With major port trusts being converted into public sector undertakings, the same is expected to increase the ports’ autonomy In a move that is set change the dynamics of the Indian shipping sector, the Ministry of Shipping (MoS) is planning to convert major port trusts into public sector undertakings (PSUs), with the process being initiated with the Jawaharlal Nehru Port Trust (JNPT). According to a survey conducted by ShippingBiz360, a staggering 100% of the respondents feel that MoS’ move would be profitable for the shipping sector.
Conversion to give more autonomy to ports
 In this context, while speaking to a ShippingBiz360 correspondent, P C Parida, deputy chairman of Mormugao Port Trust, said, “Conversion of major ports into PSUs will give us more autonomy in decision making regarding several aspects such as recruitment, port policy etc. At the same time, it will help the ports to raise more money from open market, which can be used in carrying out several developmental activities. Moreover, it will increase professionalism in port management.” Mr Parida also added that with conversion of major ports into PSUs, growth opportunity will increase manifold, which will encourage people to pursue a career in the shipping sector.According to V Gosain, managing director of Intra Logistics, a small-sized logistics firm in New Delhi, “With major ports being converted into PSUs, they will have more freedom to fix their own tariff, which is currently fixed by the Tariff Authority of Major Ports (TAMP), thereby lacking flexibility. This will help the major ports to better compete with their global counterparts. The same will also allow logistics players to be flexible regarding their tariff structure.”
It is to be noted that currently only Ennore port among the major ports is a corporate port, while the remaining are administered under the Major Port Trusts Act 1963 (MPTA). Considering the importance of the shipping sector in the country’s economy, it is expected that MoS’ move will pay rich dividends.
Arup Choudhury |
