Kolkata: Kolkata Port Trust (KoPT) has changed the rules for collecting licensing fees on storage of transit cargo in the yards and sheds of the Kolkata Dock System (KDS).

According to the new rules, the storage of transit cargo for the first 30 days will be charged fees at normal rates; for next 30 days the fees will be three times the normal rates. For the third month, the fees will be five times the normal rates. For storage beyond that, the fees will be 10 times the normal rates.

A resolution to this effect was approved recently by the Board of Trustees of KoPT and the revised fees came into force from September 1. The KoPT authorities are hopeful that the approval of Tariff Authority of Major Ports will be available soon.

Earlier, the port authorities used to grant renewal of the licensing period at the normal fees.

“We've seen traders occupying space for several months by paying at normal fees,” a spokesman for KoPT told Business Line. “We will not allow it any more. The transit storage space can no longer be used for warehousing purpose for an indefinite period.”

The revised rates will also be applicable to cargo stored in transit space on termination or forfeiture of the licences as such storage will be deemed as unauthorised occupation and therefore must pay “compensation for wrongful use and occupation”.

The new arrangement will generally be applicable to bulk cargo like logs, maize, pulses, iron ore (the handling of iron ore in KDS has since been stopped allowing only Haldia to handle it) which are loaded or unloaded either at Sagar or Diamond Harbour anchorages and transported to and from KDS by barges. Kidderpore dock under KDS generally handles these items.

Understandably, a section of trade has reacted sharply to the new arrangement. “It is neither in the interest of the trade nor consumers who will now bear the additional burden,” said a trader using KDS for import and export of foodgrains. “We'll shortly take up the issue with the port Chairman.”

Source: The Hindu Business Line