Container haulage study commissioned

The Ministry of Entreprenuer & Cooperative Development (MECD) has commissioned a study on the container transportation industry with a view to promoting a healthy development of the industry in the country.
 
The six-month study will investigate complains on excess capacity in the industry following an earlier decision by the Ministry to open up the container haulage industry to score of players after decades of restrictive practice that allowed only a half a dozen operators.
 
Responding to persistent complaints from shippers on the lack of capacity and poor level of services provided by a limited number of players, MECD had under a government directive, allowed more than 80 operators to enter the trade over a three year period.
 
The swift entry of so many players, it was later alleged was not based on a reality of the market because the perceived demand included wrong interpretation of the data complied on transshipment of containers at port which had little or no bearing on the volume of containers moved on the road.
 
This resulted not only most of the licensees in remaining dormant or leasing out their licenses but also significantly eroding markets of established operators, including pushing the once “king of the container haulage” – Kontena Nasional into the red.
 
The study will also look into the recommendations to allow License A holders (who are permitted to carry third party freight) to pull containers as well.
 
Also on agenda of the study is the need to remove the geographical restriction placed on License C holders (who are permitted only to haul only own cargo).