A state of flux

While ports may be moving to company status, giving them more independence from central decision-making, they still have to deal with long-term concession agreements with private investors.

Evidence though is emerging of a new attitude coming through towards competitive behaviour. A discussion on TAMP, organised by the Indian Maritime University’s Kochi Campus, recently focused on whether TAMP outlived its usefulness with the development of several non-major ports.

The meeting heard views that major ports must compete with private ports to provide quality services. The monopoly in the port sector is fast disappearing and major ports should equip to live in a “world without TAMP”.

The economic research bureau working committee on ports of Assocham (the Associated Chambers of Commerce and Industry of India) has taken a similar line. “There is a need for modern ports in the country as existing ports are plagued with problems like congestion, poor connectivity and accessibility and lack of adequate facilities. Also, turnaround time at ports in India is one of the biggest handicaps logistics service providers have to deal with,” it said recently.

“What is required is modernising the port infrastructure, improving the service quality and an increase in productivity levels. The resources required to build the necessary infrastructure are much larger and, therefore, public investment has inevitably to be supplemented by private sector investment in public private partnership (PPP) mode.”