The decline in containers handled was not due to a decline in trade, but due to the better performance of its tenant, the P&O-operated Nhava Sheva International Container Terminal (NSICT). The terminal handled 121,157 containers from April to September by not just taking away JNP customers, but also accounting for the entire increase in traffic of 93,979 teus.

The NSICT, the country's first private container terminal was commissioned about six months ago. It is currently operating at a level of 450,000 teus per year. With its stacking yards and other facilities still under contruction, the NSICT has stopped taking on additional customers.

The better peformance of the NSICT is due to superior productivity parameters. With four gantry cranes in operation, the NSICT is able to handled over 100 containers per hour. Turnaround time is about 24 hours.

According to sources, the decline in container traffic has become a serious cause of concern. Only last year, JNP has established itself as a premier container port in the country, surpassing the cargo handled by Mumbai port. There were hopes that with improved productivity and better facilities, JNP would become a hub on the western seaboard. However, the first state of serious competition has JNP trying to woo back its customers.

The worse it still to come. P&O has also bagged the operations and management contract for the container terminal at Kandla. This could provide some serious competition. A large part of the container business comprises export cargo originating in the north. For these companies, Kandla is an easier access point than Mumbai. However, the low draft at Kandla will mean that feeder vessels will have to bring the cargo from JNP to Mumbai again for transhipment. P&O, with its O&M contract at Kandla, is well positioned to grab the business at both ends, leaving JNP with a slight disadvantage in attracting traffic.

Recognising some of the threats, the JNP management is currently trying to improve productivity norms to meet the same turnaround time offered by NSICT.

Although JNP has lost container business to the NSICT it has done well on other fronts. According to data made available by port authorities, it notched up a 27.84 per cent increase in traffic for the period April to September compared to the corresponding period last year. This increase is despite the stagnant trade figures. The port surpassed its own targets by 7.25 per cent.

While fertiliser handled declined by 1 per cent to 4.39 lakh tonnes, from 4.43 lakh tonnes last year, foodgrains handled increased by 28 per cent and liquid cargo by 82 per cent. There was a sharp decline in iron coil exports by 87 per cent.