(Published in Part - III Section 4 of the Gazette of India, Extraordinary)
TARIFF AUTHORITY FOR MAJOR PORTS
GNo.27        Delhi,       26  February 2008
NOTIFICATION
In compliance of the policy direction issued by Government of India in the Ministry
of Shipping, Road Transport & Highways (MSRTH) under Section 111 of the Major Port Trusts Act,
1963 (38 of 1963), as conveyed by MSRTH  vide its communication No.PR-14019/25/2007-PG
dated 12 February 2008, the Tariff Authority for Major Ports hereby notifies the following guidelines
for upfront tariff setting for PPP Projects at Major Port Trusts, 2008:
Guidelines for upfront tariff setting for PPP Projects
at Major Port Trusts, 2008.
1. Preliminary
1.1. These guidelines may be called ‘Guidelines for upfront tariff setting for PPP projects at
Major Port Trusts, 2008’.
1.2. These guidelines shall come into effect from the date of their publication in the Gazette of
India and shall remain in force until the Government decides to amend or modify or revoke
them.
1.3.1.    These guidelines shall apply to all PPP projects for which bids will be invited by setting
tariff caps upfront in the manner provided  hereinafter when such projects are awarded
under BOT/BOOT or any other arrangement for private sector participation under the
Major Port Trusts Act, 1963 adopted by the Government as amended from time to time.
1.3.2. It is clarified that the Guidelines for Regulation of Tariff at Major Ports, 2004 which were
notified in the Gazette of India vide Gazette No.39 dated 31 March 2005, as may be
amended from time to time, shall continue to govern the tariff setting for the Major Port
Trusts and the private terminals already operating thereat and also for the projects where
bidding process is concluded before publication of these guidelines in the Gazette.
1.4. If any difficulty arises in giving effect to these guidelines, the Government, in consultation
with the Tariff Authority for Major Ports (TAMP), may make such orders, not inconsistent
with the basic features of these guidelines, as may be necessary for removing the
difficulty.
2. Overall Approach
2.1. Tariff caps for handling various commodities or providing various services by private
operators licensed by Major Port Trusts under Section 42 of the MPT Act   shall be set
upfront by TAMP following these guidelines.
2.2. Once tariff caps are set for handling different commodities or providing various services for
a port, they would apply to all terminals that are bid out subsequently in the same port
during the next five years for handling identical commodity or for providing similar services.
2.3. The Port Trust concerned shall approach TAMP with its proposal for fixing tariff caps and
shall include the tariff caps so fixed in the bid document as upfront tariff.
2.4.   For the purpose of fixing upfront tariff, TAMP shall follow a normative cost based approach
which will recognize capital and operating costs estimated based on the norms set by - 2 -
these guidelines and allow a reasonable return on capital employed, which is 16% as of
now.
2.5. The upfront tariff so set by TAMP will only be the ceiling levels.  
2.6. While doing so, TAMP should comply with  the policy directions issued by the Central
Government from time to time, like concessions to coastal cargo / containers, concessions
to transshipment containers etc.  
2.7.1. Tariff caps will be reviewed once in five years to adjust for any extraordinary events that
could not have been foreseen by a prudent person. However, these Tariff caps, as and
when so reviewed and revised, will be applicable to projects that are bid out subsequently.  
2.7.2. Before reviewing the tariff caps, the norms relating to performance to be applied shall be
set at progressively higher levels than those adopted in the past, and would take into
account the technological developments.
2.8. Tariff caps will be indexed to inflation but  only to an extent of 60% of the variation in
Wholesale Price Index (WPI) occurring  between 1 January 2008 and 1 January of the
relevant year.  Such automatic adjustment of tariff caps will be made every year and the
adjusted tariff caps will come into force from 1 April of the relevant year to 31 March of the
following year.
For this purpose, the WPI for all commodities announced by the Government of India will
be considered.
   
When tariff caps are reviewed as set out under clause 2.7.1 above, variation in WPI will be
measured with reference to the WPI as on 1 January of the year in which such a review is
made.
Illustration:
(i). Let the tariff cap for a commodity be Rs.x which is set in the year 2008.  If the
variation in WPI as of 1 January 2009 with reference to 1 January 2008 is (+)5%,
then the tariff cap for the year 2009 will be Rs.x [1 + (5/100 x 60/100)] = Rs.1.03x.
The revised tariff cap will take effect from 1 April 2009 and will remain in force till
31 March 2010.  
(ii). If the variation in WPI as of 1 January 2010 with reference to 1 January 2008 is (-)
3%, then the tariff cap for the year  2010 will be Rs.x [1 + (-3/100 x 60/100)] =
Rs.0.982x.  The revised tariff cap will take effect from 1 April 2010 and will remain
in force till 31 March 2011.
2.9.1. Before commencement of commercial  operations, the private operator shall approach
TAMP for notification of Scale of Rates containing ceiling rates applicable to his
operations, as required under Section 48 of the Major Port Trusts Act 1963 (MPT Act).
2.9.2. The Scale of Rates to be framed by TAMP as per clause 2.9.1 shall be in line with the tariff
caps prescribed for the port and included in  the bid document, subject to indexation
explained in clause 2.8 above.  Such Scale of Rates and statement of conditions shall be
notified by TAMP in the Gazette of India as required by MPT Act.
