Minor ports can be brought under tariff authority

NEW DELHI: The law ministry has lobbed the ball back into the shipping ministry's court on the issue of setting tariffs for services provided by the ports to shipping lines.The law ministry has also told the shipping ministry that the minor ports can be brought under the jurisdiction of the Tariff Authority for Major Ports (TAMP). Minor ports are on the concurrent list and law ministry has said there can be no conflict if these state ports are brought under TAMP. In a recent communication to the shipping ministry, the law ministry has said the administrative ministry would have to decide if TAMP should continue setting tariff for various services provided at a port.Several shipping lines are opposed to the idea of regulated tariff for port services and have represented to the shipping ministry that the tariff should be determined by the market.The shipping ministry had recently sought law ministry opinion on redefining the role of the Authority, which included whether that body should continue to be vested with tariff setting role.The shipping ministry had sought to make TAMP an appellate authority as recommended by C Babu Rajeev committee. The ministry had sought to bring the minor ports also under the jurisdiction of the TAMP as against the 12 major ports.Shipping ministry sources said that the government was yet to take a view on the subject of prescribing tariffs. They added that the ministry would take at least a month to decide on the issue.Sources further said that decision would be arrived at taking into consideration the role of other industry specific regulators such as Trai and Electricity Regulatory Commissions and their effectiveness in setting tariff.While Trai has been setting a ceiling on the tariffs that can be charged by the operators, intense competition has seen the rates charged from the customers head south.On the issue of bringing minor ports under TAMP, opposition could emanate from the private ports as well as the Maritime States Development Council which has played a role in attracting investment into the setting up the smaller ports.At present, the minor ports are free to set their own tariff and the fear is that if the tariffs are set for these ports, their competitiveness could hampered.Meanwhile, the shipping ministry has decided to shift TAMP office from Delhi to Mumbai. The shipping industry has for long been saying that the Authority should be located at a maritime city.

Minor ports can be brought under tariff authority

The law ministry has lobbed the ball back into the shipping ministry's court on the issue of setting tariffs for services provided by the ports to shipping lines.

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