Call for government intervention so that MIAL is held to account
The Mumbai International Airport Ltd (MIAL) has created an inefficient private monopoly at the air cargo complex. This was the general view expressed at a media interaction called here recently by the Air Cargo Agents Association of India (ACAAI) along with a host of other trade bodies, including Bombay Custom House Agents’ Association (BCHAA), AMTOI, IMC, WISA, CII, Fieo, etc., to highlight what they said was the deplorable state of cargo handling at one of the country’s most important hubs.
The cargo sector has run out of patience with the state of affairs at the air cargo complex at Mumbai Airport and for waiting for things to improve, they stressed, and called for government intervention to assess the private operator’s (GVK) performance since it was not taking any interest in "improving the national asset".
The meet was addressed by, among others, Mr Bharat Thakkar, Vice-President of ACAAI, Mr Nailesh Gandhi, President of BCHAA, Mr Firdos Fanibanda, Chairman of ACAAI Western Region, Mr Mark Fernandes of IMC, Mr R. Radhakrishnan of WISA, Mr Anand Sheth of AMTOI and Mr Amit Goyal of Fieo.
They lamented the fact that instead of improved handling, enhanced infrastructure, and reduced dwell time and transaction costs the trade had hoped for from privatisation when the GVK Group took over operations at Mumbai Airport in 2006 (forming MIAL as a consortium with partners), what they have got is huge delays in cargo despatch and delivery resulting in 100 per cent growth in demurrage, no improvement in infrastructure, lack of adequate equipment, no protection/safety for cargo, systematic pilferage, lack of hazardous cargo/dangerous goods management ("explosives stored with general cargo"), no time-frame for cargo segregation leading to penalties for over-staying the free storage period, improper storing/stacking etc.
There has been no improvement in even the basic infrastructure though cargo volumes have almost doubled in the last four years, it was pointed out, with the result that the trade is literally paying the price through demurrage ("Rs 1 crore in 6 months"), blocked working capital, increased transaction costs, missed connections, and delayed delivery of essential cargo to consignees. "The increase in demurrage is an indicator of poor service levels. The operator is making money by being inefficient. It if clears cargo within 24 hours, there is probably less money to be made. Despite this, one hears the Ministry is considering further reducing the free time from 72 to 48 hours".
"Today there is systematic pilferage due to this inefficiency. No CCTVs have been installed at the air cargo complex despite our repeated requests. Why? We fail to understand."
It was highlighted that it took 12 hours for a truck to even enter the gates, followed by another 3-4 hours to reach the docking station, where lack of adequate facilities and equipment resulted in further delays. "MIAL says that volumes are high. But then why take more business?"
According to the trade, what MIAL has created is a high-cost ("we pay one of the highest tariffs in the world), low efficiency, exploitative private monopoly that has not benefited the trade in any way. "We are completely at the mercy of MIAL. It is high time there is more accountability. The government wants us to increase the country’s international trade, but facilities at an important cargo hub are not up to the mark. How can we then be competitive in the international market?"
There was even a suggestion that MIAL should be brought under RTI since the government is a shareholder.
The Mumbai International Airport Ltd (MIAL) has created an inefficient private monopoly at the air cargo complex. This was the general view expressed at a media interaction called here recently by the Air Cargo Agents Association of India (ACAAI) along with a host of other trade bodies, including Bombay Custom House Agents’ Association (BCHAA), AMTOI, IMC, WISA, CII, Fieo, etc., to highlight what they said was the deplorable state of cargo handling at one of the country’s most important hubs.
The cargo sector has run out of patience with the state of affairs at the air cargo complex at Mumbai Airport and for waiting for things to improve, they stressed, and called for government intervention to assess the private operator’s (GVK) performance since it was not taking any interest in "improving the national asset".
The meet was addressed by, among others, Mr Bharat Thakkar, Vice-President of ACAAI, Mr Nailesh Gandhi, President of BCHAA, Mr Firdos Fanibanda, Chairman of ACAAI Western Region, Mr Mark Fernandes of IMC, Mr R. Radhakrishnan of WISA, Mr Anand Sheth of AMTOI and Mr Amit Goyal of Fieo.
They lamented the fact that instead of improved handling, enhanced infrastructure, and reduced dwell time and transaction costs the trade had hoped for from privatisation when the GVK Group took over operations at Mumbai Airport in 2006 (forming MIAL as a consortium with partners), what they have got is huge delays in cargo despatch and delivery resulting in 100 per cent growth in demurrage, no improvement in infrastructure, lack of adequate equipment, no protection/safety for cargo, systematic pilferage, lack of hazardous cargo/dangerous goods management ("explosives stored with general cargo"), no time-frame for cargo segregation leading to penalties for over-staying the free storage period, improper storing/stacking etc.
There has been no improvement in even the basic infrastructure though cargo volumes have almost doubled in the last four years, it was pointed out, with the result that the trade is literally paying the price through demurrage ("Rs 1 crore in 6 months"), blocked working capital, increased transaction costs, missed connections, and delayed delivery of essential cargo to consignees. "The increase in demurrage is an indicator of poor service levels. The operator is making money by being inefficient. It if clears cargo within 24 hours, there is probably less money to be made. Despite this, one hears the Ministry is considering further reducing the free time from 72 to 48 hours".
"Today there is systematic pilferage due to this inefficiency. No CCTVs have been installed at the air cargo complex despite our repeated requests. Why? We fail to understand."
It was highlighted that it took 12 hours for a truck to even enter the gates, followed by another 3-4 hours to reach the docking station, where lack of adequate facilities and equipment resulted in further delays. "MIAL says that volumes are high. But then why take more business?"
According to the trade, what MIAL has created is a high-cost ("we pay one of the highest tariffs in the world), low efficiency, exploitative private monopoly that has not benefited the trade in any way. "We are completely at the mercy of MIAL. It is high time there is more accountability. The government wants us to increase the country’s international trade, but facilities at an important cargo hub are not up to the mark. How can we then be competitive in the international market?"
There was even a suggestion that MIAL should be brought under RTI since the government is a shareholder.
Source : Exim News Service - Mumbai, Sept. 5
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