Beruflich Dokumente
Kultur Dokumente
PROJECT REPORT
On
“A Study of Initiatives taken by JNPT to promote Ease of
Doing Business”
Submitted by
Mr. YATISH SANTOSH PATIL
In Partial fulfilment of
Masters of Management Studies (MMS)-Operations
University of Mumbai
2017-18
ACKNOWLEDGEMENT
The idea of this case study was mooted by the World Bank’s Doing Business report and I am
extremely grateful to Mr. S.S Gaikwad (Assistant Manager PEM, JNPT) and Mr.
Chincholkar (Assistant Manager -Traffic, JNPT) for taking a keen interest in the study,
providing all necessary support and co-operation and giving me their valuable inputs all the
way through.
My internship at JNPT, Mumbai proved to be highly productive and insightful.
I have benefited enormously from the cooperation and support extended to me by the officials
at JNPT in carrying out this study. In particular, I must mention the names of
Mr. Jose K Joseph (Superintendent of PEM, JNPT), Mr. Jayasekaran (Superintendent of
Planning Department). During my visit, I also had very productive discussions with Mr.
Gowirle (Assistant Engineer) and Mr. Sugam Thakur (Assistant Engineer). I thank them all
for sparing their valuable time to share with me their views and experience working with
JNPT.
Finally I would like to thank Mr. Sandip Patil of (DPD Department, JNPT) who was
responsible in getting me this internship
Any errors or omissions remain my sole responsibility.
Table of Contents
1. INTRODUCTION............................................................................................................................. 5
1.1 Background ................................................................................................................................. 5
1.2 Ease of Doing Business’ in respect of ‘Trading Across Borders’. .......................................... 6
1.3-Ranking methodology for ‘Trading Across Borders’ indicator and India’s ranking .......... 7
1.4-Sensitivities of the various restrictions presently in place ....................................................... 8
1.5. The Indian Port Industry .......................................................................................................... 9
2. CASE STUDY OF JAWHARLAL NEHRU PORT TRUST, MUMBAI ..................................... 9
2.1 Nature of Cargo handled at JNPT Port .................................................................................. 10
3. INITIATIVES TAKEN BY JNPT TO PROMOTE EASE OF DOING BUSINESS ................ 11
3.1 Faster and Economical Operations ......................................................................................... 12
3.1.1 Direct Port Delivery ........................................................................................................... 12
Direct Port Entry (DPE) ensures unhindered entry for export Containers. ............................. 13
3.1.2 Inter Terminal Movement of Tractor Trailers ............................................................... 14
3.1.3 Development of Parking Areas ......................................................................................... 14
3.1.4 New Evacuation Corridor ................................................................................................. 16
3.1.5 Movement of Containers by Rail ...................................................................................... 16
Movement of containers by rail to reduce congestion on roads.................................................. 16
3.1.6 Installation of Additional Container Scanners ................................................................ 17
Radiological Detection Equipment (RDE) helps faster evacuation of corridors. ...................... 17
3.1.7 Setting Up of laboratories for speedy clearance .............................................................. 17
3.2 Digitization and Automation .................................................................................................... 17
3.2.1 Abolition of manual form-13 and form-11....................................................................... 17
3.2.1 Implementation of RFID ................................................................................................... 18
3.2.2 E-Delivery Orders .............................................................................................................. 18
3.2.3 Integration of IGM Filing System with Terminal Operating System ........................... 18
3.3 Transparency & Trade Empowerment................................................................................... 19
3.3.1 Disclosure of Tariffs by Shipping Lines and CFSs ......................................................... 19
3.3.2 On-line Berthing / Un-Berthing ........................................................................................ 19
3.3.3 Creation of Logistic Data Bank for Tracking of Containers ......................................... 19
3.4 Impact of Initiatives .................................................................................................................. 19
4. FUTURE PLANS/ONGOING PROJECTS ................................................................................. 21
4.1 Capacity Addition: .................................................................................................................... 21
4.1.1 Development of fourth container terminal ...................................................................... 21
4.1.2 Development of Coastal Birth ........................................................................................... 21
4.2 Road Connectivity: ................................................................................................................... 21
4.2.1Development of Fly over in port area at Y junction ........................................................ 21
4.2.2 Widening of NH 4B, SH-54 and Amra Marg to 6/8 lanes .............................................. 21
4.3 Modernization: .......................................................................................................................... 22
4.3.1 Development of infrastructure in Port based Multi product SEZ at JNPT ................. 22
4.3.2 Restructuring of container Yard for optimal yard utilization ....................................... 22
4.3.3 Development of integrated centralized parking plaza .................................................... 22
4.3.4 Development of common Rail yard inside Port ............................................................... 22
4.3.4Modernization of cargo handling equipments RTGCs .................................................... 22
4.3.5 Development of Dry Port at Wardha ............................................................................... 22
4.3.6 Solar Power projects (25MW) .......................................................................................... 22
4.3.7 Development of Dry Port at Jalna .................................................................................... 23
4.4 Dredging: ............................................................................................................................... 23
5. JNPT STATISTICS ........................................................................................................................ 24
1. INTRODUCTION
In recent years, the ease of doing business (EDB) rank has become one of the most widely
watched and discussed statistic in Indian policy economic policy circles and more so in India
over the last year. It is often been cited by our Prime Minister Narendra Modi after he was
elected in May 2014.
