A well coordinated effort by customs and other stakeholders is helping Jawaharlal Nehru Port Trust (JNPT) handle more cargo through its direct port delivery (DPD) procedure meant to ease congestion and lower logistics costs for shippers at India’s busiest container gateway.
New statistics collected by JOC.com from the customs directorate show JNPT’s DPD volume reached 42,594 TEU in the first month of fiscal year 2017 to 2018, making it the highest-ever monthly figure. That compares with 38,394 TEU in the prior month and is an improvement of 11 percent month-to-month.
By terminal, April DPD figures were as follows: port-owned Jawaharlal Nehru Container Terminal at 13,732 TEU, up from 12,321 TEU in March; APM Terminals-operated Gateway Terminals India at 19,545 TEU, up from 16,952 TEU; and DP World Nhava Sheva, which includes Nhava Sheva International Container Terminal (NSICT) and Nhava Sheva (India) Gateway Terminal (NSIGT), at 9,317 TEU, up from 9,121 TEU, according to the data.
“We are extremely confident with the direction things are moving on this ease of doing business measure, DPD shipments will hit 50,000 TEU in May,” JNPT chief customs commissioner Dr. John Joseph told JOC.com.
That progress was reflected in dwell time reductions at JNPT during fiscal 2016 to 2017 — from 2.95 days to 2.6 days at JNCT, from 2.91 days to 2.45 days at GTI, from 3.4 days to 2.5 days at NSICT, and from 3.6 days to 2.8 days at NSIGT, according to JNPT productivity statistics.
DPD cargo is required to be removed within 48 hours of landing at the port, and if a shipper fails to meet that time frame, their cargo is shifted to a nearby off-site yard, and stored there, at a cost, for clearance under the normal customs procedure.
“At DP World … we strive to support government initiatives that aid India’s growth. We have given comfort to our customers for a seamless DPD experience,” DP World Nhava Sheva CEO Ravinder Johal told JOC.com.
With the recent introduction of an equal tariff regime for train and truck handling across all terminals in the harbour, more shippers are expected to join DPD. The port aims to handle 40 percent of its imports via DPD this fiscal year, and the accelerating trend in the first month augurs well for its long-term goals.
With DPD and other productivity-boosting measures, especially gate automation, congestion is no longer a major concern for shippers using terminals at JNPT, which loads the majority of India’s containerized freight.
“A major milestone during the year [2016 to 2017] is achievement of zero congestion at JNPT area and roads. It is estimated that there is an 8 percent reduction of movements on port roads and a gain of Rs.125 crore [about $19 million] to the trade due to savings in fuel in one year alone,” JNPT said in a recent statement. “Sailing ahead, we have charted out various initiatives aimed at easing out processes that will lead towards further growth for all stakeholders.”
JNPT’s throughput increased to an all-time high of 4.5 million TEU in fiscal 2016 to 2017 from 4.49 million TEU previously, according to port statistics compiled by JOC.com, a product within IHS Markit.
Source: joc.com