is eyeing an ambitious shift in shipping logistics with an ‘Uber-like’ facility
that could radically change the way merchandise is moved into or out of ports.
This ‘Uberization’ of freight cargo like how passengers choose their mode of
transport for a ride. The scheme being implemented at sea ports is set to begin
with India’s largest container port, the Jawaharlal Nehru Port near Mumbai.
government has invited requests for proposal for creating this system, which
would allow an importer or exporter to select a trucker via his phone app to
transport goods directly from port to warehouse.
move is a part of the country's big plan, drawn up by the customs in
consultation with other departments, to bring down the time taken for imports
delivery at sea ports to 48 hours and airports to 24 hours by 2020.
move has however boomeranged with existing truck operators and their
federations threatening to go on an indefinite strike if the scheme is
implemented to bring outside transports of importer’s choice.
JNPT tops the direct port delivery of imports, Chennai has caught up with
nearly forty per cent of the containers going through this mode. Private ports
like Katupalli and Mundra ports are also doing well on direct port delivery of
scheme to select the transport of importers choice will allow them sitting in
their offices to pre-feed data and get customs cleared goods via transport
directly from ports. This is being done as customs cleared goods also at times
get stuck due to issues with transport logistics, which leads to pile up at
ports with freight agents.
The customs department has already cut the dwell time, or the time taken at
ports, to 140 hours from 286 hours in 2013. This, in fact, has been brought
down to 62 hours is case of direct port delivery.
department is looking to expand the program which is restricted to large
importers at present. A direct port delivery, wharf to warehouse, facility has
also been introduced that allows importers to take delivery of goods
immediately after the cargo landed, instead of it being transferred to a
container freight station with information about the arrival of goods going to
the importers via SMS.
JNPT tops the Direct Port Delivery of imports, the Chennai port has caught up
with the west coast port by handling forty per cent of the importing opting
this route of delivery. Private ports like Katupalli Krishnapatnam and Mundra
are also doing well in direct port delivery of import cargo.
present system of routing through container freight stations from the port was
introduced two decades ago to relieve the congestion at ports. The customs
clearance was done at Container freight stations. This involved transportation
from the port to CFS and then from CFS to importers factory premises. The
direct port delivery seeks cut the supply chain and has the cargo delivered at
Introduced at the Jawaharlal Nehru Port, also known as Nhava Sheva, the
facility is now available also Chennai, Vizag, Mundra and others. The customs
department is now keen that more importers, even the small ones, avail of this
For exporters, Direct Port Entry has been introduced, bringing down the overall
transaction costs as goods do not have to be kept at freight agents and can be
brought in at the port only when they have to be loaded on to the ship. The direct Port Entry of exports is not
popular with major ports situated in cities since they have very little space
to store the export containers in the port premises. The DPE is popular with
private ports like Katupalli Mundra
which are situated outside the Metropolitan cities and therefore have lot of
space in their port premises to store export containers.
Some importers in Chennai prefer their cargo to go to container freight
stations since they don’t have storage facilities in their factory premises.
ports and airports in the country introduced single-window clearance from April
2016 for goods based on certain risks parameters. This allows importers to
clear goods sans payment of duty or any mandatory checks if they do not fall in
any risk category. This has also brought down the cost of imports by bringing
down transactions costs.
India is ranked 146 out of 190 countries on the World Bank’s ease of doing
business ranking on the ‘trading across borders’ measure and the government
feels this can be improved substantially to lift India’s overall rank. India
improved its overall rank to 100 this year from 130 last year. The present government wants India to break
into the top