Major port corporatisation to begin with JNPT

The government will soon convert Jawaharlal Nehru Port Trust (JNPT) into a public sector undertaking, the Financial Express India reported.

The move is part of a plan to corporatise all major ports of the country with an intention to give them more autonomy in decision making.

"Corporatisation of major ports will start with JNPT. Others will follow. The process is on and the decision is expected soon," shipping secretary K Mohandas said.

At present, Ennore Port is the only corporate port – it was corporatised in 2001. The remainder of the 12 major ports are administered by trusts under the Major Port Trusts Act 1963 (MPTA).

MPTA imposes restrictions on tariffs by the trusts. As per the Act, Tariff Authority for Major Ports (TAMP) chalks out the caricature of tariff and trusts have to comply with the same. TAMP norms are considered restrictive and are blamed for higher charges at major ports. Once a port trust is converted into a corporate entity, it will have more freedom to fix tariffs and compete with other ports better.

JNPT handled traffic of 61 million tonnes during 2009-10, nearly 11 percent lower than the target of 68 million tonnes.
(Source:www.cargonewsasia.com)