Hansraj Damodar Trust Bldg.,
2nd Floor, |
Ever setting new standards in port operations
JNP clocks 4.06 m TEUs
JNP
ranks 24th
'JN Port
will continue to remain the preferred gateway'
'JN Port is
number one because of market forces'
'The Administration
Department is the focal point for all of the Port's departments'
'JNP is on course to
becoming the only Port in the country with no liabilities at all'
‘Each and every
member of the Marine Department has played a role in JN Port’s success’
'JNPCT could
possibly handle up to 1.4-1.5 million TEUs'
‘JN Customs has
introduced a number of trade facilitation measures’
DP World Nhava
Sheva - A decade of delivery…1997-2007
Gateway Terminals
India Pvt. Ltd
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Jawaharlal Nehru Port |
| Ever setting new standards in port operations |
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Mr S. S. Hussain, Chairman, JNPT |
Wherever I go, I am treated with respect and regard because I am the Chairman of Jawaharlal Nehru Port (JNP). It is a reflection of its importance to India's economy and ex-im trade".
That was Mr S. S. Hussain telling us of the esteem in which the head of JN Port is held. The country's premier container port and, importantly, its premier gateway for international trade, on the one hand, never ceases to amaze. One is told that the throughput of all its three terminals has crossed the installed capacities, that there is the occasional congestion, that there are certain operational issues during the monsoons; yet, year after year, new benchmarks are set with unfailing regularity.
On the other hand, one is no longer surprised when the Port breaches another landmark; one considers it a given and expects it to happen. Because this is JN Port. As we put it in an earlier special issue: it is the Port where growth is docked.
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So, in this 19th anniversary year, more summits have been scaled by JN Port. The container throughput registered has been 4.06 million TEUs, an increase of a whopping more than 25 per cent over the last fiscal. A higher global growth rate was achieved in the operational year by only two of the high-performing Chinese ports. An astounding accomplishment indeed.
2007-08 also saw the Port cross the 50-million tonne mark for the first time, handling a total of 55.84 million tonnes. One might be forgiven for considering it as just an afterthought that this feat has been achieved by JNP in the fastest time since inception among Major Ports. It is, after all, Jawaharlal Nehru Port.
JNP is a prime example of the veracity of the maxim that the whole is just the sum of the parts. Its three terminals have outperformed themselves, matching up to the best of global standards. While the Jawaharlal Nehru Port Container Terminal (JNPCT) and DP World Nhava Sheva (also known as NSICT) have been at it for some time, last year saw the Gateway Terminals India (GTI) container terminal, too, in its first full year of operations, come well and truly into the limelight.
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DP World Nhava Sheva, even after close to a decade of operations, is still setting container terminal standards in India. It led with a throughput of 1.51 million TEUs in 2007-08. Following it was GTI, which registered a growth rate of more than 100 per cent over the previous year to handle 1.29 million TEUs. And, finally, JNPCT, despite its constraints of ageing equipment, recorded a commendable 1.26 million TEUs in throughput.
JN Port continues to be India's pride in the global maritime scenario. In this era of increasing containerisation, it is the focus of the world when it comes to port facilities, especially of the box variety. It is no wonder then that be it shipping lines, dredging companies, equipment suppliers, maritime consultants, the maritime media or trade bodies, they are all interested in the developments at JNP.
That the world is watching closely and keeping track is seen in the fact that JNP was ranked a high 24th in prestigious container industry journal, Containerisation International's ranking of the Top 30 ports in the globe in 2007. It moved up an impressive four positions from 28th in 2006, making it unarguably the No. 1 box facility in South Asia and further consolidating its position as a global major.
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Where does JN Port go from here? While the journey from 1 million TEUs to 4 million TEUs has been a breeze, how much more can it handle with the current capacity? Will the saturation point finally arrive this year? Or will it see a fall in throughput considering the new box facilities coming up and the enhancements being done to the existing ones?
Given its past record, one can be certain that Jawaharlal Nehru Port will continue to be a force to reckon with. The management is confident of attaining the 12 per cent higher target set by the Ministry of Shipping, especially given the potential capacity of GTI, the marginally increased contribution that one can always expect from DP World Nhava Sheva and an improved JNPCT post the mechanisation and dredging of the shallow berths.
Over the long term, the coming of new RMQCs on the main berths, the channel dredging, 330 metres extension of the berth on the DP World Nhava Sheva side and the mega 4th container terminal, besides a number of other infrastructure projects pertaining to connectivity and Port-related facilities, could all see the Port handle a projected 10 million TEUs by 2015-16.
And given the preference of the trade for West Coast gateways, even the coming up of new container ports and terminals is unlikely to change JN Port's position as the number one container port over the long term, though it might probably no longer handle more than 60 per cent of the country's box cargo.
No wonder, it is described as India's very own Super Port.![]()
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JNP clocks 4.06 m TEUs |
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Mr Arvind Bhatnagar, Mr S. S. Hussain and Capt. Rustom Dastoor (1st, 2nd & 3rd from right) cut a cake on the occasion as Ms Maya Sinha applauds |
Jawaharlal Nehru Port (JNP) has crossed the throughput landmark of 4 million TEUs for 2007-08, handling a total of 4.06 million TEUs for the fiscal, a growth of 23 per cent. The container traffic was 3.30 million TEUs in 2006-07.
This was possible because of the impressive performance of the Port’s individual terminals, with DP World Nhava Sheva (NSICT) leading the way with an excellent throughput of 1.51 million TEUs, followed by Gateway Terminals India Container Terminal (GTICT) with 1.29 million TEUs and Jawaharlal Nehru Port Container Terminal (JNPCT) with 1.26 million TEUs.
This was revealed by Mr S. S. Hussain, Chairman of the Jawaharlal Nehru Port Trust (JNPT), at a function organised at JNPT to mark this and other achievements during the year. Besides Port users, the function was attended by Ms Maya S. Sinha, Deputy Chairperson of JNPT; Capt. Rustom Dastoor, CEO of DP World Nhava Sheva, Mr Arvind Bhatnagar, CEO of GTI, Mr A. K. Gupta, DGM (Logistics), BPCL, the Principal Officers of JNPT as well as the labour trustees.
Moreover, there were two other records. JNP, for the first time, crossed the 50-million tonne mark in cargo handling, registering a total of 55.76 million tonnes for the fiscal. This comprised 51.84 million tonnes of containerised cargo, 3.17 million tonnes of liquid bulk cargo, 0.74 million tonnes of cement and 0.0057 million tonnes of general cargo. As the Port had handled 44.81 million tonnes in 2006-07, the growth this year was 24.42 per cent. The Port also handled a record 3.82 lakh TEUs in March this year, surpassing the earlier monthly high of 3.58 lakh TEUs in January 2008. The ICD traffic was 1.0 million TEUs, constituting 24.90 per cent of the total container traffic handled by the Port.
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The Chairman addressing the gathering |
Addressing the gathering, Mr Hussain thanked Port users, the terminal operators and employees for facilitating these achievements and exhorted them to not rest on their laurels but aim higher. He said the management was working towards further improving things on both the waterfront and landside so that the Port facilities were not stretched beyond their limits.
