Comments
The private container terminal operators at the Jawaharlal Nehru Port failed to get a stay against the Tariff Authority's order directing them to cut port charges.
The Supreme Court on Thursday declined to admit the special leave petitions filed by the Nhava Sheva International Container Terminals (NSICT) and the Gateway Terminals India (GTI), the two private terminals operating at the JN Port.
In February, the Tariff Authority for Major Ports (TAMP) ordered GTI to reduce tariff by 44.28 per cent.
Later in March, it ordered NSICT to cut rates by 27.85 per cent. Both the terminal operators had, in fact, sought a raise in tariff in view of the increasing operating costs.
GTI had asked for 8.72 per cent increase and NSICT 30 per cent. Following the TAMP orders, the two operators approached the Delhi High Court seeking a stay on the regulator's directions.
However, the court rejected their appeal on the grounds of jurisdiction as both the terminals are located in Mumbai.
Subsequently, both GTI and NSICT approached the Supreme Court, which declined to admit their petition on Thursday. DP World, Dubai, which runs the NSCIT declined to comment stating that the matter was sub-judice .
However, an official has confirmed that the Supreme Court had turned down their plea seeking an interim relief.
Both the terminals are yet to revise the rates, though TAMP orders mandate them to do it with in 15 days after they are issued. According to reports, pending court case, the terminals have entered into an arrangement with shipping lines that they would adjust the rates once the matter is settled.
TAMP orders were issued after reviewing the performance of the terminals and their existing charges.
The two terminals were top performers and handled cargo in excess of their mandated minimum throughput.
However, TAMP, taking into account the increase in volume and revenue, ordered a steep cut in rates in accordance with the 2005 guidelines.
JN port handles more than 55 per cent of the container cargo shipped through the Government-owned major ports in the country.
NSICT pays the land lord JN port a fixed royalty on the volume of containers handled irrespective of the TAMP rates.
Gateway Terminals share 35 per cent of its annual revenue with the port, which is calculated on the basis of rates notified by TAMP.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.