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Raja Simhan T E

Chennai , Sept 17

THE Tariff Authority for Major Ports (TAMP) should continue in the present form as tariff regulator at Indian major ports. This was the unanimous view expressed by users of the southern ports including the Chennai port. The views were expressed in the backdrop of reports in the last two years that TAMP could be converted into an appellate authority.

Meanwhile, port users endorsed TAMP's view on moving to a performance-based tariff fixation at ports from a cost-based formula. TAMP follows a cost-based model with predetermined rate of maximum permissible return for fixation of tariff. The cost-plus approach has some disadvantages such as there is no incentive to reduce costs and there is no reward for efficiency. On the other hand quantification of tariff was easier in cost-plus approach, the authority said in an agenda paper distributed to users.

At a day-long deliberation of the First Consultation Meeting of TAMP held here, port users said the authority had been doing a good job in the last five years. It ensured transparency was maintained while fixing of tariff at major ports. Moreover, TAMP provided a forum for port users to air their views before operators fixed the tariff. "The Shipping Ministry was also of the opinion that the TAMP should continue in its present form," said a source in the shipping industry.The proposal to convert TAMP into an appellate authority was first mooted by the C. Babu Rajeev Committee which was constituted by the Shipping Ministry to overhaul the Indian Ports Act, 1908 and the MPT Act, 1963, and bring them in line with the liberalised scenario.

Incidentally, Mr D. T. Joseph, former Director General of Shipping, after taking over as Shipping Secretary told Business Line recently that "in principle I am opposed to the plan on converting TAMP into an appellate authority. TAMP should be strengthened. It has been doing a wonderful job ever since it was set up in 1997." TAMP is the tariff regulator for the Government-owned 13 major ports.

Chaired by Mr A.L. Bongirwar, Chairman, TAMP, port officials and Chairmen of Chennai, Tuticorin, Visakhapatnam and Kochi port trusts participated in the meeting. Mr R.K. Singh, Joint Secretary (Ports), Ministry of Shipping, was present. The port users included representatives of steamer agents association, custom house agents, stevedores agents, a source said.

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