MUMBAI: Indian Railway's move to withdraw port congestion surcharge levied on cargo moving to inland, will boost international trade and the manufacturing sector.
The port congestion surcharge levy, which is 10 per cent of the basic freight rate, was withdrawn with immediate effect by the Railways, yesterday.
"The move will lead to major reduction in logistics cost and spur growth in manufacturing as well as rail sector, which has advantage of faster evacuation, low energy consumption and lesser carbon footprints," Kalyana Rama, Director (Project) of Container Corporation of India (CONCOR), told PTI.
He was in the city to participate in the ongoing Maritime India Summit.
"The Maritime Summit opens up immense window of opportunities for company like CONCOR, which provides total logistics solution and has presence and strategic partnership in the whole logistics ecosystem i.e. in ports, railway, air cargo, roads, shipping lines, warehousing," he said.
Rama said the maritime development can usher major growth in coastal areas, while the port-led development will also lead to massive creation of jobs and has the potential to reach out to about 18 per cent of the country's population.