3. Estimation of Capacity, Capital Cost and Operating Cost
3.1. Optimum capacity cost of developing such capacity and the associated operating cost for
fixing tariff caps shall be determined on the basis of normative estimates.
3.2. The norms for fixing upfront tariff in case of the container handling operation are set out at
Annex-I, and those for iron ore, coal, liquid bulk and multipurpose berths are at  Annex-II,
III, IV and V respectively. TAMP may make necessary adjustments in these norms, based - 3 -
on the justification to be furnished by the concerned Port Trust keeping in view the port
specific conditions having impact on the norms prescribed in these guidelines.
3.3. Capacity
3.3.1. Optimal capacity of a terminal should  be determined taking into consideration various
components of a facility that may be required to be created, equipment and plant and
machineries to be provided, productivity level and utilization level as per the norms
prescribed.
3.3.2. Tariff should be prescribed with reference to the optimal capacity of the terminal
irrespective of any traffic forecast.
3.4. Capital cost
3.4.1. Capital cost should be estimated for the following broad categories by applying the
relevant norms prescribed.
(i). Civil construction cost including dredging and reclamation.
(ii). Equipment and Plant and Machinery
(iii). IT Systems
(iv). Other costs including preliminary expenses, financing cost, interest during
construction, etc.
3.5. Operating Cost
3.5.1. The annual operating cost of the terminal shall be estimated following the norms
prescribed for operating the terminal at the optimal capacity determined in terms of clause
3.3.1 above.
3.5.2. The operating cost can be grouped under the following major heads:
(i). Power and Fuel
 (ii). Repairs and Maintenance.
 (iii). Insurance
 (iv). Depreciation
(v). Licence Fee for lands and buildings and  other port assets allotted by the Port
Trusts under the Concession Agreement.
(vi) Other expenses.
3.5.3. Depreciation should be calculated following the Straight Line Method as per the life norms
prescribed in the Companies Act.
3.5.4. The Licence Fee (rentals for land, buildings and other port assets) should be taken as per
the rate prescribed in the Scale of Rates of the concerned Port Trust.
3.5.5. Revenue share will not be considered as an item of cost for fixing the upfront tariff.
3.6 TAMP in consultation with the concerned Port Trust may decide on a particular item of
expenditure, which it considers necessary for incorporation, while computing the upfront
tariff cap, for which the norms are not explicit in the Guidelines.  
3.7 Return on Capital Employed
3.7.1. A fair return on capital employed will be allowed on the capital cost determined in terms of
clause 3.4.1.  The norm for determining the quantum of Return on Capital Employed is
16% as of now.
3.8 Revenue requirement and framing of Scale of Rates (SOR) - 4 -
3.8.1. The annual revenue requirement of operating the terminal at the normative optimal
capacity is the sum of the annual operating cost determined in terms of clause 3.5 above
and the return on capital employed calculated in the manner prescribed in clause 3.7
above.
3.8.2. The annual revenue requirement is to be achieved through realization of tariff.  The tariff
cap for different individual services is therefore, to be set appropriately by TAMP in such a
way as to achieve the annual revenue requirement.
3.8.3. The conditionalities for providing various services may also be prescribed along with tariff
cap following the existing policy guidelines  and the position obtaining at the concerned
Major Ports.
3.8.4 TAMP, either on its own or based on any complaints received, will enquire into any alleged
wrong application of Scale of Rates by an operator. If the operator fails to comply with
such directions given, the concerned Port Trust can initiate penal action against the
operator in accordance with the provisions of the relevant Concession Agreement.
3.8.5 If any question arises requiring clarifications or interpretation of the Scale of Rates and the
statement of conditionalities of a private operator, the matter shall be referred to TAMP
and its decision in this regard will be binding on the operator.
4. Performance Monitoring
4.1. The performance norms for a project would be clearly brought out in the bid document
itself.  The private operator would be expected to perform at least at the levels contained
in the concession agreement.
4.2. The actual performance of the private operators will be  monitored by TAMP.  If any
complaint regarding quality of service is received, TAMP will enquire into such allegation
and forward its findings to the Port Trust.  If any action is to be taken against the private
operators, the Port Trust shall initiate appropriate action in accordance with the provisions
of the relevant Concession Agreement.  
( Brahm Dutt )
Chairman - 5 -
Annex - I
NORMS FOR FIXATION OF UPFRONT TARIFF
FOR SERVICES RENDERED AT CONTAINER TERMINAL
1.0 Tariff Structure
The tariff structure for services performed at a container terminal can be grouped under
the following three major groups:
 (1) Container Handling Charges
 (2) Ground Rent Charges
 (3) Miscellaneous Charges
2.0 Norms for apportionment of total Revenue requirement
The total Revenue requirement determined as per these guidelines is apportioned among
the aforesaid major tariff groups in the following manner and rates for individual tariff items
under each of the groups can be determined.
Tariff Group  Percentage of total revenue allocated
Container Handling Charges  90
Ground Rent Charges  7
Miscellaneous Charges  3
3.0 Norms for calculation of optimal Capacity of Terminal
The optimal capacity of the terminal is reckoned as 70% of the maximum capacity. The
optimal capacity of the terminal is the  lower value of the optimum quay capacity and
optimal stack yard capacity.  
3.1 Determination of Optimal Quay Capacity
The optimal quay capacity is 70% of the maximum number of TEUs that can be handled
across the quay over a period of one year.
