Tamp Plans Levy To Part Finance Operations

The Tariff Authority for Major Ports (TAMP) is seriously considering levying a fee for its services in an attempt to be self financing. The details are being worked out.

Currrently, TAMP which was set up in April, 1997 is totally dependent on budgetary support for carrying out is activities. However, in the long run it hopes to shift the burden to the port trusts and port users. The Union government too is in favour of this step. Port users include exporters, importers, shipping lines and custom house agents.

TAMP has stated this and addressed various other issues in a booklet titled 'Illustrative issues for response towards documentation' apart from financing. The booklet will be circulated at a workshop in Chennai later this month. However, the views expressed by the authority are tentative in nature.

 

TAMP will take a final view on the various issues after the workshop to be attended by different segments of port users and trusts. The booklet brought out in a question and answer form is the product of the deliberations of TAMP with various port users and trusts. The exercise was undertaken as the authority is keen on consulting practically every segment of industry which will be affected by its actions.

TAMP has undertaken a serious effort to formulate uniform principles for levying tariff in the 11 major ports in the country which handle about 80 per cent of the total cargo.

Other issues being considered by TAMP include ensuring a level playing field between port trusts and private operators besides coming out with a clear definition of tariff.

Many port trusts have taken the privatisation route for various activities. For instance, global major P&O Australia Ports has undertaken the construction of a Rs 700-crore container terminal at Jawaharlal Nehru Port (JNPT) near Mumbai. The port trust too operates a container terminal.

The question now arises as to whether JNPT will be allowed to levy the same tariff as P&O. The authority has stated in reply to a question about port trusts being accorded a level playing field that it is ready to do so. However, it does not envisage any competition between private operators and port trust due to the congestion prevailing in India's major ports.

Another demand before the authority is that its tariffs should be comparable to those prevailing in neighbouring countries. This it is argued will make Indian exports more competitive. TAMP has stated in its reply that it may not be possible for it initially to globalise its perspective. However, its medium and long term goal is to make Indian port tariffs internationally competitive.

TAMP has also indicated in reply to another question that it will play the tariff card in order to increase operational efficiency in the ports.

This, it will do by attaching conditions for the tariff to be levied by major port trusts. However, it will lay down standards of productivity only in consultation with all concerned parties.