Chennai Port, one of the country’s major container ports, is expanding its focus on non-containerised cargo while seeking to attract new trade through the port.

The Chennai Port Authority launched the Non-Containerised Cargo Incentive Scheme (NCCS) in June this year. Officials said the initiative was introduced to overcome the loss incurred due to the impact of the conflict in West Asia and to create additional revenue streams.

The port has gradually started handling new categories of non-containerised cargo under the scheme. In recent times, it has handled 13,208 metric tonnes of pig iron (commonly known as crude iron), 80,000 tonnes of rice, 15,000 tonnes of pulses, and 17,000 tonnes of steel billet.

Incentives for New Cargo

The conflict in West Asia affected container traffic at the port, resulting in a dip. To address the loss and increase revenue streams, the port sought to bring in a more diverse mix of cargo.

Under the NCCS, the port aims to provide a competitive advantage and increase the volume of cargo handled by encouraging existing firms and attracting new firms to Chennai Port for handling non-containerised cargo.

“The port has nearly 65% of container traffic, 28% is liquid bulk (crude oil and petroleum products), and the rest is dry bulk (products including barytes, gypsum, fertilisers) or break bulk (products, including grains, granite blocks, and steel coils). Over the years, there has been some decline in dry and break bulk, and we wanted to retain existing firms and attract new firms by incentivising those who are coming to the Chennai Port for handling non-containerised cargo and that is the NCCS scheme,” an official said.

Wharfage Fee Reduction

The NCCS provides incentives for both new and existing firms handling non-containerised cargo through Chennai Port.

When a new firm imports or exports through Chennai Port, or an existing firm that already handles non-containerised cargo through the port brings in incremental cargo, the wharfage fee (cargo handling charges) gets reduced by up to 80 per cent based on eligibility.

For an existing firm that handles 95 per cent of the cargo handled in the last financial year, an additional loyalty bonus equivalent to 10 per cent is provided.

Officials have also been holding meetings with stakeholders to encourage the movement of more non-containerised cargo through Chennai Port.