The Hindu Business Line : PSA-Sical restores normal operations at Tuticorin box terminal

Chennai, Aug. 2 Operations at the Tuticorin container terminal have been restored to normal with PSA-Sical, the private terminal operator, deploying all the three quay cranes to peak productivity, according to a press release from the company.

PSA-Sical had restricted operations from July 15 after the Tariff Authority for Major Ports (TAMP) decided to halve the container terminal’s revenue making it commercially unviable, according to the company.

In September 2006, the TAMP fixed a tariff of Rs 980 per TEU (20-foot equivalent unit) against the industry norm of around Rs 2,500. PSA Sical obtained an interim order from the High Court of Madras, which allowed the earlier tariff of Rs 2,100 a TEU.

According to the company, the lower revenue per TEU did not cover the cash operating expense and the royalty payment it had to make to the Tuticorin port. From July 15, the contracted escalation in royalty would have come into effect.

PSA-Sical decided to right-size operations to match its concession commitment to the Government by handling three lakh TEUs a year, for which it would operate only two quay cranes. This is against last year’s throughput of 3.77 lakh TEUs.

According to the release, the decision to restore operations to normal levels follows a meeting between Mr Eddie Teh and Mr Ashwin C. Muthiah of PSA-Sical Terminals, and Mr K. Suresh, Chairman, Chennai Port Trust with additional charge of Tuticorin Port Trust. Mr Suresh said that they would work towards an amicable settlement in the overall interest of trade. He assured the company officials that he would look into the issue.

More Stories on : Supply Chain Management | Shipping

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GHIAL sends team to top EU airports

Look at Vienna as European hub, Ministry tells Air India

Netting a catch

Public-private partnerships — Breaking new ground for State Highways

Sethusamudram project — Trials and travails

Punj Lloyd picking 25% stake in Pipavav Shipyard

Minor port in Cuddalore notified

UB open offer in Air Deccan: SEBI clears the air

Bihar floods hit Concor’s direct services

PSA-Sical restores normal operations at Tuticorin box terminal

Rlys seeks US co help to study impact of axle load increase

Blockade hampers iron ore traffic on East Coast Rly

Rly booking thru Indian Bank ATM