Shipping stocks sailing in green zone

SCI is currently up in the green, up over 3%, figuring amongst the top gainers on the BSE. GE Shipping had also risen up sharply by around 3%, Chartered Logistics is up 2%; Essar Shipping has shown the maxium jump up – up over 17% with volumes surging almost 16 times. Allcargo Logistics is also up 4.5%, Shreyas Shipping, Gujarat Pipavav, Seamec; all shipping and logistics companies are sailing in the green zone today morning.

The reason? Yesterday, the Cabinet approved a Mjor Port Trust Authorities Bill, which will now replace the Major Port Trusts Act of 1963, giving more decision making powers to the 12 major ports.

The new Bill aims to give the Tariff Authority for Major Ports (TAMP) the power to fix rates, which in turn will become the reference for purposes of bidding for public-private partnership (PPP) projects. 

The Bill has also proposed having a thinner Board for the Port Authority, which will have 11 members as against the current 17-19 members. The Board has been given full authority to make new contracts and also put in place its own Master Plan which empowers it to demarcate the area within the port limits and give the nod to construct, within the port limits, new pipelines, put in more telephones, communication towers, etc. This frees it up from some 22 cases where it required prior approval from the Central govt.