

TARIFF AUTHORITY FOR MAJOR PORTS

NOTIFICATION

New Delhi, the 27th December, 2001

No. TAMP/62/2001- VPT — In exercise of the powers conferred by Section 49 of the Major Port Trusts Act,

1963 (38 of] 963), the Tariff Authorityfor Major Ports hereby approves the proposal of the Visakhapatnam Port Trust for

fixation of hiie charges for barges when used as spacers as in the Order appended hereto.

SCHEDULE

Cage No.TAMP/62/2001-VPf

The Visakhapatnam Port Trust (VPT)

Applicant

(Passed on this 13th day of December 2001)

This case relates to a proposal received from the Visakhapatnam Port Trust (VPT) for

fixation of hire charges for barges when used as fenders/spacers.

2.1.

The existing Scale of Rates (SOR) of the VPT does not contain any tariff exclusively for

barges when used as spacers.

2.2.

In the pre-revised SOR, a hire charge of Rs.380/- for the first 6 hours or part thereof and,

Rs.65/- for every additional hour or part thereof was prescribed for use of 150 tonne capacity barges. The

VPT has explained that it levies the hire charges prescribed even when the 150 T barges are used as

spacers for iron ore vessels. In addition to the 150 T capacity barges, the VPT also has 400 T steel

pontoons for which the hire charges were prescribed as Rs. 6,600/- per six hour or part thereof (without

staff) and Rs. 8,220/- per six hours or part thereof (with staff).

2.3.

The hire charges of barges were revised upward by 15% by this Authority at the time of the

general revision of SOR (excluding estate rentals) of the VPT which was notified on 4 June 2001.

2.4.

The Trade has reportedly requested the VPT to fix a uniform rate for the barges, when

used exclusively as spacers irrespective of their capacity.

2.5.

In this backdrop, the VPT has proposed a rate of Rs.1166 for the first 6 hours or part

thereof; and, Rs.232 for every additional hour or part thereof uniformly for any barge (upto 400 tonne

capacity) when used as spacers/ fenders.

3.1.

In accordance with the procedure prescribed, a copy of the proposal was sent to various

representative bodies of port users for comments. The Vizagapatnam Chamber of Commerce and Industry

and Visakhapatnam Steamship Agents' Association have expressed their agreement with the proposal of

the VPT. The Visakhapatnam Port Users Association (VPUA), the Shipping Corporation of India (SCI), and

the Indian National Shipowners' Association (INSA) have not sent any comments. The Container Shipping

Lines Association (CSLA) has mentioned that it has no comments to offer on the proposal of the VPT.

3.2.

A copy each of the comments received from the above users was sent to the VPT as

feedback information.

4.1.

Based on a preliminary scrutiny, the VPT was requested to furnish additional

information/clarification on certain points arising out of its proposal. The main issues raised for clarification

were as follows:

(i).

The bases of the proposed hire charges.

(ii).

Applicability of additional towage charges in respect of 400 T steel pontoons.

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART III—SEC. 41

4,2.

The VPT has responded to the queries raised. The following points have been made by

the VPT:

(I).

Though the purpose for which the barges and the steel pontoons are used is same i.e.

spacers/fenders for the iron ore vessels, there is a difference in their hire charges.

Considering the same purpose of use of barges/steel pontoons (upto 400 tonne capacity);

and, a request from the trade, a uniform rate for the barges/steel pontoons when used

exclusively as spacer/fender has been proposed.

(ii).

The proposed rate has been arrived at by taking the hire charges applicable for barges of

150 tonne capacity as the base, duly working out proportionately the proposed rate for the

barges/steel pontoons Lava/Kusa upto 400 tonne capacity when used as spacers/fenders.

(iii).

Note I and VI of Section 5.3.2 of the existing Scale of Rates can remain unaltered; and, a

separate note as indicated hereunder may be incorporated for barges/steel pontoons

Lava/Kusa (upto 400 tonne capacity), when used as spacers / fenders:

"The charges prescribed in respect of Barges/Steel Pontoons Lava/Kusa

upto 400 tonne capacity when used exclusively as spacers are exclusive

of towage charges."

A joint hearing in this case was held on 6 November 2001 at Vlsakhapatnam. At the joint

hearing the following submissions were made:

Vlsakhapatnam Port Trust (VPT)

(i).

Our proposal is based on the detailed discussions with the users; there is no dispute,

(ii).

We do not charge for fenders, only for spacers.

Vlaakhapatnam Steamship Agents' Association (VSAA)

(I).

