12,352.35-3.15
Stock Analysis, IPO, Mutual Funds, Bonds & More

Employees of Gateway Terminal at JNPT to go on strike from Monday

Jawaharlal Nehru Port Trust, is likely to face congestion as workers of Gateway Terminal have threatened to go on strike.

, ET Bureau|
Updated: Sep 20, 2012, 06.56 PM IST
0Comments
Jawaharlal Nehru Port Trust, is likely to face congestion as workers of  Gateway Terminal have threatened to go on strike.
Jawaharlal Nehru Port Trust, is likely to face congestion as workers of Gateway Terminal have threatened to go on strike.
MUMBAI: Country's largest container port, Jawaharlal Nehru Port Trust, is likely to face congestion from Monday as employees of one of the three container terminals at the port have threatened to go on strike.

Employees of Gateway Terminal have called the strike to protest against suspension of three workers, who were held guilty of disrupting work in early June by an independent enquiry committee.

"There is an indefinite agitation called by a union of Gateway Terminal from September 24," a spokesman of the private container terminal said. "We have requested the union to cooperate in smooth functioning of the port."

Employees of Gateway Terminal had gone on a four-day strike in June this year after the management decided to hire workers from outside the 'project affected person' (PAP) category. An agreement between JNPT and Gateway Terminal requires the terminal operator to hire PAP, or people who had to give up their land for the development of the port.

But Gateway Terminal said it has already hired the mandated strength of workers from the PAP category.

"We have already reached the cap on hiring people from the PAP category," a Gateway Terminal executive said. "The terminal needs skilled labour and we cannot continue to hire from the PAP group."

The latest call for strike comes at a time when JNPT is facing capacity concerns. The port has been unable to build a new container terminal to meet the increasing demand.

"As it is, much of the cargo now goes to the ports on the west coast including Mundra and Pipavav," a senior JNPT official said. "Now with congestion trouble, we are certain that a number of cargo will move to the ports on the west coast."

JNPT, which handles more than 55 per cent of the country's container cargo, has three terminals at its facility. While Gateway Terminal operates one terminal, the other two are operated by DP World and APM Terminals.

JNPT's own container terminal is operating at more than 120 per cent capacity and cargo diverted from Gateway Terminal because of the strike will add further to the congestion.

JNPT, which makes about Rs 800 crore of annual profit, is plagued by congestion problems caused by industrial action and delays in implementing projects. A fourth container terminal at the port has been delayed for more than a year since bids were opened. Originally estimated to cost more than Rs 8,500 crore, the terminal was expected to handle more than seven vessels at a time. On Monday, JNPT terminated a contract awarded to a consortium led by Port of Singapore Authority (PSA) and ABG Infra.

JNPT officials said recent strikes have caused more than Rs 2,000 crore of loss to the port. "With such high revenue share and low revenues, if operations at the facility are affected, we will not be able to make returns from our investment," the Gateway Terminal executive quoted earlier said.

Also Read

View: Surgical strike in Maharashtra

Students on hunger strike in IIT Guwahati taken to hospital

Face consequences if you go on strike: Govt to employees

Beer wars: The empire strikes back

Companies hope to strike gold on Black Friday

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service