Mumbai: PSA SICAL has announced that it is to downsize its operations at the Tuticorin Container Terminal (TCT) in South India from July 15 in response to a decision last September by India's Tariff Authority for Major Ports (TAMP) to halve the TCT's revenues. The terminal, which has been under PSA management since 1998, handled 77,000teu over its commissioned amount for the year ending March 31, 2007.
In a statement to the press, the company said "While PSA-SICAL is committed to operating and developing TCT, the decision has made the terminal commercially unviable. The much-reduced revenue per teu is not able to cover the cash operating expense and the royalty payment per teu. Consequently, PSA-SICAL, after careful deliberation, decided it has no choice but to right-size its operations to match its concession commitment to the Government by handling 300,000 teu per annum."
The terminal, which has a maximum capacity of 450,000teu, will operate from next week using two quayside cranes instead of three for its terminal operations, which are to continue on this configuration. PSA said, "Some ships will likely experience a longer port stay as a consequence. PSA-SICAL deeply regrets the possible delays to its customers and port users.
The company is currently in negotiations with the local government for the state of Tamil Nadu to "find an expedient solution so that TCT can return to its normal operating conditions to meet and serve the demands of the local industries." [09/07/07]
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