1. JNPT has become the first port in the country to implement container tracking facility. What are the features and advantages of this facility?
A new facility to enable online tracking of containers has been introduced at the Jawaharlal Nehru Port Trust (JNPT) to help track movement of containers on a real-time basis, becoming the first Indian port to install such a technology. In this regards, JNPT has signed MoU with Delhi Mumbai Industrial Corridor Corporation (DMIDC) on 14th April 2016 during Maritime India Summit 2016, Mumbai for providing Logistic Data Bank Services at JN Port. According to the MoU, a fixing of tags on containers started from 11th July, 2016. Tracking of
containers through Logistic Data Bank started in all the three terminals by DMICDC logistics Data Services Ltd.
The facility introduced by DMICDC Logistics Data Services Ltd, a joint venture of the Delhi Mumbai Industrial Corridor Trust and NEC Corporation of Japan, is expected to bring transparency in container movement and cut down logistic costs for trade and industry. A JNPT top official said that they can now issue tags to all containers as soon after they are off-loaded.
What are the Software solutions JNPT has implemented to reduce documentation process? How has it benefitted clients and business partners?
JNPT has taken many initiatives to reduce documentation and reduce time taken for the manual transactions and make the processes easy and faster. Some of the initiatives are as follows:
Abolition of manual Form-13 & Form-11: As per earlier practice, representatives of Shipping Lines/CFS Operators used to bring manual Form-13 (hard copy) in which details of export containers were required to be entered into manually and submitted to Customs posted at gate for their endorsement. Based on Customs approval / physical endorsement on Form-13, gate pass used to be generated to permit the containers to gate-in. All the three terminals of JNPT has eliminated Form 13 & 11 w.e.f. 23.02.2015, by developing a software solution for web based e-form 13.
Setting up of laboratories for speedy clearance: In order to have all the statutory authorities at the vicinity of the port for single window clearance, the Port has allotted the office space in Port Users Building (PUB) near Customs House to Animal Quarantine, Textile Commission & Asst. Drug Controller and 3 Nos. of B -Type quarters in JNPT Township to FSSAI . Port has also allotted the land to FSSAI & Drug controller for setting up of laboratories.
Integration of IGM filing system with Terminal Operating System: JNPT have successfully integrated Customs IGM EDI message with JNPT’s Terminal Operating System (TOS), i.e. NAVIS application, along with Bill of Entry & Out of Charge messages. Based on the EDI messages received from PCS message exchange hub, the process of delivery of Direct Port Delivery (DPD) containers has been automated. The application module have been tested successfully in a test, followed by production environment.
E-Delivery Orders: JN Port requested all Shipping Lines to issue e-Delivery Orders to all CFSs in the past. All the Shipping Lines have already introduced the issuance of Delivery Orders electronically.
RFID based Gate Automation System: NSICT & APMT have implemented Gate Automation system w.e.f. 03.12. 2015 & 15.03.2016 respectively. For Gate Automation system at JNPCT, tenders were opened on 23.06.2016. Technical evaluation is in progress & work order is expected to be issued by 15.07.2016. Completion period is 3 months.
Can you please provide us details of the new berth container terminal which has been set up by DP World at JNPT? What is the total container handling capacity at JNPT? Are there any plans to set up more container terminals?
New BOT container terminal, Nhava Sheva (India) Gateway Terminals operated by DP World Ports was commissioned in July, 2016 having of 0.8 million TEUs (10 million tonnes) capacity. This terminal have a quey length of 330 metres and located at north of existing DP World’s NSICT. The consission period is 17 years for a revenue share of 28.09%. This terminal will operate with 4 RMQCs and 16 RTGCs with a 27 hectares of yard. The trial operations was started from 20th April 2015, handled 0.20 million TEUs FY 2015-16. This terminal has operational fully in July 2016.
What are the advantages for importers availing Direct Port Delivery (DPD) facility? How is this facility going to help importer save on logistic cost?
Normally import laden containers are delivered through CFSs subsequent to landing. Under DPD, import containers are delivered to the Importer directly instead of routing through CFSs. Importers with ACP status issued by RMS division, Central Board of Excise and Customs are eligible to avail DPD facility provided they are approved by Jawahar Customs.
