02 indian-dry ports

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UN-ESCAP

Committee on Managing Globalization(Third Session)

12-14 September 2006, Bangkok

Promoting Dry Ports as a Means of

Sharing the Benefits of Globalization

with Inland LocationsPresentation by Raghu Dayal

former Founding Managing Director of Container Corporation of India (CONCOR)

Asian Institute of Transport Development


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Regions Tryst with Destiny

RegionsResurgence

A global economic powerhouse GDP: US$ 9.4 trillion

60% of world population

30% of world exports

12 ofworlds20 mega cities

More than 45 ofworldstop 100 container ports

Worldsmanufacturing workshop for myriad consumer goods

Some of its economies recordingworldshighest growth rates

All-time high foreign exchange reserves

These are the best of times. For Asia-Pacific, times arepropitious.

Inexorable global thrust transforms economic and socialarchitecture of the region.

Contd


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Dynamics of Development

today demand a different mindset

Globalization implies unimpeded, free flow of goodsand people

Region will thus need to address towards integratedintermodal transport network

Globalization and internationalization of economicactivity is increasingly market-driven

Market recognizes no borders and respects nonationalities

contd


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Historical Handicaps

With a colonial pattern of primary structuremany ofour economies inherited skewed and underdevelopedinfrastructure, large chunks of territory and people inthe hinterland left out of the mainstream.

Unbridged rivers and other impediments impactedtransport facilities.

Emergence of independent states in South Asia,for instance, saw them get increasingly isolatedfrom one another. Distance between Dhaka andLahore increased from 2300 km to around 7200 km.

Land-locked countries in the region have beenseriously handicapped.

Contd


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These historical schemes and projects will help resolve

old anomalies, dissolve disparities

These new dreams enshrine a new vision and hope,

especially for some 800 million of our people seething

in abject poverty, in the quest for an inclusive growth,

pulling these people in the interiors to the economicmainstream


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Some 45 of Top 100 Container Ports in the Region


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State-wise

Status of

Accessibility


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District-wise

Incidence of

Poverty


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Dry Port : ICD/CFS: Rationale & Significance

Dryport is a yard used to place containers or conventional bulkcargo, usually connected to a seaport by rail or road. -

Wikipedia An ICD or a CFS, located away from a seaport, providing

facilities for cross-border trade in close vicinity ofproduction/consumption in hinterland, with linkages togateway ports.

A common user facility, for handling and temporary storage ofimport/export, laden/empty containers, for clearance by Customsfor home consumption, warehousing, onward transit, or export.

A CFS: generally on off-dock facility close to servicing port,helping decongest port by shifting cargo and customs-related

activities outside the port. Also set up inland for linkage to a regional rail-linked ICD and to

gateway port(s) by road.

In India, only 40 dry ports close to seaports; all others 137 inland.


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Important

Ports of India

Of all container traffic handled at major and intermediate ports in 2005-06, JN and Mumbai ports alone accounted for over 61%

KOLKATA

HALDIA

PARADIP

VISHAKAPATNAM

CHENNAI

ENNORE

TUTICORIN

COCHIN

NEW MANGALORE

MORMUGAO

MUMBAI

JN PORT

PIPAVAV

MUNDRA

KANDLA

DELHI


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Total Cargo and Others

at Major Ports: 2005-06

Total Cargo 423.41 m.t.

General Cargo 130.81 m.t.

Others 68.98 m.t.

Containerised 61.83 m.t.

Share of general cargo

vis--vis Total Cargo 30.9 %

Share of containerised cargo

in General Cargo 47.3 %___________Source: India Ports Association


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C t i T i l (ICD /CFS )


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Container Terminals (ICDs/CFSs):

Regional Tally

Region CONCORs Others Total

Northern India 15 22 37

Southern India 10 58 68

Western India 13 39 52

Central India 9 - 9

Eastern India 8 3 11

Total 55 122 177

21%

39%

29% 5%6%

Severe regional imbalancelikely to be addressed in yearsahead

Parts of eastern region nowagog with unprecedented

potential of economicactivity.

Look East policy tointensify trade andinvestment exchanges


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Institutional Framework: A Vital Factor

IMC (Inter-Ministerial Committee):

for appraisal and approval of applications forICDs/CFSs

Ministry of Commerce and Industry: nodal

agency,coordinating with Ministry of Shipping, Roads

and Highways; Ministry of Railways; Ministry ofFinance

IMC approval implies:

single-window facility for mandatory clearances,

payments, and incentives certification: presence ofCustoms, banks, shipping lines and agents, NVOCCs,

CHAs, transport operators.


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A feasibility study precedes the proposal for an

ICD/CFS

a copy of the study accompanies application a minimum critical mass a necessity: indicative norms:

for ICD: 800 TEU/month

for CFS: 150 TEU/month.

Legal and liability framework:

Multimodal Transportation of Goods Act, 1993

Refinement of Motor Vehicles Act

Single document of carriage for inland transportation

with clear liability and quick claim settlement terms.

Contd


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Public-Private Partnership

Consistent with countrys concerted strategy, towards

blending synergy and strength of state and private sectors

in finance, management and technology, PPP steadily

materialises in infrastructure sectors.

