Business Daily from THE HINDU group of publications
Thursday, Jul 06, 2006
Business Daily from THE HINDU group of publications Thursday, Jul 06, 2006 |
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Supply Chain Management Agri-Biz & Commodities - Oilseeds & Edible Oil Concor move to transport vegetable oil to Nepal stalled Santanu Sanyal
Road transporters The argument of the road transporters is that the transfer of the traffic from road to rail will entail loss of business for them, dealing a severe blow to a large number of people whose livelihood depended on it.
Kolkata , July 5 The Container Corporation of India's (Concor) bid to transport, by rail, imported vegetable oil from Budge Budge oil jetty (under the Kolkata Dock System) to Birganj inland container depot in Nepal has failed. The road transporters, so far as handling the traffic is concerned, has foiled Concor's bid to load even the first rake. The situation has come to such a pass that West Bengal Government's help has been sought. Mr Sabyasachi Sen, West Bengal Government's Commerce & Industry Secretary, has urged the local Concor officials to arrive at a negotiated settlement, it is learnt. The MP and the MLA of the Kolkata dock area too are believed to have intervened in the matter, though no solution has yet been arrived at. The private traders of Nepal import about 2.5 lakh tonnes of vegetable oil annually through the Budge Budge oil jetty. At Rs 2,200 per tonne, the road transport cost, it is felt, is rather high. The private traders of Nepal thus are virtually under the clutches of these transporters. Even since direct rail services between KDS and the Birganj ICD were launched in July 2004, Concor has been mulling to tap Nepal's vegetable oil traffic, more so because it has 210 tank wagons, equivalent of three rakes, to facilitate transportation at a lower rate. Nepalese traders were jubilant when Concor announced its plan to handle the traffic. Initially, it was decided, two rakes would be placed such that 8,000 tonnes a month or roughly one lakh tonnes a year could be transported. Accordingly, the first rake was placed at Budge Budge on June 28. But no loading of the rake has been possible so far due to the agitation by the road transporters. The argument of the road transporters is that the transfer of the traffic from road to rail will entail loss of business for them, dealing a severe blow to a large number of people whose livelihood depended on it. They will therefore not allow the transfer to take place. Of the total traffic of 2.5 lakh tonnes, an estimated 1.8 lakh tonnes go to Nepal via Birganj and the balance via Biratnagar. Concor is targeting only a portion of the traffic that is routed through Birganj, an estimated one lakh tonnes out of the total of 1.8 lakh tonnes. It will not not even touch the estimated 0.7 lakh tonnes going to Nepal via Biratnagar. This means, Concor is targeting only 40 per cent of the traffic throughput while the balance 60 per cent will continue to be handled by road transporters. Such an argument, however, has cut no ice with the road transporters so far. The Nepalese traders feel that the road transporters have robbed them of their legitimate right to transport at a competitive rate.
More Stories on : Supply Chain Management | Oilseeds & Edible Oil | Shipping
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