Shipping ministry policy announcement has officials in a flap

The shipping ministry's latest policy announcement on prevention of private sector monopoly at major ports seems to have created more confusion and apprehension among professionals in ports and shipping circles.

According to the short policy announcement of 2 August, ''If there is only one private terminal / berth operator in a port for a specific cargo, the operator of that berth or his associates shall not be allowed to bid for the next terminal / berth for handling the same cargo in the same port.''

Under the order, ports are directed to incorporate provision for qualifications and requests for proposals in their requests while inviting bids for projects.

Port and terminal developers feel the announcement would hit the development of ports and terminals, which they say have lot of potential. According to the government's plans cargo-handling capacity at major ports would be increased to nearly 1,000 NT in the next two years from the current 600 MT with participation from the private sector.

As per rough estimates, investments estimated worth Rs8,000 crore are expected to be made for setting up berthing and terminal facilities at ports like Chennai, JNPT, Tuticorin and Ennore.

According to one analyst, the notification comes as one of the briefest of policy decisions from the ministry on a complex issue that has been vexing port investors in India since long.