Rub shoulders with transporters?
Ramesh Kumar
This
question became inevitable in the wake of United States President Donald Trump
inviting the transporters/fleet owners (suited-and-booted, of course) and truck
drivers (pant-and-shirt types) to White House recently for a discussion on the
controversial Obamacare (healthcare legislation). Following this, the US
President stepped out and climbed into the cabin of a spick and span truck
parked in his lawns much to the delight of all assembled.
Now,
you understand the import of my question viz., will Prime Minister Narendra
Modi invite the Indian transporters/fleet owners and truck drivers for a
discussion on a variety of issues that is of importance to both sides.
"What
are you talking? Are not we regularly go to Parivahan Bhavan (Ministry of Road
Transport & Highways) and interact with Nitin Gadkariji? We are not
untouchable. If you have that impression, erase it quickly," admonishes a
senior transporter in Delhi when I pose this question.
Precisely
the point. Who's Gadkari's counterpart in Washington? Elaine L Chao. In the US,
their ministers are called Secretaries and she is part of Trump's cabinet. Yes,
of course, even American transporters meet her in the course of their business.
That's routine. But, them shaking hands with Prez? Quite a deal. Big event.
Returning
the vital question... Here's what veteran transporter and AIMTC/AITWA presiding
deity at one point of time late Om Prakash Agarwal told me at his Cuttack
residence in 2016:
"Transport industry’s voice or
contribution is never understood or appreciated. Take, for instance, the case
of film industry. It gives employment to a maximum of 4-5 lakh. Now look at
transport industry. Can you give me a name of transporter who has been inducted
as a Rajya Sabha member since the Independence? Okay. Now can you tell me the
name of a transporter who has been awarded a Padma Sri even? Do we transporters
not performing any duty to the nation?
Are we not patriotic? Don’t we deserve? Do you know 16 crore people
survive on transport industry?"
His
anguish was palpable as his voice quivered on that morning. Unfortunately, he is not around now when the grapevine has
it the name of Ramesh Agarwal of Agarwal Packers & Movers was in the list
of probables for Padma Sri recently, but dropped due to some technical hitch.
Perhaps one Agarwal's voice is heard in the corridors of power. Who knows, he
may be honored perhaps in the near future.
Why
chai with PM Modi looks remote (won't say, unlikely) for Indian transporters? There
is a saying in my mother tongue (Tamil): you don't need a mirror to notice a
wound/scar in your palm. Simply put, it means: it is evident.
To
begin with, transporters have three lobby groups on paper, at least: All India
Motor Transport Congress (AIMTC), the oldest dating back to pre-Independence;
All India Transporters' Welfare Association (AITWA), the splinter group from
AIMTC with a greater thrust on community grouping from the transporter
fraternity; All India Confederation of Cargo Vehicle Owners Association
(ACOGOA), yet another splinter group from the parent AIMTC.
Do
they have a common agenda? Ideally speaking they ought to. Yes, they do. Yet,
rarely they speak or act in one voice. Unless, the mandarins in the ministry
call for a meeting, they rarely come together to chalk out a common strategy on
their own.
Their
lobbying power is very weak, though if they decide they can easily paralyze the
entire economy in one go. How? Remember this is the age of outsourcing and no
Indian company manufactures everything they need to push their produce to the
market shelves. Vendor Management is a key catchphrase for the India Inc. So,
these components or raw materials have to be brought by road to the production
site. So, transportation is quintessential. Similarly, finished products
(whatever it is) has to be pushed out of factory gates by road again. So,
transportation is vital.
It
is not off the mark to claim transporters have a pivotal role in helping
political masters to steer the nation. Yet, their voice is not heard is no
secret. Rather, their voice is heard, but
not acted upon would be apt.
Why?
To
understand this dichotomy, one has to look at the other lobby groups: Take, for
instance, Assocham, FICCI or CII. Certainly, they lobby hard to get their
collective voice heard and importantly, 'acted upon'.
How
come? Simple, because these lobby groups are more professional with a
full-fledged secretariat packed with experts drawn from industry and a think
tank or advisory board. Now, look at
these three transport lobby groups' secretariats. One Secretary
General/Director General and a few administrative staff (computer operators,
dispatch team etc). I wish I am wrong. Millions of trucks and even going by one
driver-one truck routine (It’s altogether a different matter that they refuse
to implement double driver for National Permit vehicles but blindly permit
themselves to be penalized daily!) , and a decent annual subscription from each
member would have filled up their coffers. Am talking about AIMTC, the Big
Brother. Still, it is no secret that there is no money to beef up its
secretariat. Why? Because, none wants to cough up as there seems to be little
quid pro quo.
Transporters
themselves spare part of their time to run these groups. There is bound to be
ego clashes. Inevitable. Secretary General/Director General is more of a
Gumasta - like former PM Dr Manmohan Singh was for UPA Chair Sonia Gandhi
during the UPA 1 and UPA 2 regime spanning for a decade (2004-2014). Simply, PM
had no powers, but dictated what to do on a regular basis keeping her political
agenda upfront.