Providing fender is an operational requirement. It is the responsibility of the port; and,

should not be charged.

With reference to the totality of information collected during the processing of this case,

and based on a collective application of mind, the following position emerges:

(i).

The existing SOR of the VPT does not contain a separate rate for barges when used

exclusively as spacers for the iron ore vessels; and, presently the charges for providing this

service are levied as per the rates prescribed under the tariff heading 'Barge charges (for

other than ships cargo handling purpose)' in the SOR of the VPT. The barge hire charges

contain rates for barges upto 150 tonnes and steel pontoons Lava / kusa upto 400 tonnes,

which vary widely.

(il).

The iron ore berth of VPT is designed to handle larger vessels.

Owing to Trade-

requirement, when smaller ships are berthed, there may be misalignment between the

reach of the loading arm and the ship's hold. To readjust the alignment a spacer Is placed

in position between the berth and the vessel; and, in this context barges are used as

spacers. Since the spacer is only to facilitate cargo handling and does not itself handle

cargo, its cargo holding capacity is irrelevant to the situation.

(iii).

The VPT provides barges for being used as spacers depending on their availability. If only

400 T barge is available for use as spacer at a particular point of time and Its applicable

hire charge is levied, then the concerned user Is burdened with higher payment to the VPT

as a result of differential tariff between the 150 T and 400' T barges. Since the purpose of

usage is the same, the VPT has now proposed to have a uniform rate for providing spacers

irrespective of the capacity of barges used as spacers. This is exactly what the users have

demanded. This is thus another user-friendly proposal made by the VPT in pursuit of its

continuing efforts to rationalise its Scale of Rates.

(iv).

The VSAA's objection is, perhaps, misplaced and may have been raised due to a

confusion created by the language used in the proposal to indicate that the proposed rates

are for barges used as fenders and spacers. There is no doubt that provision of fenders

alongside berths / jetties is the responsibility of the Port. The VPT has also categorically

clarified this position. This proposal is only to prescribe a rate when barges are used as

spacers; and, the need to provide spacers, as has been explained above, arises due to a

ship's requirement. That being so, it is not unreasonable to levy a separate charge for

providing this facility.

(v).

The VPT has arrived at the proposed uniform rate by reckoning the tariff for 150 tonne

capacity barges as a base, duly working out the proportionate charge for barges / steel

pontoons (upto 400 tonne capacity) when used as spacers. Although the base rate tallies

with the methodology explained by the Port, there is a minor discrepancy in the rate for

additional hours of usage beyond 6 hours. The users have endorsed the proposed rate

and the proposed rates are inclined more towards benefiting the users since the rate of

150 T barges have been taken as the base.

That being so, this Authority has no

reservation to approve the rates as proposed by the VPT without any modification.

(vi).

The existing hire charges for a 150 tonne capacity barge include charge for supply of the

barge, equipment and towage from any part of the harbour to any other part of the harbour

and bringing back the empty barge, whereas the hire charges for steel pontoons of 400 T

capacity are exclusive of towage charges. The VPT has, therefore, proposed that a

separate note may be prescribed stating that barge charges for use of barges upto 400 T

capacity as spacers are exclusive of the towage charges. It is true that the Port has to

mobilise the barges to the place of operation and incurs in the process expenditure on

towage of barges. It is, therefore, reasonable to levy towage charges, as applicable,

separately. That being so, the note in this regard as proposed by the VPT is also approved

for inclusion in the Scale of Rates as a conditionally governing application of the relevant

rate.'

In the result, and for the reasons given above, and based on a collective application of

mind, this Authority approves the following hire charges for barges when used as spacers, as proposed by

the VPT:-

Bargs charges for use as spacers for Iron ore vessels

Item

No.

Description

Barges / Steel pontoons (upto

400 tonnes capacity).

Unit

For the first 6 hours or

part thereof.

For every additional hour

or part thereof

Rate (In Rs.)

1166

232

Note:

(i).

The charges prescribed in respect of Barges/Steel Pontoons Lava/Kusa upto 400

tonne capacity when used exclusively as spacers, are exclusive of towage

charges.

The VPT is directed to amend its Scale of Rates accordingly.

This Order shall come into effect on expiry of 15 days from the date of Its notification in the

Gazette of India.

S. SATHYAM, Chairman

f ADVTIH/IV/143/2001 /Exty.]

Printed by the Manager, Govt. of India Press, Ring Road, Maynpuri, New Delhi-110064

mid Published by Ihe Controller of Publications. Delhi-110054.