The Chairman was hopeful of infrastructure augmentation projects such as the 4th container terminal, channel dredging and extension of the quay by 330 metres getting final clearance soon. He also laid stress on the work being done to improve and further develop the roads connecting the Port. He called for the dedicated freight corridor project to be planned holistically, keeping the Port as an important component.
The Chairman expressed his gratitude for the support extended by JN Customs, the rail operators, especially CONCOR, CFS operators and contractors.
Highlighting the challenges ahead, Ms Sinha called for timely implementation of the Port’s proposed projects. The challenge for JNPCT, being the older terminal, was to ensure market share, she underscored.
Capt. Dastoor and Mr Bhatnagar also spoke briefly.
Mr Bhushan Patil and Mr Dinesh Patil, the Port’s labour trustees, described
the achievements as a combined effort and expressed confidence of the Port
attaining 10 million TEUs in throughput and being ranked among the Top 10
container port facilities in the world.
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JNP ranks 24th |
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Jawaharlal Nehru Port (JNP) is crossing one landmark after another. After attaining significant milestones in the last few years, the Port has done one better in 2007-08 with dual accomplishments in cargo handling and, importantly, an improved ranking among the Top 30 global container ports.
Adding the icing on the cake was JN Port moving up a few notches, to the 24th position, in noted container industry journal Containerisation International’s ranking of the Top 30 container ports in the world for 2007.
It was ranked 28th in 2006.
By coming into the top 25 bracket
for the first time, JNP has consolidated its position as one of the leading
container ports in the world.
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'JN Port will continue to remain the preferred gateway' |
Mr Shahzad S. Hussain, Chairman, JNPT
Another year, more landmarks, 4 million TEUs and 50 million tonnes. What is it that keeps JNP going?
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Mr
Shahzad S. Hussain, Chairman of Jawaharlal |
What keeps JNP going is the total dedication of all its stakeholders, especially the terminals. We are all keen to maintain our brand names and that of the Port. In fact, the growth last year has been beyond expectations. In containers, we were expecting a throughput of close to 4 million TEUs. Ultimately, we ended up with 4.06 million. As regards the total throughput in million tonnes, the surge has been of more than 10 million tonnes, from 44.81 to 55.84 million tonnes. Among Major Ports, JNP has taken the least time to attain the 50 million tonne mark.
Overall, the rate of growth over last year has been 24 per cent and in containers it has been 27 per cent. The average growth rate in container ports in India and globally last year was 12 per cent. So, as you see, JN Port is at a different level altogether.
The pride in our achievements and the work culture lead us to higher plains.
Another high last year would have been the improvement in the Port's global ranking?
Without doubt. We jumped from 28th position in 2006 to 24th in 2007 in Containerisation International's listing of the world's top container ports. This is the fastest growth outside of China. In fact, in percentage terms, only Ningbo, at 39 per cent, and Guangzhou, at 32 per cent, have recorded growth rates higher than that of JNP. This is indeed a matter of pride for us.
So, how has the experience been heading India's No. 1 container port for more than a year now?
It has been great. Wherever I go, people show respect and regard because I am the Chairman of JN Port. It is an acknowledgement of the Port's standing and performance. As I said, this is the result of the support and cooperation of the stakeholders, including all Port employees who don't want to do anything that will bring a bad name to the Port.
I want to especially commend the employees of JNPCT here, who have been performing exceedingly well despite the constraints of old equipment. As management we would like to give the best of facilities to our employees and also something more - under corporate social responsibility, through organising cultural and sports events etc., where I too participate. I consider myself to be one among them.
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Has the Port reached saturation point in cargo handling?
Well, we have crossed the installed capacity of 3.6 million TEUs. However, throughput can be increased further if certain key measures are taken. The Ministry's target for the current year is 12 per cent higher than the last fiscal, which we will be able to achieve. There are constraints, however, like the old equipment at JNPCT. There was a plan to replace 3 of the terminal's RMQCs by the end of this year and, in the process, also mechanise the shallow berths by shifting two of the old cranes there. Unfortunately, the Malaysian company contracted to supply the new RMQCs has reneged on the agreement and put in some new conditions, which we cannot accept.
However, we are examining the possibility of hiring two cranes for the main berths - till the new cranes are re-tendered for and installed - and shifting the old ones to the shallow berths as per the original schedule (Oct.-Nov.).
Besides these three, we have also sought permission from the government to sanction the purchase of a further three new super post-Panamax quay cranes.
The Port management seems keen to mechanise the shallow berths.
Yes. And it is not just the Port management; the trade too wants it. It will facilitate coastal shipping, feeder operators and even car carriers. I strongly feel that coastal shipping should be encouraged, for it saves time and costs and, importantly, is environment friendly. Mechanisation of the shallow berths should add nearly a lakh TEUs to JNPCT's throughput.
What is the status with regard to some of the infrastructure enhancement projects at the Port, such as channel dredging, extension of the berth by 330 metres, the 4th terminal project etc.?
The RFQ for the 330-metre extension has been prepared as per the new MCA and sent to the government for approval. The 4th Container Terminal project, which includes a new Marine Chemical Terminal, has been cleared by the Board and is awaiting government go-ahead to start the bidding process. As regards dredging, the selected company has put forward a fresh cost estimate, which we have again sent to the government for approval. We are very keen on dredging and want it to start as soon as possible. The Port should be able to bring in and berth large vessels in order to sustain its productivity and performance.
Can the two private terminals bid for the 330-metre extension project, which is likely to come up first?
As per the current policy of the government and the terms of the concession agreement signed by GTI, it cannot bid for the 330-metre extension project or the 4th terminal. NSICT can bid for the extension project, but if it does so, it cannot bid for the 4th terminal.
What are some of the other infrastructure projects being undertaken or on the anvil?
We have been improving the internal areas and the road connectivity. One of the connecting roads has been 4-laned and we are working with NHAI, CIDCO and the state government to 6-lane NH-4B and 4-lane SH-54. The Port's SPV with NHAI and CIDCO is working well. Two grid separators are on the anvil to facilitate easy access to the CFS area, following which the existing bridge will become one-way. We want to make the existing Mumbra bypass 4-lane and are planning another dedicated bypass so that Thane city is not affected by the Port traffic.
Also being planned on Port land is an integrated truck terminal, which should ease the congestion of vehicles on the roads, with planned land use, including a Port-based SEZ, for which the process of selecting consultants is currently on. Besides, the passenger-landing jetty is to be strengthened so that it can be also used in the monsoons.
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I have been interacting with various authorities like CIDCO, NHAI, the state Chief Secretary, Transport Secretary and even the Managing Director of the Dedicated Freight Corridor Corporation, so as to lay out a holistic approach for the development of the Port. The dedicated freight corridor from JN Port to Delhi, for example, would be a great advantage to the Port as this is its starting point. I have asked to be kept abreast of all developments on this front, so that our developmental activities of roads, ROBs etc. can synergise with them.
A similar holistic approach is being taken with regard to Port security, where we are working with the Coast Guard, CISF and the police.
Any more CFSs on the anvil?
Yes, 18 more are in the pipeline, in addition to the 20 already running. They have been cleared by the Port and sent to the Ministry of Commerce for processing and approval. One or two should be coming up at frequent intervals over the next 4-5 years.
There has been a lot of talk in recent months about congestion at the Port and even ships bypassing it because cargo has not made it to the facility. Could you explain?
