In order to offer some respite to the waterways transportation sector from the impact of the global increase in the price of fuels, the Ministry of Ports, Shipping and Waterways has directed all major ports to exempt all berth hiring and vessel related charges being currently levied to the Ro-Pax or passenger ferries for the next six months with immediate effect.
The ministry is backing Ro-Ro/Ro-Pax/ferry waterway transportation which has lower emissions compared to other modes of transport. Also, there is a significant time and cost savings compared to the traditional transportation modes.
“Concurrently traffic congestion on road/railways, noise pollution and the accidents on the roads may also get reduced. Such water-based transportation service is an effective measure to lower the logistics costs, reducing travel time and promotion of coastal shipping on several feasible routes,” the ministry said on Sunday.
Marine fuel prices
The cost of marine fuel ‘Low Sulphur High Flash High-Speed Diesel’ has increased to Rs 1,21,000 per kilolitre from Rs 76,000. Similarly, the cost of ‘Very Low Sulphur Fuel Oil’ has increased to Rs 80,917 per kilolitre from Rs 40,608.
It is to be noted here that at the beginning of FY2021-22 the cost of marine fuel used to be 10-15 per cent less than retail diesel. Hence, effectively the rise is more than 40 per cent.
Union Minister Sarbananda Sonowal had recently held a meeting with senior officials of the ministry to talk about the effects of high marine fuel prices and GST on ferry operations. He had also written to Finance Minister Nirmala Sitharaman and Petroleum Minister Hardeep Singh Puri.
“The rising fuel cost at the international level is now making our local Ro-Pax and Passenger Ferry operations unviable so this exemption of vessel and port-related charges by MoPSWwill provide the necessary breather to this sector for the next 6 months. We have also requested MoPNG to consider a reduction in fuel prices and Ministry of Finance to lower the associated taxes on it so as to provide the necessary support to this sector in present circumstances,” Sonowal said.
Moreover, the ministry has asked states to lower their rates of VAT over the diesel used by this sector saying that these operational hurdles will ultimately act as stumbling block in establishing this budding ecosystem of surface water transportation in the country.
The Ro-Pax services implemented by Deendayal Port Authority between Ghogha and Hazira under Sagarmala Programme have reduced travel time from 12 hours to 4 hours. This service has carried over 78,000 vehicles and over 2.6 lakh passengers since its inception.
Similarly, Maharashtra Maritime Board initiated Ro-Pax ferry service on Mumbai – Mandwa route. Project resulted in saving of around 3 hours of road travel against 45 minutes by sea route. More than 5.5 Lakh passengers have availed this Ro-Pax service and more than 1 lakh vehicles have been transported.
