2011年-世界发展银行全球_Regulation_of_the_Indian_Port_Sector_119页_1mb

Summary of the Regulation of the Indian Port Sector

Core Content

This document outlines the current regulatory framework and reform options for the Indian port sector, focusing on the structural, legal, and institutional challenges faced by both major and minor ports. It provides a comparative analysis with international practices and proposes a new regulatory model that could enhance efficiency, autonomy, and competition in the sector.

Main Background and Policy Overview

Major & Minor Ports

• India has 13 Major Ports and approximately 185 Minor Ports.
• Major Ports are under the Union list of the Indian Constitution and are governed by the Major Port Trusts Act, 1963.
• Minor Ports are under the Concurrent list, managed by Maritime Boards in respective states.
• Major Ports handle 65% of the total cargo traffic, while Minor Ports account for 35%, with a steady increase in their share.

Management of Major Ports

• Governed by a Board of Trustees appointed by the Central Government.
• The Board is responsible for executing works, providing infrastructure, and managing terminal services.
• TAMP (Tariff Authority for the Major Ports) sets tariffs and regulates port dues.
• The Central Government retains control over capital expenditures and sets a ceiling for such expenses.

Management of Minor Ports

• Managed by Maritime Boards in each state, which have more autonomy and flexibility.
• These boards are responsible for policy formulation, regulation, and development of minor ports.
• Some Maritime Boards allow private operators to manage terminals and infrastructure under concession agreements (e.g., BOT/BOOT).

Regulatory Bodies and Institutions

Ministry of Shipping, Road Transport & Highways

• Oversees both shipping and port sectors, including Major Ports.
• Administers the Indian Ports Act, 1908 and the Major Port Trusts Act, 1963.
• Has the authority to declare new ports as Major Ports.
• Divided into 7 Wings, with the Ports Wing and Development Wing being most relevant to port management.

Ministry of Finance - Department of Economic Affairs (DEA)

• Handles infrastructure and investment issues related to ports.
• Reviews investment proposals, coordinates with the Public Investment Board (PIB) and Cabinet Committee on Economic Affairs (CCEA).
• Oversees foreign direct investment (FDI) proposals in the port sector.

Planning Commission

• Established in 1950, responsible for resource planning and development.
• Shifted focus from public sector development to indicative planning after 1997.
• Has a Transport Division that evaluates port projects, monitors productivity, and reviews development programs.

Maritime States Development Council (MSDC)

• Established in 1997 to promote integrated development of both major and minor ports.
• Composed of Ministers of Shipping from all maritime states and union territories.
• Provides an institutional framework for coordinated development of ports.

Key Considerations for Reform

Corporatisation of Major Ports

• A long-discussed reform to make major ports autonomous and commercially viable.
• Corporatisation can occur via Companies Act, 1956 or statutory Incorporation Acts.
• The Landlord Port Model is considered the most suitable for major ports, where private operators manage terminals and infrastructure.
• Ennore was corporatised but is not generally considered a success.

Unbundling and Transition

• Major ports should be unbundled, with terminal services corporatised under the Companies Act, 1956.
• A reasonable time frame is needed for transition, especially for older ports.
• Port workers' interests must be considered during the process.

Model Concession Agreement (MCA)

• Should be revised to:
  • Replace revenue share with unit (TEU) fees.
  • Allow PPP arrangements for major ports, similar to minor ports.
  • Include termination compensation for concession agreements.

TAMP's Future Role

• TAMP should transition from a tariff regulator to a competition regulator.
• A new Port Competition Act should be enacted to address anti-competitive practices.
• TAMP should have the authority to investigate and resolve complaints regarding dominant positions and market abuse.

Conclusion and Recommendations

• A new Ports Act should distinguish between National Ports and Regional Ports.
• National Ports should be managed by boards with representation from the Central Government, State Government, and Port City.
• The Ministry of Shipping should reduce its direct control and focus on national coordination.
• TAMP should be restructured to focus on competition regulation, not tariff setting.
• Maritime Boards should be encouraged to continue and expand, as they offer a more flexible and investor-friendly model.
• Labour reforms are necessary to improve efficiency and align with international practices.
• Investment profile should be developed to attract both domestic and foreign capital.
• Safety and environmental standards must be integrated into the new regulatory framework.

International Comparisons

• Most world ports have transitioned from Service Ports to Landlord Ports since the 1990s.
• Landlord Ports allow private operators to manage infrastructure and services, with the port authority acting as a neutral entity.
• The Indian Ports (Consolidated) Act, 2010 is expected to shape the sector for the next 10–20 years, but it still maintains the central role of the Ministry of Shipping.

Final Remarks

• The Indian port sector requires a comprehensive regulatory reform to modernise and align with international best practices.
• The report suggests that compromise is necessary as there is no one-size-fits-all solution.
• The World Bank Port Reform Toolkit is referenced as a guide for implementing such reforms.