**Executive Summary**
This document outlines the Stevedoring and Shore Handling Policy for Major Ports in India, effective no later than April 1, 2016. It covers definitions and scope of stevedoring and shore handling activities, including licensing requirements, tariff setting, and duties and responsibilities of involved parties. A key action item is the migration of existing stevedoring agents to the new scheme through an auction process.
**Key Points / Main Content**
* **Definitions & Scope:**
* Stevedoring includes loading, unloading, and stowage of cargo.
* Shore Handling includes arranging, receiving, and transporting cargo.
* The policy covers stevedoring and shore handling activities by the port and/or licensed agents in a Major Port.
* **Licensing:**
* Agencies must have a valid license from the Port to perform stevedoring and shore handling in a Major Port.
* Port Trusts will frame regulations for licensing Stevedoring and Shore Handling Agents.
* Eligible firms can apply for licenses online with requisite documents.
* Criteria include being a registered company/partnership, depositing security (₹5 lakhs), providing specified equipment, employing experienced supervisory personnel (6 minimum), and paying an application fee (₹50,000 minimum).
* Licenses are valid for three years.
* Renewal requires timely application (3 months before expiry) and is based on performance reports.
* **Stevedoring and Shore Handling Charges:**
* TAMP (Tariff Authority for Major Ports) will notify the normative tariff, acting as ceiling tariff.
* Port Trust shall auction licenses on a revenue sharing basis for 3 years using TAMP tariffs.
* Port Trusts should be liberal in issuing licenses to foster competition.
* **Migration to New Scheme (Effective April 1, 2016):**
* Existing agents must switch to the new scheme, paying the highest revenue share discovered by the Port Trusts through auction and charging the ceiling tariff fixed by TAMP.
* Failure to switch will result in license termination.
* This scheme is not applicable to Haldia Dock Complex until April 2017.
* **Duties & Responsibilities:**
* Stevedores & Shore Handling agents must comply with safety norms, indemnify the Board against third party claims, ensure casual workers have insurance, compensate the Board for damages, deploy necessary equipment, and achieve performance standards.
* Stevedoring agencies must publish their tariffs along with the breakup on their and the Port's websites.
* **Cancellation/Suspension of License:**
* The port can suspend or cancel a license for violations, including a CEO's conviction involving moral turpitude, handling less than minimum throughput, failing to achieve performance standards, violating safety regulations, misrepresenting facts, insolvency, transferring operations, violating security rules, or misconduct.
* **Other Provisions:**
* Aggrieved parties can appeal cancellation/suspension within 30 days to the Chairman.
* Ports may determine Datum, Norms for Productivity, rate of incentive etc.
* Personnel deployed in stevedoring and shore handling activities must receive training.
**Impact Analysis**
**Impact**
* Must migrate to the new scheme by the specified date, participate in auctions, and adhere to new tariff structures.
* Face potential license termination for non-compliance and must meet increased performance standards.
**Action Required**
* Prepare for the transition by assessing current operations, participating in auctions, and aligning with the new regulatory framework.
**Impact**
* Will license and oversee Stevedoring and Shore Handling Agents according to the new policy.
* Responsible for framing and notifying regulations, hosting the regulation on their website, auctioning licences and enforcing compliance.
**Action Required**
* Implement the new licensing procedures, conduct auctions, and monitor agent performance and compliance.
* Define duties, responsibilities, and performance parameters, as well as Datum, Norms for Productivity, rate of incentive, etc.
**Impact**
* TAMP must notify the normative tariff.
**Action Required**
* Define the normative tariff for stevedoring and shore handling activities, separately for mechanized and manual operations for the Major Ports based on a set of Guidelines.
Key Entities Referenced
Major Ports: Ports to which this policy on Stevedoring and Shore Handling activities applies.
Port Trusts: Entities responsible for framing and notifying regulations for licensing Stevedoring and Shore Handling Agents.
Stevedoring and Shore Handling Agents: Entities licensed to undertake stevedoring and shore handling activities.
Tariff Authority for Major Ports (TAMP): The authority that notifies the normative tariff for Stevedoring and Shore Handling activities.
STEVEDORING AND SHORE HANDLING POLICY FOR
MAJOR PORTS
1. Definition
Stevedoring includes loading and unloading and stowage of cargo in any form on
board the vessels in Ports;
Shore Handling includes arranging and receiving the cargo to/from the hook
point, Inter modal transport from wharf to stackyard and vice-versa and also
receiving and delivering of cargo from/to wagons/trucks;
2. Scope
The policy shall cover the following activities:-
(i) Stevedoring activities undertaken by the port and/or licensed Stevedore in a
Major Port
(ii) Shore handling activities undertaken by the port and/or licensed Shore
Handling Agents or by agents under any other name.