Optimum Quay Capacity = A X B X C X D X E  TEUS where
A = Number of gantry cranes deployed for work in an year
  B = Number of working hours of gantry cranes in an year
  C = Average number of moves per gantry crane
  D = TEU ratio
  E = 70%
The norms for the above parameters are given in Table 4.
Table 4
Norms for calculation of Quay Capacity
Parameter  Norm
A.  Berths length/100 (rounded off)
B.  24 X 365 hours
C.  25 moves/hour (Gross value)
D.  1.3
E.  70%
3.2 Determination of Optimal Yard Capacity
The Optimal Yard Capacity is 70% of the maximum number of Containers (in TEUs) that
could pass through the yard in an year.
Optimal Yard capacity = 0.7 X  G  X  H   X   P    TEUs   where
                                S X D
 G = Total ground slot in TEUs
 H = Average Stack height
 P = Period in No. of days - 6 -
 S = Surge factor
 D = Average Dwell Time (measured as the time in days from the
time a container is placed in the yard until it
leaves it irrespective of the free time allowed in
the Scale of Rates)
The norms for the above parameters are given under Table 5.
Table 5
Norms for Calculation of Yard Capacity
Parameter  Norm
G  720 TEus per hectare
H  2.5
P  365
S  1.3
D  4 days for export
2 days for import
4.0 Norms for calculation of Capital cost
4.1. The norms for calculations of capital cost are given under Table 1 below:
Table  1
Norms for Calculation of Capital Cost
S. No.  Group  Norm
1.  Civil Construction
cost
As per the estimates given by the Port Trust for construction of
civil works for achieving maximum capacity.
Equipment   Cost per unit in Rupees lakhs
Quay gantry crane  2630
Rail mounted gantry crane  567
Rubber Tyred Gantry crane  750
Reach stacker   190
2.  Container Handling
equipment (*)
Tractor Trailer  38
3.  IT System cost  2% of the sum total of the civil construction and container
handling equipment cost.
4.  Other Cost
including Financing
cost and Interest
during construction.
10% of the sum total of the  civil construction and container
handling equipment cost.
(*) Note: Capital cost of equipment should be updated before fixing tariff caps in order to
capture the prevailing market rate.
4.2     Norms for determining equipment requirement
Table  2
Norms for estimation of Equipments requirement
S. No.  Equipment  Norms
1.  Quay gantry crane  One for 100 m of berth length
2.  Rail mounted gantry crane  One for handling 6 Rakes/day
3.  Rubber Tyred Gantry crane  Three for each quay gantry crane
4.  Reach stacker and or Top Lift Truck  One for nine RTGs
5.  Tractor Trailers  Six for each Quay gantry crane - 7 -
5.0 Norms for calculation of operating cost
5.1. The operating cost incurred in a container terminal is grouped under the following major
heads and is to be calculated for the optimal capacity as determined under Section 3
above.
(1) Power and Fuel
(2) Repairs and Maintenance
(3) Insurance
(4) Depreciation
(5) Licence Fee
(6) Other expenses consisting of
(a) Salaries and wages of operating and maintenance staff including welfare
and other expenses towards them.
(b) Management and general overheads comprising
(i) Salaries of management and administration staff including welfare
and other expenses towards them
 (ii) Maintenance of computer and other office equipments
 (iii) Any other miscellaneous cost
5.2. The norms for various items of operating cost given above are given under Table 3 below:
Table 3
Norms for operating cost
S.No.  COST ITEM  NORM
1.  (a)  Power
(b)  Fuel
8 KWH/TEU *
4 Ltrs/TEU *
2.  (a)  Civil repair and maintenance
(b)  mechanical and electrical
       equipment repair and
       maintenance
1% of cost of all civil assets
2% of cost of mechanical and
electrical equipment
3.  Insurance  1% of Gross Fixed Assets Value
4.  Depreciation  As per norms prescribed in
Companies Act or any norms
prescribed in the licence agreement
whichever is higher.
5.  Licence Fee (rentals for land and
other port assets)
As per the rate prescribed in the
prevailing Scale of Rates of the
concerned Port Trust.
6.  Other expenses
(a)  For Terminals having
      capacity less than 0.5
      million TEUs
(b)  For others
15% of Gross Fixed Assets value
10% of Gross Fixed Assets value
*  The rate per unit of power and per liter of fuel (diesel) prevailing on date to
be taken for calculation of cost
* * * * *- 8 -
Annex - II
NORMS FOR FIXATION OF UPFRONT TARIFF
FOR SERVICES RENDERED AT IRON ORE TERMINAL
1.0 Tariff Structure
The tariff structure for services rendered  at  a  mechanized Iron Ore terminal can be
grouped under the following three major groups :
(1)  Iron Ore Handling charges
(2) Storage charges
(3) Miscellaneous charges
2.0  Norms for apportionment of total Revenue requirement
The total Revenue requirement determined as per these guidelines is apportioned among
the aforesaid major tariff groups in the following manner and rates for individual tariff items
under each of the groups can be determined.
Tariff Group  Percentage of total revenue allocated
Iron Ore Handling Charges*  98
Storage charges**  1
Miscellaneous charges  1
*  The  above  norms  are  prescribed  on the basis that the Iron Ore handling
charges is a composite charge comprising of charges for unloading of Iron
ore from wagons, storage at the yard  for prescribed period and loading on
to ship
**  Storage  charges  is  the  charges  levied  for storage of Iron Ore at the yard
beyond allowable period of 25 days.
