No doubt, rail operations at all major ports are loss-making. But so is cargo handling - the raison d'etre of their existence. In reality the main income earners for ports are demurrage charges and real estate rentals. So if the ministry wants to boost bottomlines at major ports, the key is more efficient cargo handling and creating value-added services for shipping lines.

To do this, railways, the most important mode of evacuation, will be critical. Most goods that comes into ports like fertiliser, foodgrains and POL move by rail. The port, which knows the cargo handling schedule, is best placed to organise the evacuation. Handing the railways over will not just create confusion but will also leave ports vulnerable toproblems faced by trunk railways such as clogged lines, strikes - or other operational problems.

Also the ports have too much to lose and too little to gain by the move. Almost all ports have a healthy surplus. For instance in Mumbai, as against a surplus of Rs 163 crore last year, railway operations lost Rs 13 crore. This is small change for these mega ports, that can be quickly recouped by a small increase in productivity. Or by making freight charges cost-related, rather than the current obscure "commodity's capacity to bear cost" principle. The ministry's response to the problem has been to hand over sick operation, when all it needs is a small dose of the right medicine.