High Court orders DP World Chennai to cut rate terminal tariffs 35pc

THE Indian High Court of Appeals has ordered Chennai Container Terminal - run by DP World - to reduce tariffs 35 per cent, rejecting its appeal against cuts that were ordered by state regulators.


The rate cut is effective immediately and will be for all customer services at the terminal for a period of two years up till March 31, 2013, according to the country's port regulator Tariff Authority (TAMP).


Despite declarations from DP World statements that a rate increase of 13.77 per cent was needed to offset costs, the regulatory agency said its net surplus of rates in the past justifies the reduction.


"The net available surplus of an estimated US$34 million is to be adjusted by effecting in reduction in the existing tariff over the remaining tariff period of two years - fiscal 2011-12 and 2012-13," said TAMP.


A new container terminal is capable of handling four million TEU, adds six million TEU to the capacity of the whole of the Port of Chennai, reports Newark's Journal of Commerce. In the first quarter, its PSA-operated second terminal based in the south-east increased throughput 26 per cent to 1.52 million TEU year on year.
(Source:http://www.schednet.com)