+
Older private terminals at major ports to gain pricing autonomy
PORTS & SHIPPING

Older private terminals at major ports to gain pricing autonomy

Cargo terminals operated by private firms in major ports before the 2021 implementation of the Major Port Authorities Act may soon be allowed to impose market rates for their services. The Ministry of Ports, Shipping, and Waterways has convened a panel to explore enabling older public-private partnership (PPP) cargo terminal operators to transition to market-driven pricing, akin to the new law's provisions for post-2021 private cargo handlers.

The Major Port Authorities Act granted pricing freedom to the 11 governed ports and recently established private cargo terminals, thereby abolishing the Tariff Authority for Major Ports (TAMP) that regulated state-run ports. However, the fate of existing private terminals remained uncertain until this development.

The panel, chaired by Sanjay Sethi, Chairman of Jawaharlal Nehru Port Authority, is tasked with proposing guidelines for the migration process. This decision is highly anticipated within the port sector, as it will ensure that older private operators can shift to market-driven pricing without violating existing concession agreements.

Under consideration is a mechanism where older terminals can levy market-driven rates, while the royalty or revenue share due to port authorities would be based on these rates, accounting for minimum guaranteed throughput (MGT) stipulated in contracts. This approach safeguards volumes while allowing operators to adopt market pricing.

The move will level the playing field between major and non-major ports, encouraging investment and revitalising stressed terminals. Transparency will be upheld through regular rate updates on operators' websites and indexed market rates. By bringing all terminal operators on par, the Ministry aims to establish a cohesive framework for sustainable growth in the sector.

Cargo terminals operated by private firms in major ports before the 2021 implementation of the Major Port Authorities Act may soon be allowed to impose market rates for their services. The Ministry of Ports, Shipping, and Waterways has convened a panel to explore enabling older public-private partnership (PPP) cargo terminal operators to transition to market-driven pricing, akin to the new law's provisions for post-2021 private cargo handlers.The Major Port Authorities Act granted pricing freedom to the 11 governed ports and recently established private cargo terminals, thereby abolishing the Tariff Authority for Major Ports (TAMP) that regulated state-run ports. However, the fate of existing private terminals remained uncertain until this development.The panel, chaired by Sanjay Sethi, Chairman of Jawaharlal Nehru Port Authority, is tasked with proposing guidelines for the migration process. This decision is highly anticipated within the port sector, as it will ensure that older private operators can shift to market-driven pricing without violating existing concession agreements.Under consideration is a mechanism where older terminals can levy market-driven rates, while the royalty or revenue share due to port authorities would be based on these rates, accounting for minimum guaranteed throughput (MGT) stipulated in contracts. This approach safeguards volumes while allowing operators to adopt market pricing.The move will level the playing field between major and non-major ports, encouraging investment and revitalising stressed terminals. Transparency will be upheld through regular rate updates on operators' websites and indexed market rates. By bringing all terminal operators on par, the Ministry aims to establish a cohesive framework for sustainable growth in the sector.

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?