More crucially he has stressed his goal of raising India’s ranking to within the top 50.
Ensuring sustainable growth stays high and above 8% has become one of the goals of top
policymakers in many countries. A better EDB rank is seen as a critical factor in achieving
this goal.
1.1 Background
‘Doing Business’ (DB) Report published every year by World Bank is one of the best
available compilation of international indicators that compares the ease and cost of doing
business in most countries. It provides very good indicators for measuring and comparing the
Business Processes adopted by various countries in the field and can also be used for
assessing the results of any process improvements undertaken by any country over a time.
The DB Report compares and ranks various countries on the ease of doing business index on
the following indicators, namely, (i) starting a business, (ii) dealing with construction
permits, (iii) getting electricity, (iv) registering property, (v) getting credit, (vi) protecting
minority investors, (vii) paying taxes, (viii) trading across borders, (ix) enforcing contracts
and (x) resolving insolvency. DB Report also measures labour market regulation, but that
indicator is not included in the rankings of DB 2018 Report. In this report, however, we are
dealing only with the ‘Trading Across Borders’ indicator of the DB Report.
Doing Business (DB) 2018 Report ranked 189 economies on measures and regulations
affecting 10 areas relevant to a business. India’s ranking in DB 2018 Report is 100 which is a
decline of 30 places as compared to DB 2017 Report.
It is well established that higher levels of Trade activities give a boost to the economy, create
wealth, provide employment and lead to improved standards of living. Therefore, it is
imperative for any country that aspires to benefit from the Trade activities and have a larger
share of the World trade, to improve its trading environment and facilitate trading.
Historically, India was the largest Trading country in the World and Indian goods were traded
all across the globe, bringing in wealth and gold in exchange for the goods exported by
Indian craftsmen. As such, India owed its wealth to its International Trade. However, in
recent times India has come down from the heights it had achieved in its glorious past and
presently India’s total share in global merchandise trade is only 5 %. If India has to regain its
lost glory, then not only will it have to improve the quality and competitiveness of its
manufactures but also improve its trading environment and make it easy for the entrepreneurs
to import raw materials and capital goods, wherever required, and export their value added
and finished products. In short, we have to improve the ‘Ease of Doing Business’ in respect
of ‘Trading Across Borders’.
This report identifies issues that impact our trading environment and proposes actionable
recommendations for improving ‘Ease of Doing Business’ in India, in respect of ‘Trading
Across Borders’ indicator, in order to improve India’s trading competitiveness. The report
focuses on making recommendations that will simplify trading procedures and cut down
transaction costs and time. These recommendations are based largely on process
simplification, weeding out of unnecessary documents, integrating and automating
procedures across the Departments/Agencies involved and to minimise human interface, with
24x7 online operations and handling of consignments.
‘Trading Across Borders’ component of ‘Doing Business’ 2018 Report ranks India 146 out of
189 economies. The ranking for ‘Trading Across Borders’ indicator is done by the World
Bank on the basis of 3 parameters, namely (i) Number of documents required for
Export/Import, (ii) Time taken in the process of Export/Import and (iii) Cost of
exporting/importing a consignment. The report mentions that in India (Mumbai) exporting a
standard container of goods requires 7 documents, takes 16 days and costs US $1120.
Importing the same container of goods requires 10 documents, takes 20 days and costs US
$1250.
The World Bank has arrived at its findings on the basis of export/import taking place at JNPT
Port, Mumbai. The items of export and import considered by the World Bank for their Report
were 'Textiles - Readymade garments' for exports and 'Electronic items - Mobile phones' for
imports.
The DB 2018 Report mentions India’s ranking in 2017 as 132, whereas the DB 2017 Report
mentioned India’s ranking for this indicator in the year 2017 as 142. This seeming
discrepancy has happened as the World Bank has changed the criteria for deciding the
rankings this year (DB 2018). Since DB 2017 report ranked India in ‘Trading Across
Borders’ on 142, whereas DB 2018 Report ranks India at 146, apparently there should have
been a jump of 6 ranks in India’s ranking. However, on account of changed methodology
there is a decline of 4 ranks from 142 in year 2017 to 146 in DB 2018.
