Internet blackout darkens prospects of maritime trade

Huge loss of revenue to the government, as shipping operations have come to a standstill; import and export cargo stuck in port

Losing business: Around 10% of containerised cargo had to be diverted from the Thoothukudi seaport to other ports in Chennai and Kochi.

The internet blackout in Thoothukudi district has had an adverse impact on maritime trade, leaving traders reliant on exports and imports in a spot of bother.

The four-day suspension of internet services in the wake of the riots that ravaged Thoothukudi during the anti-Sterlite agitation on May 22 has caused a huge loss of revenue to the government, as shipping operations have come to a standstill.

The Departments of Port and Customs had adopted an automated online filing system over the last few years, and without access to the internet, shipping transactions were disrupted. This resulted in a backlog that prevented several containers from being shipped to overseas destinations.

In an unprecedented move, all 15 container freight stations in the port town were shut down as truck movement came to a grinding halt over the last five days, industry sources told

The Hindu on Sunday.

Owing to the lack of internet access, between 5% and 10% of containerised cargo had to be diverted from the Thoothukudi seaport to other ports in Chennai and Kochi.

R. Edwin Samuel, vice-president of the Indian Chamber of Commerce and Industry, Thoothukudi, said container shipments came to a standstill as customs documentation, which were generated through online communication, remained inaccessible. Hardly any payment could be made for bill of shipping and bill of entry — the key procedures to be followed before export and import of cargo, he said.

According to J.P. Joe Villavarayar, president, Thoothukudi Ship Agents’ Association, the revenue loss for the port sector could amount to ₹500 crore over the last five days. The backlog of containerised cargo of around 7,000 TEUs (Twenty Foot Equivalent Units), including import cargo such as timber, metal scrap and waste paper, remained in the port as truck movement came to a standstill. Considering the situation, the Customs Department has relaxed the penalty for non-filing of bill of entry till Monday (May 28). Normally, a penalty of ₹10,000 would be imposed on the defaulter on the first day, and ₹5,000 on every subsequent day, he said. Thousands of workers relying on the logistics industry — the ancillary of the shipping industry — have been rendered jobless. Around 1,500 trucks remained off the roads, said G.P. Joe Prakash, president, All India Chamber of Commerce and Industries, Thoothukudi.

S. Varadharajan, secretary, Thoothukudi District Container Truck Owners’ Association, said truck transportation resumed on Saturday after Collector Sandeep Nanduri insisted during a meeting that the truck operators return to their daily routine. However, there was very little lorry movement on the roads. A few lorries transported the cargo of those who had cleared the formal procedures for shipping.