The Tariff Authority for Major Ports or TAMP is expected to shortly issue its orders on the appeal for a hike in port charges field by two private port terminals at the Jawaharlal Nehru port.

Nhava Sheva International Container Terminal, run by DP World, Dubai and the APM Terminals, owned by the Maersk Group, are understood to have asked TAMP's approval to increase the rates by more than ten per cent.

TAMP's ruling, expected early February, will be crucial for both terminals. The tariff authority will be considering their proposals on the basis of the 2005 guidelines as both these terminals come under these guidelines.

According to analysts, under the 2005 guidelines, the chances for allowing a hike in rates are remote when the terminals are handling much more cargo than the minimum guaranteed throughput fixed for them.

On the other hand, the authority may ask them to cut the existing rates, given the improved performance and higher revenue earnings in the case of these terminals.

Both terminals have been handling cargo beyond their installed capacity.

TAMP-fixed rates are normally for a period of three years.

Therefore, if the rates are reduced, it will be applicable for the next three years. The validity of the 2005 guidelines ended in 2010 but was extended by a year by the Shipping Ministry.

(Sourced from BL)