The importer has to shell out not less than Rs.20,000/- on each TEU under various heads for taking delivery through CFSs. The detention charges levied by individual Shipping Lines varies between Rs. 5,000/- to Rs.20,000/- per TEU. That means the importer is required to pay charges of Rs. 25,000/- to 40,000/- per TEU in case of non-DPD container. If the import container is moved to CFS, the delivery is effected after average dwell period of 7 days subsequent to receipt of container at CFS.
However, in case of DPD, this time is saved, as the container will not go to CFS. Normally, DPD containers are delivered in 1.5 to 2 days as against the free period of 3 days. Delivery from CFS is not possible in the night and on Sundays as all the CFSs do not work on 24 X 7. However, in case of DPD, delivery from the Terminal is on 24 x 7 basis for 365 days.
When the container is delivered under DPD, the truck with the container moves out from the Terminal to the consignees premises resulting in decongesting approach roads to various CFSs which are concentrated in different clusters. Under DPD, Importer is assured about receipt of cargo in less than 72 hours as against average not less than 9 days if routed through CFS. This will result in reduction in inventory level thus reduce overall production cost.
What is the status of offices and labs which JNPT is setting up for various regulatory bodies as part of single window clearance system?
To bring various regulatory bodies under one roof for single window clearance system, port has already taken initiatives and has allotted the office space in Port Users Building (PUB) near Customs House to Animal Quarantine, Textile Commission & Asst. Drug Controller. Port has also allotted the land to FSSAI & Drug controller respectively near Jawahar Customs House for setting up of laboratories. FSSAI have been allotted space in port’s township for office purpose.
Recently, the foundation for the fourth container terminal was laid? Can you please share with us the details and status of this terminal? When is it expected to be completed?
Hon’ble Prime Minister laid down the stone for the development of 2 KMs long berth facility of handling of 4.8 million TEUs in 2 phases at a cost of Rs.7,915 crores. This is a highest FDI project in the country’s port sector. M/s. Bharat Mumbai Container Terminals Pvt. Ltd. (BMCTPL), an SPV of Port of Singapore Authority (PSA), is developing
this terminal on BOOT basis for a concession period of 30 years and the concession agreement signed on May 6, 2014.
The Phase 1 of 2.4 million TEUs of 1 KM berth length will commissioned in November 2017 and another of the same length in November 2022. This terminal will be equipped with 12 Rail Mounted Quay Cranes (RMQC), 36 Rubber Tyre Gantry Cranes (RTGC), 4 Rail Mounted Gantry Cranes (RMGC) in each phase. This Terminal will share 35.790% of its revenue, to the landlord Port, Jawaharlal Nehru Port Trust. This Terminal will ensure the high standard of performance and will give a crane productivity of 25 moves per hour. With the completion of this project JN Port will enter into a club of 10 million TEUs of global ports.
JNPT has acquired land for Dry Ports. What are the facilities and benefits these dry ports will provide?
JN Port is developing 2 Dry Ports, one at Jalna in Marathawada region and another at Wardha in Vidharbha region. Dry Port Jalna will be developed on area of 185.11 hectares (ha) and Dry Port at Wardha in Vidharbha Region will be developed on 350 acres land. The foundation stone of Dry Port, Jalna was laid down by Hon’ble Minister of Shipping, Road Transport and Highways on 25th December 2015.
This Dry Ports may cater to a number of activities currently being carried out at JNPT. The Dry Port will comprise of some Customs Bonded area where from all export and import cargo can be handled. The area will have all Customs facilities and industrialist can complete their custom formalities at their doorstep. They need not go to port area for further documentation and other formalities.
In addition to this some area will be earmarked for Warehousing facilities. Some of the warehouses will be Temperature controlled where agricultural products can be handled. All the industries and agri-products located in and around Jalna and Aurangabad area will get direct benefit of this Dry Port, where from they can route their cargo for Export and Import. Establishment of a dry port at Jalna results in significant reduction of costs incurred by industry players in transportation of goods from Aurangabad to JNPT. Due to the
Temperature Controlled Warehouse facility, the farmers can send their agro products directly to dry port and transport it to other part of the country by changing the mode of transport from road to rail with a lesser transportation cost without any third party intervention by which the farmers will get direct benefit.
