Post on 30-Dec-2015
description
Restructuring and regulation in the ports sector: Indian experience
S SundarDistinguished Fellow
The Energy and Resources Institute
Dhaka, Bangladesh, September 2003
Structure of Ports in India
Major Ports Placed in union list of Indian
Constitution Governed under the Major Port
Trust Act, 1963 by the Government of India
Administered by a Board of Trustees
...Structure of Ports in India
Minor Ports Placed in concurrent list of Indian
Constitution Administered under the Indian
Ports Act, 1908 by State governments or by State Maritime Boards
Institutional Problems
Lacking in commercial approach Unwieldy management by Trustees
with vested interests Ports viewed as sources of revenue Powers concentrated in the
government
Indian port performance
High pre-berthing delay (3.6 days in 1995- 96)
High vessel turn around time (8.3 days in2003-03)
Low equipment utilization• Low labour productivity
High manning scales
Reasons for poor performance Ports not adjusted to changes in
cargo categories Obsolete and poorly maintained
equipment Over staffing Cumbersome customs procedures Poor port access facilities Absence of inter-port and intra-port
competition
Port reforms toolkit: World bank Set reforms objectives Areas for private sector participation Methods of private sector involvement Legal and institutional restructuring Allocating financial risks Draft ports concession agreements and
tender documents Identify responsibilities for risk allocation,
funding, regulation and implementing port reforms
Introduce labor reforms
Policy initiatives in India -Objectives
Recognition of the need:- to attract new technologies
- to introduce efficiencies and better management practices- to attract PSP- to introduce competition
….Policy initiatives in India
Adoption of landlord port' concept Decision to corporatise ports Setting up of Tariff Authority of Major
Port (TAMP) Major ports enabled to set up joint
ventures Acts amended
...Policy initiatives in India
1996 Guidelines Areas for private sector investment
identified Procedure prescribed for inviting
private participation Criteria for evaluation prescribed Model tender documents and
concession agreements formulated Corporatisation of Ports
Labour
Surplus labour to be identified and redeployed
Labour to be taken over with the facility to be indicated in the tender document
Labour taken over by the franchisee to retain a 5-year lien with the Port Trust
Labour(contd.)
VRS-Introduced in all ports Manning scales re-negotiated Law amended to provide for
amalgamation of dock labour ports
Other initiatives
Master plan for each port Upgradation of equipment through
public- private investment Restructuring port facilities
Other initiatives (contd.)• Streamlining of port-customs interface• Introduction of EDI • Introduction of Commercial Accounting
Practises• Corporatization
Policy initiatives in states
BOOT Model Joint venture for development and
operation of an entire port
Private Sector participation in non-major ports
Already invested (in crores of Rs.)- Andhra Pradesh : 40- Gujarat : 4475- Maharashtra : 70- Tamil Nadu : 129
Total 4714
Expected Investment (in crores of Rs.) - Andhra Pradesh : 3357- Gujarat : 18713- Maharashtra : 1500 - Tamil Nadu : 3227
Total : 26797
Other Results (contd.)
Pre-berthing delay has been reduced to 0.34 days(2002-03)
High vessel turn around time has been reduced to 3.8 days in 2002-03
Labour force has decreased from approximately 105000 (1995) to 74000 (2001)
Thank You