Challenges Confronting Growth In Exim Trade

Inland haulage charges need to be made more equitable and hub and spoke model can bring down rail haulage cost, averred the panellists. They also called for improvement in Customs procedures for cargo clearance, need for more focus on soft infrastructure such as regulatory or statutory regime and developing warehousing and better logistics network for moving agri-produce.

The second session of the day focused on the growth of exim trade in north and central India. Tarun Kalra, Vice President North India, MSC Agency (India) Pvt Ltd, observed that the present day maritime trend of port-led development was gradually shifting the export industry to the coastal areas. The export volumes had not developed as much as imports. He however conceded that the shift to the port areas was perhaps necessary for India to remain globally competitive. However due to its demographic concentration imports, had maintained a sustained growth in the hinterland areas.

Kalra asserted that there was a requirement for the Inland Haulage charge to be more equitable to sustain cargo movement to and from the north. A brief calculation of the haulage figures revealed that the comparison of the cost of moving container by rail vis a vis road was slanted in favour of road transport.

He however was of the opinion that very little could be done with regard to reducing the rails haulage charges, but there were other factors that could contribute to reducing the charges. One such measure was to have a hub and spoke arrangement which could significantly contribute towards reduction of haulage costs. This should be available for all the train operators.