Some area will be earmarked for setting up of tank farm facility for storage of Edible Oil. Marathwada region falls under the direct influence region of the Delhi Mumbai industrial Corridor. Marathwada, which is fast developing both in terms of industrial infrastructure and economic profile, enjoys the advantage of the great investment plans and policies. As a part of the DMIC project, the state has decided to develop the Shendra Bidkin belt of Marathawada region as a planned industrial township. With the five star status industrial estate at Shendra, it has been identified as the project location for Japanese smart communities and eco city project and would get an early impetus for fast implementation. Shendra Bidkin Industrial Area has been identified among the smart cities under the proposed ‘100 smart cities’ project. Aurangabad Belt is planned to be developed as an Auto and engineering hub Shendra Bidkin has been identified as one of the seven National Investment and Manufacturing zones. An Exhibition cum Convention Centre is currently being developed at Shendra. The sectors like IT, Manufacturing Industry, Industries like sectors of Automobile, Auto Components, Pharmaceuticals, Breweries, Food products, Tourism, Agriculture Products like Cotton, sugarcane, maize, bajra, jowar, Soyabean, sun flower etc., Education & Health are the key Economic Drivers of the Marathwada Region.
As far as Dry Port Wardha concern, the process of land acquisition from SICOM is in the progress.
JNPT is considered as the leading player in port sector. What is your opinion on the present scenario of the port sector in India and its growth potential?
Being a leader in country’s port sector, Jawaharlal Nehru Port handled 64.03 million tonnes of cargo during Financial Year 2015-16 and ranked 3rd among Major Ports and highest container handled in the country which is about 38%. The growth in the total traffic is 0.35% as compared to the previous year’s traffic of 63.80 million tonnes. JN Port handled 4.49 million TEUs of container traffic during the financial year 2015-16,
which is the highest ever container traffic since inception of the port. The growth in container traffic is 0.56% over the previous year’s container traffic of 4.47 million TEUs.
A robust maritime logistic sector and a modern and efficient port infrastructure can be a strong catalyst of economic growth. Export trade can become substantially competitive via cost efficient and timely logistics and this will also become one step forward for success of our Prime Minister’s ambitious campaign ‘Make in India’. According to traffic projections of Maritime Agenda 2010-20 and considering the country’s economic growth, Rs.2,774 billion are required to triple the Indian Ports capacity to 3 billion tonnes to capable to handle a projected traffic of 2.50 billion tonnes. Of this the Major Port under Union Government need to be invest Rs. 1,095 billion to reach the capacity of 1.46 billion tonnes for the 1.21 billion tonnes of cargo with projected private sector share about 66%, Whereas Non-Major Ports, needs Rs.1,679 billion to reach 1.67 billion tonnes capacity for handling 1.28 billion tonnes of cargo, almost all private sector. These targets may get delayed because of the first 2-3 years of global slowdown.
How has the increase in the number of private ports in Gujarat effected the cargo inflow from JNPT?
The distance from New Delhi and North Indian States to JNPT is more than that of ports in Gujarat. Naturally the transport charges of CONCOR are also less to reach Gujarat Ports. As you know JN Port is working at extreme end of our capacity, and ports in Gujarat have create a huge infrastructure resulted in diverting some of the cargo through these ports. But on the commissioning of first phase of Fourth Container Terminal of Port of Singapore Authority at the end of 2017 and the completion of Western Dedicated Freight Corridor in 2018 the capacity of port will increase drastically and the cargo which was moved to other ports will come back. Apart from that, the cargo generate from our Dry Port Jalna and Wardha and in the DMIDC will also starts feeding cargo to JN Port.
What is the navigational channel depth at JNPT and what are the plans so as to accommodate large size vessels? Are there any ongoing dredging activities at present?
Port was having draft of 12.5 metres prior to April-2014 and could handle vessels upto 4,000 TEUs capacity. JNPT has successfully completed the project of deepening and widening of the existing channel to 14 metres on 28th April, 2014 at a cost of
1,370.65 crores. With this increase in draft port could enable to handled vessels upto 6,000 TEUs capacity in phase I.
With considering the trend of increasing capacity of container vessels, port has further initiated a steps for deepening and widening its channel from 14 metres to 15 metres at an estimated cost of Rs.2,029 crores to accommodate vessels upto 12,500 TEUs capacity.
