Why are container train operators facing issues at Adani’s Mundra Port?

Container train operators are concerned about facing potentially huge losses as they grapple with a host of issues at the Adani Group-run Mundra Port, the country’s biggest container gateway.

The Association of Container Train Operators (ACTO) has flagged container pendency that they said are adding to huge losses. It said that loading at Munda Port for outward trains is almost 10-15% below the load plans being offered to the port. The reduced per train evacuation not only extends the congestion-like situation but also adds to higher costs for CTOS due to ground rent implications, and the haulage savings lost due to lower double stack movement.

In a letter to Sujal Shah, CEO Adani Mundra Port, ACTO said that are willing to engage with the team to resolve issues.

“But in the absence of any positive response we will be forced to consider stronger action, including reserving our rights to withhold port dues that are resulting for no fault of our own,” said Manish Puri, President, ACTO.

He said that CTOs are bearing an average cost of approximately Rs 25,000 for every underframe wagon, and it is our estimate that an average of two such underframe movements is taking place on every train leaving the port.

“Accordingly, based on the current traffic pattern, this amounts to a sum of Rs 12.5 lacs per day or almost Rs 4 crore per month as underframe cost being borne by CTOs,” he said.

What is the problem?

There has been a build-up of pendency and train pipelines over the last couple of weeks, after a relatively difficult period impacted by the war in West Asia.

ACTO says during follow up and discussions, the Adani port team provided standard responses like “operational issues” for not loading the rakes as per the planned utilisation.

“Unfortunately, we seem to be back to the same situation that we faced last year, no real solution having been found to address the CTO difficulties. Due to heavy pipeline and operations related pressure, our containers are regularly not being loaded on first in first out basis. In its efforts to prioritise quick rake release, older containers are getting buried under fresh arrivals,” says Puri.

The problem is that even after planning older containers in consecutive rakes, the port is unable to load them, resulting in containers attracting unnecessary ground rent charges, which eventually get passed on to CTOs by Shipping lines.

In addition, the lack of any information/advisory from the Port tends to keep the end user customers completely uninformed and leads to pressure being exerted on CTOs to expedite clearances.

Way forward

ACTO recommended that Mundra Port authority should provide relief on ground rent levies that are resulting from pendency build up and being passed on by Lines on to CTOs for none of their fault.

Ensuring against underframe operations by instructing port based maintenance team to address issues.

“Issuing suitable advisories indicating the congestion/pendency situation at the port so that we are able to inform end user customers of the situation and are not made to bear the entire impact of the situation at hand,” he adds.