It is too early to say whether the new set of guidelines drafted by the Ministry of Shipping forbidding private operators from operating two facilities of identical cargo from major ports will actually prevent monopoly of private operators

The Ministry of Shipping (MoS) is all set to prevent the monopoly of private players operating from the 12 major ports of the country. MoS has drafted a new set of guidelines, which restrict private players from operating two facilities of identical cargo from major ports or within a 100 km radius of it. However, the extent to which the proposal will actually restrict the monopoly of private operators is still doubtful.

According to a survey conducted by Shippingbiz360, 50% of the respondents are of the view that the new guidelines will actually prevent the monopoly of a single player operating at the port, whereas the remaining 50% of the respondents feel the opposite.

A gamble

In this context, M S Madhubala, proprietor of Duropack, a mid-sized logistics service provider (LSP) is New Delhi, says, “The new set of guidelines will definitely give rise to healthy competition and create a level playing field. This will particularly boost new players who are looking to undertake port development activities but have been restricted from doing so due to the presence of established players. Therefore, this is indeed a positive step taken by MoS.”

However, there is a certain section of people who are of the opinion that the new guidelines can backfire and it is a gamble undertaken by MoS. “A single player operating in a particular port is well aware of the work environment in the port and to prevent it from carrying out facilities of identical cargo in the port can upset the ongoing projects,” says Anil Kumar, manager of United Shipping Agency, a mid-sized shipping firm in Bengaluru. The guidelines also restrict a single private player from operating adjacent terminals dealing with identical cargo in the same port. However, the player can bid for different category of cargo at an adjacent terminal.

Arup Choudhury