Mr Pinto reiterated that his ministry is taking up the matter on tonnage tax and increase in depreciation benefits to the shipping industry with the ministry of finance and is hopeful of getting a positive outcome in the Budget. Mr Pinto clarified that the government would act as a facilitator to the shipping industry by way of some fiscal measures in the Budget rather than provide direct financial sops for expanding the fleet. Mr Pinto, who has just taken over the reins of secretary at the ministry of shipping, said that all the eleven ports would be corporatised in phases with a commitment to the user. Ennore port, the first corporatised port, is likely to become operational in the next two months, he said. Corporatisation is a basic step towards liberalisation and the government is committed to greater area of private participation in ports. Corporatisation of ports will change the focus from welfare maximisation to profit maximisation, Mr Pinto said. He, however, admitted that the Major Port Trust Actcurrently restricts operational flexibility. Not only are the Indian ports facing the challenge of an increase in traffic, but are also in process of cutting costs which in the new world is a perpetual process, he said.

Meanwhile, the Mumbai Port Trust (MbPT) is likely to post a deficit of Rs 400-crore in the current fiscal. ``This is on account of the wage bill which constitutes 85 per cent of the total revenue,'' MbPT, chairman, AK Mago said. The woes are multiplied with declining cargo, he said.