3.0  Norms for calculation of optimal capacity of terminal
The optimal capacity of the terminal is reckoned as 70% of the maximum capacity.  The
optimal capacity is the lower value of the optimal quay capacity and optimal  stack  yard
capacity.
3.1  Determination of optimal quay capacity
The optimal quay capacity is 70% of the maximum or possible quantity of Iron ore that
could be loaded on to  the ship in a period of one year expressed in tons.
Optimal quay capacity
=  0.7  S1   X  P1   + S2   X  P2   + S3    X   P3             X  365  
  100                  100                 100
S1  -  Percentage share of capacity of capesize vessels
P1  -  Ship day output of capesize vessels
S2  -  Percentage share of capacity of Panamax vessels
P2  -  Shipday output of Panamax vessels
S3  -  Percentage of share of capacity of Handy and handymax vessels
P3  -  Shipday output of Handy size and Handymax vessels
 
S1, S2 and S3 are to be determined taking into consideration the draft availability and type
of vessel expected to be handled at particular port.
The norms for ship-day output for various type of vessels are given in Table 1
TABLE 1
Norms for Ship-day output
Type of Ship  Norms for Loading
Capesize 60,000 tons/day
Panamax 55,000 tons/day
Handy Size & Handy max  25,000 tons/day - 9 -
3.2 Determination of Optimal Yard Capacity
The optimal yard capacity is 70% of the maximum quantity of iron ore that could pass
through the yard:
Optimal Yard capacity  = 0.7   X    A    X    U     X  Q   X  T   tons
                                                                             100
A  -    Area of the yard made available by the port for stackyard development in sq.m.
U  - Percentage of total stackyard area that could be used for stacking
Q  - Quantity that could be stacked per sq.m. of area
T   - Turnover ratio of the plot in an year
The norms for the above parameters are given in Table 2.
Table 2
Norms for calculation of optimal Yard Capacity
Parameters  Norm
A  As provided by Port
U  70%
Q  15 ton/sq.m.
T  12
4.0 Norms for calculation of Capital cost
4.1 The norms for calculation of capital cost are given under Table 3 below:
Table 3
Norms for calculation of Capital Cost
Sl.No.  Group  Norm
1.  Civil Construction
cost
As per estimates given by the Port Trust for construction
of civil works listed under  Section 4.2 for achieving
maximum capacity
2.  Iron Ore Handling
Equipment
As per estimate given by Port Trust for 2 stream working
with  the list of equipments given under Section 4.3.
3.  Miscellaneous *  5% of civil and equipment cost
*   It includes the cost of all other facilities required such as pollution control, fire
fighting equipment, Interest During  Construction (IDC), upfront payment,
working capital margin, miscellaneous equipments, power supply, lighting, etc.
4.2 The civil construction cost shall include the following :
Sl. No  Loading Terminal
1.  Berth apron and approach *
2.  Stack yard
3.  Rail tracks for stacker, Reclaimer,  Ship loader,Wagons
4.  Conveyor galleries
5.  Transfer towers
6.  Wagon tippling station (or Dumper House)
7.  Marshalling yard
8.  Others
a)  Buildings
b)  Roads
c) Water supply and drainage system, etc.
*  Does not include berth construction cost and berth side dredging if any, which
are to be accounted for framing tariff for berth hire. - 10 -
4.3 The ore handling equipment shall include the following :
Sl. No.  Loading Terminal
1.  Ship loader – 2 Nos.,
2.  Reclaimer – 2 Nos.
3.  Wagon tippler – 2 Nos.
4.  Stacker – 2 Nos.
5.  Belt Conveyors with metal detectors and weighers for receiving and Shipping
system
6.  Cranes- 2 Nos.
7.  Pay loaders – 4 Nos.
8.  Workshop equipments
9.  Electrical Power & Control switch gears
4.4 Calculation of Berth Hire
For arriving at tariff for berth hire, the revenue requirements is to be calculated.   The
revenue requirement is operating cost plus 16% ROCE.   The Capital cost will comprise of
the following :
 (i) Cost of construction of berth
 (ii) Cost of dredging if any carried out alongside the berth.
The above two costs are to be obtained from the estimates given by the Port Trust.  The
operating cost is only the maintenance charges  for which the norm is 1% of the above
capital cost (items (i) and (ii) above).
After calculating the revenue requirement as above, the berth hire per GRT is formulated
taking into account the values of GRT of vessels considered for calculation of capacity.
For arriving at per hour berth hire rate, the value of berth hire per GRT is to be divided by
number of working hours of the vessel which is 70% of 365 X 24 hours.
