The Hindu Business Line : Port tariff body likely to get statutory powers

New Delhi, Nov. 27 The Shipping Ministry is working on a proposal to institutionally and statutorily strengthen the major port regulator — Tariff Authority for Major Ports (TAMP) — in the backdrop of Government finalising the new tariff setting mechanism for major ports. Major ports are those ports that are under the jurisdiction of the Central Government.

“Since the new tariff setting mechanism has a larger role for the major port regulator, we are considering a proposal to strengthen TAMP as an institution through various steps,” a senior official of the Shipping Ministry told Business Line.

In the new tariff setting mechanism for major ports, which is under finalisation, the “level of tariffs” for different ports would have to be fixed upfront (before inviting bids for the terminal) by TAMP with inputs from various major port trusts.

The tariffs have to be fixed on a normative basis, while specifying requisite performance parameters to be maintained at the terminal. Interested port operators are then asked to bid competitively on a revenue sharing basis. TAMP is also expected to ensure that the requisite performance guarantees are adhered to.

“While the new model concession agreement (MCA), which encompasses the tariff setting mechanism, does state the expanded functions of TAMP, there is a need to bring in an independent statute to empower TAMP,” official sources said. The MCA is just a contract between the port trusts and the private port operator, they said.

Hiking headcount

Currently, TAMP is “heavily short-staffed” and has a total staff strength of about 27-30 officials (out of which about six-seven have expertise in tariffs). One of the options being considered is to increase the number of “professional staff strength” in TAMP.

Additionally, the Government also feels the need to statutorily empower TAMP so that it is able to enforce orders and call for data from port operators. “Right now, TAMP cannot compel any party to share information,” said official sources.

There have been instances of decisions of TAMP (which attempt to lower tariffs of terminals in major ports) being challenged in courts by the port operators.

Incidentally, about five years ago, the Shipping Ministry had tried converting TAMP into an appellate tribunal, while bringing the minor ports under TAMP’s jurisdiction. But the proposal, facing opposition from most of the States (who administer the minor ports), did not see the light of the day.

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