P & O Arm Takes Reins Of Chennai Container Terminal

Chennai Container Terminal Ltd (CCTL), the special purpose vehicle created by P& O Ports, Australia, has formally taken charge of the management of the container terminal at the Chennai Port from the Chennai Port Trust (ChPT).

CCTL will manage, develop and operate the terminal for a period of 30 years.

The move comes after a division bench of the Chennai High Court dismissed appeals filed by the United Labour Federation challenging the decision of the ChPT to privitise the container terminal. The federation had contended that if the decision to privitise the container terminal were implemented, it would adversely affect the interests of the workers.

 

As part of the agreement signed between ChPT and P& O in August 2001, the latter would invest US$ 100 million in the first five years to set up a box terminal. P& O has also undertaken to increase the productivity from 3.5 lakh TEUs to 8 lakh TEUs in three stages. ChPT will earn a royalty of 37.12 per cent on the total earnings.

Meanwhile, CCTL had sent a proposal to Tariff Authority for Major Ports (TAMP) to increase the tariffs and also to levy US dollar denominated charges to select services. Many industry users opposed the move saying that the move could adversely affect their competetiveness in the current scenario. They felt that, if the proposals were accepted by TAMP, tariffs would increase by 35 to 40 per cent.