Friday, June 13, 2008

Of regulators, tariffs and ports in India

Since 1997, after the Tariff Authority for Major Ports (TAMP) came into existence the Cargo-handling terminals run by government-owned ports as well as private operators have to take clearance from the tariff regulator before fixing and revising tariffs says P. Manoj.

He says" The cargo-handling capacity of India’s ports (both major ports and those owned by the state governments, but given to private firms for development and operations) has to be doubled to at least 1,500 million tonnes (mt) a year by 2012 from about 756mt now.

The article further says that the shipping ministry has been resisting demands from private investors to dismantle TAMP and leave tariff setting to market forces, arguing that competition for cargo handling at major ports has not reached the desired level for this. The shipping ministry’s definition of competition is an excess capacity of 30-40%.

P. Manoj is Mint’s resident shipping expert and will write on issues related to shipping and logistics every other Friday.