Tariff Authority for Major Ports (TAMP)

The Tariff Authority for Major Ports (TAMP) is the independent statutory regulatory body established by the Government of India to regulate and standardise the tariffs and charges levied by major ports and private terminal operators within their jurisdiction. It plays a central role in ensuring transparency, uniformity, and fairness in the pricing of port services while safeguarding the interests of both users and investors. TAMP functions as a key institution in maintaining economic efficiency and competitive balance in India’s port sector.

Establishment and Legal Basis

The Tariff Authority for Major Ports (TAMP) was constituted in April 1997 through an amendment to the Major Port Trusts Act, 1963 under the Major Port Trusts (Amendment) Act, 1997.
Before TAMP’s creation, tariff determination was managed individually by each port trust, often leading to inconsistencies and lack of regulatory oversight. The establishment of TAMP centralised tariff regulation and introduced a structured, independent mechanism for ensuring rational pricing across all major ports in India.
TAMP operates under the Ministry of Ports, Shipping and Waterways, Government of India.

Objectives

The primary objectives of the Tariff Authority for Major Ports are as follows:

• To ensure transparency and uniformity in the tariff structure of major ports.
• To regulate tariffs for services and facilities provided by major ports and private terminal operators under public–private partnerships (PPPs).
• To promote efficiency and competition in the delivery of port services.
• To protect user interests while enabling a reasonable return on investment for operators.
• To facilitate financial sustainability and attract investment into port infrastructure.

Jurisdiction and Coverage

TAMP has jurisdiction over the 12 major ports of India, which were historically governed by the Major Port Trusts Act, 1963 and are now covered under the Major Port Authorities Act, 2021.
These major ports include:Kolkata (including Haldia), Paradip, Visakhapatnam, Kamarajar (Ennore), Chennai, V.O. Chidambaranar (Tuticorin), Cochin, New Mangalore, Mormugao, Mumbai, Jawaharlal Nehru Port (Nhava Sheva), and Deendayal (Kandla).
TAMP’s regulatory authority extends to both public sector ports and private terminal operators functioning under concession agreements with major ports. It does not cover minor and non-major ports, which fall under the jurisdiction of respective state governments.

Composition of the Authority

The Tariff Authority for Major Ports consists of:

• Chairperson: Appointed by the Central Government, generally of the rank of Secretary to the Government of India.
• Member (Finance): Represents the Ministry of Finance.
• Member (Technical/Planning): Represents the Ministry of Ports, Shipping and Waterways.

This tripartite structure ensures administrative independence and balanced representation of financial and technical expertise.

Major Functions of TAMP

The Authority performs several key regulatory and advisory functions related to tariff determination and market regulation:

1. Tariff Fixation and Revision:
   • Determines and revises tariffs for port services including cargo handling, berth hire, pilotage, storage, and port dues.
   • Reviews proposals submitted by port trusts and private operators to ensure cost-reflective and fair pricing.
2. Regulation of PPP Projects:
   • Approves and monitors tariff proposals for public–private partnership projects within major ports.
   • Ensures adherence to concession agreements and transparent pricing mechanisms.
3. Issuance of Tariff Guidelines:
   • Develops uniform guidelines for tariff determination based on cost recovery, efficiency improvement, and market competitiveness.
   • Successive tariff policies—such as the 2005, 2008, 2013, and 2019 Guidelines—have progressively refined the regulatory framework.
4. Stakeholder Consultation:
   • Conducts hearings and invites feedback from port users, shipping companies, and trade bodies before finalising tariff decisions.
5. Monitoring and Review:
   • Regularly evaluates the financial and operational performance of ports and terminals to ensure compliance with approved tariffs.

Tariff Determination Process

The process adopted by TAMP for setting tariffs follows a structured and participatory approach:

1. Proposal Submission:The concerned port trust or private operator submits a tariff proposal with financial and operational details.
2. Public Consultation:Stakeholders including exporters, importers, and shipping associations are invited to provide feedback.
3. Technical Evaluation:TAMP analyses the proposal based on the relevant tariff guidelines, considering cost, productivity, and return on investment.
4. Public Hearing:A formal hearing may be conducted to ensure transparency in decision-making.
5. Final Order and Notification:Approved tariffs are published in the Official Gazette and implemented by the concerned port or operator.

Evolution of Tariff Policy

TAMP’s regulatory approach has evolved over time to align with the liberalisation and modernisation of India’s port sector:

• 1998–2004: Cost-plus tariff regulation focusing on recovery of expenditure and a fixed rate of return.
• 2005 Guidelines: Introduced performance-linked pricing to reward efficiency.
• 2008 Guidelines: Developed a framework for tariff regulation of new PPP terminals.
• 2013 Tariff Policy: Allowed greater flexibility by linking tariffs to revenue-sharing arrangements.
• 2019 Tariff Guidelines: Introduced a simplified, market-driven approach to encourage competition and investment.

The latest framework reflects a gradual transition from rigid price control to a regulatory oversight model, where ports have greater autonomy while maintaining accountability to users.

Role under the Major Port Authorities Act, 2021

The Major Port Authorities Act, 2021 redefined the governance of India’s major ports, giving them enhanced autonomy and commercial flexibility.
Under this new framework:

• Each major port is empowered to fix tariffs through its Board of Authority for port services and assets.
• TAMP’s role has been modified—it now acts as a residual regulator primarily for PPP operators and legacy contracts.
• The focus has shifted from direct price fixation to policy supervision, consistency, and dispute resolution.

This reform reflects the government’s strategy to promote a competitive, market-oriented port ecosystem.

Importance of TAMP

The Tariff Authority for Major Ports has been instrumental in the evolution of India’s maritime and port policy framework. Its significance lies in:

• Ensuring fair and transparent pricing for port services.
• Protecting user interests from potential monopolistic practices.
• Providing regulatory certainty for investors and operators.
• Promoting operational efficiency and performance benchmarking.
• Supporting the growth of PPP models in port infrastructure.

Challenges

Despite its contributions, TAMP faces certain challenges:

• Transition to deregulated models under the new legislative framework.
• Maintaining equilibrium between user interests and investor profitability.
• Coordination issues with state maritime boards and non-major ports.
• Ensuring uniform standards amid increasing privatisation and competition.

Conclusion

The Tariff Authority for Major Ports (TAMP) has played a pivotal role in promoting fairness, transparency, and accountability in India’s port tariff regime. Over time, it has successfully guided the transition from a centrally controlled system to a more flexible and competitive regulatory environment.