Roads have a future
INTER VIEW: MOHINDER SINGH DUA
| What potential does the road transportation sector hold? |
| Road transport has a great future. It has always been called the backbone of the country's economy. In India, it hauls liquid and solid cargo to every nook and corner of the country and presently road transport shares over 60 per cent of country's share balance being covered by railways or by waterways. The country is doing very well economically and production of all industries is climbing steadily. This means that there is a greater role of transportation of raw materials and finished goods. The road transport is shaping up very well to take on the future challenges. Contrary to popular belief that this sector consists of the not-so-educated people, we now have engineers, MBAs and other professionals in leading transport companies. |
| With the consistent rise in oil prices, there's bound to be a pressure on the freight rates. Your comments. |
| This is a very tricky situation for all transporters. Due to severe competition, it is very difficult to get a hike in freight rate from the customers. In case of small hikes (Re 1 or less per litre), transporters have to bear the losses. In case the rise is bigger, then usually it is shared between transporter and customer. But a transporter is never fully remunerated for the hike in diesel prices. Although road transportation is becoming expensive, railways cannot match the level of service. Road transport has certain inherent qualities, which keeps it at a notch above the railways. Primary amongst these is door-to-door delivery and transportation of parcel loads. But yes, transportation of bulk cargo has seen a shift. The Railways recently declared last week that its freight transportation was up by 10 per cent last month. This is a clear indication that some industries are moving to the railways, but at the same time I feel there is nothing to worry for the road transport sector. |
| What are your expectations from the government to improve this sector? |
| The government should take appropriate actions to check rising diesel prices, review Carriers Act of 1865, arrest the trend of highway theft and hijacking of trucks, stop illegal harassment by various departments and minimising the check posts which hindering the smooth flow of traffic. |
| How mature is the logistics outsourcing phenomenon with regard to Indian companies? |
| Logistics outsourcing is still in the nascent stage in the Indian market, though it is now growing at a rapid pace. While professionally-managed logistics companies are doing good business many transporters are still confused about the concept of outsouring in this segment. |
| How important is the role of IT in this sector? |
| IT has played a great role in getting us to where we are today. Today, we can interconnect between the various branches and get online information about what is happening within the company. Also the customers can get correct, if not precise information, from us. Many companies are now providing cargo tracking services though they are not very popular because of the high cost. But we are sure, these will get cheaper and transporters will be able to make optimum use of IT to benefit their customers. |
| "Some industries are taking the railway route but there's nothing to worry for the road transport sector" |
| Mohinder Singh Dua President, Bombay Goods Transport Association |