The Stevedoring and Shore handling may cover the activities on board and on shore
respectively. Stevedoring and Shore Handling of vessels in Major Ports may be
carried out by a single agency, as far as possible.
No Agency shall undertake to perform these activities in a Major Port unless
and until they are issued a valid licence by the Port for the purpose.
3. Stevedoring and Shore Handling Charges
i. TAMP shall notify the normative tariff for Stevedoring and Shore Handling
activities, separately for mechanized and manual operations for the Major Ports
based on a set of Guidelines to be issued to TAMP. These Tariff shall be ceiling
tariff. With regard to Kamarajar Port, the Board of Directors may fix the same
based on the above principles. In case of any change in Role for TAMP in future,
Boards of Major Ports will fix and notify the Rates based on the same principles.
This will also apply to Mumbai Port and Haldia where stevedoring is carried out
by the Ports.
ii. Port Trust shall go in for an open and transparent auction system based on the
TAMP notified tariff to give licenses for Stevedoring and Shore Handling on
1revenue sharing basis for a period of 3 years. All eligible applicants who are
ready to match the highest revenue share shall be given licenses. The
Stevedoring and Shore Handling agents have to charge the rates from their
principals, not exceeding the ceiling tariffs notified by TAMP.
iii. The Port Trusts should be liberal in issuing licenses to Stevedoring and Shore
Handling agents to ensure adequate competition. Even after the auction, if any
firm satisfying the eligibility conditions is ready to match the highest revenue
share discovered in the auction, such firm may be given a license. As
competition increases, the cost of transaction to the trade and the quality of
services will also improve.
4. License for Stevedores & Shore Handling Agents
Port Trusts shall frame & notify regulations for licensing of Stevedoring and Shore
Handling Agents instead of only Stevedores as at present. The Major Port Trusts
shall host the Stevedoring and Shore Handling regulations in their web site and any
eligible firm which fulfils the eligibility criteria can apply for license at any time on-line
along with requisite documents. The stevedoring and shore handling licenses shall
be issued by the ports, in case the firm fulfils the following criteria:
(i) It shall be a Company registered under Companies Act or a partnership firm
or any other legal entity.
(ii) It shall deposit security amount of at least Rs. 5 lakhs to meet any
contingency which shall be refunded without interest after adjusting the
claims, if any, when the licensee ceases to operate.
(iii) The Stevedoring and Shore Handling agent shall undertake to provide
equipment/gear required for both the operations as specified by the Port Trust
Board.
(iv) The Stevedoring and Shore Handling agents shall undertake to employ at
least 6 supervisory personnel with minimum two years of cargo handling/
stowage experience for undertaking both the functions. Their profiles have to
be enclosed along with the application.
(v) The fee for issue/renewal of license shall be on payment of a minimum
application fee of Rs. 50,000 for one year or part of a year, which may be
revised from time to time by the Port Trust Board.
(vi) Major Port Trusts have to ensure that enough competition prevails in
Stevedoring and Shore Handling activities in their ports.
25. Validity / Renewal of licence
(i) The license will be valid for a period of three years from the date of issuance
of licence.
(ii) The Daily performance Report in the prescribed format shall be submitted by
the Stevedoring & Shore Handling agent to the Traffic Department online.
(iii) Besides a quarterly /half yearly review of performance of Stevedoring &
Shore Handling agent in terms of productivity achieved by them, compliance
of terms and conditions of the licence issued to them, safety norms followed
by them will be monitored by Traffic Manager and a report to be submitted to
the Chairman.
(iv) On such a review, if the Traffic Manager finds any default on the part of
Stevedoring & Shore Handling agent, he shall cause to issue warning in the
event of first default and in the event of second default, the license of the
Stevedoring & Shore Handling agent shall be liable to be cancelled, apart
from levying penalties..
(v) At the end of three years, the license shall be renewed strictly on the basis of
above mentioned performance reports.
(vi) Application as per the prescribed proforma of the port for renewal of
Stevedoring & Shore Handling license shall be made at least three months
before the expiry of the license.
(vii) If the Stevedore & Shore Handling agent fulfils the required conditions and is
eligible for renewal but awaiting safety clearance before expiry of the license
period, Port may permit the Stevedoring operation by executing an Indemnity
bond.
