Ripples will reach entrepreneurs too

‘Many will outsource their transport work’

The steep hike in insurance premium rate has already begun to pinch. Transporters automatically transfer the cost to end customers and industrialists have to bear the extra cost both on raw materials and finished products, says Sojan Joseph, an industrialist in Edayar.

The rising cost comes even as there is a serious recession, which appears to be spiralling out of control, he added.

K.A. Joseph, another industrialist in Kochi, feels that it might become more viable in the future for entrepreneurs to outsource their transport work as many are already doing it.

The number of smaller goods vehicles is dwindling and the new system might accelerate the fall. However, the fines are not much of a concern with the big goods transport vehicles as their papers and permits will be in place.

He also pointed to the continuing economic recession that has hit the industries hard and the new road safety norms will have its impact of the industry as a whole.

Putting off investment

With the economic recession, entrepreneurs are postponing their decisions on fresh investments including in new transport vehicles, says Damodar Avanoor, an entrepreneur in Perinthalmanna. But he feels that the new rules and heavy fines might help improve road discipline.

Trade Union Coordination Committee, representing container carrier operators in Kochi, feels that the new fines will be a big burden because container carriers often carry more than the prescribed load and the fines are heavy. However, if the loads are kept at the levels prescribed by the enforcement agencies, transport cost will rise significantly, hitting both export and import cost.