Page 21 - Safety, Environment and Mandatory Requirements

Environment – Alternate Mode of Transport
An initiative to promote Coastal Movement was taken by SICAL Logistics during the year

2016-17 for bulk movement of Finished Vehicles. The systems and processes established in

nd
concurrence with OEM’s. The vessel was hired and operations started during 2 quarter of
2016-17. The route promoted was:

Onward - Chennai – Kochi – Mangalore – Kandala – Shipment from Chennai to Gujarat,

Rajasthan and NCR
Return - Kandala – Mangalore - Kochi -Chennai – Shipment from North/ Gujarat to

Karnataka (Bengaluru), Kerala and Tamilnadu

There were 5-6 shipments. Then the operations were stopped due to following reasons:

• Higher lead time when compared to Road Transportation

• Availability of trailers for second mile at Kandala port, as the same was not very viable
• Operational issues faced by SICAL in closing the consignments which impacted the

payment cycle of fleet operators

• Quality related issues were also found in Kandala port as it was handling bulk materials

including coal and chemicals
• Proposed incentive support which was declared by government was withdrawn making

project unviable.

Modal is sustainable , but 1) Increase in Lead Time and 2) Incentive from Govt