In a bid to retain traffic, the Kochi port has decided not to increase tariff for the next three years.
The validity of the prevailing tariff will expire by March 2012.
Board decision
When the issue of revision of tariff came up, the board of trustees has decided not to increase both the vessel-related as well as the cargo-related charges for the next three years, it is learnt.
The port management fears that any upward revision in tariff could lead to diversion of cargo to other ports.
The decision was taken despite the fact that the port has been incurring losses for the last three years.
The vessel-related charges are collected on the basis of gross registered tonnage as well as period of stay of the vessel at berths.
The cargo-related charges are collected on the basis of type of cargo handled and they vary from one cargo to another.
The Tariff Authority for Major Ports had directed all major ports and private terminals to file their tariff revision proposals by June 30.
Since the auditing of annual accounts of the Kochi port for the financial year 2010-11 was not completed in June, the port has requested the TAMP to extend the time limit up to September for submitting the proposal.
As an alternative strategy, the port has targeted increasing the turnover and achieving higher assets utilisation during the next three years.
The sources said that it is initiating strong cost management measures to improve its financial performance. The port is also implementing stringent austerity measures in its pursuit to tide over the present crisis.
The ERP operational system implemented by the port has become fully functional leading to cost reduction and better transparency, the sources said. The port is developing a deep draft bulk handling terminal and a multi-user liquid terminal on PPP format which would lead to more vessel calls and help in meeting the heavy dredging cost it is incurring at present. The port hopes to improve its income from the Vallarpadam ICTT and the new LNG terminal.