5.0 Norms for calculation of Operating cost
The operating cost incurred in an  iron ore terminal is grouped under the following major
heads and is to be calculated for the optimal capacity
 (1) Power and fuel cost
 (2) Repair and maintenance
(3) Insurance
(4) Depreciation
(5) Licence Fee
(6) Other expenses consisting of
(a)   Salaries and wages of operating and maintenance staff including welfare
and other expenses towards them
(b) Management and general overheads comprising
(i) Salaries of management and administration staff including welfare
and other expenses towards them
(ii) Maintenance of computers and other office equipment
(iii) Any other miscellaneous cost
The norms for various items of operating cost given above are given in Table 4 below :
Table  4
Norms for operating cost
Sl. No.  Group  Norm
1.  Power  1.4 unit/ton
2.  (a).Repair and maintenance of
civil assets
(b).Repair and maintenance of
mechanical and electrical
equipments including spares
1% of cost of all civil assets
7% of cost of all mechanical and electrical
equipments
3.  Insurance  1% of Gross Fixed Assets value
4.  Depreciation  As per norms prescribed in Companies Act
or any norms prescribed in the licence
agreement whichever is higher.
5.  Licence Fee (rentals for land
and other port assets)
As per Scale of Rates of the concerned
Major Port Trust
6.  Other expenses  5% Gross Fixed Assets value - 11 -
Annex - III
NORMS FOR FIXATION OF UPFRONT TARIFF
FOR SERVICES RENDERED AT COAL TERMINAL
1.0 Tariff Structure
The tariff structure for services rendered at a mechanized Coal terminal can be grouped
under the following three major groups :
(1)  Coal Handling charges
(2) Storage charges
(3) Miscellaneous charges
2.0  Norms for apportionment of total Revenue requirement
The total Revenue requirement determined as per these guidelines is apportioned among
the aforesaid major tariff groups in the following manner and rates for individual tariff items
under each of the groups can be determined.
Tariff Group  Percentage of total revenue allocated
Coal Handling Charges*  98
Storage charges**  1
Miscellaneous charges  1
*  The above norms are prescribed on the basis that the coal handling charges
is a composite charge comprising of charges for unloading  of  coal  from
wagons, storage at the yard  for prescribed period and loading on to ship for
coal loading terminal and unloading from ship, storage at the yard  for
prescribed  period  and  loading onto wagons/trucks for coal unloading
terminal.
**  Storage charges is the charges levied for storage of coal at the yard beyond
allowable period of 25 days.
3.0  Norms for calculation of optimal capacity of terminal
The optimal capacity of the terminal is reckoned as 70% of the maximum capacity.  The
optimal capacity is the lower value of the optimal quay capacity and optimal  stack  yard
capacity.
3.1  Determination of optimal quay capacity
The optimal quay capacity is 70% of the maximum or possible quantity of coal that could
be loaded (in the case of loading terminal) or unloaded  (in the case of unloading terminal)
on to or from the ship in a period of one year expressed in tons.
Optimal quay capacity
=  0.7  S1   X  P1   + S2   X  P2   + S3    X   P3            X  365  
  100                  100                 100
S1  -  Percentage share of capacity of capesize vessels
P1  -  Ship day output of capesize vessels
S2  -  Percentage share of capacity of Panamax vessels
P2  -  Shipday output of Panamax vessels
S3  -  Percentage of share of capacity of Handy and handymax vessels
P3  -  Shipday output of Handy size and Handymax vessels
S1, S2 and S3 are to be determined taking into consideration the draft availability and type
of vessel expected to be handled at a particular port. - 12 -
The norms for ship-day output for various type of  vessels are given in Table 1
TABLE 1
Norms for Ship-day output
Type of Ship  Norm
Loading  Unloading
Capesize  -  50,000 tons/day
Panamax  40,000 tons/day  35,000 tons/day
Handy Size & Handy max  20,000 tons/day  15,000 tons/day
3.2 Determination of Optimal Yard Capacity
The optimal yard capacity is 70% of the maximum quantity of coal that could pass through
the yard:
Optimal Yard capacity  = 0.7   X    A    X    U     X  Q   X  T   tons
                                                                           100
A  -    Area of the yard made available by the port for development in sq.m.
U  - Percentage of total yard area that could be used for stacking
Q  - Quantity that could be stacked per sq.m. of area
T   - Turnover ratio of the plot in an year
The norms for the above parameters are given in Table 2.
Table 2
Norms for calculation of optimal Yard Capacity
Parameters  Norm
A  As provided by Port
U  70%
Q  3 Tons/Sq.m.
T  12
4.0 Norms for calculation of Capital cost
4.1 The norms for calculation of capital cost are given under Table 3 below:
Table 3
Norms for calculation of Capital Cost
Sl.
No.
Group  Norm
1.  Civil Construction
cost
As per estimates given by the Port Trust for construction
of civil works listed under  Section 4.2 for achieving
maximum capacity
2.  Coal Handling
Equipment
As per estimate given by Port Trust for 2 stream working
with the list of equipments given under Section 4.3
3.  Miscellaneous *  5% of civil and equipment cost
*   It includes the cost of all other facilities required such as pollution control, fire
fighting equipment, upfront payment, interest during construction (IDC), working
capital margin, miscellaneous equipments, power supply, lighting, etc. - 13 -
4.2 The civil construction cost shall include the following :
Sl. No  Loading Terminal  Unloading Terminal
1.  Berth apron and approach *  Berth apron and approach
2.  Stack yard  Stack yard
3.  Rail tracks for stacker,
Reclaimer, Ship loader,
Wagons
Rail tracks for stacker, Reclaimer, Ship
unloader Wagons
4.  Conveyor galleries  Conveyor galleries
5.  Transfer towers  Transfer towers
6.  Wagon tippling station (or
Dumper House)
Wagon loading station and Truck loading
station
7.  Marshalling yard  Marshalling yard
8.  Others
a)   Buildings
b)   Roads
c)   Water supply and drainage
      system
Others
a)  Buildings
b)  Roads
c)  Water supply and drainage system
*  Does not include berth construction cost and berth side dredging if any, which    
are to be accounted for framing tariff for berth hire.
