CFS operators in and around Hazira Port have raised a concern about the new charges being levied by the private port operator, when import loaded containers are taken to a CFS as nominated by the lines. Stating that it was an “arbitrary charge” being imposed by Hazira port, the Container Freight Stations Association of India (CFSAI), a lobby group for CFS operators, described the new levy as an “abuse of dominant position” by India’s biggest private port operator, as reported by ET Infra.
“The extra charges will increase the transaction cost on clearing import containers at Hazira port by at least 50 percent. We cannot bear the extra costs and will have to pass it on to the importers, which, in turn, will make it expensive for the importers. The importers will then prefer to take the containers directly from the EXIM yard (that functions as a CFS) run by Adani, hurting the business of CFS operators,” a CFS official said.
Hazira port’s move to collect the extra charges follows the opening of a new CFS last week in the vicinity of the western coast port by a joint venture between A P Moller-Maersk (which runs Maersk Line, one of the world’s biggest) and a local firm. The new CFS spread over some 15 acres has the capacity to handle as much as 5,000 containers a month. “Maersk is expected to nominate its own CFS to move the boxes after unloading from the vessel arriving at Hazira port, potentially resulting in loss of business for the EXIM yard run by Adani, which is supported mainly by Maersk volumes. The new levy is said to be aimed at making it expensive for other CFS’s operating at Hazira,” a CFS executive said.
