Kochi

Cochin port’s financial crisis set to worsen

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The cost of maintenance dredging and growing security expenses, among other factors, are pushing the Cochin Port Trust into more financial problems.

The port authority estimates that net loss during 2014-15 will be more than Rs.120 crore. Losses are estimated to go up to more than Rs.180 crore during 2015-16.

Data on the port’s operations said the actual operating expense during the last financial year was Rs.382 crore and operating income Rs.362 crore.

The port authority expects operating income will increase nearly 11 per cent as per the revised estimated for 2014-15 and nearly 20 per cent as per the budget estimate for 2015-16 compared to 2013-14.

Cargo throughput during the current financial year is expected to be about 24 million tonnes against last year’s actual throughput of 20.89 million tonnes. Cargo throughput is estimated to rise to nearly 25 million tonnes during the next financial year and the operating income during the period is expected to go up to more than Rs. 430 crore.

The biggest drag on port’s finances continues to be the cost of maintenance dredging for the international container transshipment terminal. It has been pointed out that the port’s account book would look healthier without the expenses being incurred by the port for the terminal.

The port authority and trade unions at the port have repeatedly appealed to the Union government to make good the expenses it had incurred for maintenance dredging. The trade unions claim that the total expenses on dredging have gone up to Rs.400 crore so far.

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Printable version | Jan 28, 2020 3:10:13 PM | https://www.thehindu.com/news/cities/Kochi/cochin-ports-financial-crisis-set-to-worsen/article6692688.ece

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