Kolkata Port Trust proposes royalty on cargo handlers

Kolkata Port Trust proposes royalty on cargo handlersFreeloading at the Haldia Dock Complex (HDC) could soon come to an end as the Kolkata Port Trust (KoPT) has proposed to impose a royalty of Rs 25/tonne on cargo handling companies.

This is the first time in the port facility's 35-year history that such a royalty will be imposed on cargo handlers in Haldia.

A KoPT official said, "A committee was set up to decide on the royalty that may be charged from cargo handlers. The committee decided upon a rate of Rs 25 per tonne. This is primarily for shore handling at the Haldia Dock Complex (HDC)."

Observers say that Haldia Bulk Terminals Pvt Ltd's exit from Haldia has incited the port facility to propose such a royalty to boost its revenue.

The KoPT official also said that this is India's first major port that would be charging a royalty from cargo handlers.

The proposal has already been cleared by the Board of Trustees of the KoPT and it is now awaiting a nod from the Centre.

KoPT has long been facing criticism for allowing cargo handlers to operate without making any payment to the port. The proposal to impose a royalty on cargo handling companies will not only help it avoid criticism but also generate a new source of revenue for the port.