Terminal ‘go slow’ creates congestion at JNPT
Private operators operating two major container terminals at JNPT have been going slow on container handling at the port after the Tariff Authority of India slashed tariff at both the facilities in March, reported The Economic Times.
According to sources, the slow down initiated by both the operators, DP World and APM terminals, are causing congestion trouble at the port, which is operating at more than 120 percent of its existing capacity.
"There is a move by the private operators to deliberately reduce their cargo since they are incurring losses after the tariff authorities decided to reduce their tariff rates.
“We are trying our best to accommodate all the vessels that are coming to the port," said a senior official at the port.
According to sources, both the companies have been handling cargo as per their mandated minimum throughput, but they were earlier known for handling excess cargo.
DP World declined to comment on the matter.
In February, the Tariff Authority on Major Ports (TAMP) ordered Gateway Terminals India (GTI), operated by APM and Container Corporation at JNPT, to reduce tariff by 44.28 percent.
In March, the authority also ordered the Nhava Shiva International Container Terminal (NSICT), the other terminal operated by DP World, to cut rates by 27.85 percent.
Both orders were issued after reviewing the performance of the terminals and existing charges.
GTI had asked for an 8.72 percent increase and NSICT 30 percent, before the tariff authority decided otherwise.