The Hindu Business Line : New Carriers Act may usher in reforms in road transport sector

REFORMS in the commercial road transport sector may be round the corner with the Government being petitioned on an early adoption of a new Carriers Act.

The Carriers Act, awaiting nod from the Cabinet, is understood to have a specified mandatory registration of all transporters (including that of goods booking agents), according to sources. It also specifies that all the registered members should have a minimum fleet of two trucks. Moreover, the registered transporters would be required to specify the location of their warehouses.

"The proposed changes would discourage fly-by-night operators, apart from making it consigner-friendly," point out experts. The sources also indicate that the Government has not accepted the transporters' demand of limiting their liability in case of loss or damage to goods in transit. "The liability of transporters would depend on the value of goods being transported. This has to be a part of the contract between the consigner and consignee, as the new Carriers Act is understood to have proposed," the sources added.

Calling for an early decision on formulating the new Carriers Act, the Indian Foundation of Transport Research and Training (IFTRT), a research body, has written to the Shipping, Highways and Road Transport Ministry that "it would be appropriate that the new Act be brought before Parliament at the earliest for its passage in the on-going monsoon session. The Carriers Act in its true letter and spirit will go long way to bring about reform in the Commercial Road Transport Sector," the research body said in its letter.

Under the present Carriers Act 1865, consigners can approach the Consumer Courts under the Consumer Protection Act, 1986 for their claims of loss and damage of cargo in transit due to the negligence of the Common Carrier.

"The expeditious and cost-free settlement of claims against transporters by Consumer Forums virtually forced the Common Carrier to seek the very repeal of this Act," said the research body. Transporters have also been insisting on incorporating rules that limit the responsibility and liability of the Common Carrier to an arbitrary minimum limit, the IFTRT added.

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