The Shipping Ministry is understood to be in the
process of revising the rate regime for the first batch of public-private
partnership (PPP) cargo terminals at the Major Ports. The Container terminals
in Southern Indian ports operating for more than a decade, have been clamoring
for rate increase for the past several years but both the Port administration
and the Tariff Authority for Major ports TAMP have not conceded their demand.
The Terminal Operators have been demanding rate
revision saying they tend to lose revenue if they performed well. A section of
the customs brokers in Chennai firmly believe that the output in the terminals
could not be stepped up since there was no incentive for the terminal operators
to do more containers
The Ministry has dropped an earlier plan to allow
the terminals to migrate to a more favorable and market-friendly pricing
guidelines announced for new terminals in 2013.
One of the key aspects of the guidelines was a
guaranteed increase of as much as 15 per cent on the base reference or ceiling
rate during each year of the 30-year contract if the terminal operator complied
with certain performance standards. The ceiling rate was set upfront by TAMP at
the beginning of the contract.
Operators were unhappy with the 2005 guidelines
as they said it penalized them for efficiency. A terminalís rate was cut in the
next tariff cycle if it loaded more than the projected volumes in the current
cycle, reports said.