High Port Charges
According to an Exim Bank report, high port charges, like port dues, berth hire, pilotage and cargo-handling charges, in India are also affecting the Indian shipping industry. India is known to be having high ship-calling cost as compared to other competitor countries in the region. According to industry sources, port calling costs for a ship that can carry 1,200 standard cargo containers is US $ 19,000 (` 8.4 lakh) at Kochi. The rate is US $ 3,300 in Colombo, Sri Lanka, and US $ 5,700 in Jebel Ali, United Arab Emirates. This makes the Indian ports non competitive compared to other foreign ports. High prices would normally deprive a port, a part of its patronage (vessels and cargo owners), and thus reduce demand for port services.