There is no congestion inside the Port. The congestion is of the export-laden trailers outside the Port gates, who take advantage of the free parking. We have asked the terminals not to bring in more than what has been booked. I am confident that along with the terminals and Customs, we can solve this problem. Otherwise, there is always the option of penal provision.
The ICD pendency has eased considerably, with the number of rakes per day having been increased from 16 to 23. We had asked CONCOR and the other rail operators for preferential treatment as we give them the most business. Inside the Port we have a holding capacity of 75,000 TEUs, and the pendency was never more than 50,000 TEUs.
Are there any more fixed windows available at the Port?
No. The last one was given to SCI's SMILE service. There is a huge demand for windows, no doubt, but they can be provided only if available. We have asked some of those seeking windows to hold on till the shallow berths are mechanised. That should create more space.
Given the current stress on privatisation and PPP in port projects, is there a likelihood of JN Port being corporatised? Would corporatisation/giving more autonomy to the Major Ports expedite decision-making and development?
There was some talk of corporatising JNP, but as of now I think it is in limbo. Even if it is corporatised, the Port will still remain a part of government and the government will have its opinion on the running of the Port. It won't be a case of the government just collecting the rent. Only the nature of decision-making will change if and when the Port is corporatised.
Yes, corporatisation will facilitate faster decision-making and, as a result, better productivity and efficiency. That is why there are many who advocate it. So it could happen in future. I feel that even if Major Ports are not corporatised, more autonomy to the managements would be helpful. For example, the Board could be given a free hand, without need for clearance from MoS, to spend up to Rs 500 crore on projects, instead of the current limit of Rs 50-100 crore.
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Mr S. S. Hussain presenting a memento to a member of a foreign delegation visiting the Port |
What is your take on Mumbai Port's offshore container terminal (OCT) project?
Given the projected growth in trade and the resulting volumes, more port and terminal facilities are certainly needed, be it the OCT or Rewas port. This is especially true of the West Coast, which remains the preferred gateway for the trade. Whether the location is suitable for the OCT, whether the traffic generated can be managed, one has to take a call on these. Quite a few connectivity projects are coming up or have been proposed, which should facilitate the OCT in evacuation.
Do you think that the supposed keeping out of shipping lines from the new model RFQ for PPP projects will adversely affect such projects?
I don't think there is any specific ban on shipping lines. They can certainly be part of a consortium. I know that shipping companies have expressed their apprehension and some, including SCI, have also written to the government asking for a change in the norms. Port and terminal development is an attractive proposition for many and I think it should be open to all. The Planning Commission, for one, wanted it that way. In today's scenario, nobody can be restricted. As I said, they can partner somebody having experience in terminal development.
You are regarded as something of an environmentalist. What have been your initiatives on this front at JN Port?
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Wherever I have been in my career, I have tried to add to the greenery. During a posting in Nagpur, for example, I got planted 22 lakh trees in one year, of which 85-90 per cent have survived. I also created a botanical garden inside the city. In JN Port, too, I have initiated tree-planting programmes. It is being done in a wasteland inside the Port and is proposed, across 3 lanes, on the road connecting the Port to Navi Mumbai. Only trees that bloom around the year will be planted, including mangroves. We are also planning an eco park/nature park on 160 hectares of land.
I have also created an environmental cell in the Port, which will do new plantations as well as maintain the old ones. In addition, we have an agreement with IIT, Powai, to constantly monitor the air and water pollution levels in the Port and its surrounding areas.
JNP is already the greenest port in the country. It will be much more green and environment-friendly in future.
Would you like to give any message to the trade?
I would like the trade to come to JN Port to experience the
best of facilitation, transparency and service from all the terminals and
supporting facilities. We are a lean port, with just 1,700 employees including
the Chairman and, therefore, you will find all of us totally focused on our work
without any distractions. And we are open to new ideas to help serve you better.
As the landlord Port, we have an excellent professional and personal
relationship
with the private terminals, which ensures that their operations run smoothly.
As the Chairman, it is my job to facilitate the smooth
functioning of all aspects of the Port. I would describe my role through the
following Urdu couplet: 'Apna to kaam hai ke jalate chalo chirag; Raaste
mein chahe dost ya dushman ka ghar mile'. ('It is my job to light
lamps along the way; Never mind if the house is of a friend or foe'.) ![]()
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'JN Port is number one because of market forces' |
- Ms Maya S. Sinha, Dy. Chairperson, JNPT
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In nearly a year and a half at the helm at JN Port, as Acting Chairperson and Deputy Chairperson, Ms Maya S. Sinha has presided over one of the most successful periods in the history of JNP and probably the history of ports in India as a whole. While she attributes the success of the Port to the foresight of the government and her predecessors, this 1971 batch IRS officer has brought her own vision and insight to the job, with the aim of taking the Port to even greater heights. She outlined these and other matters in an interview with Exim India. Excerpts. |
Firstly, congratulations on the new landmarks. Did the Port beat the Ministry of Shipping targets for 2007-08?
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Yes, we did. The target set by MoS was less than 4 million TEUs. We crossed 4. In tonnes, it was 49.3 million tonnes. We achieved 55.
What do you attribute this success to?
Growth in trade is, of course, a primary reason. But I feel that it has been largely due to the fact that the government and earlier Port managements - my predecessors - anticipated the growth that was to take place in containerised cargo in the country and, importantly, had the foresight to go in for conversion of the bulk terminal into the third box terminal. If that had not happened, with the growth in volumes, the trade would have gone to other ports. The quantum leap in the Port's throughput in the last two years has happened because of the third terminal.
The Port Trust-run JNPCT's throughput has fallen compared to last year? Any particular reason? Is it in some ways lagging behind the private container terminals?
Of the overall growth in throughput last year, the major portion was due to GTI commencing full-fledged operations. NSICT, too, saw some growth, while JNPCT's has fallen in terms of TEU throughput, but slightly increased in terms of volume. For me, the growth has come to the Port as a whole, especially because the third terminal was available.
Well, JNPCT has its problems, the nearly two-decade old equipment being the primary one. Compared to JNPCT, NSICT's equipment is just 10 years old and GTI's is brand new. This has an effect on productivity parameters like moves per crane.
Then again, last year, there was a shutdown of equipment at JNPCT for maintenance for nearly a month. During this time, the terminal management, unselfishly I would say, allowed its window vessels to berth at the neighbouring terminals. It rose above considerations of volumes to facilitate the trade. You can see that JNPCT's throughput fell steeply in December, while for the others it was a more than normal increase. So, part of their cargo is JNPCT's.
Was shutting down equipment a wise move?
Well, the operations people were very sceptical of the move and felt that it would lead to lines and services shifting to other terminals. I didn't look at it that way. And the good thing is that no one has shifted.
JNPCT was to have installed new RMQCs by now. Why has there been this delay?
We had ordered 3 RMQCs, based on global tendering, from IMPSA, Malaysia, with delivery scheduled for February 2008. And three of the existing cranes were to be shifted to the shallow berths for mechanising them. In addition, we had also sought MoS approval to replace 3 more RMQCs whose life was to end in 2009. So, there would have been a total of 6 new cranes at the main berths.
