EEPC says connecting ports via rail to boost ease of doing business

MUMBAI: Rail Budget's proposals regarding improving port connectivity though rail announced Thursday by minister Suresh Prabhu will improve ease of doing business and lower transaction costs for the exporters and importers, said Engineering Export Promotion Council of India’s Chairman T S Bhasin.

The industry body said that the plans to connect ports of Nargol and Hazira through Public-Private Partnership model was encouraging for the sector. “The connectivity to ports on the 7,517 km coastline by the Railways will yield positive results for the exporters who are always battling the issue of poor infrastructure,” EEPC said.

Exporters were also upbeat by the Rail Ministry’s decision to set up Rail side logistics parks and warehousing in PPP mode along with 10 goods sheds. Setting up of India’s first rail auto hub in Chennai and development of cold storage facilities on vacant land near freight terminals would go a long way in helping the country’s internal and external trade and industry, Bhasin said.

He said that decision to make Railways sign long term tariff contracts with key freight customers using pre-determined price escalation principles should help business.