PSA restores full operations at Tuticorin
Operations at PSA International's Tuticorin container terminal in India resumed as normal earlier this month, after Tuticorin port officials assured PSA that the terminal operator would not continue to be hurt by excessive tariffs.
In July, PSA announced it was reducing productivity in the terminal and would only just meet the 300,000-TEU-per-year requirement written in its concession agreement with the port — and not one TEU more — due to a government regulatory body slashing the amount it could charge shipping lines to call at the terminal.
The Tariff Authority for Major Ports, which regulates India's 12 largest ports, prevented Singapore-based PSA and its Indian joint venture partner SICAL, from assessing more than 980 rupees ($24) per TEU, whereas PSA said the industry standard was around 2,500 rupees ($62) per TEU. A decision by India's High Court last year allowed PSA to charge 2,100 rupees per TEU, but with concession-based royalty payments to the port due to kick in July 15, the operator said its revenue would have been halved, so it slowed operations.
Last year, PSA moved 377,000 TEUs through the terminal and was anticipating growth in 2007. According to a report in the Hindu Business Line, Tuticorin officials assured PSA that the port would assess the situation and PSA agreed to resume full operations.
PSA restores full operations at Tuticorin
