Demanding a level playing field, private terminal operators with the major ports which are operating under the PPP model have urged the government to enable them implement the free pricing regime which will create a level playing field and usher healthy competition among the terminals. The terminals which are under the PPP model include DP World, PSA International, A P M Terminals and JSW Infrastructure. These operators had taken up the terminals under PPP before the pricing freedom was announced by the government in 2021.
The success of PPP operators hooks on the tariff freedom and so it has been included in the new Major Port Authorities Act, 2021, said Devki Nandan, President, Indian Private Ports and Terminals Association. The existing operators are governed by the rates guidelines of 2008, 2013 and 2019 (revised norms for those covered by the 2005 rate regime), depending on the year in which they were awarded the contracts.
While the new concessionaires (private operators) governed under the 2021 tariff guidelines have been given the freedom to levy market rates, the same has been “denied” to the old concessionaires governed under 2008, 2013 and 2019 tariff guidelines, IPPTA said.
“The concessionaires governed under the old tariff guidelines do not have a level playing field and are suffering in efficiency and financial viability. The government must examine this issue on priority and approve migration guidelines to provide a level playing field to the terminals governed under the old tariff guidelines,” Nandan added, noting that a “policy reform is required for the health of the port sector and improve the efficiency of old terminals.”
