JOC Staff | Mar 06, 2012 12:39PM EST
India’s Tariff Authority for Major Ports ordered a 27.85 percent reduction in tariffs currently levied by Nhava Sheva International Container Terminal, a DP World facility in the Port of Jawaharlal Nehru.
The decision follows a 44 percent rate cut the port regulator implemented last month at Gateway Terminals, Nehru’s largest box facility operated by APM Terminals.
NSICT in its submissions sought a 37.5 percent across-the-board hike over previously-approved rates but TAMP rejected the tariff review proposal, citing surplus income.
“According to our analysis, there is no case for granting any increase in the tariff as proposed by NSICT,” the regulator said in its order. “There is, in fact, a strong case to effect a reduction in the existing level of tariff at NSICT.”
The price reductions, slated to remain in force until December 2014, are expected to yield substantial cost savings to ocean carriers serving the west coast hub, India’s top container gateway.
Nehru handled a record 4.27 million 20-foot equivalent units in fiscal 2010-11 ended March 31, 2011, with NSICT and Gateway cumulatively accounting for 3.4 million TEUs.
To cope with projected growth in traffic volume, the port authority launched a series of capacity expansion projects that include development of a 4 million-TEU fourth box terminal through private
participation and a $320 million dredging plan to accommodate deep draft vessels.