Shipping ministry readies draft port regulatory body bill

The Union shipping ministry has prepared a draft Port Regulatory Authority Bill, which envisages setting up of regulatory authorities, for the 12 major ports as well as state ports.

Apart from 12 major ports, which are under the direct control of the government, the country has as many as 187 ports — under the jurisdiction of state governments — dotting its 7,500 km coastline.

The bill aims to set tariff guidelines, governing rates for different facilities and services by the port authorities and private operators.

The ministry, however, clarified that the new rules will not come in way of competitive tariff realisation by ports depending on the services offered. Also, it does not aim at any kind of standardisation of rates.

“The idea is to have a two-tier regulatory framework for the central as well as the state government-controlled ports. The bill seeks formation of regulatory bodies for both. The body will predominantly work on the tariff guidelines, apart from ensuring standard of service and dispute resolution. We, however, do not intend to restrict competitive tariff, which the ports may like to fix as per their respective competencies,” shipping secretary K Mohandas told DNA.

With the introduction of the new law, the tariff authority for major ports (TAMP) will cease to exist.

TAMP regulates the tariff charged at the 12 major ports under the Central government’s jurisdiction.

Mohandas said the new Act will replace the Major Port Trust Act as well as the Indian Ports Act, 1908. However, it will take time for the new law to be in place.

The ministry, as of now, has invited response from the various stakeholders involved.
  
After that, the Bill will go for inter-ministerial discussion and will be placed before the Cabinet.

According to the draft bill, the authority will “formulate and notify tariff guidelines, from time to time, prescribing the methodology, approach and other conditions governing setting of rates for different facilities and services by the port authorities and private operators functioning therein.”

The tariff guidelines will contain components of operations and expenditure to be considered in determining rates, methodology to determine rates, periodicity of rates revision, and other conditions governing provision of services.

The authority will also issue regulation for trans-shipping of passengers, containers or goods between vessels in the port or port approaches, landing and shipping of passengers, containers or goods, land or building in the possession or occupation of the port authority or private operator or at any place within the limits of the port or port approaches, and storage or demurrage of goods or containers on any such place, among others.