Corporatisation of major ports draws mixed reaction

February 28, 2015 02:54 pm | Updated October 13, 2016 06:59 pm IST - VISAKHAPATNAM:

The announcement to corporatise major ports has evoked mixed reaction with the management welcoming it and trade unions apprehending loss of jobs under alibi of rightsizing and downsizing.

“It will certainly lead to increase in efficiency parameters as the process of involving BOT players under PPP mode in a big way is in advanced stage of implementation,” a senior official told The Hindu. He said that talk of decentralisation would also lead to quick decision-making.

However, silence on abolition of Tariff Authority for Major Ports (TAMP) and relaxation of Cabotage law to allow carrying of cargo from one domestic port to another by a foreign flagged vessel has created resentment among a section of BOT operators. The BOT operators have been seeking a level playing field to compete with minor ports by freeing them from regulator regime.

Visakhapatnam Port has already signed concession agreements with Essar Group for mechanisation and capacity augmentation of Ore Handling Complex with an investment of Rs.845 crore and extension of container terminal by JM Baxi Group at a cost of Rs.633 crore. Adani and Vedanta Groups have launched operation of berths developed by them under BOT basis.

“Our apprehensions on corporatisation have come true though the process started long ago. The PPP investment itself is an initiative to convert the major ports into landlord ports within next three years,” said AITUC leader and senior-most trustee of Visakhapatnam Port V.V. Rama Rao.

As Ennore, the first corporatised port registered under Companies Act has less overhead costs and wage payment liability, the major ports would also get a lot of benefit once they were converted into companies, said an official of the Visakhapatnam Port.

Visakhapatnam Harbour and Port Workers’ Union and Visakhapatnam Port Employees’ Union cried foul about the announcement on corporatisation and feared that this would lead to displacement of both permanent and indirect employees to a large extent. They said golden handshake scheme is already offered to several permanent employees.

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