Toll fee hike will spike logistics cost, rue stakeholders

MADURAI: As the hike in toll fees at plazas on National highways and expressways took effect (on April 1), as announced by the National Highways Authority of India (NHAI), many stakeholders who largely rely on the logistics sector raised various concerns, including the possible spike in logistics cost.

According to T Velshankar, the former president of Tuticorin Stevedores Association, said that as Thoothukudi being the port city and a major sea gateway for the southern region, the toll hike by four to five per cent would result in an increase in logistics cost by ten per cent.

Joe Celestine Villavarayer, the president of Container Freight Station, Thoothukudi, said the rise in toll fee goes unabated, and exporters who solely rely on Thoothukudi seaport feel that there would be a surge in the transaction cost.

Pointing out that the NHAI keeps increasing the toll at regular intervals, he told DT Next that it’s high time for the Ministry of Road Transport to bring in new regulations to keep a check on the increasing toll.

He highlighted that mostly, stakeholders who obtain contracts seeking transportation logistics services, enter into agreements that cover surging or decreasing fuel costs, but not the toll fees, which only shows an increasing trend.

Ganesan Panjurajan, president, Tamil Nadu Fireworks and Amorces Manufacturers Association (TANFAMA), Sivakasi, said the toll fee hike would not have much impact on the fireworks industry, however, the transportation cost of raw material could increase slightly.

S Rethinavelu, president, Agri and All Trade Chamber, Madurai, said the authorities should ensure transparency in toll operations.

“Each and every concessionaire should set a time frame to collect toll, and once the concessionaire recovers the invested money, either the toll plaza should be handed over to the NHAI or else the concessionaire should be allowed to construct a new road infrastructure,” he said.