IMPSA, however, had other plans. It first pushed delivery to before the monsoons. Then, an independent engineering assessment of the terms of the project found that the progress report was not very good. In March the company told us that fabrication was stuck and then informed that it was being restructured. Therefore, it wanted more time and also cost overruns to be factored in the contract. As all this was not possible under the terms of the contract, we served a notice of termination in April. Though not a financial loss, this is a huge operational setback. The process of re-tendering has begun in right earnest.
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Won't this have a serious affect on operations?
We are all geared up, with regard to operations and maintenance, to ensure that productivity is maintained. JNPCT has recently had a major restructuring of its windows, the aim being to put all our infrastructural resources like 680 m quay length, cranes and other supporting equipment to optimum use in the service of the trade. We wanted to make sure that at any given time 2 large vessels could berth at the terminal.
This will ensure that productivity at JNPCT does not fall; in fact, it could even increase slightly. For a quantum leap, one will have to wait for the new equipment to become operational.
Speaking of windows, is there scope for any more windows at JNPCT or the other terminals?
No. All windows are taken.
What are some of the other infrastructure augmentation measures on the anvil?
After the restructuring of windows, we want to ensure continuous working by strictly implementing the hot seat exchange at JNPCT. It is already in place but we have found that there is a 45-minute time lag between two shifts. So, more discipline is needed. But I would like to say here that the crane operators at JNPCT are by far the best in the Port. This is not my boast, but what the private terminals say. I am proud of the professional workforce at JNPCT, who are carrying out their responsibilities conscientiously despite the ageing equipment. I am keen on giving them better facilities.
Besides, in the pipeline are the channel dredging project, extending the berth by 330 metres and the 4th terminal. Also, as the procurement of new RMQCs has not worked out for now, we plan to lease a crane for the shallow berths, which should be in place by November.
What is the status of channel dredging?
We are awaiting government approval for the revised cost estimate of Rs 1,100 crore (it was Rs 800 crore earlier). The bid validity of the project expired on April 18. We want to extend it but the chosen bidder may not want to do the same unconditionally. On the other hand, though we feel that the revised estimate is justified, the government might take its own time giving approval as public funds are involved. I would like to say here that given the international dredging scenario, international dredging companies are holding us to ransom.
Don't you think that India is suffering on the infrastructure front because of the slow processes of the government?
See, we need to look at things in the right perspective. The government has a lot of things to consider; the use of public money, as I said, being one of them. The government has always approved projects on time. For example, the JNP project was initiated to decongest Mumbai Port. Then when JNPCT was found inadequate to handle the growing volumes, private terminal operators were invited on BOT basis. This happened as per government policy, the terminals didn't come up on their own. Now, approval has been given to Mumbai Port's offshore container terminal, probably because volumes in the Mumbai region are too big even for JNP. So, the government has been taking the necessary steps.
The fact is that you have to lobby for your project to get expeditious approval. Nothing wrong in that. There are a lot of projects awaiting government approval. Some of them might take time because of detailed government scrutiny. Good management is all about getting a timely decision from government in your favour.
Is Mumbai Port’s offshore container terminal a viable project?
It is not for me to comment on the viability of the offshore container terminal. Its viability must have been established, that is why a developer has been shortlisted. Mumbai being a city port, probably hinterland connectivity would be a problem unless some other projects are in place.
As a landlord port, how easy or difficult is it to coordinate with the private terminals? Does the relationship get strained sometimes?
You should be asking the private terminals this question. As the Port management, we have not experienced any difficulties in the relationship. Here again, let's bring in perspective. The private terminals are very much part of the Port. If they grow, the Port grows. So it is in our interest to facilitate their growth. Of course, as a terminal operator ourselves, this will not be at the cost of our growth. The three terminals have a healthy competition, without there being the need to resort to unfair business practices or any kind of undercutting.
In fact, very often they look to us for sorting out the larger issues. For example, we have been interacting with CONCOR on behalf of all terminals on the issue of congestion. Similarly, we have come to the fore to solve their concerns regarding roads, gates etc., because, as Port management, we have the greatest authority to deal with the relevant agencies.
Are you happy with the current tariff/revenue share/royalty arrangements?
As of now, we are certainly very happy. However, the forthcoming projects will be as per the new MCA and Model RFQ wherein the tariff has to be fixed and announced upfront to prospective bidders. It will be pegged to the wholesale price index and, therefore, any increase will be linked to inflation. The revenue share has to be factored in this scenario. As a result, it might come down.
The Model RFQ is also in the news for other reasons. Apparently, shipping line experience doesn't count in the eligibility criteria for developing terminals.
While there may be no specific mention of shipping line experience in the Model RFQ, I believe that sector-specific and project-specific deviations are allowed. The only condition is that any deviation has to be approved by MoS, which is fine. A shipping line may not be allowed to bid on its own, but I think it certainly can be part of a consortium with, for example, a container terminal operator. In fact, JNP has proposed such a deviation for its forthcoming projects.
Are you planning any specific infrastructure projects on Port land?
As per CIDCO's land use plan, nearly 1,250 hectares of Port land is left for development, of which 800 hectares has been identified. What we have planned initially is an integrated pre-gate parking and servicing terminal spread over 47 hectares. Besides parking facilities, it will also have dormitories, eateries, some provision for entertainment, repair facilities and, importantly, a Customs set-up. Only vehicles with the correct documents will be allowed from here to the gates. This should put an end to parking on the roads. The BOT project is expected to come up in 2009-10.
Also being planned, in keeping with the times, is a Port-based SEZ. Whether the facility will be single-product or multi-product, entirely private or as a JV with the Port, will be suggested by a consultant. Both projects are currently in the stage of appointing consultants, which should happen in the next 2.5-3 months.
In your opinion, is it a good thing that one Port handles more than 60 per cent of the country's container cargo?
JN Port is number one because of market forces. The situation might change in the coming years as a result of the many private facilities coming up.
You have been Deputy Chairperson for more than a year now. How has the experience been managing the country's number one container port?
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It is a very proud and, at the same time, a very humbling feeling to know that you are responsible for the performance of not only the No. 1 box port but also one of the key infrastructure facilities in the country. It is a daunting task entailing a lot of responsibility. The government is the only place where every decision you take impacts hundreds and thousands of people. So, as I said, it is a proud and humbling feeling.
One thing I would like to say here is that while the trade is very quick and vociferous in highlighting problems, they do not show the same enthusiasm in acknowledging the things that we do right. We have been very proactive in sorting out issues of the trade. A word of appreciation or encouragement would do no harm.
What is MoS' target for the current year?
It is 12 per cent more than last year, nearly 4.5 million
TEUs. This is achievable, given the capacity of GTI, the marginally increased
contribution that can be expected from NSICT and the potential of an improved
JNPCT, especially after the mechanisation and dredging of the shallow
berths.
