Private terminal operators seek revival measures as policy changes clip cargo

A lobby group of India private terminal operators have sought the government’s policy intervention for permitting single cargo handling terminals to handle multi commodities at major ports.

Some of the public-private-partnership (PPP) concessions at major ports allow the operators to handle only one commodity such as coal, iron ore etc. The PPP projects are structured whereby the traffic risk is borne by the concessionaire, whereas the concessioning authority secures revenue through minimum guaranteed cargo mechanism.
“Of late, there have been significant market disruptions hampering the functioning of these terminals. It is difficult to manage risk due to court orders banning the import/export of cargo, government policies discouraging imports and significant disruptions in market conditions,” the Indian Private Ports and Terminals Association (IPPTA) wrote in a May 9 letter to the ministry of ports, shipping and waterways.