PANAJI: Export and import business activities have come to a virtual standstill in Verna industrial estate due to the sudden sharp increase by Rs 30,000 in cargo transport rates and this has evoked angry reactions from small scale enterprises and majors.

Importers and exporters at Verna industrial estate and at other industrial estates in the state are boycotting the central government’s handling agent and intend to carry on with their shipment directly through their own cargo handling sources at Mumbai Jawaharlal Nehru Port Trust (JNPT).

A circular sent last week to all exporters, importers, depositors and forwarders by the central government-run Central Warehousing Corporation (CWC) affirms that Peninsular Trucking Pvt Ltd from Pune has been awarded with effect from July 7, the contract for handling and transporting of import and export container cargo in Verna industrial estate.

Peninsular Trucking has revised the rates and for up to 12 metric tonnes the new rate is Rs 32,000 against the old rate of Rs 24,000. For 12-24 metric tonnes the price is Rs 44,000 against the old price of Rs 36,000. The closed body truck (CBT) market rate is Rs 10,000 per truck whereas CWC is charging Rs 16,000 per truck. The normal market rate for 40 ft TEU container is Rs 40,000, whereas what is fixed by the CWC agent is Rs 70,000, an unfeasible increase by Rs 30,000.

"This is sure to spell disaster for the small scale exporters. The sudden jump in the new rates without taking us into consideration will make matters worse for us. The new prices are above market rates," said Mr Manzoom Shaikh vice president, commercial, of Capricorn Logistics, the service provider for exporters and importers.

"Till last fortnight import-export business was normal. Then suddenly when we shifted our cargo last Saturday, we were told that all cargo export will have to be channelised through one party from Pune which has the sole rights to handle the CWC-CFS business at Verna-Goa," said Mr Shrikant Parulekar of Astra Concrete Products.

Mr Parulekar further said that he had contracted his export cargo with one forwarder at Verna for Rs 41,000 but now had to shell out Rs 58,000 for this Pune agent. "There is no alternative as the central government has fixed rates with this agent," said Mr Parulekar, incensed at the new development. The Goa Chamber of Commerce and Industry is fighting the case with the Centre. Mr Nitin Kunkolienkar, former GCCI president and MD and chairman of D-Link, had to divert his import cargo to Mumbai.

Earlier, some major Verna exporters transporting cargo through CWC-CFS were paying Rs 48,000 per container but now the new contractor, without taking the exporters into consideration, has revised the rate to a whopping Rs 75,000 per container. "This has severely hit many small scale exporters in their export and import plans," said Mr Ashish of D-Link. "We request the local government to intervene immediately," voiced Mr Parulekar, Mr Shaikh and Mr Ashish.

From the year 2000 onwards till a week ago small scale enterprises found CWC a boon to their business and overall growth increased year-on-year. The bonded agreement with the CWC’s container freight station (CFS) for cargo from Mumbai JNPT to Goa was viable for exporters to use this facility provided by the Centre in the Industrial Container Depot at Verna, which includes warehousing, cargo handling, loading and unloading. On a daily basis, about 25 TEU containers arrive in Goa and exporters and importers are seeing growth of 10 percent to 15 percent. When contacted, CWC and its agent said it is the order from the regional office in Mumbai.