Major ports in India get tariff regulator
PORTS & SHIPPING

Major ports in India get tariff regulator

The Tariff Authority for Major Ports (TAMP) will no longer be in charge of setting tariffs at the 12 major ports under Central government control after 24 years. The Major Ports Authority Bill 2020 established the Board of Port Authority, which will now set tariffs that will be used as a guide during the bidding process for public-private-partnership (PPP) projects.

According to the Ministry of Shipping's annual report for 2020-21, PPP operators are free to set tariffs based on market conditions.

TAMP's Reference Tariff Guidelines were extended until 8th March 2021, or until further orders, whichever comes first. According to the ministry's annual report, it's now official that TAMP is no longer in effect.

TAMP had created a consultative process that gave the port/terminals industry a platform to interact on any proposal, including tariff revisions, G Raghu Shankar, Executive Director of the International Clearing and Shipping Agency, told the media.

With the addition of multiple facilities, both private and public, the landscape of ports and port terminals has changed dramatically over time, providing users with options that aren't always based on tariffs. This reduced TAMP's importance in an indirect way. The ministry could, however, initiate a consultative process.

On the one hand, major ports have eliminated industry representation on the Board, while on the other, user participation in tariff setting and other port-related development activities is needed to help balance the demand-supply situation, according to AV Vijayakumar, CEO of Paramount Shipping.

TAMP was established in 1997 after the government amended the Major Port Trusts Act of 1963 and issued a gazette notification on April 10, 1997. It was given the task of establishing the ‘scale of rates and statement of conditions' for services provided by the major port trusts and private terminals, as well as the fees for using port facilities.

Image Source


Also read: Govt inaugurates loading ops of Green Freight Corridor in Kerala

The Tariff Authority for Major Ports (TAMP) will no longer be in charge of setting tariffs at the 12 major ports under Central government control after 24 years. The Major Ports Authority Bill 2020 established the Board of Port Authority, which will now set tariffs that will be used as a guide during the bidding process for public-private-partnership (PPP) projects. According to the Ministry of Shipping's annual report for 2020-21, PPP operators are free to set tariffs based on market conditions. TAMP's Reference Tariff Guidelines were extended until 8th March 2021, or until further orders, whichever comes first. According to the ministry's annual report, it's now official that TAMP is no longer in effect. TAMP had created a consultative process that gave the port/terminals industry a platform to interact on any proposal, including tariff revisions, G Raghu Shankar, Executive Director of the International Clearing and Shipping Agency, told the media. With the addition of multiple facilities, both private and public, the landscape of ports and port terminals has changed dramatically over time, providing users with options that aren't always based on tariffs. This reduced TAMP's importance in an indirect way. The ministry could, however, initiate a consultative process. On the one hand, major ports have eliminated industry representation on the Board, while on the other, user participation in tariff setting and other port-related development activities is needed to help balance the demand-supply situation, according to AV Vijayakumar, CEO of Paramount Shipping. TAMP was established in 1997 after the government amended the Major Port Trusts Act of 1963 and issued a gazette notification on April 10, 1997. It was given the task of establishing the ‘scale of rates and statement of conditions' for services provided by the major port trusts and private terminals, as well as the fees for using port facilities. Image Source Also read: Govt inaugurates loading ops of Green Freight Corridor in Kerala

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code