Shippers' body calls for performance review of private port operators

The shippers (exporters & importers) led by the Western India Shippers Association (WISA) are demanding that the Union government should have the right to periodically review the performance of a private port operator.

They feel that either the government or an agency nominated by it should have the right to review the performance of the port with respect to parameters such as traffic projections and the details of whether the backend linkages are in place for handling the projected traffic.

The association is pressing for the inclusion of a condition in the concession agreement signed with private operators as well as in the tender document for such a review.

In a letter to the shipping secretary D T Joseph, the association said, "The tender documents as well as the concession agreement shall also contain a clause providing for a periodical or specific review by the government or any authority nominated by it for this purpose. And the concessionaire shall cooperate and provide all assistance, data, information that is required for the purpose of review."

WISA also said in the letter that the government or an authority nominated by it should have the powers (stipulated in the tender document and concession agreement) for intercessionary action when it feels that the private operator has acted or is likely to act in a manner that is "discriminatory" and will have an adverse effect on the country's trade and economy.

WISA's letter appears to have been prompted by the disagreements it has had with private terminal operators at Nhava Sheva near Mumbai and Chennai.

The association argues that even in the US, the role model of a market-based economy, has a statute to regulate the private terminal operators. The statute is administered by the Federal Maritime Commission (FMC) which has the powers to impose fines and initiate other corrective actions.

"It is also reported that during the fiscal year ended September 2003, the FMC has received and analysed 34 agreements relating to port end terminal services and facilities. Further, the FMC has reportedly, on its records, 335 terminal agreements at the end of the fiscal year 2003, which are being reviewed regularly," the missive says.

WISA says that since in India there is no such body like the FMC or a statute that provides for intercessionary action on the part of the government, it is arguing for a FMC type statute.