PSA Sical terminal operator to hit India with a work-to-rule campaign
PSA SICAL will launch a work-to-rule campaign July 15 that will reduce throughput of its Tamil Nadu Tuticorin Container Terminal (TCT) by 77,000 TEU to keep it within the 300,000 TEU promised in the contract as a protest of India's 50 per cent tax that makes its operation "unviable"
TCT will only operate two quayside cranes if a settlement is not reached and warned:. "Ships will likely experience a longer port stay. PSA-Sical deeply regrets the possible delays."
The company claimed it had developed the "most efficient container port in India", but India's Tariff Authority for Major Ports (TAMP) decision to halve TCT revenues 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," said the company.
Thus, PSA Sical has decided to downsize, or "right-size", operations. The company said it "hopes the relevant authorities can find an expedient solution so that TCT can return to its normal operating conditions."
For the full year ending March 31, TCT handled 377,000 TEU, 77,000 more than what it guarantees under the concession contract. "While PSA-Sical is committed to operating and developing TCT, it has no choice but to right-size its operation to match its concession commitment to the government by handling 300,000 TEU per annum."
A PSA Sical statement added: "It requests the patience and understanding of its customers and port users for the possible delays and inconvenience in the months ahead."
TCT will only operate two quayside cranes if a settlement is not reached and warned:. "Ships will likely experience a longer port stay. PSA-Sical deeply regrets the possible delays."
The company claimed it had developed the "most efficient container port in India", but India's Tariff Authority for Major Ports (TAMP) decision to halve TCT revenues 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," said the company.
Thus, PSA Sical has decided to downsize, or "right-size", operations. The company said it "hopes the relevant authorities can find an expedient solution so that TCT can return to its normal operating conditions."
For the full year ending March 31, TCT handled 377,000 TEU, 77,000 more than what it guarantees under the concession contract. "While PSA-Sical is committed to operating and developing TCT, it has no choice but to right-size its operation to match its concession commitment to the government by handling 300,000 TEU per annum."
A PSA Sical statement added: "It requests the patience and understanding of its customers and port users for the possible delays and inconvenience in the months ahead."