Private port terminal operators are unhappy over the recommendations of an expert panel on tariff setting norms.
In fact, the only recommendation they have supported is regarding doing away with tariff regulation.
Revised guidelines
The panel, comprising experts from The Energy Resources Institute (TERI), had been asked by the Shipping Ministry to suggest revised guidelines for port tariff setting norms.
IPPTA (Indian Private Ports & Terminals Association) - the port terminal operators lobby body - had also part funded this study.
Support for one norm
IPPTA, which comprises members such as DP World, PSA, APM Terminals, JM Baxi and Gammon, submitted its comments on the TERI views to the Ministry on Monday. “From the TERI guidelines on tariff regulations, the only view we support is that there is a scope to do away with regulation of tariffs given the competition in sector,” the IPPTA Secretary General, Mr S.S. Kulkarni, said.
The recommendations will impact port terminal operators whose tariff setting norms are set by the 2005 guidelines of Tariff Authority for Major Ports.
The Shipping Ministry came with upfront tariff setting guidelines in 2008.
Tariff setting guidelines
Revising the 2005-tariff setting rules has been a long-standing issue for the port terminal operators.
They had sought a review of some clauses of the guidelines of the port regulator, Tariff Authority of Major Ports (TAMP).
The industry lobby body says that the guidelines penalise the efficiency of terminal operators.
“With these guidelines, the port tariffs will move towards zero,” claimed Mr Kulkarni.