The Hindu Business Line : `DP World's takeover of P&O can lead to monopoly'

THE Water Transport Workers Federation of India, one of the five major federations of port and dockworkers, has cautioned against the emergence of a monopoly in container port services in India, following the acquisition of P&O Ports by DP World.

The Federation President, Mr M.M. Lawrence, said in a statement that the new development calls for a review of all existing concession agreements with the private sector in Indian ports to make them conform to Indian laws that curb the emergence of monopolies. The container shipping business of P&O Nedlloyd was acquired by Maersk Sealand. The container terminals of P&O Ports and those of A P Moeller Group have come under the control of DP World, which is emerging as a global container port operator.

Until now, there was a semblance of competition among Indian ports, with four major players offering container port services. They were P&O Ports at JNPT, Chennai and Mundra; the Maersk Sealand container terminal at Pipavav; PSA Terminal at Tuticorin and Dubai Ports Terminal at Kochi. However, this new development, Mr Lawrence said, does not augur well. The Government policy, which is in public interest, promotes competition in the container port service sector.

The policy entails concession agreements among private sector partners for the operation of container terminals. A specific clause has to be incorporated into concession agreements in future to prevent any Indian port terminal from becoming a private monopoly. There is a need for more caution while awarding port concessions to the private sector, he added.

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