11 Major Ports Reflect Poor Financial Health

The financial health of 11 major ports has worsened in the last financial year with a higher level of miscellaneous expenditure and eroding operating and net surplus.

Barring Chennai and Kandla ports, nine other major ports have experienced a higher level of miscellaneous expenditure in fiscal 1999-2000 with operating surplus exceeding the net surplus, wiping out income from operations.

Net surplus of nine major ports, except New Mangalore and Tuticorin ports, has declined. Also, barring Cochin and Murmagao ports, operating surplus of all other has shown a downward trend in fiscal 1999-2000.

Apart from New Mangalore, the ratio of total income to total expenditure has declined with aggregate for 11 ports has touched an all time low of 1.23 from the last ten years average of 1.4 to 1.5.

 

The net surplus of Vishakapatnam Port Trust has shown a drastic decline to Rs 5.2 crore in 1999-2000 from Rs 68.8 crore in 1998-99. Its operating surplus has also come down to Rs 58.7 crore from 92.5 crore in the same period.

The ministry of surface transport pointed out that the fiscal health of the ports would worsen further during the current financial year as the port trusts would have to spend large amounts on payment of arrears of wages and allowances to the port employees.

In a letter to all major ports chairman shipping secretary R Vasudevan said operating income has declined despite an eight per cent increase in traffic in 1999-2000, implying the ports have failed to implement the tariff revision and port managements failed to exercise the necessary control over the expenditure.

Also, overdue allowance bill of several major ports has touched more than 25 per cent of the wage bill.

Vasudevan pointed out that port managements have not taken measures to increase revenue coupled with no marketing effort. Also, ports has not enhanced their operational efficiency by leasing out berths to private sector.

The net surplus of Calcutta Port Trust has become negative at Rs 17 crore. However, the CPT has clarified that the net surplus would become positive if employees arrears regarding salary, wages and pension exclude from the expenditure. At present, the port has 17,000 employees. The arrears amount has touched Rs 154.6 crore in the last financial year. The port also has 26,000 retired employees.