The
transport lobby groups are no different. Is there a common agenda for them to
focus upon? Plenty. Do they act collectively? No. Want proof? Look at the
unfolding drama...
Their
charter of demands includes: ever rising fuel price affecting operational
efficiency, with domestic prices not reflecting global oil price; toll policy;
the impending GST roll out warranting the transport segment (not bestowed the
coveted industry status) to comply with stringent regulations. Read, a lot of
paper work. They are never used to maintaining records and most transactions
are not through legal banking channels, but in cash. No wonder, private equity
firms do not want to touch them with a barge pole. Last, but not the least, is
the himalayan level of corruption on highways. And, the steep hike in third
party insurance.
Plateful
of contentious issues to confront the government. Yet, their demands are heard,
but not acted upon.
Unity
among them is cellophane paper thin. Want proof? Here it is. Come April 20,
,2017, AIMTC has announced an indefinite work stoppage demanding immediate
action on the above listed issues and more. This decision was taken at its
Management Committee meeting in Chennai mid-March. So far, so good.
Immediately,
G R Shanmugappa, former President of
AIMTC and the most vociferous and full of zest and energy has announced
his own agenda: Under his stewardship of South India Motor Transport
Association (SIMTA) will be going ahead with their own agitation on the more or
less on the same issues from April 1. Nineteen days prior to the umbrella body
(AIMTC) announcement.
Hang
on. Not to left out, ACOGOA also threw its hat into the ring. President Channa
Reddy also announced his own agitation again on the same issues with effect
from April 1, 2017.
Of
course, all these bodies have served notice on the government with a deadline of March 31 2017. Comply by that deadline, or
else .... Blackmailing? Trade Union tactics?
Lobby
groups function like diplomats. Behind the scenes. Subtle, but effective. No
bare chest thumping. No public display of displeasure against the government, whatever
the provocations be.
AITWA
is maintaining a stoic silence about its participation. If past is any
indication, it is a peace-loving body. Moral support, sure. Active participation,
keep guessing.
Now
that April 20, 2017 has been etched by the most powerful AIMTC, why one is
witnessing such discordant happenings? Internal politics and ego clashes.
Mind
you, it does not mean that professional lobby firms such as FICCI, Assocham and
CII do not have such internal squabbles. They certainly do have. When you have
more than two members there is bound to be groupism and clash of interests.
Luckily, these differences or quibblings seldom spill out into the open.
The
biggest challenge within AIMTC is that past presidents do not vanish into
sunset once their fixed two year term comes to an end. AIMTC presidentship
bestows opportunity to rub shoulders with powers that be. Read, photo opportunity.
Naturally, they want to be in the limelight always. Any new president stepping
into the Asaf Ali headquarters finds it suffocating to function, whereas
Assocham/FICCI/CII presidential switch overs are smooth affairs.
Why? Like the
Indian bureaucracy that actually runs the nation irrespective of which
political combination is in the saddle, transport lobbies have no such
structured secretariat as I have spelt out above. The biggest advantage of
industry lobby firms is their structured bureaucracy which actually runs the
organization with inputs from its members. The members of these bodies - the
Who's Who of India Inc - do not frontend their concerns. They do not seek photo
ops with powers that be. It's their secretariat that does these quintessential
jobs silently, behind the scenes and effectively.
Do
these lobbies have any transportation economist - someone like Bob Costello,
Chief Economist of American Trucking Associations (ATA) - on their rolls to
brainstorm and etch strategy and lobby wisely? Doubtful. "We know
better," is the crisp response from these transporter Brahmins. If at all,
some interesting stuff comes out, it is all because of some individual efforts:
TCI’s IIM-Kolkota annual study. By the way, AIMTC honchos concede that a
systematic academic study of their issues is needed with IITs/IIMs
participation. These elite educational institutions don’t perform that vital
studies free of cost and the transport lobby groups have no money to spend.
Pity.
The
constant vibe in the ministry is that these transporters are not serious.
Rather they are clueless as to what to demand and how to demand. Plus, it is
believed they need to grow up. Become mature so that they are taken seriously. Given
the schism within these competing groups, the mandarins in the ministry know
how to play the game.
So
long as these lobbying groups are not
able to professionalize their set up with a full fledged bureaucracy and give
full freedom for that body to function on their behalf, no government will be
serious about this segment. Not that these transporters will be ignored.
They,
certainly, will be 'entertained' with
photo opportunities including with the honorable Minister Nitin Gadkari as
frequently as they wish.
How
about Prime Minister Narendra Modi sparing some tea time with them? Wishful
thinking. Miles to go.
One
final point:
the unfolding of private equities and venture capitalists pumping millions into
the IIT/IIM graduates-managed freight operation ventures and ushering in a far
superior technology-infused transformation in the trucking industry with
professionalism at its core, the future of a new lobby group representing these
bunch of ambitious new India start-up entrepreneurs is pretty high. Prime Minister Narendra Modi is
a big supporter of technology, transformation and reforms in every segment of
economy.
So,
the prospect of these new entrepreneurs shaking hands with Prime Minister and
sharing a cup of tea with him at 7 Lok Kalyan Marg or South Block is very high.
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