4.3 The coal handling equipment shall include the following :
Sl.
No
Loading Terminal  Unloading Terminal
1.  Ship loader – 2 Nos.  Ship Unloader- 2 Nos.
2.  Reclaimer- 2 Nos.  Reclaimer – 2 Nos.
3.  Wagon tippler – 2 Nos.  Wagon loader, Truck Loader – 1 No, each
4.  Stacker – 2 Nos.  Stacker – 2 Nos.
5.  Belt Conveyors with metal
detectors and weighers
Belt Conveyors with metal  detectors and
weighers
6.  Cranes – 2 Nos.  Cranes – 2 Nos.
7.  Pay loaders and dozers – 4 Nos.  Pay loaders and Dozers – 4 Nos.
8.  Workshop equipments  Workshop equipments
9.  Electrical Power & Control switch
gears
Electrical Power & Control switch gears
4.4 Calculation of Berth Hire
For arriving at tariff for berth hire, the revenue requirements is to be calculated.   The
revenue requirement is operating cost plus 16% ROCE.   The Capital cost will comprise of
the following :
 (i) Cost of construction of berth
 (ii) Cost of dredging if any carried out alongside the berth.
The above two costs are to be obtained from the estimates given by the Port Trust.  The
operating cost is only the maintenance charges  for which the norm is 1% of the above
capital cost (items (i) and (ii) above).
After calculating the revenue requirement as above, the berth hire per GRT is formulated
taking into account the values of GRT of vessels considered for calculation of capacity.
For arriving at per hour berth hire rate, the value of berth hire per GRT is to be divided by
number of working hours of the vessel which is 70% of 365 X 24 hours.
5.0 Norms for calculation of operating cost
The operating cost incurred in a Coal terminal is grouped under the following major heads
and is to be calculated for the optimal capacity
 (1) Power and fuel cost
 (2) Repair and maintenance
(3) Insurance - 14 -
(4) Depreciation
(5) Licence Fee
(6) Other expenses consisting of
(a)   Salaries and wages of operating and maintenance staff including welfare
and other expenses towards them
(b) Management and general overheads comprising
(i) Salaries of management and administration staff  including
welfare and other expenses towards them
(ii) Maintenance of computers and other office equipment
(iii) Any other miscellaneous cost
The norms for various items of operating cost given above are given in Table 4 below :
Table  4
Norms for operating cost
Sl.No.  Group  Norm
1.  Power  1.4 unit/ton
2.  (a)   Repair and maintenance
       of civil assets
(b)   Repair and maintenance
       of mechanical and electrical
       equipments including
       spares
1% of cost of all civil assets
7% of cost of all mechanical and
electrical equipments
3.  Insurance  1% of Gross Fixed Assets value
4.  Depreciation  As per norms prescribed in Companies
Act or any norms prescribed in the
licence agreement whichever is higher.
5.  Licence Fee (rentals for land and
other port assets)
As per Scale of Rates of the concerned
Major Port Trust
6.  Other expenses  5% Gross Fixed Assets value - 15 -
Annex - IV
NORMS FOR FIXATION OF UPFRONT TARIFF
FOR SERVICES RENDERED AT
LIQUID BULK TERMINAL
1.0 Tariff Structure
The tariff structure for services rendered at a liquid bulk terminal can be grouped under the
following two major groups :
(1)  Liquid bulk cargo handling charges
(2) Miscellaneous charges
2.0  Norms for apportionment of total Revenue requirement
The total Revenue requirement determined as per these guidelines is apportioned among
the aforesaid major tariff groups in the following manner and rates for individual tariff items
under each of the groups can be determined.
Tariff Group  Percentage of total revenue allocated
Liquid Cargo Handling Charges  95
Miscellaneous charges  5
The above norm is prescribed on the basis that the cargo handling charges include
the cargo loading or unloading charges (as the case may be),  transportation
through pipelines and storage charges for storing in tanks, wharfage, etc.
3.0  Norms for calculation of optimal capacity of terminal
The optimal capacity of the terminal is reckoned as 70% of the maximum capacity.  
3.1  Determination of optimal capacity
The capacity of the terminal is mainly dependent on the following factors:-
(1)  Type of Cargo to be handled
(2)  Cargo mix ratio
(3)  Size of vessels to be handled
Considering the above factors,  the  percentage share of the capacity of the vessels
carrying the cargoes expected to be  handled in the berth are to be determined.  
