Crew change, rate revision proper up Cochin Port Trust revenues in FY21

V Sajeev Kumar Kochi | Updated on May 25, 2021

Increasing demand for oil has also helped gain more revenue

Cochin Port Trust posted a 5.28 per cent increase in operating income at ₹683 crore for FY21 from ₹649 crore the previous year on the back of revenue from brisk crew change operations and rate revisions.

However, the Centre-run port’s net profit declined 66 per cent to ₹7.20 crore from ₹21.30 crore in FY20, according to the annual accounts prepared by Cochin Port Trust.

The decline in net profit was due to increased pay out of various pension fund liabilities of workers and payment of wage arrears.

By reducing its operating expenditure, the port managed to achieve a 16 per cent rise in its operating profit at ₹339.89 crore during the year from ₹293 crore in FY20.

The annual accounts showed that the cargo handled by the port declined by 7.45 per cent, due to demand contraction triggered by the pandemic.

The port handled 31.5 million tonnes (mt) of cargo in FY21 against 34.04 mt a year earlier. It handled 6,89,697 twenty-foot equivalent units (TEUs) from 6,20,061 TEUs in FY20. The number of vessels that berthed at the port declined to 1,475 against 1,589 the previous fiscal.

However, the revenue from cargo related charges increased by around 5 per cent due to increase in container handling by 11.23 per cent. Vessel related charges also increased by 9 per cent in FY21 as ship owners, crewing agents and ship managers undertook crew change at the outer anchorage of the port.

The port revenues got a boost in November and December when the neighbouring Colombo Port was hit by the pandemic and labour issues, resulting in diversion of ships to Cochin and other ports.

Also, the pick-up in demand for oil in the domestic market with the lifting of the lockdown has also helped the port to garner more revenue, the sources added.

Due to the pandemic, the resultant decline in traffic and financial condition, the port authority is seeking a moratorium on the third instalment of government loan of ₹55.86 crore. A proposal has been sent to the ministry of ports, shipping and waterways, seeking a moratorium of three years on loan repayment, port trust sources said.

Published on May 25, 2021

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