Supreme Court’s Nod to Government’s Move to prevent Monopoly in Port Sector

The Supreme Court of India in May 2011 upheld the legality of government's decision restraining the private operators or their consortium from monopolising the facilities of the ports to the detriment of the shipping industry.

The Central government had within its powers to adopt a policy to prevent the port facilities from being concentrated in the hands of one private group or consortium. In case of concentration of powers, the group’s or consortiums’ complete control over the use of the facilities of could prove to be detrimental for India’s shipping industry.

The apex court dismissed the petition of container terminal operator - PSA Sical that challenged the decision of the Tuticorin Port Trust excluding it from bidding for its 8th Berth Container Terminal.

The bench directed the authorities of the Jawaharlal Nehru Port Trust to allow the Netherland based APM Terminals BV to bid for the fourth container terminal under the concept of the public-private partnership.

The Centre assured the court that the government was following its decision to ensure healthy competition and to prevent the concentration of control of the major port trusts in the hands of the private sector.