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Amit Mitra

Mumbai , Dec. 15

THE Tariff Authority for Major Ports (TAMP) is expected to come out with a new and comprehensive set of guidelines for tariff regulations at major ports and private terminals operated at major ports within two months.

"We are in the final stage of drafting the new guidelines; the draft should be ready within a month for submission to the Government for approval. We expect to bring it out within two months," a senior TAMP official told Business Line.

The new guidelines are expected to address a string of concerns and issues related to the port operations, especially with regard to private operation of terminals at major ports.

Over the last five years, TAMP has been deluged with several issues from different agencies involved in port operations. These were dealt with after analysing relevant data.

So far, TAMP has passed over 300 orders through joint hearings, as part of this "participative process".

"But now a need is felt to review and, if necessary, revise these guidelines in keeping with the fast-changing scenario witnessed in all the ports during the last few years," the official said.

"Lease rental for port land, rate of return that can be allowed on capital employed and cross-subsidisation are some of these issues. Similarly, method of tariff fixation on cost plus basis also needs a review."

As the first step towards bringing out the new set of guidelines, TAMP held several rounds of discussions with the Chairmen of all major ports in September and October at Chennai, Kolkata and Mumbai.

"We have received excellent feedback from the participants. We are sure that the new guidelines will address most of the issues and concerns that were raised," the official said.

The new guidelines will be under seven categories - tariff-related issues, general tariff model, cargo-related charges, container related charges, vessel-related charges, port land policy and regulation of charges of other agencies operating at the port.

The significant part would be the general tariff model, where the existing cost-plus approach followed by TAMP - with pre-determined rate of maximum permissible return for fixation of tariff - will be reviewed.

While TAMP is for continuation of this approach for some more time, an alternative that could be considered envisages normative cost for the port industry as a whole and determination of tariff on that basis, as is being done in the telecom sector.

The guidelines under cargo-related charges would cover issues such as rationalisation of wharfage schedule and unit of levy, concession for coastal cargoes and volume discount schemes.

The vessel-related issues would encompass currency denomination, unbundling of composite charges, rate of berth hire and adoption of performance standards in tariffs.

Another important area where some changes are in the offing is container-related charges.

Container traffic increased from 0.68 million TEUs in 1991-91 to 3.34 TEUs in 2002-03, recording a compounded annual growth rate of 14.18 per cent.

In the last fiscal, Indian ports handled some 43.65 million tonnes of container cargoes, 17 per cent more than the previous year.

Studies have projected that by 2006-07 the container traffic will touch the 60-million-tonne mark.

The new guidelines under this category are expected to cover the issue of the box rate system that is in existence in some ports, while other ports charge separately for various services provided.

Handling and storage charges of loaded and empty containers, on-board stowage and lashing/unlashing charges, charges for reefer containers and dwell time are likely to be other issues that would be reviewed and revised.

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