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'The Administration Department is the focal point for all of the Port's departments' |
Mr S. K. Kaul, CM (A) and Secretary, JNPT
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The fact that industrial relations at JN Port have been excellent since inception is one of the many examples of the successful discharge of its duties by the Port's Administration Department. The Department, headed by the Chief Manager (Administration), has many things on his plate—from being the liaison between the different departments of the Port and between the Port and the Ministry, to handling corporate social responsibility and ensuring that the Port's vast land holdings are put to use in the best possible manner. Under Mr S. K. Kaul, CM (A) and Secretary, the Department has continued with its successful role of being the key cog in the wheel of progress of JNP. Excerpts from an interaction with Exim India. |
Confirmed in his
position (where he was In-Charge for more than a year) on the same
day that the final landmark figures of 4 million+ TEUs and more than 50 million
tonnes for 2007-08 came in, Mr S. K. Kaul is happy with the timing and the
Port's success, but has set his sights firmly ahead.
He attributes the Port's accomplishments to the overwhelming support of the trade and other stakeholders, including the two private terminals, and the guidance from the Port management and the Ministry of Shipping. "What JNP has been achieving over the years, despite its constraints and increasing competition from other ports, should be a matter of pride for the country," he emphasised. "Many people may not know, that among the Major Ports, JNP has taken the least time since inception to attain 50 million tonnes. It will be my endeavour as CM (A) to facilitate continuation of this growth".
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And he has his priorities clear. Maintaining the tradition of harmonious relationship between the Port management and workers is one. "Labour relations have always been excellent at JN Port and I want to keep in that way. It will be my endeavour to see that there is not even a token strike at the Port as it could deeply impact the country's ex-im trade," he underscored.
This would be ensured by an open-door policy, under which increased interaction with employees would be a priority. "Daily interaction with them gives me more and more confidence. Anybody can come and meet me anytime. As I prefer going deep into the personal problems of employees, I think I have an edge in resolving issues. I try to understand issues in the proper perspective".
Corporate social responsibility is another key area of focus for Mr Kaul and the Department. Said he, "We have certain social responsibilities towards the area and people whose land was taken for Port construction. Though market price was paid, that is not enough. We would like to do much more—particularly with regard to employment schemes, vocational training, health and education—as a socially responsible organisation".
"Our Chairman is of the view that any expenditure on health and education should be considered an investment. We are adhering to his advice," the CM (A) stressed.
Civic amenities are also provided from time to time to the villages in the area within established norms.
The Administration Department also liaises between the Ministry and the Port as well as between the individual departments of the Port. It is also involved in marketing. According to Mr Kaul, marketing is important because, besides the trade, the general public should also be made aware about the port, about the fact that it is the number one box facility in the country and plays a key role in ex-im trade. "The Administration Department is thus the focal point for all of the Port's departments. It is a huge responsibility and cannot be carried out without the support of the management, heads of department and others".
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As Port Secretary, he has the responsibility of preparing the agenda for meetings as well as the minutes. "Preparing the minutes is a difficult job as there are a lot of people talking and one has to understand the crux of the conversation. There is no scope for mistakes".
Managing the Port's huge land holdings, second only to KoPT, is another important responsibility of the Department. With most of the land not embroiled in any legal disputes, the Administration Department is gearing itself, following clearance from the Board, to develop in a planned manner an area of 1,200 hectares so as to generate maximum revenue for the Port as well as serve the trade in an efficient manner.
Among the things proposed are an Export Processing Zone, truck and bus terminals with common utility facilities such as dormitories, toilet blocks, telecom facilities etc, facilities for vessel crew such as club and duty-free shops and even commercial facilities.
"The Port management is currently in the process of appointing a consultant for the project, who will prepare a feasibility report on how to go about it. The consultant should be in place in 3-4 months and the report in hand in another 2-3 months".
Besides, as providing connectivity is a key responsibility of the landlord Port, the Department is involved in facilitating the development of road, rail and other projects in association with bodies such as CIDCO, NHAI, Railways and MSEB. "We want to match international ports in such facilities," the CM (A) emphasised.
Legal issues pertaining to the Port also fall in the ambit of Administration. Fortunately, the Port is involved in just a few commercial litigations, Mr Kaul pointed out. There are also no PAP-related issues.
Employee training is another priority. The Port-run terminal has a full-fledged training department, which is currently in the process of acquiring a simulator. Employees, including officers, are also sent for refresher courses to reputed institutions such as IIT, IIM, NIPM, IIPM etc., besides courses conducted by NGOs.
Employees have also been facilitated with close to 50 direct bus services from areas like Dadar, Dombivli, Thane and Navi Mumbai through interactions with MSRDC and MMRTC.
The Administration also implements incentive schemes for employees, which are reviewed every 3-4 years. They are currently under review. "We are keen to increase the incentives," Mr Kaul emphasised.
The Port administration is also in the process of talking to MSEB's Mahavitran to help it put up a captive power generation facility.
The Administration Department has also been very successful in its role of coordinating with the two private terminals. "We enjoy excellent relations with the private terminals and treat them as equal partners", the CM (A) pointed out.
So, how does he
visualise the Port in future? "If all the development and other plans are
implemented as per schedule, and with the support of all stakeholders, the state
government as well as the local authorities, I firmly believe that JN Port will
be the main gateway for international trade and that the facility and its
surrounding area will be akin to a port like Singapore".
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'JNP is on course to becoming the only Port in the country with no liabilities at all' |
Mr G. Krishna Kumar, CMF, JNPT
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That the finances of India's key ex-im trade gateway are maintained in a proper manner is a huge responsibility. From providing for operational expenses to accounting for revenue, handling general expenditure to collecting royalty and, importantly, making the requisite provision for infrastructure augmentation, the Finance Department, headed by the Chief Manager (Finance), or CMF, has to be in the thick of things for the smooth and efficient functioning of the Port. Mr G. Krishna Kumar, CMF, has presided over the Port attaining new financial highs over the last two years. He explained the role played by the Finance Department and the Port's financial standing in an interaction with Exim India. |
Jawaharlal Nehru Port not only attains new highs in container handling, but in revenues and profits as well. 2007-08 was no different. As per the provisional results for the fiscal, which are subject to finalisation, the Port earned a total income of Rs 998.49 crore, with the expenditure being Rs 340.53 crore.
The operating surplus as a result was Rs 578.04 crore before taxes and, after providing Rs 221.50 crore for taxes, the net profit amounted to Rs 436.46 crore.
Said a happy Mr Krishna Kumar, "There has been a 10 per cent increase in gross revenue over the previous year, while the operating surplus has risen 12 per cent".
A key contributor to this performance, according to the CMF, was the commencement of full-fledged operations by GTI in 2007-08, which led to increased revenue share.
The primary components of the Port's revenue, accruing to JNPCT and the Marine Department, Mr Krishna Kumar disclosed, included port user charges, container handling charges, ground rent, port dues, pilotage and berth hire charges taken from the shipping lines.
Then there was the significant revenue share and royalty charged from the two private terminals — the former in the case of GTI and the latter from NSICT. While the revenue share has been fixed at 35.05 per cent, the royalty for the current fiscal amounts to Rs 1,150 per TEU. The royalty increases every year, for the 30 years of the concession period, as per the bid submitted.
"We are happy with the revenue sharing and royalty arrangement," pointed out Mr Krishna Kumar.
Also part of revenue is the interest received from bank deposits and the real estate income on both long- and short-term leases.
On the expenditure front, in addition to establishment charges like salaries, pension and the normal office administration expenditure, there is the equipment-related expenditure like hire charges and maintenance charges for owned equipment, drydocking expenses, maintenance dredging expenses (Rs 15 crore annually) and insurance premium.
