RUN-UP TO THE BUDGET. Do not relax cabotage law for bulk cargo

We would like to see more infrastructure development. The government, which has announced many projects, should speed up their completion.

We need more roads and rail connectivity to ports.

We hope for the goods and services tax for seamless cargo movement.

The government should specify the timelines for implementation of inland waterways development and ‘Sagarmala’ (infrastructure along the ports) — two projects that require focus.

That said, there were some announcements that the cabotage law — which permits foreign flag ship owners to move Indian cargo from one port to another — will be relaxed. We do not want cabotage norms to be relaxed.

You can relax cabotage in containers, but you cannot relax them in bulk cargo such as coal, salt, cement, cotton, metals and ores, and project cargo.

Transhipment The main issue that we look to tackle is lower transhipment from nearby foreign ports like Colombo and Singapore.

But while we tranship containers, we do not tranship bulk cargo.

Our country has the volumes for bulk cargo and Indian ship-owners have the wherewithal to carry them.

There has been a lot of talk about dedicated rail freight corridor. There is a need to focus on speedy implementation of bulk cargo to ensure seamless logistics.

There should be financing of ships at reasonable prices. For Make in India to be successful, we need good credit limits, and cannot move without vessels.

We also need to make roads safer, apart from building sufficient infrastructure for truck repair and parking.

The container business is not very stable, and most of it is across countries. But, the Baltic Dry Index, which tracks the freight rates for bulk cargo globally, and has crashed, affects Indian ship-owners at various levels.

The writer is Executive Director and COO, Allcargo Logistics

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