Tuesday 28 March 2017

Will NaMo copy Trump?



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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