The premium expenditure changes every year as fresh bids are called on an annual basis. It is Rs 2.2 crore in the current year. Port assets have been insured since April 2006.
All of this comes under revenue expenditure, Mr Krishna Kumar underscored.
As per the procedure laid down by the government, the Port prepares a budget every November for the next year and a revised budget for the ongoing year, which are then approved by the Board.
The revenue expenditure estimates are prepared department-wise, head-wise and cost centre-wise, and generally sees a year-on-year increase of 10 per cent.
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A key constituent of the budget is the plan expenditure, the CMF highlighted, which provisions for infrastructure augmentation projects such as the channel dredging, acquisition of RMQCs for JNPCT, road and rail connectivity, reclamation for the fourth terminal etc., which JNPT, being the landlord, has to provide.
The revised plan expenditure for 2007-08 was Rs 75.37 crore, not including the procurement of RMQCs and channel dredging, against which the expenditure achieved was about Rs 71 crore.
The plan expenditure for the current year is Rs 175.17 crore, Mr Krishna Kumar revealed, again excluding the capital dredging project. The main items include road works, procurement of 3 new RMQCs at an estimated cost of Rs 108 crore (for which bids are to be called for again) and replacement of 3 Port-owned tugs.
The capital dredging project, for which the revised cost is estimated at Rs 1,055 crore, is awaiting final government approval.
Everything has to be financed through internal accruals, as there is no budgetary support. For the capital dredging, however, there could be part-financing by way of market borrowing, Mr Krishna Kumar pointed out.
The CMF emphasised that there was no wasteful expenditure at JN Port, especially given its fewer number of employees as compared to other Major Ports.
He also stressed that JNP had repaid all loans availed of for its construction from sister Major Ports and the Central government. The only thing pending was around Rs 225 crore of the amount taken from two banks in 2006 to repay some of the then existing loans. "This will be repaid by March 31, 2010. Once that happens, JNP will be the only Port in the country with no liabilities at all," Mr Krishna Kumar stressed.
Where does JN
Port go from here? "Well, the Port has to leverage on its position, assets,
location and other advantages to generate more traffic and provide impetus to
the economic growth of the country. It is already doing that, but the Port
management needs to look at what more facilities can be created, like terminals,
SEZs etc., for it to play a more productive role and benchmark itself against
the best in the world," the CMF concluded.![]()
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‘Each and every member of the Marine Department has played a role in JN Port’s success’ |
Capt. Jitendra Misra, Deputy Conservator, JNPT
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That the Marine Department plays one of the most important roles in the smooth functioning of JN Port is stating the obvious. It has the key responsibility of safely berthing the thousands of vessels that call at the country’s No. 1 box facility in a year, which, importantly, involves effective coordination with the Port’s three terminals. Under Capt. Jitendra Misra, Deputy Conservator, Jawaharlal Nehru Port Trust (JNPT), the Marine Department has been doing this and much more. Capt. Misra threw light on the different aspects of running the Department in an interview with Exim India. Excerpts: |
For the Marine
Department, maintaining a high
level of service in an environment of pilot shortage
is a constant challenge, which it has been successful in doing under Capt. Misra.
"Retaining pilots is a challenge for all ports. People will always look for greener pastures, so the right remuneration and other facilities are the key," underscored Capt. Misra. "Pilots, therefore, have to be given the right emoluments, within, of course, certain limits. There is a limit up to which the pilot can demand and a limit up to which the port can go. Pilots have to accept the fact that their sailing salaries cannot be matched in this job," he pointed out.
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The Monitoring Centre |
Fortunately for JNP, the Port Trust has taken positive steps in this regard, with the pilot emoluments being "very good". The Port today has 10 pilots on contract, Capt. Misra disclosed, but could do with 8-10 more given the continuous increase in the number of ships being handled. "A pilot has to handle 10-12 ships in a day, so it is hard work. More hands would certainly facilitate proper handling of ships without delay".
The Deputy Conservator was, however, keen to stress that it was not just the pilots or the head of the department, but each and every member of the Marine Department who played a role in the successful handling of 3,118 vessels in 2007-08 (up from 2,774 in 2006-07), not including numerous supply boats, barges, small crafts etc., which have contributed to the throughput landmarks of more than 4 million TEUs and 50 million tonnes.
"On an average, 6 ships were handled in a timeframe of 1-1.5 hours, with the number of movements being more than 10,000. And this will surely increase further, especially as GTI reaches full capacity," according to Capt. Misra.
He is especially pleased that this performance has been achieved despite the draught restrictions, under which only up to 13 m draught vessels can be handled with tidal window. "All details about the draught restrictions are intimated to the trade well in advance through notices so that there is no miscommunication or discrepancy".
Things will improve post-deepening and widening of the channel, Capt. Misra said, but the safety precautions will have to be looked at afresh. "Many new issues will have to be considered once the channel is deepened. How many ships of what length can pass through the channel? How many vessels can pass at the same time?"
"The benefits arising out of this, that can be given to the trade, will be passed on," he stressed.
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The most difficult period for the Marine Department is undoubtedly the monsoon, with its increased wind speeds and variable tides. "Especially in the months of June and July pilots have to be very conscious about safety," Capt. Misra emphasised.
Are there delays as a result of impediments like this? "Well, the average delay of vessels sailing out is just 40-50 minutes, which we are striving to bring down to zero depending on factors such as tidal window etc."
Is the Marine Department increasingly making use of modern technology to improve its functioning? "Certainly. We do have VTMS, which we plan to upgrade. Besides, there are quite a few technological improvements currently being implemented and on the anvil."
The Deputy Conservator reiterated that the Marine Department has some of the best pilots in the industry, who are rigorously trained and take about 4 years after getting their licence to graduate from smaller vessels to handling the largest ones.
He also stressed on the excellent relations that the Department had with the three terminals. "Coordination with the terminals is no problem at all. Vessels are berthed on a first come-first served basis and the terminals are happy with this. We maintain a constant stream of communication, with the terminals being very clear in expressing their views".
Given the rate of
growth of the economy, Capt. Misra sees the Port’s throughput rising further
in the coming years, though the percentage of box cargo it handles might come
down from the current 60 per cent due to many more such facilities coming up.
"The share of private ports will increase in future. JNP will have to
augment its infrastructure to stay ahead of the pack".
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'JNPCT could possibly handle up to 1.4-1.5 million TEUs' |
Mr S. N. Maharana, Chief Manager (Operations), JNPT
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Mr S. N. Maharana, Chief Manager (Operations), Jawaharlal Nehru Port Trust (JNPT), who has been with the Port since inception, has seen at close hand and has, through his many responsibilities, contributed to the facility becoming what it is today. In his current position for nearly a year (initially as In-Charge and confirmed recently), he is keen on further enhancing productivity and efficiency at the Port Trust-run Jawaharlal Nehru Port Container Terminal (JNPCT) by implementing a number of innovative measures. Excerpts from an interaction with Exim India. |
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"JN Port's
success can be attributed to man management, modern equipment, team effort,
inter-department support as well as support of all stakeholders,"
underscored Mr S. N. Maharana, Chief Manager (Operations), JNPT. As the Port
completes another fiscal with not one, but a couple of new records, there is an
unmistakable elation in the words of the man responsible for ensuring that the
performance of JNPCT is on par with that of its neighbouring private terminals.
