Operators of Indian Container Terminals Turn Down Rebid Offer

Container terminal operators of some of major Indian ports have turned down Indian shipping ministry’s proposal to rebid for container terminals they are already operating after failing to cut their tariffs.

Namely, a court regulator ordered that the terminal operators in question, including APM Terminal, DP World Ltd and PSA International Pte Ltd cut their tariffs.

The decision comes in the wake of the companies’ request for raising tariffs and being switched to the new rate regime announced in July 2013 for new projects, which is considered to be more favorable.

In a response, the shipping ministry proposed that terminals located at Jawaharlal Nehru port near Mumbai and Chennai port enter a rebidding process after terminal operators pay a surplus earned in excess of the permissible limit— estimated at about Rs.1,200 crore—to the government-owned ports, Live Mint reports.

According to the terminal operators,  the surplus earnings and the consequent rate cuts were the result of faulty tariff setting guideline framed by the government in 2005.

Under the proposal, ten terminals would be open for rebidding in accordance with the terms and conditions of the new guidelines where the existing operators of each of these terminals would be given the right of first refusal, the daily writes citing the ministry’s proposal.

World Maritime News Staff

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