Need to free major ports from tariff regulation: JNPT Chief

Regulation of tariffs at major ports is inhibiting their growth and there is a need to free them for better price parity with non-major ports, a top official said here today.
"Tariff Authority for Major Ports (TAMP) regime inhibited the growth of major ports and there is a need to free them from the regulatory regime for better price parity and create a level-playing field to compete with fast expanding non-major ports," Jawahar Lal Nehru Port Trust (JNPT) Chairman N N Kumar said here today.
Addressing a meeting organised by industry body Ficci on the Ports and Shipping sector, Kumar said there is no need for regulation of tariff rates at major ports.

JNPT is among the 12 major ports in the country.
On public-private-partnership (PPP) projects in the sector, he said that in the absence of a mechanism to revisit port concession agreements, private players felt discouraged to participate in such schemes.
In the PPP model the concession agreement is for 30 years, he said, adding that with the fast-paced technological advancements, the profile of ports changed every year and with no mechanism to re-visit the agreement during the period of the concession, port development became a casualty.

Kumar also stressed upon the need for guidelines on structuring of PPP projects to mitigate risks to private players.

As far as shipping is concerned, he said the government is exploring the possibility of lending long term cargo support to increase the capacity of Indian flag vessels. Customs formalities were also being streamlined to improve the ease of doing business.
Sharing the Danish perspective on the maritime sector, Freddy Svane, Ambassador of Denmark to India, said his country had built a strong maritime and shipping sector in close coordination with the government and the private sector.
India, he said, could profit by employing the best practises followed by the Danish industry in port development, ship design, logistics and green shipping.

For building efficiencies in India's port sector, Adil Zaidi, Executive Director, Ernst & Young, stressed the need for faster clearances and approvals, corporatisation of port trusts and increased mechanisation.