PSA gives 50 per cent discount in storage rates on import boxes at JNPT, Chennai, VOCPT terminals

Singapore’s PSA International Pte Ltd will offer a 50 per cent discount in storage charges on all import containers at its terminals located at Jawaharlal Nehru Port Trust (JNPT), Chennai Port Trust and V O Chidambaranar Port Trust (VOCPT) from April 16 to April 30, the global port operator has said in a public notice to the trade.

The move follows an announcement to extend the lockdown period by another two weeks until April 30 to tackle the coronavirus pandemic.

Since March 22, PSA India has been offering longer free storage period on all import containers, laden and empty, by an additional three days at its terminals in JNPT and VOCPT, until April 15.

It also waived the rail terminal handling charges on empty containers on rakes at JNPT and Chennai, connecting to/from vessels at those terminals and change of mode charges from road to rail for both empty and laden containers until April 30.

“From April 16, the additional three days free time for all import containers at PSA Mumbai and PSA Sical will be discontinued and replaced with a 50 per cent discount on storage charges for all imports at PSA Chennai, PSA Mumbai and PSA Sical until April 30,” PSA India said after a review following the extension of the lockdown.

PSA said it was also “deferring” the implementation of a rate hike of 1.13 per cent approved by the Tariff Authority for Major Ports (TAMP) for its terminal at JNPT by a month, until May 1.

PSA’s facility at JNPT is governed by a rate regime finalised by the Shipping Ministry in 2013. Accordingly, the upfront tariff for the terminal set by TAMP at the beginning of the 30-year contract entitles the terminal operator to a rate hike every year to account for rising prices because the base reference rates are indexed to the wholesale price index (WPI), a measure of costs, to the extent of 60 per cent.

The 2013 rate regime also guarantees a raise of as much as 15 per cent on the WPI-indexed reference rate (set upfront at the beginning of the contract by TAMP) during each year of the 30-year contract if the terminal operator complies with certain performance standards.

The 1.13 per cent hike cleared by TAMP will run through March 2021.
Source: The Hindu business Line