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Political parties have waded into the transporters’ strike at JNPT that has roiled exporters and importers from Wednesday.
The Shiv Sena has urged Prime Minister Narendra Modi to look into the manner in which the State-owned port finalised a transport arrangement by awarding exclusive rights to four operators to haul containers from the port, which triggered a backlash from existing truckers associations.
Rahul Shewale, Shiv Sena MP from Mumbai South Central, told Modi in a letter that JNPT’s decision to hand over the task of hauling direct port delivery (DPD) containers to four transporters to five hinterland destinations was a “clear act of monopoly”.
He questioned JNPT’s “authority” to select the four transporters. “Do they have the right to force the importers to compulsorily work with a third party? Who has given them the right to do so?” the lawmaker asked in his letter, a copy of which was reviewed by BusinessLine . “Why don’t they focus on improving their system and infrastructure which will speed up container movements?” he asked.
Higher rates
Besides, Shewale said, the ceiling rates set by JNPT for the four transporters to five destinations “are already 25 per cent higher than the rates prevailing in the market”.
“When there will be no competition, the selected transporters will dictate terms against the importers. They are free to ask (higher) rates from the importer and the importer is bound to pay the same,” Shewale wrote.
To be sure, JNPT had earlier clarified it is not mandatory for importers to use the services of the four transporters selected by it. Further, the port authority claimed that the transport tender had fetched lower than the existing rates, ranging between 1.24 per cent and 18.61 per cent depending on the routes.
An executive with one of the four transporters selected by JNPT confirmed that the rates finalised through the tender were “higher by a very high variable” than the prevailing rates. “It’s higher than what the importers are paying now,” he said, asking not to be named.
He further said the four transporters are yet to begin operations since the May 1 launch, as finer details of agreements with importers are still being discussed. “We have been approached by about 15 companies with whom we are discussing the terms,” the executive said.
The four transporters have also offered to hire the tractor trailers of existing transporters to run their operations, but this is yet to be accepted by the striking transporters associations.
On Friday, port authorities met Ganesh Naik, a local NCP leader and former Maharashtra minister, as the strike continued. BusinessLine could not ascertain what transpired during the meeting.
Shewale said the existing transporters have been carrying out DPD movements efficiently all along. “If the importers have any issue with the existing transporters, they are free to change and choose any other transporter. Why is JNPT trying to curb their right to choose a vendor of their choice and forcibly work with the transporter selected by the port at a higher cost?” he asked, adding that the new transport arrangement would lead to massive “unemployment”.
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