1.4-Sensitivities of the various restrictions presently in place
The Committee, while fully appreciating the urgent need to simplify and rationalise the
various import and export related processes and reducing the number of documents, was also
sensitive to the fact that many of the restrictions or processes that are in place today were
introduced with an apparently good reason, in order to safeguard certain national interests.
There are certain areas and aspects like health concerns, food safety related issues,
environmental hazards, terrorism and security related threats etc. which cannot and must not
be ignored or compromised in our zeal and eagerness to improve DB ranking. India faces
threats that are typical in nature for our country, on account of our geo-political sensitivities
(e.g. terrorism related) or climate, environment, health related vulnerabilities. These issues
become especially important when dealing with the imports. We simply cannot afford to
compromise on safety and security of the country and let our guard down as importation of a
deadly virus (Ebola, bird flu etc.) or a dangerous weed may wipe out our entire poultry, live-
stock or take heavy toll of human lives or destroy our agricultural crops. While a risk
assessment based Risk Management System (RMS) may be acceptable for Customs as the
only risk involved is that of loss of revenue, which may be recovered/compensated by heavy
penalty and larger benefits of faster clearance of goods, the same would not be the case where
serious environmental or health issues/risks are involved.
Among the 12 major Indian ports, the Jawaharlal Nehru Port Trust (JNPT) occupies a place
of prominence. Commissioned in 1989 and located within the Mumbai harbour on the west
coast of India, JNPT is the second youngest and one of the most modern major ports of the
country. Certified an ISO 9002 port, it was initially planned to be a “satellite port” to the
Mumbai Port with the purpose of decongesting traffic at the latter. Being one of the oldest
ports in India, the Mumbai port was proving to be structurally inadequate to meet the
requirements of modern cargo handling. Shallowness of the channel, congestion of roads and
railways through the Mumbai city linking the port to its hinterland, as well as labour
problems, including over-manning, were among the major problems ailing the Mumbai Port
in the pre-reform days. As a result, the Port was simply incapable of handling the expanding
volume of modern cargo directed to the west coast and there was an urgent need for a new
port in the Mumbai region, which eventually led to the birth of JNPT in 1989.
The port was completed at a cost of Rs. 1,109 crores, out of which Rs. 956.97 crores were
obtained as loans from various funding agencies, with the World Bank being one of the major
contributors.
Although JNPT was initially being planned as a “satellite port” to Mumbai under the Mumbai
Port Trust, eventually however, the JNPT was developed as an independent port on its own
right and it became the country’s largest container port, presently handling about 60% of
India’s container cargo. JNPT is the 36th largest container port in the world. The land area
in possession of the JNPT measures 2,584 hectares with enough back-up area ideally suited
for developing additional facilities for future maritime requirements of the country.
Equipped with modern cargo handling facilities among major Indian ports, JNPT started
operating with two dedicated terminals, one for handling import and export of containerized
cargo, with 8 container freight stations, and the other for handling dry bulk cargo. JNPT has
also been a pioneer in running its day-to-day operations with the help of information
technology (IT), including Electronic Data Interchange (EDI) and vessel traffic management
system (VTMS). JNPT enjoys very good road and rail linkages with its hinterland as well as
important business centers like Thane, Nasik and Ahmedabad, which facilitate excellent port
industry interface. JNPT is also characterized by highly automated and round-the clock
operations and has demonstrated enough potential and capacity to develop as India’s first
major hub port.
At the time of its inception, JNPT was equipped with modern container and bulk handling
facilities, with a separate terminal dedicated to each type of cargo. In particular, the container
terminal of 680 meter quay length (three berths) was designed and equipped to handle large
container vessels. JNPT was also provided with adequate liquid cargo berth, shallow draft
berth and multipurpose berths.
Moreover, compared to most other major Indian ports, JNPT enjoyed better communication
through intensive use of IT. Right from its inception, it has made ample use of the container
tracking and management system as well as the vessel traffic management system (VTMS).
The port also has the most advanced Electronic Data Interchange (EDI), which ensured
unhindered and efficient interaction between the port, the port users and the customs.
Better connectivity of JNPT with its hinterland, which facilitated faster clearance of cargo
from the port, was ensured by close proximity to National Highways 4B and 17 and other
state highways that directly link JNPT to Thane, Nasik and Ahmedabad. The port also
enjoyed road connections with 23 inland container depots (ICDs) as well as with the Konkan,
Central and Western railway systems. The primary mode of container cargo movement was
through road, but railways, operating through the Container Corporation of India
(CONCOR), also accounted for about 33% of the same.
