A shot in the arm for coastal shipping

Incentive for vessel operators in Kollam, Beypore and Azhikkal ports

The operational incentive for vessel operators has been enhanced by the government as part of promoting coastal shipping in the State.

The operational incentive will be 50% of the road transportation cost per loaded containers of 20 feet and will be applicable to the ports of Kollam, Beypore and Azhikkal at the rates prevalent in Cochin port and Vallarpadam container terminal.

The reference rates will be those decided by the respective Port authorities.

An enhanced operational incentive of 30% to be above rates will be applicable to the 40 feet containers.

The decision to enhance the operational incentive is based on the recommendations by a committee that was asked by the government to look into the suggestions of Director of the Ports and the proposal given by the Chief Executive Officer, Kerala Maritime Board.

While setting up the committee to look into the proposals, the government was of the view that a State policy could not be formulated without scientific study.

The revised operational incentive has been notified and government will review the impact and effectiveness of the scheme after six months, sources said.

The Kerala Maritime Board had been asked to do scientific study on the incentives to be given to promote coastal shipping services in the State and to submit report in three months.

The incentives are to be disbursed and settled every fortnightly and should be released after adjusting any port charges due from operator. The amount of port charges so adjusted and due to the Kerala Maritime Board will be reimbursed to them.

Operating procedure

The government has also asked the maritime board to prepare and implement a standard operating procedure for enhancing port productivity and reducing the turnaround time of vessels at the ports.

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Printable version | Apr 10, 2020 3:49:24 PM |

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