Project Profile

Project Title Review of Tariff Guidelines for Ports 2005
Project Code 2011IA02
Project Status Completed
End Date February 2014
Sponsor(s) Ministry of Shipping
Division Resources, Regulation and Global Security
Executive Summary Full Text

Ministry of Shipping has engaged TERI to review the Tariff Guidelines of 2005. The main objectives are:
(a) To critically analyse the port wise cost plus method of tariff fixation envisaged by the Tariff Guidelines of 2005 and highlight the various issues which are to be addressed in the review exercise. (b) To develop formulae for determining standard capacity of different facilities (both sea and landward) at a port / terminal and suggest the standards for different variables to be considered in computation of the standard capacity. In this regard, the methodology prescribed in the upfront tariff guidelines of 2008 may be taken note of. (c) To analyse individual activities and service groups and develop physical norms for efficient operations of the facilities. (d) To determine normative cost, both fixed and variable, of different operations 'with reference to the physical norms developed and provide a suitable method for periodic updating of costs. (e) To suggest suitable method for recognizing capital cost relevant for achieving the standard capacity and allowing return thereon. (f) To examine the issue relating to pass through of royalty/revenue share payable by the qualifying private terminal operators and suggest the method of factoring admissible pass through in the normative model. (g) To explore the possibilities of introducing efficiency linked Tariff scheme.
(h) To suggest periodicity of review of Tariffs and norms. (i) To furnish Draft Guidelines to implement the recommended model.