NEW DELHI: The Associated Chamber of Commerce and Industry of India (ASSOCHAM) on Friday suggested introduction of a unified body to develop India’s Logistic Master Plan and an integrated road map for its implementation. The idea is to avoid multiplicity of agencies, both at the Centre and state levels.
In a note submitted to the government, the Chamber has stated that currently Ports, Shipping and Maritime Logistics (PSML) are highly fragmented and affecting the growth to the extent of 2 per cent of the GDP on account of logistics and transportation bottlenecks.
Stressing the need for efficient, speedy safe and seamless flow of goods, the Chamber president, Ms Swati Piramal said, "logistics cost in India is over 13 per cent of its GDP, making India uncompetitive in the international markets due to under-developed trade and poor logistics of the country."
The Chamber stated that about 90 per cent of export-import cargo of the country, including that of its strategic cargoes is carried by foreign flag vessels. This puts the country in a precarious situation as a bulk of the essential supplies like oil is carried on foreign flag vessels. This is a vulnerable position as there exists scope for leaving India’s strategic supplies to the risk of an abrupt stoppage in case of any eventuality.
Containerisation of cargo requires efficient dry ports and multimodal transport for higher level of service at reduced costs. In India, at present, the prevalence of complicated, lengthy and cumbersome customs procedures are resulting in higher transaction costs. Additionally, practices like detention of goods trains at terminals due to various reasons, such as rake formation, availability of locomotives, crew availability and train examination has been detrimental to foreign trade in India. The country is required to focus on this issue.
It has been observed that a variety of industries ranging from warehousing to power plants, steel mills, ship yards, and chemicals are being developed in the port back areas. Therefore, land acquisition and development of the available land have become most critical components of development of ports and shipping.
Referring to the issue of distinction between major and non-major ports, the chamber says, "while the ports designated as the major ports come under the purview of Tariff Authority for Major Ports (TAMP), non major ports are not covered by TAMP. In view of the increased integration of constituents of PSML, a comprehensive policy needs to be formulated."
