Build-operate-transfer (BOT) terminal operators at India’s Nhava Sheva Port (JNPT) have received regulatory approvals to hike tariffs.
Tariff Authority for Major Ports (TAMP) determines pricing for private terminals at major/government-owned ports.
PSA Mumbai (BMCT), APM Terminals Mumbai (GTI) and DP World Nhava Sheva (NSICT) have received the nod to implement a 7.27% hike in their service rates. The revision for PSA Mumbai took effect on 1 April, while the other two concessionaires will start charging increased rates on 1 May.
“As PSA Mumbai is regulated by the TAMP tariff guidelines of 2013, our tariffs will be accordingly increased by 7.27% with effect from 1 April and will be valid till 31 March, 2024,” the Singapore-based terminal said in a notice to the trade.
According to established bidding guidelines for private-private-partnership (PPP) projects, service rates applied by BOT operators are subject to variations in the wholesale price index (WPI), annually, to the tune of 60%.
However, container lines serving Nhava Sheva are concerned that the revisions have been announced with no advance notice, adding that the cost escalation has the potential to impact their ability to serve the trade as capacity shortages and congestion plague the port.
“Quite frankly, announcing increases at a time when the port situation leaves a lot to be desired, is like adding insult to injury,” said Sunil Vaswani, executive director of the Container Shipping Lines Association (CSLA).
Cargo flows out of Nhava Sheva are seeing serious challenges, after APMT Mumbai put one berth out of operation for crane upgrades.
The disruption is expected to persist until the decommissioned berth resumes operations in early September.
Meanwhile, port stakeholders have struck an upbeat tone on the throughput milestone achieved in fiscal year 2022-23, which ended on 31 March. Nhava Sheva terminals together handled 6.05 million TEU, up 6.4% year-over-year.
“This proves our commitment towards making the port a perfect gateway for exim (export/import) trade,” port chairman Sanjay Sethi said in a statement. “It is a token of port’s consistent efforts and commitment to providing best services to our clients.”
With the congestion not easing, trailer owners have complained that drivers are being forced to spend long hours outside of terminals to drop off boxes, taking a heavy toll on productivity.
Nhava Sheva Container Operators' Welfare Association (NSCOWA), in an appeal to the terminal operators, noted, “We request you to have some consideration of the plight of the drivers and heavy losses to our members and the trade overall.”
Jenny Daniel
Global Correspondent
Contact email: [email protected]