"It is indeed a great pleasure to be part of an organisation where the atmosphere is conducive for maintaining good relations with everybody — shipping lines, Customs, CFSs, CONCOR, etc., all of whom have worked together as a team and discharged their individual responsibilities well. Landmarks then are sure to follow".
The CMO is not unduly perturbed that the throughput of JNPCT in 2007-08 was slightly lower than the previous fiscal, explaining that the cargo volume had in fact increased by 2.5 per cent though the TEU figure had fallen. "We handled more loaded containers in 2007-08," he emphasised.
He, however, did admit that old equipment was a "weakness" at the terminal. "The replacement process has been slow, especially because we had to terminate an RMQC contract with a Malaysian company due to certain issues," Mr Maharana revealed.
Plans have, nevertheless, been firmed up to install three new RMQCs at the main berths this year, under buy-back scheme so that the old RMQCs will be replaced and, importantly, to mechanise the shallow berths by hiring two RMQCs (by October-November) and shifting two of the old quay cranes from the main berths. "The shallow berths need to be mechanised to cater to the surge in traffic. They have also been deepened from 9.5 metres to 10 metres. At present, 170 LOA vessels can call at the shallow berths," the CMO highlighted.
Commenting on the issue of congestion, which crops up off an on at the Port terminals, Mr Maharana primarily attributed it to trailers carrying factory-stuffed export boxes lining up on the roads outside the gates for days together instead of going to CFSs and collecting the export order from Customs. About 50-55 per cent of export containers coming to the Port are factory-stuffed, with 26 per cent being from ICDs, 6-7 per cent transhipment and the rest from CFSs.
Among the ways to mitigate the problem, he proposed that shipping lines should issue Form 13 for export containers in a regulated manner so that the boxes are not brought into the yard days before the arrival of the vessel. "The yard is just a transit, it should not be used as a dumping area. And we are certainly not interested in collecting dwell time charges".
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There is also a plan to reduce free time for export boxes from 7 days to 3 days, which is to be taken up with TAMP. "This is in the interest of the trade. For imports, the free time is 3 days and we are sending boxes to CFSs in a day. Thus, it is important to be disciplined and plan meticulously".
Mr Maharana also has plans to impose cut-off time for ICD boxes, stressing that things can be planned properly given the fact that shipping lines book ICD boxes as much as 32 days in advance.
On the rail front, he felt that 20-22 rakes per day should be quite comfortable. He has also requested the container train operators to run dedicated trains between the Port's terminals and a few key ICD locations such as Tughlakabad, Nagpur, Dadri, Agra, Ludhiana, etc. in order to ease congestion. "There is sufficient cargo both ways pertaining to these destinations. But the cargo has to be first segregated terminal-wise at the ICDs, similar to how we segregate CFS-wise".
Also being proposed is a truck terminal, for which bids for consultants are currently being evaluated.
Among some other measures that have been implemented to improve efficiency, the CMO pointed out, was RDT, an IT-based system that pinpoints the location of containers at the yard and berths and automatically updates the information to facilitate smooth handling.
As regards liquid bulk traffic, a 24-inch ONGC pipeline for liquid cargo was commissioned — along with loading/unloading arms of 6,000 mt per hour capacity — last fiscal, which facilitates loading of 50,000 DWT vessels in a day.
There is also a proposal to construct silos for cement storage so as to improve the handling of the commodity by facilitating faster turnaround of vessels.
Mr Maharana stressed that at present there is no scope for further windows at JNPCT. Retaining customers, too, is no problem for the terminal, he pointed out, "because we maintain transparency, have no hidden costs, have the lowest handling charges and stick to the window schedule 90 per cent of the time".
So, how much
further can JNPCT go in terms of throughput? "Well, post the induction of
new equipment, including RMQCs with compact wire ropes to ensure minimal wear
and tear, and the mechanisation of the shallow berths, we could possibly handle
up to 1.4-1.5 million TEUs," the CMO emphasised.![]()
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‘JN Customs has introduced a number of trade facilitation measures’ |
— Mr N. Sasidharan, Chief Commissioner of Customs, Mumbai Zone II
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With Jawaharlal Nehru Port as its focal point, Zone II (Nhava Sheva) of Mumbai Customs is the biggest Customs zone in the country, generating 20 per cent of the total revenue. Under Mr N. Sasidharan, Chief Commissioner of Customs, Mumbai Zone II, JN Customs has been successful in not only maximising revenues, but also lowering the transaction costs of the trade by implementing a number of facilitative measures. In an interaction with Exim India, Mr Sasidharan elaborated on some of these measures while explaining the important role being played by JN Customs in the success of JN Port. Excerpts: |
Mr N. Sasidharan
is clear about the role being
played by JN Customs in facilitating
improved performance at JN Port. "We have simplified procedures and
automated systems so that the clearance process takes place very fast. The
resulting reduced dwell time eases congestion and makes for more volumes,"
he underscored.
"This translates into better business and increased revenues for everyone, be it the Port, the ex-im trade or shipping lines, which, in turn, contributes to the overall economic growth of the country and makes money available to the government for social programmes".
The Chief Commissioner emphasised that the Customs has been making all efforts to hasten processes, reduce time taken and make the system more transparent and simple. "Today, a document can be filed in advance from anywhere in the world through the centrally-operated ICEGATE, which facilitates early assessment and payment of duty. The entire processing takes only 24 hours".
He pointed out that 50-60 per cent of importers were utilising this facility, with the others availing of the service centre at JN Customs.
Among the other facilitative measures, the Risk Management System (RMS)-based assessment for imports had reduced Customs intervention by 50 per cent, he highlighted. After a document is filed, the RMS identifies high-risk cargo, which could be sensitive, mis-declared, coming from unsavoury places or imported by people in the suspects list. The rest of the cargo is straightaway released for clearance without assessment.
Then there is the Accredited Clients Programme (ACP), for well-known importers to clear the cargo by self-assessment and without Customs examination. "Reputed importers, some 35-40 in number who use the Port regularly, have been given this special privilege. They can import any cargo, even sensitive cargo, which then automatically goes to the CFS. The declarations are electronically scanned and straightaway sent to the CFS".
The duty can be paid at the two authorised banks, he pointed out, adding that a large proportion of the cargo is imported through ACP.
He, however, cautioned that since this system works on trust, the penalty would be very high in case there is any violation.
The Custom House, ICEGATE website and CFSs are all electronically linked, it was highlighted.
Advance filing of Customs entry documents such as Bill of Entry and Shipping Bill and e-payment of Customs duty have also been facilitated, Mr Sasidharan said. For e-payment, an importer has to open an account with the authorised bank and get a special password to pay duty electronically. Thus, the burden of coming to the bank for the purpose is avoided. "The system was introduced last year and has resulted in savings of 2-3 days in clearance. It had been made compulsory for the top 50 importers from April 1, and is working smoothly".
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Under this system, subsequent to the payment of duty, the document is cleared for examination and a message goes from the bank to the CFS.
"We ourselves have come out with these facilitative measures. There has been no specific direction from any authority. We did this because we are keen that costs and inventories are reduced and demurrage charges are avoided," the Chief Commissioner stressed.