As India’s leading container port, JNPT is constantly innovating and up-scaling operations to
not only meet but exceed global benchmarks with an underlining commitment to provide
seamless customer service and ease of doing business.
During recent years, JNPT has taken a number of initiatives for faster and economical
operations along with automation that has helped in streamlining the processes and helping in
reduction of cost, time and documents and thus making it easier for clients and partners to
business with JNPT. To bring more transparency in the operations for the logistic chain we
share all the relevant information about the Port and other stakeholders with the trade, and in
the process empower the trade in making the right business decisions.
The port has various initiatives in place for faster business processes leading to reduced
transaction time and economical services.
To reduce the transaction costs, TTs have to pay just ₹. 60/- for 8 hours of parking instead of
routing the cargo to buffer yards with higher costs
RFID tagging at holding yards making TT’s entry smooth and direct to JN Port
Exporters can now plan their cargo movements in a better way, saving time and fuel costs,
thereby reducing pollution and congestion. This has led to decongestion of port roads and
gates.
Cost per TEU in transaction, inventory and container detention has reduced substantially with
a net saving of Rs. 10,000/- to Rs.20,000/-
Import Dwell Time has reduced drastically to just 1.5 days from the earlier 7-8 days
Elimination of minimum volume criteria has increased DPD users from a mere 11 to 778 in
just one year, which caters to almost 60% of total import duty
To facilitate 'Modal Shift', JNPCT has equalized the rates for containers moving by rail and
road
In keeping with international safety standards, JNPT is the only Port in India to install RDE
for screening containers, promoting a hassle-free inspection and evacuation of cargo
With this, JNPT has become 100% secure in complete scanning of hazardous materials
To reduce scanner detention time and speedier evacuation of containers, JNPT is installing
additional 3 container scanners at a cost of ` 150 crore
4.4 Dredging:
Deepinging and widening of Mumbai Harbour channel and JN Port Channel (Phase II)
The capital dredging project for deepening and widening of (Phase II) from 14 Mtrs to 15
Mtrs draft is under consideration by the Ministry of Shipping, which will enable berthing of
vessels of 12,500 TEUs capacity by using tidal window. The estimate project cost is
Rs.1963.17 crores. The work is awarded in March 2017. The work is commenced from 2-09-
2017 and is in progress.
5. JNPT STATISTICS
The Jawaharlal Nehru Port Trust (JNPT) at Navi Mumbai (formerly known as the Nhava
Sheva Port) is India’s largest containerized port handling 55% of the containerized cargo
across all major ports in India. Commissioned on 26th May, 1989 the port has evolved from
being a single government owned terminal to a world class facility with four terminals.
The recently added fourth terminal at JNPT is expected to double its capacity to about 10
million TEUs by 2022.
Already, by the end of February 2018, the total container traffic handled by JNPT has crossed
97% of the traffic handled last year. The turnaround time of the ships calling at JNPT will
also be much faster because the new terminal can accommodate mother ships given its deep
draft, longer quay length and cranes for handling bigger ships. Along with the successful
implementation of DPD by JNPT, this newly added infrastructure is expected to give a much
needed fillip to faster clearance of cargo enabling the country to meet the commitments made
in the National Action Plan under TFA.
(in TEU)
JNPT 2016-17 2017-18
Container JNPCT NSICT APMT NSIGT JNPT JNPCT NSICT APMT NSIGT BMCT JNPT
Traffic port PL port
Total Total
Vessel 7,63,521 316,846 942,634 227,485 22,50,486 674,942 233,005 993,042 292,421 4,382 21,97,79
Discharge 2
Vessel Load 7,43,490 403,567 842,579 215,553 22,05,189 662,088 349,464 852,784 272,786 5,998 21,43,12
0
Transhipme 26,964 8,147 7,290 2,073 44,414 32,941 6,154 13,340 7,559 60 60,054
nt
Total of 15,33,975 728,560 1,792,503 445,111 45,00,149 13,69,97 588,623 18,59,16 572,766 10,440 44,00,96
Terminal 1 6 6
CONTAINER TRAFFIC (TEU)
5000000
4500000
4000000
3500000
3000000
TEUs
2500000
2000000 CONTAINER TRAFFIC
(TEU)
1500000
1000000
500000
0
89-90
91-92
93-94
95-96
97-98
99-2000
2001-02
2003-04
2005-06
2007-08
2009-10
2011-12
2013-14
2015-16