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Export target can be achieved only if Operational and Logistical requirement of EXIM cargo is ensured says the export trade from South

Exporters from Southern and Western Tamil Nadu 8 February 2019 charged the state owned Container Corporation of India with levying fifty per cent additional charges for movement of containers to the ports which is seriously crippling their competitiveness in the international market.

 India can achieve the export target only if the operational and Logistical movement of EXIM cargo is ensured.

The exporters from Tirupur, Coimbatore, Erode and Madurai are paying almost fifty per cent additional freight charges to move their cargo to the ports as the container operators load charges for transport of return empty containers Dr M Rafeeque Ahmed Past President of FIEO said while welcoming the delegates for the cargo connect an event held by FIEO at Coimbatore held on February eighth.

The container operators levied these additional charges on the exporters even though there is scope for utilization of domestic cargo by empty containers from the ports. He called for various policy changes so that the logistics industry can be more efficient and cost effectively. He said India can achieve the export target only if operational and logistical movement of EXIM cargo is ensured

He also highlighted various issues which effecting the growth of costal shipping includes lack of Transshipment facilities and other infrastructure.

He said the recent initiative of Government of India towards more investment in critical infra-structure creation and Make in India program will help the country to enter into new generation global value chain related manufacturing arena. 

The One day Cargo Connect Conclave organized by FIEO and India sea trade at Coimbatore discussed the issues of exporters and importers towards joining in the global value chain eco system.  India can take advantages and become global manufacturing hub only if logistic eco system which supports Just in time delivery schedules needed is being promised by providing integrated multimodal transport system.

While opportunities are expected by benefiting  taking advantages of regional trade agreements including RCEP can be materialized only if India can promise efficient and smart logistic facilities means which facilitates movement of raw materials, semi-finished products consumables and finishes products across the region which should be efficient faster, cost effective and also predictable .

While delivering Key-note address, Chief Commissioner of Customs Mr.Ranjan Kumar Routray said that department of customs has undertaken several trade facilitation measures which improved the dwell time needed for clearance of export and import cargo substantially.

He also highlighted various initiatives taken by his dept which includes single window interface for facilitation trade, AEO, DPD. E –Seal, RFID based cargo tracking system which improved efficiency of movement of cargo. 

With all these facilitation measured the countries ranking in crossing the borders have reached to 35 and we expect that with further improvement in coming months India could reach the ranking between10 to 15.

The session discussed various logistic issues which is hindering the growth of the business and the need for having more investment in the region of logistic sector, which will help the region to become global manufacturing  centre

The experts discussed in the conclave focused on South India Maritime Sector; Challenges, Opportunities and the Way Forward,  Last Mile Connectivity Challenges,  Efficiency of Outbound Logistics,  Logistics Scenario – Global Trend and Local Market, Shippers and Service Providers perspective and derive ways for a collective and integrated approach that would enhance performance value in the logistics network and greater economic success to the region.  

The Conclave was attended by more than 300 delegates including exporters, importers and logistics providers representatives from various ports in the southern region. The session drew up a road map for logistic requirement and employment opportunities for the region by 2020.


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