The Hindu Business Line : `Policy framework must to deal with CCTL-like situation'

WITH the concession and license agreement remaining silent on the Government's role in case of strike at private terminals at major ports, the Shipping Ministry now feels that a policy framework was necessary to ameliorate the hardships faced by trade.

This comes in the backdrop of the workers strike at the Chennai Container Terminal Ltd (CCTL) run by P&O Ports from May 23.

"The licence agreement simply says that all applicable laws should be implemented by the private operator. Now P&O Ports will say that it had gone to the Regional Labour Commissioner (RLC) and the High Court. What more do you want us to do? If workers demands are unreasonable or if discipline is becoming lose, should we keep quiet? This is one side of the story," said the Shipping Secretary, Mr D.T. Joseph.

The other side of the issue is the difficulties faced by the trade.

"The trade has told us that their boxes are lying idle, trucks are standing in long queues stretching into hundreds of km and ships are threatening to levy a congestion surcharge. What is their fault? The exporters credibility is now in question," the secretary said.

The workers demand revocation of suspension orders on four of the workers and finalisation of wage negotiations, which he said was not under his control.

"Both the things are internal. The Chennai Port Trust or the Shipping Ministry cannot be telling P&O Ports and the workers what to do. But at the same time, if the problem is not sorted out soon, trade is going to suffer greatly. This is a pincer like situation. In future, we must have some kind of a policy in these matters," Mr Joseph said.

According to the Shipping Secretary, there was no point in the privatisation programme at major ports if CCTL or any other private terminal was treated on the same lines as a Government terminal.

"In such an event, private investments will not flow. The private investors will say if we also are going to be treated like this after putting in hundreds of crores worth of investments, that discipline will not be maintained by the workers. When somebody is provoking others, we cannot take any action and trade will exert pressure on us and we will run in losses, why should I make investments at all?"

Mr Joseph added, "Actually, in my opinion, we are at the cross roads as far as this aspect is concerned. Because depending upon how you take a decision, further flow of investments will be affected.

"At the same time, does that mean just because you have got a License Agreement, a private operator can do whatever he feels like, nobody else can question him and he can hold the trade to ransom. That is the other side of the issue, which needs to be answered," Mr Joseph said.

The Government will pursue the container terminal project at Ennore Port, but with caution.

"Definitely we will now chase the Ennore container terminal project so at least some nearby alternative is there. But, if we develop a new terminal at Ennore, the CCTL will say that the Government instead of helping them was making them run. So one has to tread a bit carefully," he added.

Mr Joseph noted that congestion surcharge at terminals cannot be brought under control.

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