22 Dec 2016
INDIA: Services at State-run Ports Opened Up for Tender by Private Operators
The country’s 12 major state-run ports are now open to bids from private companies looking to take on responsibility for individual areas of port operation, such as cargo-handling. Previously, all such functions were undertaken by the publicly-governed port authority of each respective port, which also had overall responsibility for all port land, infrastructure and assets.
Under the new regulations, effective immediately, the port authority in India will serve only as a regulatory body, with a brief to lease out port infrastructure to private companies where appropriate. The private lessee will then be free to build and maintain its own buildings and install and maintain its own equipment as required.
The new legislation also sees the Tariff Authority for Major Ports stripped of its power to regulate port tariffs. Instead, the successful bidder for any port-related Public-Private Partnership (PPP) project will be free to fix a tariff based on prevailing market conditions.