Old PPP Cargo Terminals Seek Pricing Freedom
PORTS & SHIPPING

Old PPP Cargo Terminals Seek Pricing Freedom

Old public-private partnership (PPP) cargo terminals at major Indian ports are advocating for pricing freedom similar to that enjoyed by new terminals. This push for autonomy in setting tariffs comes as a response to evolving market conditions and the need for competitive pricing strategies in cargo handling.

Context and Background: Public-private partnership (PPP) cargo terminals, established under previous agreements, are seeking a revision of their pricing structures. These terminals, which have been operational for several years, argue that their pricing models should be updated to match those of new terminals that benefit from more flexible tariff regulations.

Pricing Freedom Request: The primary demand from these older PPP terminals is for the freedom to set cargo handling charges based on current market conditions. They believe that such pricing autonomy would allow them to compete more effectively with newer terminals and adjust their tariffs to reflect fluctuations in operating costs and demand.

Comparison with New Terminals: Newer PPP terminals have been granted greater flexibility in pricing, which has created a disparity between them and older terminals. The latter group argues that this discrepancy puts them at a competitive disadvantage and hampers their ability to optimize revenue and manage operational costs effectively.

Regulatory and Policy Implications: The request for pricing freedom underscores a broader discussion about the regulatory framework governing port operations in India. It highlights the need for a review of existing policies to ensure that older and newer terminals operate under a fair and competitive environment.

Impact on Port Management: Allowing older PPP terminals to set their own tariffs could lead to improved efficiency and service quality. It may also incentivize better performance and investment in infrastructure, benefiting the overall shipping and cargo handling industry.

Future Prospects: The outcome of this request could have significant implications for the future of port management and public-private partnerships in India. It may lead to policy adjustments that address the concerns of older terminals while maintaining the competitive edge of new facilities.

In summary, the appeal by old PPP cargo terminals for pricing freedom reflects ongoing efforts to align with market realities and ensure fair competition in India's port sector. This move could potentially reshape the regulatory landscape and influence future infrastructure investments and partnerships.

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

Old public-private partnership (PPP) cargo terminals at major Indian ports are advocating for pricing freedom similar to that enjoyed by new terminals. This push for autonomy in setting tariffs comes as a response to evolving market conditions and the need for competitive pricing strategies in cargo handling. Context and Background: Public-private partnership (PPP) cargo terminals, established under previous agreements, are seeking a revision of their pricing structures. These terminals, which have been operational for several years, argue that their pricing models should be updated to match those of new terminals that benefit from more flexible tariff regulations. Pricing Freedom Request: The primary demand from these older PPP terminals is for the freedom to set cargo handling charges based on current market conditions. They believe that such pricing autonomy would allow them to compete more effectively with newer terminals and adjust their tariffs to reflect fluctuations in operating costs and demand. Comparison with New Terminals: Newer PPP terminals have been granted greater flexibility in pricing, which has created a disparity between them and older terminals. The latter group argues that this discrepancy puts them at a competitive disadvantage and hampers their ability to optimize revenue and manage operational costs effectively. Regulatory and Policy Implications: The request for pricing freedom underscores a broader discussion about the regulatory framework governing port operations in India. It highlights the need for a review of existing policies to ensure that older and newer terminals operate under a fair and competitive environment. Impact on Port Management: Allowing older PPP terminals to set their own tariffs could lead to improved efficiency and service quality. It may also incentivize better performance and investment in infrastructure, benefiting the overall shipping and cargo handling industry. Future Prospects: The outcome of this request could have significant implications for the future of port management and public-private partnerships in India. It may lead to policy adjustments that address the concerns of older terminals while maintaining the competitive edge of new facilities. In summary, the appeal by old PPP cargo terminals for pricing freedom reflects ongoing efforts to align with market realities and ensure fair competition in India's port sector. This move could potentially reshape the regulatory landscape and influence future infrastructure investments and partnerships.

Next Story
Infrastructure Urban

India, US to promote sustainable aviation fuel and hydrogen in buses

India and the United States have agreed to promote sustainable aviation fuel (SAF), electrification of medium and heavy-duty vehicles, and the use of hydrogen in buses, tractors, and heavy equipment. This decision came during the Strategic Clean Energy Partnership (SCEP) dialogue between US Energy Secretary Jennifer Granholm and Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri in Washington, DC. Both nations also encouraged increased investments in each other's clean energy markets. The joint statement emphasised the importance of a "just, orderly, and sustainable energy trans..

Next Story
Infrastructure Transport

Tuticorin Airport upgradation set for December completion

Tuticorin Airport in Tamil Nadu is undergoing a significant upgrade, with an expected completion date in December 2024. The project, valued at Rs 3.81billion, is being carried out by the Airports Authority of India (AAI) and involves the extension of the runway to accommodate A-321 type aircraft, construction of a new apron, a new terminal building, a technical block with a control tower, and a new fire station. The new terminal building, covering 17,500 square meters, will significantly enhance the airport's capacity, enabling it to serve 1,440 passengers during peak hours and handle up to 2 ..

Next Story
Infrastructure Transport

Airfare hike not tied to increased airport charges; ACI

The Airports Council International (ACI) stated that rising airfares are not linked to increased airport charges. Airport charges are crucial for infrastructure development within the commercial aviation ecosystem, but they remain a minimal part of the overall airfare. Stefano Baronci, Director General of ACI Asia Pacific & Middle East, emphasized that airports are infrastructure-intensive businesses, with costs dominated by maintaining essential infrastructure such as runways, taxiways, aprons, and terminal buildings. He noted that neglecting the capital expenditure needed to support future g..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000