Sunday , 26 January 2020
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PSA SICAL has "rationalised" its services at Tuticorin Container Terminal (TCT) in the State of Tamil Nadu, following the decision of India’s Tariff Authority for Major Ports (TAMP) in September 2006 to halve its revenues. This, says the company, has made the terminal commercially unviable, with the much reduced revenue per teu failing to cover the cash operating expense and the royalty payment per teu.

Dispute cuts services at TCT

PSA SICAL has been investing in TCT since 1998 and claims that is has developed it into the most efficient container port in India, to the benefit of the surrounding region. For the full year ending March 31, 2007, the facility handled 377,000 teu, 77,000 teu more than its annual minimum guaranteed throughput under the terminal concession agreement.

However, faced with TAMP’s action, PSA SICAL has decided, “after careful deliberation”, that it has no choice but to right-size its operations to match its concession commitment by cutting throughput to 300,000 teu per annum. From July 15, it has been operating with two quayside cranes, with terminal operations continuing as per normal on this configuration. Some ships are likely to experience a longer port stay as a consequence, it said.

The company stated: “PSA-SICAL deeply regrets the possible delays to its customers and port users. It hopes the relevant authorities and PSA-SICAL can find an expedient solution so that TCT can return to its normal operating conditions to meet and serve the demands of local industries. It requests the patience and understanding of its customers and port users for the possible delays and inconvenience in the months ahead.”