Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Adani Ports and Special Economic Zone Ltd (APSEZ) has introduced a new  handling charge of Rs0.26mn ($3,422.08) plus GST/rake in and out for all trains using Mundra port from May 1. Once levied, the charge will be valid for 48 hours. Mudra is a biggest commercial port in India owned by Gujarat based Adani Group. 


For inland transportation of containers evacuated at the port, shipping lines tie up with several agencies providing railroad transportation. Containers then are transported to Container Freight Stations (CFS) or Inland Container depots (ICDS). The line and port terminal operator sign contract to this effect ensuring transfer of liabilities as containers are transported from ocean via rail or road to their destination. 

Shipping lines pay charge to terminal operators which are then recovered from the end consumer. 


However, market players expressed confusion about how these charges could be passed on. According to media reports, market players said that there is no mechanism to calculate per container charges. If train runs from Mundra to a pre decided destination carrying 60 containers then Rs0.26mn will be charged for 60 containers. If the same train returns to Mundra with 40 containers more whether or not the charge will be divided on 100 containers remains a confusion. 

In case of double stack train, Indian railways give 50pc discount on haulage charges. 


($1= Rs75.97)

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