Trade dissatisfaction is growing in response to the Indian Railways' recent decision to impose a 10 per cent Busy Season Charge on container traffic, with private ports and terminal operators actively seeking a reversal of the levy, which came into force on October 1.
Kevin D'Souza, the chairman of the Indian Private Ports & Terminals Association (IPPTA), a prominent industry advocacy group, expressed its concerns in an October 5 letter addressed to Sushil Kumar Singh, the joint secretary of the Ministry of Ports, Shipping and Waterways. Singh, an officer of the Indian Railway Service of Mechanical Engineers (IRSME), is currently on deputation to the Ministry of Ports, Shipping and Waterways.
D'Souza underlined the importance of rail transport as the fastest and most efficient way to transport freight to and from terminals and ports to the hinterland. He expressed fears that the additional levy would lead to a shift of container traffic from rail to road, potentially adversely affecting the total dwell time of import cargo at terminals and ports, ultimately driving up logistics costs.
This growing dissatisfaction within trade highlights the ongoing challenges facing stakeholders in the wake of the newly imposed levy. The debate surrounding the Busy Season Charge underscores the complexity of balancing the interests of different parties in the field of Indian logistics and transport.
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