The Delhi High court would soon hear a petition field by the Indian Private Ports and Terminals Association on the tariff guidelines issued by Tariff Authority for Major Ports (TAMP).
The association complains that the guidelines of TAMP do not cover all recurring costs and place a cap on rate of return. The tariff, fixed by TAMP on a cost-plus basis, is generally revised every three years or whenever a request is made.
The association remarked that while the terminals have been seeking a hike in rates to offset the rising costs, TAMP, going by the guidelines, cut the rates.
The case may impact several private cargo terminals that are governed by the guidelines of TAMP in 2005 and their tariffs are due for revision.
They include terminals operated by majors such as DP World Dubai and APM Terminals at Jawaharlal Nehru Port.
If a terminal handles more than the projected cargo in a particular year, it could lead to a reduction in tariff in the next year. This policy, according to private terminals, penalises efficient terminals and rewards the inefficient ones.
The validity of the 2005 guidelines expired in 2010 but was extended by a year. Subsequently, the government set up a committee in September 2010 to recommend new guidelines.
Following representations by private operators, the government in June 2011 appointed an external agency with a mandate to prepare new guidelines in four months. The agency is still studying the issues. The petitioner also sought a court directive to the government to expedite issue of new guidelines.
Leave a Reply
You must be logged in to post a comment.