For the rest, assessment takes place as per appraising groups based on the nature of the commodity, for which JN Customs follows an international classification system known as the Harmonised System of Classification, which has 97 chapters. The documents are automatically posted to the groups and appraisers handle close to 1,500 consignments in a day on average.
Mr Sasidharan also highlighted some of the other measures implemented:
Providing the status of Customs processing of documents on the Internet; electronic kiosks established at all central points and an automated e-mail service.
Abolition of Daily Movement Register (DMR) for import cargo, reducing the Customs-trade interface.
Direct delivery of cargo for reputed importers from the port terminals.
Part-delivery facility to avoid waiting time for the arrival of full cargo at CFS.
Electronic processing and payment of drawback to exporters’ bank account.
Auto email facility to answer queries on status of drawback and transmission of DEPB shipping bill details to DGFT.
Automatic processing of supplementary drawback claims without separate application.
In addition, the examination of cargo has been extended to double-shift at a few CFSs for the purpose of import examination and giving out of charge by the Customs appraisers/examiners posted there.
There is also a plan to have 3 shifts, according to the Chief Commissioner.
He pointed out that Customs officers were also given holiday postings; for example, in case there was an urgent shipment or import clearance, for which was made available an Assistant Commissioner, a superintendent and an appraiser.
Inside the Port and at the gates Customs officials work 24 hours, it was highlighted.
JN Customs also operates two container scanners, one fixed (at the CWC CFS) and the other mobile (inside the Port). While the fixed one scans 100 containers in a day, the mobile scanner does 250. "About 10 per cent of the import boxes are scanned, which is based on a risk selection system. We plan to shortly introduce export scanning," the Chief Commissioner disclosed.
Plans are also on the anvil to procure more scanners, he added.
A very recent trade facilitation initiative of JN Customs was easing of the stamp duty payment procedure by getting authorisation for banks to collect the duty. Earlier, it was the shipping lines that had to collect the stamp duty, and the complex procedure involved importers needing to obtain the delivery order from the lines. However, given that stamp duty payment was possible only after the payment of Customs duty, and with the Customs duty payment taking its time, the shipping lines used to provide only an unsigned delivery order, thereby making the process difficult.
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"About 10 per ce.nt of the import boxes are scanned, which is based on a risk selection system. We plan to shortly introduce export scanning" |
"I met the Chief Secretary, Principal Secretary and even the Commissioner of Registration and Stamps to ask for simplification of the stamp duty payment procedure. Now, banks will be authorised to collect the stamp duty and the lines will be giving the signed delivery order in advance. This will reduce 2 days in the process," Mr Sasidharan underscored.
He highlighted that as per the results of dwell time studies made by JN Customs, based on international standards, it was found that between the arrival of the vessel till delivery of the goods to the importer, the Customs took only 7 per cent of the total time for document processing and clearance of goods. The rest was taken up by importers for filing the Bill of Entry (51 per cent), payment of Customs duty (28 per cent) and goods registration (14 per cent).
To further resolve issues of the trade, the Commissioners hold fortnightly trade facilitation meetings and the Chief Commissioner chairs a monthly Open House session to address any issue relating to Customs for immediate follow-up action. "Even otherwise, anybody with a problem can come and meet me anytime," Mr Sasidharan said.
He expressed pride that JN Customs had been handling increasing amounts of cargo year after year despite personnel constraints. "This is a remarkable achievement and has been possible, as I said, due to simplification of procedures and automation in keeping with the times. I personally have received no complaints about any delays, be it at the CFSs or in container scanning, due to lack of Customs officials".
Following a request from JN Customs, the government has sanctioned more posts for officers, he revealed.
The Chief
Commissioner concluded with a message to the trade: "Come to Nhava Sheva to
experience the best of trade facilitation measures and transparency through the
use of modern technology in order to save transaction costs and time".![]()
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A decade into its build-operate-transfer 30-year agreement with Jawaharlal Nehru Port, DP World Nhava Sheva (NSICT), India’s premier container terminal is synonymous with speed, efficiency and the pursuit of excellence. This terminal operates with modern infrastructure and provides world class services.
Safety:
It is the first container terminal in the country to be triple certified by DNV
ISO 9001:
2000
- Quality Management System
ISO 14001: 2004
-
Environment Management System
OHSAS 18001 :
2007 - Occupational Health and Safety Assessment
Efforts are on to obtain further accreditations in the Supply Chain Security Management (ISO 28000) System.
The customized state-of-the-art simulator ensures that world-class training is provided to the field staff.
In-house safety awareness programmes have been developed with an outreach focus to cover families of the staff, contract labour, customers and neighbouring institutions.
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Fatal Risk Standards include Vessel Safety, Engineering Safety and Isolation Standards.
Operations
The DP World mission — A global approach to a local business environment where excellence, innovation and profitability drive our core business philosophy of exceptional customer service — is strictly undertaken so that every Customer-servicing initiative results in ‘Customer-Delight’, which is manifested in the long association it has with its customers. NSICT’s ten-year climb has been eagerly watched by its customers.
Its throughput for the last financial year was a record 1.5 million teus. Its operational initiatives have now evolved from coping-with-demand to meeting- demand of the ex-im trade.
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Information Technology
The high-tech software ensures that customers’ cargo move seamlessly with in-built programming to iron out all probabilities. Its BS7799 certification in for its security systems has been upgraded to ISO 27001 certification for its Information Security Management Systems. Further, a Web Access Model incorporated in the software, allows the customer a 24x7 interaction with the terminal with respect to yard availability, vessel schedules and configurable reports. The access for the information is strictly maintained with all necessary protection required for enhanced security of systems and data.
Engineering Services
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Terminal Operations |
Its techno-savvy workshop and highly technical engineering services team have been credited with minimal breakdowns and pre-emptive maintenance measures which ensures smooth operations of the equipment even during inclement weather and harsh monsoons.
The in-house incinerator recycles the terminal’s waste, which is then used for greening the premises and making the environment less polluted.
Human Resource
NSICT’s superlative efficiency and high operational productivity has been credited to its dedicated workforce — 59% of whom are Project Affected People. Structured training and human resource management systems ensure employee welfare is in focus.
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DP World Nhava Sheva |
Employee Welfare is reflected in NSICT’s corporate social responsibility. It has adopted the Veer Wajekar educational complex at Phunde for providing enhanced facilities to children who come to study at this school from all the neighbouring villages.
Fully supported by, Jawaharlal Nehru Port Trust, NSICT is a maritime showcase for India’s public-private partnership. It is process-driven by a team which acknowledges that organizational discipline and operational excellence enhance customers’ satisfaction to customers’ delight.
Port Specifications
1) Berth
length : 600 m
2) Depth
Alongside : 13.5 m
3) Area
Ground slots -
5424 TEUS
Ground slots Rail
Yard - 224 TEUS
Reefer points (
415V, 3 Phase AC ) : 773 nos
4) Equipments
|
Sr. No |
Type of |
Description |
Quantity |
|
1 |
Single lift
post- |
Outer reach
from |
4 |
|
2 |
Single lift
super |
Outer reach
from |
4 |
|
3 |
Rubber-Tyred |
Stacking
width |
29 |
|
4 |
Rail-Mounted |