Are the government policies promoting the existing as well as construction of new ports?
Yes, Government is promoting for the expansion and modernization of the existing port as well as planning to develop more ports under the ambitious Sagar Mala Project.
Build port capacity with world-class quality and optimal quantity: With identified projects and initiatives, the total capacity of ports in India will grow from the current 1,400 million tonnes to 2,500 million tonnes by 2025, which will require an estimated investment of Rs. 1 lakh crore in the port sector. In addition to building capacity, these projects and initiatives will improve the performance of ports and the turn-round time is estimated to reduce from 4-5 days to less tha 2 days.
New Port Development under Sagarmala: Six new locations have been identified for new port locations based on three themes. a) Port Saturation, b) Non-Availability of a port on the coastline stretch and c) Strategic location.
Vadhawan and Paradip south satellite port and Sagar Port have been identified in places where existing ports have saturated: The port at Vadhavan near Dahanu in Thane District with a depth of 20 metres, will act as a satellite port for JNPT, which is mainly expected to cater to container traffic from north hinterland.
The site for Satellite Port of Paradip Port is located approx.. 3km south of the existing port would have separate road and rail connectivity. Best procedures and practices could be adopted independent of the current operations.
A port at Sager will share the hinterland of the Haldia and Kolkata Ports, particularly the power and steel plants in the eastern region and containers from the eastern parts of India, Western UP, Odisha, Jharkhand, Chhattisgrah, etc. and neighboring landlocked countries Nepal and Bhutan.
Ports in Oderevu situated between Kakinada and Krishnapatinam is ideally placed Andhra Pradesh have been identified on coastal stretches where ports are not available and the capacity for bulk will also be required in Central Tamil Nadu and central Andhra Pradesh primarily to handle coal for thermal power plant and presence of Limestone reserves in the hinterland area..
Cuddalore which is in between Ennore and Tuticorin in Tamilnadu is ideally placed to supply coal to multiple thermal power plants situated in the hinterland with a demand of about 12 MTPA. This will be suitable for serving a number of power and steel plants with large coal requirements.
Enayam Port is strategically located as it falls on the East West Trade Route. The demand for container traffic can further accelerate if the plans for debottlenecking of logistic infrastructure are implemented due course under the Sagarmala initiative and the ‘Make in India’ push drives greater exports and manufacturing outsourcing to India. Due to draft restriction about 1.8 million TEUs of India’s trans-shipment traffic gets handled in Colombo, Singapore and Kelang, out of which 1.2 million TEUs is handled only at Colombo. The exporter-importer in South India also incur an additional charge of Rs.5,000 to 6,000 per TEU due to the added leg of transshipment. Indian port industry losing out upto Rs.1,500 crores of revenue each year on trans-shipment handling of cargo. Southern tip of India which is closest to the international East-West Trade Route and availability of deep draft of 20 metres. Enayam, location about 8 kms north-west of Colachel in Tamilnadu is most feasible location for setting up of transshipment port due to low population density and possibility to expand the port capacity in future because of long shoreline of four kms and relatively lower environmental and social impact.
JNPT has extended DPD facility to all its accredited client programme (ACP) clients irrespective of their trade volumes? How has the step been welcomed and what would be the long term benefits from this?
The issue of extending DP facility by the port is reviewed from time to time. Earlier, Direct Port Delivery (DPD) of import containers was limited to clients importing not less than 300 TEUS on an average per month covering all three terminals. In order to encourage more number of agencies to avail DD facility to all ACP clients, JN Port has extended DPD facility to all ACP clients irrespective of any volume criteria w.e.f. 09.02.2016. Subsequently, APMT, Mumbai (GTIPL) NSICT (DP world Nhava Sheva) extended the DPD facility to the all ACP Clients irrespective of the volume w.e.f. 10.05.2016.
As on 27.07.2016, there are 30 ACP Clients out of 375 ACP Clients are taking Direct Port Delivery from Port. Port has given 23,288 TEUs DPD as compares to previous year’s 21,275 TEUs from April to July period showing a growth of 9.46%. The average dwell time of DPD containers is 2.1 days as against a free period of 3 days. By availing this facility importers are saving their extra logistic cost like transport from port to CFS and a dwell period of CFS.
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