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THE ROAD TO reforms, even a die-hard would concede, is full of bumps. The cross-currents of interests, post-adjustment hiccups, together with memories of initial disappointments, have led to a general downgrading of expectations, which were never very high to begin with. Not a great deal, therefore, was expected of the pronouncement by the Tariff Authority for Major Ports to do away, in phases, the cross-subsidisation and subsidies hidden in the tariff structure of major ports. The reality, it now appears, may be even less rosy. At consultation meetings for review of guidelines for tariff regulation, the major ports trusts have made it clear to TAMP that ending cross-subsidisation will not be in their best interest. The Shipping Ministry too now wants the cross-subsidisation to continue in one form or other to boost coastal shipping. In other words, there is plenty for reforms to grapple with.

If TAMP has been seeking the elimination of cross-subsidies so as to make each port operation self-supporting, it must also be examining such issues as whether the cross-subsidisation shall be limited to inter-dependent services or if it should be between sub-services or between main activities. There is one view that vessel-related activities should not subsidise cargo-related activities and vice-versa. Another is that cross-subsidisation could be considered between the sub-activities where the users are the same. The Ministry, on the other hand, feels that the port charges for foreign-going vessels should be high — enough to subsidise the low charges for coastal vessels. It is opposed to a separate law to promote coastal shipping as it feels the existing MPT Act with some tinkering can be made to deliver the goods. Finally, it would like to have prepared soon a report on coastal shipping before it can decide how to go about in the matter. Only a half a dozen expert committee reports on coastal shipping are gathering dust on Ministry shelves.

If the country with more than 6,000 km of coastline handles a meagre 33 million tonnes of coastal cargo (less than 10 per cent of the total freight traffic handled by all modes of transport), it certainly is not due to the government's lack of knowledge about what really ails this sector. It will be naïve to assume that a Government that firmly believes in the free interplay of market forces is unaware of what it takes to attract private investment in coastal shipping: Proper assessment and exploitation of the potentials of the coastal traffic, improvement of infrastructure such as installation of terminals, establishment of proper road connectivity and introduction of simplified cargo clearance procedures and initiative to explore new opportunities such as integrating inland water transportation with coastal shipping. The Ministry's new found love for coastal shipping is understandable as it is part of the Prime Minister's pet Sagarmala project. But one needs to be circumspect about a project whose fate is tied up with the country's political future.

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