Shipping Minister Launches Port Disputes Society through Arbitration

Union Minister of State for Shipping (I/C) Mansukh Mandaviya on 10 September 2020 launched ‘SAROD-Ports’ (Society for Affordable Redressal of Disputes - Ports) through virtual ceremony in New Delhi.

Speaking at the launching, Mansukh Mandaviya termed SAROD-Ports as a game changer and added that it will become the pivotal mechanism of ummeed (hope), vishwas (trust) and nyaya (justice) in the Port sector of India. Mr. Mandaviya also added that enforcement of concession agreements in the letter and spirit is on the utmost priority. SAROD-Ports will resolve the disputes in fair and just manner while saving huge amount of legal expenditure and time.

Dr Sanjiv Ranjan, Secretary, Ministry of Shipping said that all major Ports are shifting towards ‘Landlord Model’ in the days to come. Many concessioners will be working with the Major Ports. SAROD-Ports will inspire confidence in the private players and will ensure right kind of environment for our partners. It will promote ease of doing business in the maritime sector because of the fast, timely, cost effective and robust dispute resolution mechanism.

SAROD-Ports is established under Societies Registration Act, 1860 with the following objectives:

1. Affordable and timely resolution of disputes in fair manner

2. Enrichment of Dispute Resolution Mechanism with the panel of technical experts as arbitrators.

SAROD-Ports consists members from Indian Ports Association (IPA) and Indian Private Ports and Terminals Association (IPTTA).

SAROD-Ports will advise and assist in settlement of disputes through arbitrations in the maritime sector, including ports and shipping sector in Major Port Trusts, Non-major Ports, including private ports, jetties, terminals and harbours. It will also cover disputes between granting authority and Licensee/Concessionaire /Contractor and also disputes between Licensee/Concessionaire and their contractors arising out of and during the course of execution of various contracts.

‘SAROD-Ports’ is similar to provision available in Highway Sector in the form of SAROD-Roads constituted by NHAI.

Backgrounder:

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved amendments in the Model Concession Agreement (MCA) .In January,2018.The amendments in the MCA, envisaged constitution SAROD-PORTS as dispute resolution mechanism for PPP Projects in the Major Ports.