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Krishnapatnam Port’s lower charges driving transhipment gains | JOC.com

More than infrastructure superiority and spare capacity, a strategic pricing policy appears to be the “X factor” that has enabled the Krishnapatnam Port to grab a larger share of transhipment freight moving to and from South India.

Located 112 miles north of Chennai, Krishnapatnam Port is an alternative, privately operated minor harbor.

A study by global consulting firm McKinsey & Co. found that ocean carriers using Krishnapatnam as a “relay point” have a slight economic advantage over other hub ports in the region, due to lower port charges.

“Krishnapatnam Port is giving a 40 to 50 percent discount on vessel-related charges to incentivize mainline calls,” the report stated. Officials at Krishnapatnam were unavailable for comment regarding price adjustments.

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India News: Krishnapatnam Port’s lower charges driving transhipment gains.

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