Private cargo terminals in major ports will receive an inflation-indexed rate hike of 7.27% for FY2024

Private companies operating cargo terminals at state-owned major ports, including Jawaharlal Nehru Port, including PSA International Pte Ltd, DP World Ltd and APM Terminals Management BV, among others, were allowed to increase rates by 7.27 percent for the fiscal year beginning on April 1 in accordance with an inflation-indexed escalation factor written into their contracts.

Tariffs charged by private terminal operators in major ports are automatically indexed 60 percent annually to the Wholesale Price Index (WPI), a measure of costs, in accordance with contract terms and relevant government tariff guidelines.

This year’s WPI-indexed escalation is the highest since the provision was introduced more than a decade ago. The previous highest escalation was 6.46 percent allowed in FY23.

Bharat Mumbai Container Terminals Pvt Ltd, the facility operated by Singapore’s PSA International and one of the five terminals operating at Jawaharlal Nehru Port near Mumbai, was allowed to increase prices by 7.27 percent from April 1.

Nhava Sheva International Container Terminal Pvt Ltd (NSICT), operated by DP World, and Gateway Terminals India Pvt Ltd (GTI), operated by APM Terminals Management, will implement the tariff increase from May 1, officials said.

Terminals is the container port operating unit of Danish shipping and transport conglomerate AP Moller Maersk A/S, which operates Maersk Line, the second largest boxing line in the world.

Gateway Terminals India handled 1.846 million TEUs (Twenty Foot Equivalent Units) in FY23, accounting for 31 percent of the total containers handled at Jawaharlal Nehru Port, India’s busiest state-owned container gateway and the country’s second busiest .

Bharat Mumbai Container Terminals handled 1.714 million TEUs in FY23 with a 29 percent share, while Nhava Sheva (India) Gateway Terminal Pvt Ltd (NSIGT), operated by DP World, handled 1.137 million TEUs with a 19 percent share has.

Also operated by DP World, Nhava Sheva International Container Terminal handled 1.096 million TEU with a share of 18 percent.

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