CFS Operators Demand Scrapping Extra Charges at Hazira

Padmesh Prabhune

CFS operators at the Adani Hazira Port Pvt Ltd, a unit of Adani Ports and Special Economic Zone Ltd (APSEZ), has criticized the proposed new charges to be levied on container freight station (CFS) operators for the nomination of import loaded containers taken to a CFS.

Industry voices, including the Container Freight Stations Association of India (CFSAI), are seeking government intervention demanding to scrap the plan. The situation highlights the intricate dynamics of container ports, shipping lines, and CFS operations.

The new charges, effective from 8 September, amount to Rs 2,500 for a 20 ft container and Rs 4,000 for 40 and 45 ft containers. CFSAI has criticized the move, considering it an “arbitrary charge” and an “abuse of dominant position.”

The proposed charges is an attempt to fleece the trade for unjust gains and is ill conceived, devoid of any logic, and would increase the cost to the trade by a whopping 50-55 percent, which is completely contrary to the Government of India’s initiatives and stated stand on ease of doing business and to reduce costs of import-export trade, CFSAI said.

CFS operators in general argue that Hazira port doesn’t provide any additional services justifying the extra charge. The new levy is expected to increase the transaction cost for clearing import containers at Hazira port, potentially impacting CFS operators and importers. Adani’s move comes amidst the opening of a new CFS by a joint venture involving A P Moller-Maersk, which may lead to loss of business for the Adani-operated EXIM yard.

Adani Hazira Port claims the new levy is aligned with its initiative to streamline operations and facilitate faster CFS turnaround. It also claims that the charges were intended to promote ease of doing business.

-Marex Media