Indian shipping and finance officials settle port tariff dispute

Indian shipping and finance officials settle port tariff dispute India's shipping and finance ministries have resolved differences over the tariff structure for container services in the country's major ports by agreeing to put a tariff cap based on market benchmarks, the Economic Times of India reported.
   'The current cost-plus tariff mechanism, which has been the point of difference between the two ministries, would be modified to keep it within a cap,' the news outlet said. 'The ceiling would be set by Tariff Authority for Major Ports upfront for each terminal and not by individual ports.'
   The tariff authority would benchmark Indian tariffs against those at other international ports, though that won't be the only deciding factor on tariff levels, the Economic Times reported.
   Finance ministry officials said the current cost-plus model was 'vulnerable to manipulation by private operators, who used to add up costs while agreeing for larger revenue share to the ports to win the bids.' Indian financial officials are worried the country's high port tariffs might scare away foreign investment.