The shipping ministry has set up a four-member team to finalise a policy on captive ports. It is likely to take a month.
Under the draft policy, companies in port-based industry which are dependent on port facilities for their business, especially for importing raw material or exporting products, are eligible to set up captive ports. Some stakeholders have criticised the policy for being silent on what constitutes a port-based industry.
The shipping ministry is trying to identify a person or organisation for approving the award of captive port projects. Besides, such an authority would also be eligible for fixing rates. “There have been various comments and objections to the proposed policy, which we have been received,” said K Mohandas, secretary of the ministry. “We will try to address those concerns before the final policy is drafted.”
The committee is likely to come to some conclusion over these issues in a month's time. The policy was primarily mooted in 1996 as part of a notification for allowing private participation in the port sector. In the absence of clear guidelines and definitions, the government decided to put in place a separate policy for captive berths in 2008.
Rajiv Agarwal, chief executive officer, Essar Ports, said the proposed policy would encourage large industries to be set up in close proximity to the port. “Resultantly, will have a multiplier effect on development of several downstream and ancillary industries. We believe the captive berths would not only supplement existing berths and terminals in a port, but also bring in additional volumes of cargo, in view of the multiplier effect mentioned,” he said.
The draft states that if more parties are interested in the facility, the port shall invite Expressions of Interest, indicating that “minimum guaranteed throughput” should be at least 50 per cent of the capacity of the project within two years of commercial operation. It also allows the captive user to handle only the specified cargo in the captive port facility, unless there is prior permission for the port to handle other cargo.