36. Migration to the new Stevedoring and Shore Handling Scheme :
The new Stevedoring and Shore Handling Scheme will come into effect in all Major
Ports not later than 1st April, 2016. The existing Stevedoring Agents will have to
switch over to the new Stevedoring and Shore Handling Scheme from that date and
they shall pay the highest revenue share discovered by the Port Trusts through the
auction and also charge the ceiling tariff to be fixed by the TAMP. If they do not
switch over to the new scheme, the licence shall be terminated by the Port Trusts by
giving due notice as envisaged in the Regulations. The Ports shall ensure that
migration to the new Stevedores & Shore Handling Scheme is done by following the
statutory provisions under the existing Regulations.
However, the above Scheme will not be applicable to Haldia Dock Complex, since a
similar scheme based on the Auction system has been introduced for two years from
April, 2015 and is valid till March, 2017. Therefore, this Scheme will be made
applicable after expiry of the existing Scheme i.e. from April, 2017 for Haldia Dock
Complex alone.
7. Duties & Responsibilities
Individual port may prescribe duties, responsibilities and performance parameters of
Stevedores & Shore Handling agents to ensure the safe and efficient handling as per
their Stevedoring & Shore Handling Licensing Rules, keeping in view the following
basic criteria :
(i) Stevedore & Shore Handling agents shall comply with applicable safety norms in
relation to such operations and with the applicable statutes regarding labour.
(ii) Stevedore & Shore Handling agent shall indemnify the Board against all third
party claims arising out of such operations.
(iii) Whenever casual workers are deployed, the Stevedore & Shore Handling agents
should ensure that such workers are covered by the insurance policy.
(iv) If any gear, plant or any other property of the Board is damaged in the course of
stevedoring and shore handling operation the Stevedore and Shore Handling
agent shall compensate the Board for such loss or damage.
(v) Stevedore & Shore Handling agent shall deploy necessary equipment as
indicated by the Port in the license.
4(vi) Stevedore & Shore Handling agent shall achieve the performance standards
fixed by the Port.
(vii) The Stevedore & Shore Handling agencies shall publish their tariff along with
break up in their web sites and in the website of the Port.
8. Cancellation / Suspension of license
A) The port may at any time suspend or cancel the license issued to a Stevedore &
Shore Handling agent for violation of any of the terms of license or for any
reasons listed below :
(i) The CEO of the Stevedoring and Shore Handling firm has been convicted
by the Court of any offence involving moral turpitude and sentenced in
respect, thereof, to imprisonment for not less than six months, and a period
of five years has not elapsed from the date of expiry of the sentence.
(ii) The firm handles less than the minimum guaranteed throughput/the
prescribed parameters as fixed by the port for consecutively 2 years.
(iii) The firm does not achieve the performance standards prescribed in the
license on an average over a period of 3 months.
(iv) Violates safety regulations and mandatory Dock Safety measures
(v) Adopts improper and unsafe handling methods.
(vi) Misrepresents or misstates material facts
(vii) Adjudged insolvent or going into liquidations
(viii) Transfer the stevedoring operations or sublets the license to any other
individual or parties
(ix) Violates security related rules & instructions like ISPS code compliance.
(x) Any misconduct which in the opinion of the Board warrant such
cancellation or suspension
(xi) Indulges in illegal/corrupt practices.
B) Provided that no such license shall be cancelled or suspended as the case may
be until the holder of the license has been given a reasonable opportunity for
5showing cause why his license should not be cancelled or suspended as the
case may be.
9. Appeal
Any person aggrieved by any order relating to cancellation/suspension/refusal to
issue licenses, may prefer an appeal in writing to the Chairman of the concerned port
or any other higher authority, as the case may be, within 30 days of the
communication of the order appealed against.
10. Deployment of workers from Port / DLBs / License Holder or outside
Existing practice of deploying port labour by Stevedore and Shore Handling agents
may continue. In case the port is unable to supply the requisite workers against the
requisition placed by Stevedore and Shore Handling agent, the port may allow the
Stevedore and the Shore Handling agent to make their own arrangement for this
purpose. No notional booking or levying of changes should be made and agents shall
not be levied any charges for labour, in case the Port Trust does not supply the
labour.
9. Datum, Norms for Productivity, etc.
Datum, Norms for Productivity, rate of incentive, etc. may be determined by the ports
from time to time ,duly taking cognizance of the performance parameters during last
3 years.
11. Training, Use of Modern Technology
The personnel deployed in Stevedoring & Shore Handling activities shall be trained in
modern methods of cargo handling for improving the productivity, efficiency and
safety. It is suggested that such specialized training courses for the Stevedoring and
the Shore Handling operation may be introduced in Indian Maritime University.
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