The matter concerning tariff cuts at Tuticorin is still in a legal wrangle, but PSA International Pte. Ltd. has decided to resume normal operations at its terminal in southern India.
Tuticorin Container Terminal (TCT) in the Indian state of Tamil Nadu has been operated by PSA-SICAL since 1998.
Recent tariff revisions by India's Tariff Authority of Major Ports (TAMP) called for a 54% reduction in existing rates for terminal uses at Tuticorin.
Such a move “made the terminal commercially unviable” with experts predicting certain losses for PSA-SICAL as it pays fixed royalties to the Indian authorities.
In response PSA announced that it would reduce its throughput by 25% to about 300,000 twenty-foot equivalent units (TEUs) by employing only two out of three available quay cranes.
A meeting last week involving PSA International chief executive officer Eddie Teh, and the new chairman of the Tuticorin Port Trust, K Suresh, proved decisive as PSA-SICAL proceeded to say it would resume normal operations immediately.
Currently, PSA-SICAL is seeking a legal solution to avoid conforming to the heavy tariff reductions, and their case is still before the courts.
Local news reports have singled out the previous chairman of the Tuticorin Port Trust, N K Raghupathy, as one of the significant factors contributing to the recent strained relations.
According to one report, shipping ministry officials familiar with the situation said that Raghupathy had taken a “rigid view” on tariff revisions for PSA-SICAL.
Another report talked about how Raghupathy had been asked to leave by the shipping ministry because of his inability to resolve the stand-off with PSA-SICAL.
Tuticorin Container Terminal (TCT) in the Indian state of Tamil Nadu has been operated by PSA-SICAL since 1998.
Recent tariff revisions by India's Tariff Authority of Major Ports (TAMP) called for a 54% reduction in existing rates for terminal uses at Tuticorin.
Such a move “made the terminal commercially unviable” with experts predicting certain losses for PSA-SICAL as it pays fixed royalties to the Indian authorities.
In response PSA announced that it would reduce its throughput by 25% to about 300,000 twenty-foot equivalent units (TEUs) by employing only two out of three available quay cranes.
A meeting last week involving PSA International chief executive officer Eddie Teh, and the new chairman of the Tuticorin Port Trust, K Suresh, proved decisive as PSA-SICAL proceeded to say it would resume normal operations immediately.
Currently, PSA-SICAL is seeking a legal solution to avoid conforming to the heavy tariff reductions, and their case is still before the courts.
Local news reports have singled out the previous chairman of the Tuticorin Port Trust, N K Raghupathy, as one of the significant factors contributing to the recent strained relations.
According to one report, shipping ministry officials familiar with the situation said that Raghupathy had taken a “rigid view” on tariff revisions for PSA-SICAL.
Another report talked about how Raghupathy had been asked to leave by the shipping ministry because of his inability to resolve the stand-off with PSA-SICAL.