Congrats for setting off on a clean-up path and achieving some quick results as well. From what was mentioned in Chennai, stopping the Cargo gear surveyor when ship’s gear was not going to be used was a good `win’.
The Port Health, Immigration and Customs of course are more of a nuisance during the roles they play, especially in a developing country like India. Having had some success on this front it is time to move from small fries to Port Authorities, etc. For the impact of their corruption is much more on trade and users, eventually affecting competitiveness in exports to support imports, and citizens with higher costs and everyone at large with higher inflation too.
Personally as an Anti-Corruption activist (starting with Annaji’s IAC -India Against Corruption and having taken part in protests at Jantar Mantar, spoken against corruption in JNU, etc) starting `Against Bribery & Corruption’ (ABC: a trust funded by activists) and lectured in schools, colleges, Parks, Beaches, etc., held a long protest march in Chennai’s Besant Nagar Beach, and having got good coverage in media: TV, FM Radio, Newspapers, etc, my take is that anyone or any group committed must address the larger issues than the smaller easier ones just to be heard and gain visibility.
Following are some of the big ones that need to be addressed, as they have a trickle down and trickle up (capillary effect so to say with corruption permeating the whole system and organisations):
- Shipping and Cargo clearing/logistics agents are known to regularly pay facilitating money for smooth functioning, because obstacles can be caused by anyone in the long line of authorities and the users themselves do make mistakes, misuse, etc; essentially because time is money in all aspects, sectors, segments, etc of shipping.
Incidentally, in early ‘90s Madras HC did rule that such smoothening-greasing outgoes can be shown as business expenses in accounts!
- Such paying goes down to Shed masters, tally clerks etc. Of course the Port wants no liability in cargo handling even if it gets damaged when under their care!
- I had got a Contr Trmnl shift supervisor sacked after he refused me to allow load testing of damaged derrick/crane at container trmnl/berth (saying that the terminal will sink) for which I had obtained permission from the Port and Trmnl manager.
- A Chairman of a port trust was convicted of corruption and had to spend time in jail.
- Heads of Departments have also been sent to jail likewise.
- Trustees to whom trust has been entrusted have been another bunch of networked corrupts to make deals!
- Port Charges are very high, especially VRC -Vessel related charges converted to US$ in ’92 at the then prevailing exchange rate, and continues to be calculated and charged in US$ at current exchange rate that is more than double that of ’92.
Monopoly and oligopoly in Port sector has become a curse indeed for the trade with the trade suffering loss of competitiveness due to high port costs.
Other issues that come under Shipping and Ports, to name a few are:
- VGM: Volume Gross Mass under SOLAS Convention (being paramount for Safety) for Container laden weights are not enforced properly with shippers declaring weights. DG Shipping has outsourced such responsibility to Indian Institute of Packaging that monitors IMDG cargo also. For proper enforcement, the movement of laden boxes need be monitored with RFI (radio frequency) on all its multimodal legs -including roads- to ensure safety.
- There should be a proper regular audit and surprise checks also. Perhaps IRS- the RO under shipping is the right one to be entrusted. It is neglected and so malpractice prevails at high risk hidden by corruption.
- HNS: Hazardous Noxious substance IMO Convention (that includes LPG & LNG along with chemicals etc) is not yet ratified.
- Ports’ activities are supposed to be audited as per Mohan Committee Report; but ports have conveniently resisted it for reasons of their own.
- Any Charge levied for services not rendered (like Heavy lift surcharge even when ship’s gear is used) is unpardonable.
- Vessel waiting for pilot should not be charged berth hire from the time cargo is completed and pilot called for.
Absence of an ‘UNFAIR CONTRACTS ACT’ (as in other countries) is a bane! (The one legislated in ‘80s morphed to Consumer Protection)
In developed countries there is a BRIBERY ACT (anti-bribery effectively) as in the UK. One such should be pushed for here too.
In mid ’90 I had got a Shipping related Consultancy with a PSU Major in Delhi at one eighth the cost of competitor who had provided for huge kickback to vigilance dept through whom the Consultancy was to be routed.
At my final presentation, the C’Man said: ‘Capt, I have heard that shipping is the most corrupt’ to which I replied: ‘it is the users that make it so corrupt’ (aptly)
It is not out of place to mention that repeal of Merchant Shipping Act is pending for last 6years after the professionals had given their well-considered inputs.
Marex Media