The Tariff Authority for Major Ports (TAMP) revised scale of rates for the New Mangalore Port Trust (NMPT) from April 1 which has posed a major challenge to the port to keep its bottom-line buoyant, Daily Shipping Times reports.
The port earns revenue from vessel charges, cargo handling charges, railways, estate rentals and royalty. TAMP in its order has reduced cargo handling charges by around 26% across the board, leaving other levies applicable unchanged. TAMP fixes scale of rates for a period of three-years after an exhaustive consultative process with all stakeholders. The revenue of the port has crossed INR 300 crore in 2011-12 .
It is for the fifth year in succession that the port has crossed this mark. Mr. P Tamilvanan, Chairman, NMPT at the annual briefing of the port's performance recently had pointed that the port's net surplus will cross INR 100 crore for the seventh year in succession. NMPT as on date has 35 users. Mr. R Ramesh Karthikeyan, financial advisor and chief accounts officer said the move to reduce cargo handling charges will no doubt bring cheer to the port users.
"This will mean that the port will now have to focus on pushing up volumes in terms of traffic handled to generate additional revenues," said,
Mr. Ramesh. The port in 2011-12 handled 32.94 million tonnes (MT) of cargo as against 31.55 MT in 2010-11, a growth of 4.42%.
Mr. Tamilvanan said the reduction in cargo handling charges is unlikely to have a major impact on the finances of the port for it is aggressively into marketing to attract newer cargo while ensuring that volumes of existing cargo handled goes up.
The port earns revenue from vessel charges, cargo handling charges, railways, estate rentals and royalty. TAMP in its order has reduced cargo handling charges by around 26% across the board, leaving other levies applicable unchanged. TAMP fixes scale of rates for a period of three-years after an exhaustive consultative process with all stakeholders. The revenue of the port has crossed INR 300 crore in 2011-12 .
It is for the fifth year in succession that the port has crossed this mark. Mr. P Tamilvanan, Chairman, NMPT at the annual briefing of the port's performance recently had pointed that the port's net surplus will cross INR 100 crore for the seventh year in succession. NMPT as on date has 35 users. Mr. R Ramesh Karthikeyan, financial advisor and chief accounts officer said the move to reduce cargo handling charges will no doubt bring cheer to the port users.
"This will mean that the port will now have to focus on pushing up volumes in terms of traffic handled to generate additional revenues," said,
Mr. Ramesh. The port in 2011-12 handled 32.94 million tonnes (MT) of cargo as against 31.55 MT in 2010-11, a growth of 4.42%.
Mr. Tamilvanan said the reduction in cargo handling charges is unlikely to have a major impact on the finances of the port for it is aggressively into marketing to attract newer cargo while ensuring that volumes of existing cargo handled goes up.