Shipping ministry relaxes tariff rules for new ports
1 Aug 2013 11:32 PM GMT
The Ministry of Shipping (MoS), has issued a new set of guidelines for determination of tariff at major ports. Also, in the current year, the ministry has targeted to award 30 port projects at an estimated investment of around Rs 25,000 crore. Important projects which will be covered under the new guidelines include the fourth container terminal at JNPT, container terminal at Kandla, diamond harbour container terminal at Kolkata Port and bulk terminals in Paradip, Cochin and Mumbai ports.
Announcing the tariff guidelines which would come into immediate effect, Union Minister for Shipping G K Vasan said these tariff guildelines would impart flexibility to the private operators as well as to major ports-owned berths in determining their tariff, subject to a ceiling.
Under these guidelines, the highest tariff for a commodity at a major port fixed under 2008 tariff guidelines, indexed to 60 per cent of WPI would become the reference tariff on which the bidding would take place.
The private operator under the new guidelines has the freedom to charge any amount upto a ceiling of 15 per cent over and above the applicable indexed reference tariff for that financial year, provided the operator has achieved the minimum performance standards as committed by him in the concession agreement.
'While linking performance to tariff will improve the quality of service in major ports and benefit EXIM trade, it is expected that the new guidelines will encourage more investment from the private sector in port projects,' Vasan said.
Vasan said non-major ports have expanded rapidly with the present substantial presence accounting for about 40% of the cargo share and, to provide a 'level playing field in the port sector, competitive market forces should be allowed to play a greater role in determination of tariffs at major ports.
The government had issued directions in this regard to the Tariff authority for Major Ports (TAMP) and the guidelines would apply to all projects to be awarded by Major Port Trust to which the provisions of MPT Act under BOT/BOOT or any other arrangement for private sector participation (PPP Projects) for which RFPs are issued after the date of issue of these guidelines.
The guidelines may be reviewed and revised after five years from the date of its issue. The maximum tariff to be levied and collected for handling of any commodity or for provision of any service or combination of service or services by Major Port Trusts under the MPT Act or any operator awarded a project under this Act, shall be determined by TAMP in accordance with the guidelines.
Announcing the tariff guidelines which would come into immediate effect, Union Minister for Shipping G K Vasan said these tariff guildelines would impart flexibility to the private operators as well as to major ports-owned berths in determining their tariff, subject to a ceiling.
Under these guidelines, the highest tariff for a commodity at a major port fixed under 2008 tariff guidelines, indexed to 60 per cent of WPI would become the reference tariff on which the bidding would take place.
The private operator under the new guidelines has the freedom to charge any amount upto a ceiling of 15 per cent over and above the applicable indexed reference tariff for that financial year, provided the operator has achieved the minimum performance standards as committed by him in the concession agreement.
'While linking performance to tariff will improve the quality of service in major ports and benefit EXIM trade, it is expected that the new guidelines will encourage more investment from the private sector in port projects,' Vasan said.
Vasan said non-major ports have expanded rapidly with the present substantial presence accounting for about 40% of the cargo share and, to provide a 'level playing field in the port sector, competitive market forces should be allowed to play a greater role in determination of tariffs at major ports.
The government had issued directions in this regard to the Tariff authority for Major Ports (TAMP) and the guidelines would apply to all projects to be awarded by Major Port Trust to which the provisions of MPT Act under BOT/BOOT or any other arrangement for private sector participation (PPP Projects) for which RFPs are issued after the date of issue of these guidelines.
The guidelines may be reviewed and revised after five years from the date of its issue. The maximum tariff to be levied and collected for handling of any commodity or for provision of any service or combination of service or services by Major Port Trusts under the MPT Act or any operator awarded a project under this Act, shall be determined by TAMP in accordance with the guidelines.
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