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Transporters bag ministry nod on state-wise minimum freight package 

Our Bureau  
Mumbai, Oct 31: Transporters ended their week-long nationwide strike lastThursday, but only after getting assurance from the ministry of surfacetransport on most of their demands, including statewise minimum freightpackage and no toll for existing bridges. Also, the transporters seem tohave been comforted by a promise of industry status.

The transporters were upset with various states charging various levels ofstate taxes and tolls for roads and bridges. With assurance of minimum statelevel charges, transporters hope they will be given a fair deal.

The transporters have coolly avoided pressing on the toughest issue ofgovernment withdrawing the 35 per cent hike in diesel prices (announcedearlier last month) by hiking the countrywide freight rates by over 30 percent. There is at least a hike Rs 3,000-4,000 in every route, transporterssay. In the bargain, the transporters seem to have gained much more thanwhat appears on the surface.

A senior official of the All India Motor Transport Congress (AITMC) saysthat apart from the ministry of surface transport's assurance that it willcome out with a minimum freight package for each state, the transporters aresure to get relief in the form of removal of octroi and tolls existing invarious states. The industry status, promised by the government to thetransporters will go long way in solving their pending issues, said theofficial.

As per the agreement with the government, the toll charged for new roads andwidening roadways will be removed and only those related to new bridges willremain. Further, the ministry has asked each state to prepare the minimumfreight rate package for various destination within it. This, says the AITMCofficial, will enable transporters to get a decent fare putting to rest alldisputes on the complex freight structure. The Central government has takena lead to this effect. The Centre has asked all its enterprises to paytransporters the minimum freight rate, thus fixed as per the freight raterevision," the AITMC source said.

Although the transport strike was withdrawn last Thursday, the shortage oftrucks has crippled goods movement from Mumbai to various parts of thecountry.

"We are booking goods at rates 20-30 per cent above the earlier rates," saidone transporter, who is also a truck dealer. However, the severe shortage oftrucks in the city to move goods continuous to be a cause of concern for thetransporters. One transporter said that it may take a week to clear thestockpiles.

"We are waiting for the vehicles to return from various parts of thecountry. It can take more than a week to resume transportation on a fullscale," he said. Rates from Mumbai to rest of India have flared up in thelast few days. Truckers have started charging these high rates already inMumbai. The rates for the nine-tonne load vehicles from metropolis tovarious parts of the country are soaring.

Transporters cite the shortage of vehicles for the flaring up of rates.Freight costs to eastern parts of India such as Guwahati and Jorhat havegone up by a whopping Rs 4,000-5,000 range. "Even at Rs 42,000 levels, novehicle is available from the city," says one transporter.

Overall, a 20-30 per cent hike in rates is visible but some transporters arebelieved to be charging more. Truck rates to most of the northern states areup by around Rs 8,00-1,500 range. The sector has witnessed largescale demandfor vehicles and as happened before the strike, the transporters arediverting south-bound vehicles to northern states.

Rates to Jammu and Kashmir and Himachal Pradesh have gone up in the range ofRs 1,500-2000. Transport rates to Srinagar were ruling high at Rs 26,000.The northern belt would be coughing up much more as rates to Punjab andHaryana have gone up by Rs 1,500. Rates from Mumbai to other metros are upnearly 30 per cent. Freight rates to Delhi, have shot up by Rs 1,500 to Rs16,500 while to Chennai, the rates were Rs 17,000. Mumbai-Calcutta rateswere ruling at Rs 19,000 and towards Bangalore, a rise of Rs 2,000 visibleat Rs 11,000.

Rates to places in Bihar were pegged very high by truckers as the continuedshortage of vehicles towards the region resulted in heavy stockpiles.Freight rates to Hazari Bagh were up by Rs 1,700 at Rs 20,000 while Patnawas marginally up by Rs 700 at Rs 20,100. Rates to Lucknow were at Rs 18,500while rates to Varanasi stood at Rs 19,000. Mumbai to Meerut rates jumped byRs 1,400 to Rs 18,000. The rates to Gujarat flared up as heavy cargomovement on the Mumbai Suratroute is taking place. Surat rates were up byRs 700 to Rs 3,900 while rates to Kandla were up by Rs 800 to Rs 6,400. Inthe western region, the rates to Madhya Pradesh were up in the range of Rs8,00. Rates to rest of the Maharashtra were moving up with Pune quotingarounnd Rs 2,800 while towards Nashik, it was around Rs 4,700. Nagpurwitnessed biggest jump of Rs 1,800 at Rs 8,800. Southern rates were firmingup as the vehilces were being driven in other direction. Rates to Hyderabadand Bangalore were up around Rs 1,500-2,00. Rates to Kerala, particularlyCochin were climbing up towards Rs 16,000 from Rs 14,000 before the strikebegan.

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