The Hindu Business Line : Kochi port union alleges non-payment of revenue share

Kochi, April 14 Cochin Thuramugha Thozhilali Union (CTTU), one of the trade unions in the port, has urged the port Chairman to look into the matter of non-payment of revenue share earned by the container terminal operator from the pre-stage inspection facilities to the Port Trust.

Mr K.N. Vasudevan, Joint Secretary of CTTU, said in the letter that the terminal operator India Gateway Terminal had not yet paid the royalty share of 33.30 per cent of the revenue earned from the facilities and services provided at the pre-stage area.

According to the agreement with the port, the licensee should pay to the licensor a month equivalent to 33.30 per cent of the gross revenue earned by the licensee from the operation of the project facilities and services comprised in the project by levy of tariff during the month, he said.

Quoting the annual report of IGT, he pointed out that the terminal operator had earned an amount of more than Rs 58 lakh during 2005-06 and over Rs 2 crore in 2006-07 from pre-stage operations and the port has to get an eligible share of more than Rs 3 crore under the conditions and stipulations of the license agreement.

The pre-stage examination of containers, which was carried out inside the terminal till November 2005, were shifted to another area outside the terminal by IGT only to levy exorbitant rates and to avoid to share the revenue, he alleged.

The Union therefore requested the Chairman to take urgent action to realise the amount legitimately due to the port with penal interest.

Denies evasion

Senior officials at IGT, when contacted, denied of any evasion or avoidance of payment of royalty, saying that the pre-stage facility is outside the scope of payment of royalty as laid down in the License Agreement.

This matter was raised by the port during a hearing with Tariff Authority for Major Ports (TAMP) in 2006 wherein it was explained that pre-stage operations did not fall within the purview of the project facilities as defined in the License Agreement, the officials added.

The royalty, according to officials, is payable to the port on the gross revenue earned by IGT from the operation of the project facilities and services by levy of tariff approved by TAMP.

The project facilities and services defined in the License Agreement clearly spelt out that the facilities and services are dispensed from the terminal.

Moreover, IGT pays the royalty on the gross revenue earned by it through operations of the container terminal at intervals specified in the agreement meticulously without demur, the officials added.

More Stories on : Trade & Labour Unions | Kerala

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

Stories in this Section
Air Dravida to fly as non-scheduled airline from July

Time to get logistics on the move

The pompous Ps

Rickmers Line eyes acquisition of warehouses, road transport firms

Palk Bay of Sethu project ready to handle vessels of 10 m draft

Kochi port union alleges non-payment of revenue share

Fall in tea exports from Amingaon ICD