Major ports and their stakeholders are jubilant over the Centre’s decision to introduce price parity by abolishing Tariff Authority for Major Ports (TAMP).
Visakhapatnam Port was at the forefront in upping the ante against tariff setting mechanism.
Level-playing fieldThe port and its stakeholders had at several forums sought bold steps to ensure a level-playing field to compete with non-major ports known as minor ports.
Presently, there is no difference between minor and major ports as even the minor ports are adopting strategies for massive expansion to give a run to the major ports for their money taking advantage of their exemption from the regulatory mechanism.
Ports which are built with the State government’s approval and control are called minor ports and all the 12 major ports are under the administrative control of the Ministry of Shipping.
As per Maritime Agenda-2020, major ports will seek investment of Rs.72,878 crore under BOT (build, operate and transfer) route, out of total investment of Rs.1,09,449 crore to be spent by them on capacity addition and modernisation.
Nearly 200 minor ports in the country account for 40 per cent of throughput handled every year and it is projected that in the next few years they will have a major share.
“The demand for price parity was there for a long time and we will be extremely happy if TAMP regime comes to an end,” a senior official of the Visakhapatnam Port Trust told The Hindu .
During the recent visit to the city, Union Minister for Road Transport, Highways and Shipping Nitin Gadkari said a new legislation to set up a Central Ports’ Authority to replace TAMP was under consideration.
BOT operators seek clarityWhile welcoming the decision to ensure tariff parity, BOT operators have sought clarity on their role in the post-deregulation environment due to their commitment under concession agreement signed by them with the major ports.
Deregulated system“Though the new legislation will attract more investments in major ports for development of new berths and facilities under PPP mode, we don’t have clarity on our status under deregulated system,” pointed out a BOT operator at Visakhapatnam Port.
