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JNPT is constantly innovating and up-scaling operations to not only meet but exceed global benchmarks - Anil Diggikar (IAS), Chairman, Jawaharlal Nehru Port Trust (JNPT)
What is the current status of JNPT among all major ports in the country?
JNPT has maintained its premier position in container handling, by achieving a throughput of 4.49 million TEUs during FY 2015-16, with a capacity utilisation of over 97%. The port has handled over 55% of the total volume of container handling by all major ports in the country. For the month of August 2016, it has handled 3,77,155 TEUs and JNPCT, the Port owned container terminal, handled 1,31,401 TEUs with registering a growth of 1.85% and 12.71% over last year, respectively. The Inter Terminal transfer of Tractor Trailer has achieved the highest monthly transfer in July by registering a total of 21,581 trucks availing this facility with completing 27,134 transactions. The Port is connected to over 300 ports in the world and is connected with 33 CFSs & 50 ICDs destinations. We are working a lot in developing the port as congestion free area and have lined up expansion plans for creating mega infrastructure facilities.
Recently, you have initiated to raise a huge sum for port-led expansion plans. Tell us more about that?
JNPT has signed an agreement with State Bank of India and Development Bank of Singapore for External Commercial Borrowing (ECB) to the tune of USD 400 million at a very competitive interest rate to improve the infrastructure required for doubling its existing annual capacity. The ECB of USD 400 million (USD 300 Million from the SBI & USD100 from DBS) will be primarily utilised by the JNPT, which has US Dollar denominated foreign currency earnings which can be leveraged for a low cost foreign currency borrowing, for expansion of its existing roads network connecting to its port project as the existing road network for evacuation of traffic is currently operated at a capacity utilisation of 100%. The agreement with the SBI & DBS was signed by our office in the presence of the Shipping Secretary Rajive Kumar after the Reserve bank of India granted approval to JNPT for raising USD 400 million with an end use of on-lending to Mumbai JNPT Port Road Company Limited (MJPRCL) for implementation of road project. The rate of ECB loan of 2.025% plus Libor USD6M (approximately 3.15%) which is cheaper than any other Indian currency loan. The funding by JNPT is the first of its kind for major ports and it opens up one more avenue for major and government ports to raise funds by accessing international markets for their requirements. The project will primarily benefit and cater to the needs of JNPT and an improved connectivity is essential for traffic evaluation from JNPT. It is of great significance to JNPT and will give a boost to the country’s economy. This project will cater to the additional cargo which will be handled at the 4th Container Terminal. JNPT is going to double its capacity in the next seven years. This evacuation corridor would help in supporting the EXIM trade besides providing economic opportunity to the local region.
How have you managed to de-congest the traffic on JNPT roads, thereby helped the trade to move into their destinations in time?
The congestion is a passe’ now. The last two years, and especially this ongoing year, has been a great journey for the EXIM trade. The once considered as an over-crowded traffic at JNPT, few years back, has transformed itself as a smooth ride for the cargo truckers, regular commuters and local people. We have invested a lot of energy and resources to make sure the roads give the trade a clear destination. JNPort has introduced Inter Terminal Movement of Tractor Trailers (TTs) between three terminals, which has resulted into cutting at least 7.5 km of movement on the road. The Port has allotted two dedicate parking plots of 6 hectares each to private terminal operators- APMT & NSICT to be used as a ‘holding area’, in order to ensure that factory stuffed containers are objectively streamlined. It is also developing a centralized parking plaza covering 45 hectares which can accommodate about 2,000 TTs. In order to improve the port connectivity, NHAI has fastened the process to widen the roads of NH-4B (from the Port up to Mumbai-Pune Expressway) from two-lane to four-lane. Recently, we have encouraged a lot of container movement from road to rail by enabling a rebate of Rs. 728 per TEUs.
What are the recent initiatives augmented at the port to smoothen as well as enhance Exim trade?
JNPT has been responsibly implementing ‘Ease of Doing Business’ initiatives, guided by Government of India that is a step forward for the success of ‘Make in India’ Program. The Port has become the front runner, among all major ports in the country, to implement all those initiatives that are focused towards reduction in documentation, time and cost, and ultimately boost the trade. 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 facility to all ACP clients without any minimum criteria, creation of two dedicated parking plots of 6 hectares each for two terminals, setting up of single-window clearance laboratories and container tagging system, et al. There are 14 such initiatives that are shaping up well at the port and we are sure JNPT can bring an immense transformation in the EXIM trade.
What kind of results such initiatives are bringing for the traders? Are you also chipping in modern technologies for operational efficiency?
Swifter accessibility to port, faster procedures to move cargo, de-congesting of road traffic, smoothening of transporters’ movements, initiating to go paper-less, implementing newer technologies, and so on. We are promptly addressing issues of EXIM traders and facilitating them with the most appropriate solutions. JNPCT, which is owned by JNPT, has recently undertaken several modernized initiatives that are bearing fruit for the trade. The Port has replaced its old 1989 make Rail Mounted Quay Cranes (RMQCs) by installing 6 new RMCQs with twin lift shifting facility. It has shifted 3 old RMCQs from its main container berth to shallow water berth. To strengthen its yard operations, the Port is in the process of acquiring 15 new e-RTGCs which are expected to be operations by 3rd quarter of next year. It is also developing a dedicatd berth for coastal vessels near its landing jetty and is in the process of enhancing its Refer yard capacity from 320 refer points to 576 points.
