09-04-2018

JNPT’s new box delivery model is ‘business friendly’

From 1 May, the Jawaharlal Nehru Port Trust will roll out an ‘Uber-like’ transport model for seamless and faster movement of direct port delivery (DPD) containers from the port to different parts of the country.

About 1,600 importers who have opted for the DPD scheme — introduced to speed-up imports and cut time and costs — will benefit from the innovative and out-of-the-box transport solution finalised by JNPT through a tender, besides transporters and the state-owned port trust.

DPD currently accounts for about 39 per cent of the total cargo at India’s busiest container port.

JWC Logistics Park Pvt Ltd has won the mandate to move import containers landing at JNPT towards Goa and Bengaluru at Rs. 60,929 per container (2.79 per cent lower than prevailing rates), while the same entity will transport import boxes towards Nashik, Aurangabad, Nagpur, Indore and Hyderabad at Rs. 41,562 per container (1.24 per cent lower than prevailing rates).

Vora Transfreight Services has won the deal to transport import containers towards Gujarat at Rs. 26,515 per box, a 12.04 per cent drop over the existing rates.

Royal Translines Pvt Ltd was awarded the contract to move import containers towards Ahmednagar at Rs. 19,625 per box, a reduction of 18.61 per cent over prevailing rates, while Ekta Enterprises will move import containers to the local region near Mumbai at Rs. 12,722 per box, a drop of 10.33 per cent over existing rates.

All the five successful transport operators have picked an IT partner to develop a digital platform.

Efficient model

“Our intention is to change the logistics business at JNPT to a cheaper, efficient model so that importers willingly align with the thought process. Because, if the tender had resulted in higher costs, importers will not take the solution. Then, the old situation of non-DPD, of routing cargo through CFS will continue to happen,” says Neeraj Bansal, chairman in-charge of JNPT.

Bansal said that JNPT was re-arranging the logistics business in a more scientific and business friendly manner.

“This will give assured business over a longer period to transporters, end to end delivery of cargo starts happening, promote transparency, trade is empowered to visualise the location of the containers besides certainty in cost of transaction,”.

In the existing system, there was no synergy in operations due to multiple transporters working on each route. The idling of tractor trailers (TTs) was congesting the entire process. The import laden container truck that travelled to the importer had to wait 2-3 days to bring back the empty container to the port ecosystem.

On the other hand, for exports, the truck had to carry an empty container from the port to the exporter and wait for 2-3 days to return with the export laden container. The idling time was a waste of cost and resources.

Now, with a single operator on each route, import laden TTs after dropping off the containers can connect with their transporters and pick up export containers or drop empty containers to exporters on their return journey. This will further help in repositioning of empty container on the route.

“Besides, during certain periods, say, Diwali, the cost of transportation shoots up. Transporters also charge extra when congestion builds up. With this transport solution, importers know in advance that getting delivery of a container through a transporter will cost this definite amount; nothing more irrespective of the demand-supply situation,” Bansal stated.

“In future exporters and importers will be able to book cargo sitting in his office, leading to a Uber-like transport model,” says Bansal.

Source: The Hindu Business Line

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