It is a good move by the Indian government to all the port under Tariff Authority for Major Ports (TAMP) as a Regulator in addition to fixing tariffs for major ports. Over the last three to four years, shipping industry and port traffic has grown considerably and major ports currently handle 75% of the total trade in the India. There are also private ports and non-major ports which contribute to about 25% of the port traffic.
India has 12 major Centre-run ports and 183 State-run and private ports. Tariff structure in government-run and privately run ports is different and the competition due to this is helping the smaller state-run and private players. Hence, there is bound to be opposition for this regulatory move.
However, it is necessary that all the ports, major, non-major and private ports should be brought under government regulation so as to have uniformity or transparent differences in the tariff structures. This also will ensure that the necessary safety and security requirements are met in all the ports.
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