Tell us more about the recently implemented containerized tagging initiative? How will it help the traders locate their containers?
JNPT has implemented logistics data bank tagging of containers for the first time, among all major ports in the country. This will help importers & exporters track their goods in transit through logistics data bank service. A Radio Frequency Identification Tag (RFID) would be attached to each container to track through RFID readers installed at different locations. It will bring ‘visibility’ and ‘transparency’ of the EXIM Container Movement by covering the entire movement through rail or road till the Inland Container Depot (ICDs) and Container Freight Station (CFSs).
How are you bringing digital transformation in the port? Do you aim to go paper-less for the benefit of the trade?
We are very much concerned of our trade partners’ time and paper hassles. And hence, we have decided to go paper-less. Initiatives such as - switching over to e-platform for all its commercial procedures are likely to bring great amount of transparency and swiftness. Further, the prominent step towards it is being the replacement of Form-13 & Form-11 with web-based entry system for Gate-in & Gate-out. In fact, all Shipping lines have implemented the issuance of e-Delivery Orders instead of manual handing over of Delivery Orders to CHAs & CFSs, to save time and cost for the trade. One more initiative towards process automation by JN Port is the replacement of daily pre-berthing meetings between port and Shipping lines by an online berthing / un-berthing facility.
How has the Direct Port Delivery facility helped traders in reaching out their destinations?
The Port has initiated at its JNPCT terminal to facilitate Direct Port Delivery (DPD) to all ACP clients without any ceiling since February 2016 which was followed by other two terminals in May 2016. By eliminating the minimum volume criteria for availing of DPD facility, the Port has witnessed a sharp rise in clients’ numbers to 39 than its previous 11 members in February 2016. This facility has phenomenally resulted into reduction of Import dwell time from the earlier 9-11 days to just 1.5 days now. What’s more, the trade has been saving close to ` 40,000 per TEU in transaction, inventory and container detention cost. JNPT has the facility to accommodate all the eligible clients and expects maximum ACP clients for the same.
What are your upcoming mega plans that will berth you a place into the World Ports arena?
In line with the Government of India’s inclusive growth program, JNPT has planned to invest in creating world-class infrastructure facilities combined with bracing innovative technologies, encouraging cleaner environment and supporting social upliftment. JNPT is in the process of creating the 4th Container Terminal, which is the biggest FDI project in Port sector, with an investment of Rs. 7915 crore. The Terminal, awarded to an SPV of Port of Singapore Authority and BMCTPL, will develop 2 km of Jetty in 2 phases by November 2017 and November 2022 respectively and would have handling capacity of 4.8 million TEUs. The other plan is to deepen the harbour channel from 14 mtrs to 15 mtrs to cater bigger vessels at an estimated cost of Rs. 2,029 crore. Our forward vision includes setting up of a new port at Wadhavan. This all-weather Satellite port is a Joint Venture of Maharashtra Maritime Board and Jawaharlal Nehru Port. It would be developed in a phased manner. Once the project is completed, it could be having more than 100 million tons of annual cargo handling capacity with 14 to 15 terminals. The total project could be about Rs. 10,000 crores. This port is being developed as an International Port which would cater to all future vessels with International standards. This new port would have 20 meters 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 in Wadhavan and the other in Jalna - both in the state of Maharashtra, in India to boost industrialisation, trade and commercial activity in the region.
Are you exploring global tie-ups to expand your presence?
To strengthen India’s International footprint, JNPT has joined hands with Iran’s Chabahar Port to develop Port-based infrastructure in Iran that will further open trade opportunities for both nations through India Ports Global Private Limited (IPGPL), which is an SPV of JNPT and Kandla Port. Recently, IPGPL has signed an MoU with the Inland Waterways Authority of India to be the implementing agency for the Kaladan Multimodal Transit Transport Project in Myanmar.
How have you sustained natural ecosystem for next generation?
Along with building port capacities to boost the EXIM trade in the country, JNPT is committed to build a strong sustainable business that endeavors to conserve the environment. JNPT is working toward a sea change with its Green Port initiative based on sustainability principles. This initiative protects coastal area growth and preserves life support systems. As environmental protection has been an integral part of JN Port’s working principles, more than one third of the Port area, over 900 hectares of natural and planted forest & mangroves are regularly being maintained by the Port management. In order to utilize natural resources, JNPT has set up to produce 25 MW of solar power energy for meeting its internal power demand. Another plan of development of dedicated coastal berth by 2017, would help in further reduction of carbon footprints through scaling down of the fuel cost and in decreasing load from the road. As India’s leading container port, JNPT is constantly innovating and up-scaling operations to not only meet but exceed global benchmarks with an underlying commitment to provide seamless customer service and ease of doing business.
