Call it government apathy or a result of significant private investments; the minor ports in the country are giving the 12 major ports a run for their money. A recent report published by the Government of India (GoI) on the status of the ports in the country reveals that the non-major ports have witnessed an increase in traffic in the first half of 2009-10, while major ports have recorded decline in traffic growth during the same period. Another startling fact is that while the global economic recession was taking its toll on the business of the major ports during the first two quarters of 2009-10, the non-major ports witnessed 26.4% growth in cargo traffic. The report also states that the non-major ports handle more than 30% of the country’s maritime cargo. The non-major ports situated in the states of Ineffective governance of major ports One of the major reasons accredited for the stiff competition is the governance and tariff structure of both major and minor ports in the country. While the tariff of the 12 major ports in the country are fixed by the Tariff Authority of Major Ports (TAMP), the minor ports are allowed to fix their own rates. The minor ports operated by state governments are more efficient and prompt in their services, which have helped them to pose a stiff competition to the major ports. The TAMP has been accused several times of not being able to stop the corrupt practices and punish the guilty. Because of such criticisms, TAMP will soon be replaced by a new regulatory body, known as Major Ports Regulatory Authority, which will have all the powers of a civil court. The new regulatory body is expected to be more powerful than TAMP and will not act as a mere tariff regulatory body. The new regulatory body will have the power to investigate and inspect account books of the 12 major ports as well as private operators. It will also have the right to punish offenders with fines up to Rs 1 crore. It will also settle disputes between the port management and operators using the facilities and services of the port. Preference by private investors can be attributed as a major reason for the overall growth of the minor ports over the 12 major ports. Because of several disputes and fund spent on settling such disputes, private investors have chosen minor ports over the major ones to conduct their maritime business. There have also been several cases when a private player operating a terminal each at a major and a minor port has shifted traffic to the latter. Karan Deep Singh, managing director of Akal Logistics India Private Limited, a mid-sized logistics firm in |