Then the optimal capacity of the terminal is calculated using the following formula:
 Optimal capacity
=  0.7  S1   X  P1   + S2   X  P2   + S3    X   P3 + ….        X  365
  100                  100                 100
S1  -  Percentage share of capacity of Cargo type 1
P1  -  Handling  rate of the vessel carrying Cargo type 1
S2  -  Percentage share of capacity of Cargo type 2
P2  -  Handling  rate of the vessel carrying Cargo type 2
S3  -  Percentage of share of capacity of Cargo type 3
P3  -  Handling rate of the vessel carrying Cargo type 3
 
S4,  P4,  S5,  P5 and so on depending on the number of different types of Cargo to be
handled at the berth of the particular port. - 16 -
The norms for handling rate of the vessel carrying different types of liquid bulk are given in
Table 1 below:
Table 1
Norms for handling rate
Liquid Bulk  Norms for handling rate
Crude
POL Products
LPG/ LNG
Other Liquids
5000 Tons ./ Hour
1000 Tons/ Hour
250 Tons/ Hour
300 Tons/ Hour
4.0 Norms for calculation of Capital cost
4.1 The norms for calculation of capital cost are given under Table 2 below:
Table 2
Norms for calculation of Capital Cost
Sl. No.  Group  Norm
1.  Civil Construction cost  As per estimates given by the Port Trust for
construction of civil works listed under Section
4.2 for achieving maximum capacity
2.  Liquid Cargo Handling
Equipment
As per estimate given by Port Trust for the list
of equipments given under Section 4.3
3.  Miscellaneous *  5% of civil and equipment cost
*  It includes cost of all other facilities required for operation of the terminal and
includes upfront payment, interest during construction (IDC), working capital
margin.
4.2 The civil construction cost shall include the following :
Sl. No.  CIVIL STRUCTURES
01.  Berth apron & approach *
02.  Storage Yard
03.  Tankages
04.  Roads
05.  Buildings,  Water Supply, Sewage, etc.
* Does not include berth construction cost and berth side dredging if any, which are
to be accounted for framing tariff for berth hire.
4.3 The equipment cost  shall include the following :
1) Marine loading/ unloading equipment/ flexible Hoses
 2) Pipelines
 3) Fire Fighting Equipments
 4) Power and Lighting, Communication
 
4.4 Calculation of Berth Hire
For arriving at tariff for berth hire, the revenue requirements is to be calculated.   The
revenue requirement is operating cost plus 16% ROCE.   The Capital cost will comprise of
the following :
 (i) Cost of construction of berth
 (ii) Cost of dredging if any carried out alongside the berth.
The above two costs are to be obtained from the estimates given by the Port Trust.  The
operating cost is only the maintenance charges  for which the norm is 1% of the above
capital cost (items (i) and (ii) above).
After calculating the revenue requirement as above, the berth hire per GRT is formulated
taking into account the values of GRT of vessels considered for calculation of capacity.
For arriving at per hour berth hire rate, the value of berth hire per GRT is to be divided by
number of working hours of the vessel which is 70% of 365 X 24 hours.  - 17 -
5.0 Norms for calculation of operating cost
The operating cost incurred  for operating a multi purpose cargo berth is grouped under
the following major heads and is to be calculated for the optimal capacity
 (1) Power and fuel cost
 (2) Repair and maintenance
(3) Insurance
(4) Depreciation
(5) Licence Fee
(6) Other expenses consisting of
(a)   Salaries and wages of operating and maintenance staff including welfare
and other expenses towards them
(b) Management and general overheads comprising
(i) Salaries of management and administration staff  including
welfare and other expenses towards them
(ii) Maintenance of computers and other office equipment
(iii) Any other miscellaneous cost
The norms for various items of operating cost given above are given in Table 3 below:
Table  3
Norms for operating cost
Sl. No.  Group  Norm
1.  Power *  2.4 Lakhs unit/annum/hectare
2.  (a)   Repair and maintenance
       of civil assets
(b)   Repair and maintenance
       of mechanical and electrical
       equipments including
       spares
1% of cost of all civil assets
2% of cost of all mechanical and
electrical equipments
3.  Insurance  1% of Gross Fixed Assets value
4.  Depreciation  As per norms prescribed in Companies
Act or any norms prescribed in the
license agreement whichever is higher.
5.  Licence Fee (rentals for land and
other port assets)
As per Scale of Rates of the concerned
Major Port Trust
6.  Other expenses  1% Gross Fixed Assets value
*  As Major power consumption is towards lighting, it is expressed in Units per
hectare area taking into account other power requirements - 18 -
Annex - V
NORMS FOR FIXATION OF UPFRONT TARIFF
FOR SERVICES RENDERED AT  MULTI  PURPOSE  BERTH
1.0 Tariff Structure
The tariff structure for services rendered at a multi purpose berth can be grouped under
the following three major groups :
(1)  Cargo Handling charges
(2) Storage charges
(3) Miscellaneous charges
2.0  Norms for apportionment of total Revenue requirement
The total Revenue requirement determined as per these guidelines is apportioned among
the aforesaid major tariff groups in the following manner and rates for individual tariff items
under each of the groups can be determined.
Tariff Group  Percentage of total revenue allocated
Cargo  Handling Charges*  90
Storage Charges **  5
Miscellaneous charges  5
*  The  above  norm  is  prescribed  on the basis that the cargo handling charges
include the cargo loading or unloading charges  (as  the  case  may be),
transportation and storage charges, wharfage, etc.
    **     Storage Charges are the charges levied for storage of cargoes at the transit area
beyond  allowable period of 5 days for import cargo and 15 days for export
cargo.
3.0  Norms for calculation of optimal capacity of terminal
The optimal capacity of the terminal is reckoned as 70% of the maximum capacity.  
