Effect of tariff regulation in major port container terminals: The case of Jawaharlal Nehru port trust

Abstract

Tariff at India’s centrally-administered major ports, including privately operated terminals therein, are regulated and prescribed by the Tariff Authority for Major Ports (TAMP). TAMP was set up under an amendment of the Major Port Trusts Act 1963 in 1997. This paper analyses the evolution of TAMP’s tariff policy against the growth of container terminals at the Jawaharlal Nehru Port. This major port, and India’s largest container port, is run by the Jawaharlal Nehru Port Trust (JNPT), an autonomous body constituted under the Major Port Trusts Act, 1963. Various regulatory issues related to cost-plus approach to tariff setting, unsustainable royalty payments, regulatory capture, regulating performance, varying tariffs across CTs, and market assessment and capacity utilisation have been discussed.