All recent container terminals at ports heralded PPP concept,

e.g., at JN port, Chennai, Tuticorin, Visakhapatnam, Cochin.

New large CFSs developed in PPP mode in collaboration

with CONCOR.

Intermodal rail networks developed as PPP projects, linkingGujarat coast ports by Pipavav Rail Corporation and Kutch

Railway Co.

Contd


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Public sector Central Warehousing Corporationgenerated an ingenious model for its CFSs beingmanaged and operated by private sector enterprises.

Several inland CFSs uniquely managed as public-public

partnershipCONCOR as a Central sector PSU joinedhands with many state warehousing corporations tooptimally manage and operate them.

Dry port development in India itself a good blend of

private sector and state sector: 108 of them set up bydifferent public sector corporations, 69 others by privatecompanies.

Some 14 private sector companies now registered withIR for owning rolling stock and operating containertrains in addition to CONCOR.

Contd


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Customs clearance made easy

Risk Management System (RMS) for selective screening of only

high-risk cargo for customs examination.

Faster delivery system by creating separate area in port premisesearmarked for instant delivery of cargo to specified accredited

importers.

Simplified procedure for amendment of IGM

Simplified customs procedure for transhipment between gateway

port and dry port (ICD/CFS). LCL carrying containers allowed movement from one CFS to

another CFS for final consolidation/stuffing.

Customs messages exchange with ports, airports, ICDs/CFSs,

CONCOR, banks and DGFT.

Facility of customs duty payment through more banks and via e-

banking.

24x7 operations.

T d f ili i d i


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Trade facilitation, cost reduction

Appropriate rail/road connectivity

Simplification, rationalisation of procedures/practices

Efficiency, productivity in handling, transportation, storage

Optimal utilisation of assets and manpower

Direct stuffing of commodities

Promoting factory stuffing / destuffing of containers: door-to-doortransit.

IT platform needs attention

- inter-linkages between concerned agencies and operators customs, shipping lines, ports, NVOCC/freight forwarders,customs brokers, banks, custodian, customers

online trace and track system

internet access, web-enabled, online data entry, online accountingand money transfer.

Security problems balanced with interests of trade

Contd


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Retrospect, Prospect

Indias container traffic aggregates just about 1% of global

container volumes; lately, it has been growing fast, and expected to

grow further exponentially.

11

16

22.7

0

5

10

15

20

25

Perce

ntage

2000-01 2005-06 2010-11

Share of Container Traffic at Ports Indias container traffic recorded a

14% CAGR during 1992-2005; overall

traffic at major ports rose at 7%

CAGR.

Containerisation share of about 11%of total cargo at major ports in 2000-

01 increased to 16% in 2005-06; this

share projected to rise to 22.7% by

2010-2011.

All ports container traffic projection envisages growth from 4.61mTEU in 2005-06 to 17.98m TEU in 2013-14 (15.10 m TEU at major

ports and 2.88 m TEU at new intermediateports).

Contd


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Hinterland potential for container traffic estimated to

be at least 70%; actual movement of full containers

from and to hinterland locations currently less than

35%.

Indicating gaps on account of infrastructural

deficiencies and delays.

Rail-borne container movement between ICDs andgateways currently in 32% range; an optimal ratio at

least 50%.

For want of adequate port infrastructure, overwhelming

volumes traverse other regional ports like Colombo,Singapore, Dubai/Salala with resultant additional

cost and transit time.

Contd

d d


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It is essential that seaports and dry ports:

constantly improve efficiency and productivity through entiresupply chain

enhance capacity for intermodal transfers and transit

expedite programmed road and rail connectivity projects for ports

operate double-stack container trains on north-west rail axisearliest.

Reduction in transaction costs remains paramount necessity:

optimise productivity throentire logistics chain at ports, inlandterminals, during transit

simplify pre-carriage, post-carriage documentation and procedures

implement EDI for full interconnectivity among differentstakeholders, service providers, and regulatory authorities.

Explore and cater for vast potential of containerisation ofdomestic cargo conducive to better utilization of terminalfacilities and equipment as much as energy and environmentconservation.

M i M W C Wi h US


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Main Message We Carry With US

- Region has some unique success stories-relevant and timely

- There are several lessons to be learned from each other. Noneed to keep inventing the wheel.

- India has been involved in developing an extensive dry portnetwork, mostly linking interior centers with gateways,through

- low cost terminals on modular pattern

- increasingly rail-borne intermodal traffic, set up speedily,

equipped with simple system and practices;- active involvement of stakeholders-trade and industry,customs, ports, airports, shipping lines, airlines, railways,roads, customs brokers, transport operators.

Contd


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A i I i f T D l


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Asian Institute of Transport Development

Set up in November 1989, Asian Institute of Transport

Development (AITD) is an autonomous, non-profitinstitution engaged in research, studies and training in aninter-disciplinary perspective in the area of infrastructure withfocus on the transport sector.

Regional Linkages

Has a membership of 14 countries mostly from South and South-East Asia.

Has been granted special consultative status by the UnitedNations.

MoU with UNESCAP to collaborate in research programmes,

seminars, technical workshops and publications. Founder member of the Asia-Pacific Network for Transport and

Logistics Education and Research (ANTLER), established byUN-ESCAP.

02 indian-dry ports

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