Jawaharlal Nehru Port Trust (JNPT), India’s No.1 container port, is sailing ahead with modern characteristics to ambitiously boost the overall EXIM trade with a view to become the most Preferred, Economical and Green Port in the country. Anil Diggikar, Chairman, JNPT, shares his vision for the port with The Dollar Business.

Management Intelligence Feature | January 2017 Issue | The Dollar Business

 

TDB: What is the current scenario of Jawaharlal Nehru Port Trust (JNPT)?

Anil Diggikar (AD): Jawaharlal Nehru Port Trust (JNPT) operates three top container terminals. It has set its own highest record by handling a capacity of 4.49 million TEUS in FY2016 – the Port now aims to handle 10 million TEUs by 2022. The Port has maintained its premiere position in container handling with capacity utilisation of more than 97%. The Port handles 55% of the total container volume handled by all major ports in the country.

With an aim to become one of the top 10 ports in the world, JNPT has been efficiently implementing world-class infrastructure facilities for smooth EXIM flow. The Port is also adopting ‘Green’ initiatives and foraying into overseas routes to expand its reach. Most importantly, the frugal implementation of ‘Ease of Doing Business’ initiatives has not only provided a business-friendly environment to stakeholders, but also improved operational capacities of individual terminals.

TDB: How are the government-suggested ‘Ease of Doing Business’ initiatives helping the EXIM trade?

AD: JNPT has become the first major port in India to implement most of the 14 initiatives of ‘Ease of Doing Business’ as suggested by the government, which focus on smoothening the trade hassles and reducing documentation process and time and cost. The initiatives include elimination of manual Form 13 & 11 to introduce web based e-Form 13, Inter Terminal Movement of Tractor Trailers, Direct Port Delivery (DPD) facility to all ACP (Accredited Client Programme) clients without any minimum criteria, creation of a dedicated parking lot of six hectare each for all three terminals, setting up of single-window clearance laboratories, etc. Apart from saving on fuel, handling costs and lowering turnaround time of trucks, these steps have helped a lot in reducing pollution level.

Importers were immensely benefited as the average import dwell time at JNPT has reduced to one and a half day, which is comparable to international benchmark i.e. 1 or 2 days. Similarly, exporters were also benefited as the average export dwell time reduced from 88 hour to 63 hour. With the introduction of Inter Terminal Movement of Tractor Trailers between all the three terminals, the road movement has reduced by up to 7.5 km, giving a huge relief to truckers. Recently, JNPT has also introduced logistics data bank tagging of containers, for the first time by any major port in the country. This step has proved to be a major help for the importers and exporters to track their goods in transit.

TDB: How is DPD facility helping importers save on logistics cost and time?

AD: In October 2016, in terms of containers delivered under Direct Port Delivery (DPD), JNPT has achieved a growth of 34.44%, as compared to the same month last year. The government is promoting DPD from container terminals as a major step to reduce transaction costs at ports. JNPT has eased up the norms and procedures for EXIM trade, covered under ACP, to clear more containers under DPD. The number of ACP clients, who have registered for DPD, have increased to 60 in November 2016, as against 11 in February 2016. The growth is mainly due to the removal of minimum volume ceiling to be qualified for availing DPD. With the implementation of DPD, trade is saving Rs.25,000-40,000 per TEU in inventory and container detention cost.

TDB: Are there any projects in the pipeline that you can share with us?

AD: JNPT plans to invest in creating world-class infrastructure facilities, with bracing innovative technologies, to encourage cleaner environment and support social upliftment. It is in the process of creating its 4th container terminal, with an investment of Rs.7,915 crore – the biggest FDI project in the port sector. The terminal, awarded to an SPV of Port of Singapore Authority and BMCTPL, will develop 2 km of Jetty in two phases, by November 2017 and November 2022, and would have a handling capacity of 4.8 million TEUs. The other plan is to deepen the harbour channel from 14 meter to 15 meter to cater to bigger vessels at an estimated cost of Rs.2,029 crore.

Our vision also includes setting up of a new port at Vadhavan. This all-weather satellite port is a joint venture between Maharashtra Maritime Board and Jawaharlal Nehru Port and it would be developed in a phased manner. Once the project is completed, it could have more than 100 million tonne of annual cargo handling capacity with 14 to 15 terminals. The total project could cost about Rs.10,000 crore. This port is being developed as an international port, which would cater to all future vessels with international standards. Also, this new port would have 20 meter of natural draft, which could firmly place India on the global maritime map.

Another enterprising plan of the Port is development of two dry ports, one at Wardha and the other at Jalna, both in Maharashtra, to boost industrialisation, trade and commerce in the region.

Recently, we have also raised $400 million through the ECB route for road infrastructure development.

TDB: How are you bringing digital transformation into the Port?

AD: Well, because we are concerned of our trade-partners’ time and paper hassles, we have decided to go paper-less. Initiatives such as switching over to e-platform for all commercial procedures are likely to bring a huge amount of transparency and swiftness to the system. Replacement of Form-13 and Form-11 by web-based entry system for Gate-in and Gate-out would also be prominent. In fact, all shipping lines have implemented the issuance of e-Delivery Orders, instead of manual handing over of Delivery Orders to CHAs and CFSs, to save time and cost.

Another initiative towards process automation by JNPT is the replacement of daily pre-berthing meetings between the port and shipping lines by an online berthing /un-berthing facility.

TDB: How is logistics data bank tagging of containers helping Port users?

AD: JNPT has implemented logistics data bank tagging of containers a few months back. It is helping the Exim partners in locating their containers as a one-go solution. Importers and exporters, can now track their goods in transit through it. A RFID (Radio Frequency Identification Tag) is attached to each container to track through RFID readers installed at different locations. This has made it possible to bring visibility and transparency to the EXIM container movement while on road or rail, till the ICDs and CFSs.

TDB: How have you managed to de-congest the traffic on JNPT roads?

AD: We have learnt a lot in the last two years, especially last year, while trying to create a system that can clear all the congestion at the Port road. However, plying here has now become smoother after making a significant investment. The Port has allotted dedicated parking lots of six hectare each to all three terminal operators, in order to ensure that factory stuffed containers are objectively streamlined. It is also developing a centralised parking plaza covering 45 hectare, which can accommodate about 2,000 trailer trucks. Also to improve the port connectivity, NHAI has started the process of widening NH-4B that connects the Port to Mumbai-Pune Expressway, from two-lane to four-lane. Recently, we have encouraged container movement from road to rail by offering a rebate of Rs.728 per TEUs.

TDB: What are your initiatives towards becoming a ‘Green Port’? How do you sustain the ecosystem around JNPT?

AD: As a responsible port, JNPT has initiated contemporary steps to maintain ecological stability in respect to the Coastal Zone Management Plan that duly takes care of – maintaining functional integrity of coastal resource system, maintaining sound health environment of the port and facilitating progress of multi-sectoral development. JNPT maintains Environmental Management & Monitoring Plan to take care of cargo handling at berths, stacking and handling of cargo at yards and tank farms, evacuation of cargo, and development of activities including dredging. As environmental protection has been an integral part of JNPT’s principles, more than one third of the Port area, over 900 hectares, is forest and mangroves, regularly maintained by the Port management. JNPT is also planning to set up a solar plant to produce 25 MW of solar energy to meet its internal power demand.