Poor infrastructure holding back India's growth

by Press Release on 2010-09-05 01:17:11

Forwarders claim inefficiency and lack of facilities are clogging-up trade. The criticism comes as lines implement congestion surcharges at India’s leading container port, Nhava Sheva, and divert services.

Strikes and congestion have also impacted other leading container terminals in India this year.

Sanjay Tejwani, Director of Oceanfreight for DHL Global Forwarding India, told IFW the inadequacy of India’s logistics infrastructure could constrain the nation’s growth.

“India’s exports, for example, could be rendered less competitive due to higher transit times and lower reliability,” he said.

Gracias Thevar, Country Manager of logistics services at GAC India, said delays at ports were common, key facilities proving unable to cope with the rapid growth of international trade in recent years.

“The existing rail and road infrastructure forces cargo to move in and out of only a few major ports,” he said.

“The system is rife with inefficiencies, each adding to delivery cost and time – the two main measures of transport – which has an immediate and fundamental impact on the competitiveness of Indian goods abroad, and the cost of foreign goods in India.”

Tejwani said the slow progress of port and rail privatisation, and roads that are “well below acceptable standards” were limiting India’s potential to handle more international cargo, “resulting in congestion at ports and inland container depots and an increase in transaction costs”.

A spokesman for shipping line CMA CGM told IFW the congestion at Nhava Sheva was the result of the slow movement of imported containers to the various inland container depots.

“Productivity at the terminals is also hit by delays in docking and sailing because of a shortage of pilots at Nhava Sheva,” he said.

“We need more pilots, particularly those licensed for larger vessels. This would reduce idle time at Nhava Sheva and improve quay productivity.”

Rail services into terminals are also poorly organised, he claimed, and CMA CGM is now using private trucks to reduce loading delays.

“The delay for the export containers can be seven days if they miss the intended ship,” he said.


Source http://www.supplychains.com