Government is serious to increase the reach of “Direct Port Delivery” model by 40%

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The Logistics Headlines, New Delhi, 5th Feb 2017 : The Union Government has asked major ports for implementing Direct Port Delivery (DPD) system, initially to Accredited Client Programmers (ACP). The purpose is to offer additional clearance and storage space for DPD containers that were earlier moved through CFSs.  The plans are to increase the DPD consignments by 40 percent by end of this month for improving India’s ranking in “ease of doing business”.

DPD has Overwhelming Advantages to Traditional CFS Model, Tells Report

In the past, it was the Container Freight Stations (CFSs) where the import containers were sent. The process took at least one to one and a half days after arriving in vessel. Then it was upon the import clearances and procedures with custom house agents, consignees, CFS operators, customs, and shipping lines to decide the completion of all import formalities.

The dwell time consumed 9 to 10 days, but with DPD, now importers can deliver the cargo to end-users faster within no time. APM Terminals Mumbai is India’s busiest container terminals to have adopted Direct Port Delivery service in its journey to enhance access of the nation in global logistics chain.

DPD will result in significant savings of money and time for importers, as it will reduce the container dwell time latter to vessel discharge. TEUs are also showing an increased trend through DPD, which was highest (1401) in the past one year.

JNPT Takes the Lead in Direct Port Delivery System

When it comes to DPD, JNPT (Jawaharlal Nehru Port Terminal) is proficient in delivering containers to terminal gate from yard in just about 36 hours, in contrast to several days taken through CFS system. This quickness of delivery is similar to international standards as seen in Singapore Port. JNPT is India’s largest container port, ranking in top 30 worldwide.

Two agencies are now in charge for reducing time and cost for exports and imports, as a part of chalked eight-point-strategy, which was chaired by the Finance Minister, Arun Jaitley on 19 December 2016.

In the World Bank’s annual ranking for Doing Business, the nation moved up to just one notch (130 from 131) in a 2017 survey. JNPT’s DPD facility now caters to 15 ACP clients and 42 customers. Mr. K Ravichandran (Senior Vice-President and Co-Head, Corporate Ratings, ICRA), said that CFS can be valuable yet if the business model is tweaked to suit the interest of importers.

Initiatives Taken By the Government to Facilitate DPD

Steps are being taken to better the infrastructure at parking lots for conducting faster customs process. The government is interested to boost the direct port entry model for as many factories as possible. Programs for developing central parking plazas are to be rolled in so that customs and terminal operators ensure direct delivery for all cargos without having to route those via CFS.

The CFS model will however take a setback, but DPD will surely reduce congestion at ports, with lot many other benefits. Efforts by Government will be seen in amending bills (to make those simpler) for entry (post clearance) for direct port delivery importers. Currently, the filing of amendments to bill of entry will take some time to manifest and receive an approval.

Suggestions direct to JNPT, which ask it to earmark areas for DPD examinations for a smooth flow of delivery. Another measure is to enable 24*7 DPD cell consisting of customs that will provide services for handing issues linked to clearance of DPD containers.

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