New policy for stevedoring,shore handling tariffs from July 31

A new stevedoring and shore handling policy for 12 major ports owned by the central government will come into force from July 31, 2016.
"The existing Stevedoring Agents will have to switch over to the new Stevedoring and Shore Handling Scheme from that date (July 31) and charge the ceiling tariff rate fixed. If they do not switch over to the new scheme, the licence shall be terminated by the Port Trusts by giving due notice as envisaged in the Regulations," the Ministry of Shipping said in a statement.
Stevedoring includes loading and unloading and stowage of cargo in ports. Shore handling includes arranging and receiving the cargo to/from the hook point, inter modal transport from wharf to stackyard and vice-versa and also receiving and delivering of cargo.

"All existing contracts applicable to stevedoring and shore handling operations would be allowed exemption till the date of expiry of the contract or July 31, 2017, whichever date is earlier," the statement said.
The government said the tariff authority for major ports (TAMP) shall notify the normative tariff for stevedoring and shore handling activities for the major ports based on a set of guidelines, which will be ceiling tariff.
In case of any change in role for TAMP in future, boards of major ports will fix and notify the rates, it said, adding that for Kamarajar Port, its Board may fix the tariff.

This will also apply to Mumbai Port and Haldia where stevedoring is carried out by the ports, it said.

The government said all port customers will be notified on the ceiling tariffs set for stevedoring and shore handling activities and the tariff will be mandatorily displayed on the port's website.
The port will appoint a nodal officer responsible for monitoring of stevedoring and shore handling tariffs who will be responsible for handling all complaints on violation of stevedoring and shore handling ceiling tariff.
It added that the Port Trusts may charge a royalty as the licence fee for the licences and may fix a per metric tonne royalty rate from all agents clarifying that no discrimination will be made among the Stevedoring and Shore-handling agents on the royalty licence fee.

"Port Trusts shall frame and notify regulations for licensing of Stevedoring and Shore Handling Agents instead of only Stevedores as at present. The Major Port Trusts shall host the Stevedoring and Shore Handling regulations in their web site and any eligible firm which fulfills the eligibility criteria can apply for license at any time on-line along with requisite documents," the statement said.
"The stevedoring and shore handling licenses shall be issued by the ports to the firms fulfilling the criteria," it added.
It shall be a company registered under Companies Act or a partnership firm or any other legal entity, the statement said adding the firms deposit security amount of at least Rs 5 lakh to meet any contingency which shall be refunded without interest after adjusting the claims, if any, when the licensee ceases to operate.

Also, the agent shall undertake to provide equipment/gear required for both the operations as specified by the Port Trust Board.
The statement said the agents will be required to employ at least six supervisory personnel with minimum two years of cargo handling/ stowage experience for undertaking both the functions.
"The fee for issue of license shall be on payment of a minimum application fee of Rs 50,000, which may be revised from time to time by the Port Trust Board," it said.
The government said major port trusts will ensure that adequate competition prevails in stevedoring and shore handling activities in their ports.

Also, performance based penalty and incentives for agents shall be enforced in accordance with the Berthing Policy, the statement said adding, all Port trusts shall re-assess the penalty bands and/or incentive bands in the frequency as prescribed by the Berthing Policy.
"Performance of the agent in terms of productivity achieved will be reviewed by the Port Chairman every month. The monthly performance summary capturing productivity achieved by the respective agents will be published on the Port website to ensure transparency to the customers," the statement said.
Licenses of agents failing to meet productivity norms for an average over a period of three months can be revoked by the Port Authority.