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The Competition Commission of India (CCI) will continue its probe into alleged anti-trust practices adopted by one of the terminals run by Dubai government-owned D P World Ltd at Jawaharlal Nehru Port Trust (JNPT), after the Bombay High Court on Tuesday declined to stay the investigation on a petition brought by the Nhava Sheva International Container Terminal (NSICT).
The November 9 preliminary order of the CCI saw merit in a complaint filed by Bharat Mumbai Container Terminal (BMCT), a new facility run by Singapore’s PSA International Pte Ltd at India’s busiest container gateway, alleging that anti-competitive practices by NSICT and Gateway Terminals India (GTI) were hindering its operational effectiveness, and decided to probe the case further.
The complaint filed by BMCT relates to the inter-terminal transfer of containers, a system that is unique to JNPT, whereby container train operators run mixed trains that carry boxes designated for more than one container terminal.
Creating cost-barriers
The Tariff Authority for Major Ports (TAMP), in a common order, approved a uniform rate of ₹400 per TEU for inter-terminal rail handling operations from 15 February 2007, based on an application filed by JNPT. Individual terminals billed this charge to its customers — the shipping lines.
NSICT and GTI have said that the inter-terminal transfer of containers from their terminals to BMCT and vice-versa would be “operationally unfeasible and commercially unviable”, given the considerable distance between their terminals and BMCT. They have asked customers (shipping lines) to make their own arrangements for the inter-terminal transfer of boxes, and also started to levy extra charges from them.
BMCT has alleged that NSICT and GTI were “collaborating” on creating cost barriers, prejudicing the interests of BMCT.
NSICT has argued in its petition that the matter was “outside the jurisdiction of CCI” and solely an issue for TAMP — the rate regulator for centre-owned major ports such as JNPT — to decide.
“The Bombay High Court declined to stay the CCI investigation after hearing the NSICT petition and issued notices to all parties involved in the matter. So, the CCI investigation continues,” a person who attended the court proceedings, said.
The Bombay High Court will hear the petition next in January.
Meanwhile, CCI will continue hearing the complaint filed by BMCT on Thursday to decide its request for an interim order – based on CCI’s investigation- directing NSICT and GTI to abstain from doing “certain things”.
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