3.1  Determination of optimal capacity
The capacity of the terminal is mainly dependent on the following factors:-
(1)  Type of Cargo to be handled
(2)  Cargo mix ratio
(3)  Size of vessels to be handled
Considering the above factors,  the  percentage share of the capacity of the vessels
carrying the cargoes expected to be handled in the berth are to be determined.  Then the
optimal capacity of the terminal is calculated using the following formula:
 
Optimal capacity
=  0.7  S1   X  P1   + S2   X  P2   + S3    X   P3 + ….     X  365  
  100                  100                 100
S1  -  Percentage share of capacity of Cargo type 1
P1  -  Handling rate of the vessel carrying Cargo type 1
S2  -  Percentage share of capacity of Cargo type 2
P2  -  Handling rate of the vessel carrying Cargo type 2
S3  -  Percentage of share of capacity of Cargo type 3
P3  -  Handling rate of the vessel carrying Cargo type 3
S4,  P4,  S5,  P5 and so on depending on the number of different types of Cargo to be
handled at the berth.
   - 19 -
The norms for handling rate of the vessel carrying different type of cargo are given in the
Table 1 below:
Table 1
Norms for cargo handling rate
Cargo  Norm
Dry Bulk
a)  Food grains & Fertilizer
b)Coal,Lime stone, minerals,  
    etc.
10000 Tons/day for vessels of more than 30000 Tons
parcel size
7500 Tons/ day for lower parcel size vessels
10000 Tons/ day
Break bulk
a)  Steel & bagged cargo
b)  Others
4000 Tons/ day
2500 Tons/ day
4.0  Norms for calculation of Capital cost
4.1  The norms for calculation of capital cost are given under Table 2 below:
Table 2
Norms for calculation of Capital Cost
Sl. No.  Group  Norm
1.  Civil Construction cost  As  per  estimates given by the  Port  Trust  for
construction of civil works listed under Section
4.2 for achieving maximum capacity.
2. Liquid Cargo Handling
Equipment
As per estimate given by Port Trust for the list
of equipments given under Section 4.3
3.  Miscellaneous *  5% of civil and equipment cost
*  It includes cost of all other facilities required for operation of the berth  and
includes upfront payment, interest during construction (IDC), working    capital
margin.
4.2  The civil construction cost shall include the following :
Sl.
No.
CIVIL STRUCTURES
01.  Berth apron & approach *
02. Storage Yard
03. Transit sheds
04.  Roads, Rail tracks
05.  Buildings,  Water Supply, Sewage, etc.
        *  Does not include berth construction cost and berth side dredging if any, which are
to be accounted for framing tariffs for berth hire
4.3  The equipment cost  shall include the following :
1)  Level Luffing wharf cranes of 20 T capacity with    3 Nos.
grab / hook attachments  
 2)  Fork Lift Truck 5 Tons     4 Nos.
 3)  Fork Lift Truck 10 Tons     2 Nos.
 4)  Pay loaders 10 Tons     3 Nos.
5)  Power and Lighting,  Communication - 20 -
4.4 Calculation of Berth Hire
For arriving at tariff for berth hire, the revenue requirements is to be calculated.   The
revenue requirement is operating cost plus 16% ROCE.   The Capital cost will comprise of
the following :
 (i) Cost of construction of berth
 (ii) Cost of dredging if any carried out alongside the berth.
The above two costs are to be obtained from the estimates given by the Port Trust.  The
operating cost is only the maintenance charges  for which the norm is 1% of the above
capital cost (items (i) and (ii) above).
After calculating the revenue requirement as above, the berth hire per GRT is formulated
taking into account the values of GRT of vessels considered for calculation of capacity.
For arriving at per hour berth hire rate, the value of berth hire per GRT is to be divided by
number of working hours of the vessel which is 70% of 365 X 24 hours.
5.0 Norms for calculation of operating cost
The operating cost incurred for operating a multi purpose cargo berth is grouped under the
following major heads and is to be calculated for the optimal capacity
(1) Power and fuel cost
 (2) Repair and maintenance
(3) Insurance
(4) Depreciation
(5) Licence Fee
(6) Other expenses consisting of
(a)   Salaries and wages of operating and maintenance staff including welfare
and other expenses towards them
(b) Management and general overheads comprising
(i) Salaries of management and administration staff  including
welfare and other expenses towards them
(ii) Maintenance of computers and other office equipment
(iii) Any other miscellaneous cost
The norms for various items of operating cost given above are given in Table 3 below:
Table  3
Norms for operating cost
Sl. No.  Group  Norm
1.  a)  Power
b) Fuel For 5 T FLT
            For 10 T FLT
            For 10 T payloader
100 units /Hour/Crane*
7 ltrs /Hour*
10 ltrs/ Hour*
12 ltrs/ Hour*
2.  (a)   Repair and maintenance
       of civil assets
(b)   Repair and maintenance
       of mechanical and electrical
       equipments including
       spares
1% of cost of all civil assets
5% of cost of all mechanical and
electrical equipments
3.  Insurance  1% of Gross Fixed Assets value
4.  Depreciation  As per norms prescribed in Companies
Act or any norms prescribed in the
license agreement whichever is higher.
5.  Licence Fee (rentals for land and
other port assets)
As per Scale of Rates of the concerned
Major Port Trust
6.  Other expenses  5% Gross Fixed Assets value
                   
* A norm of 4000 hours of working in an year is to be adopted.
- - - - -