JNPT’s latest tender call to CFS to take DPD to the next level

03 Apr 2017 CW Staff

Key tender criteria to apply fixed cost by all CFS.
A move to overcome initial issues of congestion and time limitations.

JNPT’s (Jawaharlal Nehru Port Trust) latest plan of tender calling out last week to all Container Freight Station (CFS) operators could prove to be a respite for businesses that suffered initial hit from the Modi Government’ latest initiative – Direct Port Delivery (DPD). The new plan offers CFS operators to bid directly to operate under the new regime.

Brijesh Lohia, Managing Director, Global Ocean Group, says, “Although the introduction of DPD is deemed to prove highly favourable for importers, the limitations such as dispatching within 72 hour time-frame and congestion at the port has steered to question if our ports are ready for the DPD model.”

To begin with, under DPD model, JNPT appointed one single CFS where all goods were offloaded and stored. But in an initiative to iron out early issues encountered since inception, the tender call which might select up to 10 CFS will facilitate importers with warehousing options and resolve congestion problems at the port. Another great benefit would be the cost cutting as the key criteria of the tender, as it will allow one fixed cost of handing to be charged by all CFS operators, as contrasted with inconsistent rates charged earlier.

Also, as per the initial DPD policy, it was intended to facilitate direct transfer of goods from port terminal to importer, as a result completely eliminating the presence of CFS - port warehouses where the cargo is stored after the shipment has reached the port. Even the custom clearance would take place before the shipment reaches the CFS, further contributing towards time saving.

“Previously when vessel use to arrive at JNPD, it usually took dwell time of up to nine days for delivery, so the time lapse has far been a major issue for importers with urgent deliveries.” adds Lohia.

Prior to introduction of DPD regime, goods were stalled at CFS for couple of days for customs clearance but now customs authorities grant green channels to certain agencies based on past performance, therefore fast-tracking the process leading to the deliveries, which are now possible in 48 hours.

“The process also helps cut-time and costs as earlier goods that were held at CFS would cost up to Rs 15,000, but now with DPD in place it usually does not go beyond Rs 7,000,” Lohia says.

Direct Port Delivery (DPD), a globally popular concept, has been introduced by Jawaharlal Nehru Port Trust (JNPT) in India last December with Nhava Sheva port on the outskirts of Mumbai, necessitates the delivery of a shipment from the port to the consignee instead of initially holding it at a container freight station (CFS) has so far proved to be beneficial to most registered importers. However, among the 778 registered importers, several big companies have experienced hiccups in the operations due to constraining policies under the model, as per the latest reports.

Key tender criteria to apply fixed cost by all CFS. A move to overcome initial issues of congestion and time limitations. JNPT’s (Jawaharlal Nehru Port Trust) latest plan of tender calling out last week to all Container Freight Station (CFS) operators could prove to be a respite for businesses that suffered initial hit from the Modi Government’ latest initiative – Direct Port Delivery (DPD). The new plan offers CFS operators to bid directly to operate under the new regime. Brijesh Lohia, Managing Director, Global Ocean Group, says, “Although the introduction of DPD is deemed to prove highly favourable for importers, the limitations such as dispatching within 72 hour time-frame and congestion at the port has steered to question if our ports are ready for the DPD model.” To begin with, under DPD model, JNPT appointed one single CFS where all goods were offloaded and stored. But in an initiative to iron out early issues encountered since inception, the tender call which might select up to 10 CFS will facilitate importers with warehousing options and resolve congestion problems at the port. Another great benefit would be the cost cutting as the key criteria of the tender, as it will allow one fixed cost of handing to be charged by all CFS operators, as contrasted with inconsistent rates charged earlier. Also, as per the initial DPD policy, it was intended to facilitate direct transfer of goods from port terminal to importer, as a result completely eliminating the presence of CFS - port warehouses where the cargo is stored after the shipment has reached the port. Even the custom clearance would take place before the shipment reaches the CFS, further contributing towards time saving. “Previously when vessel use to arrive at JNPD, it usually took dwell time of up to nine days for delivery, so the time lapse has far been a major issue for importers with urgent deliveries.” adds Lohia. Prior to introduction of DPD regime, goods were stalled at CFS for couple of days for customs clearance but now customs authorities grant green channels to certain agencies based on past performance, therefore fast-tracking the process leading to the deliveries, which are now possible in 48 hours. “The process also helps cut-time and costs as earlier goods that were held at CFS would cost up to Rs 15,000, but now with DPD in place it usually does not go beyond Rs 7,000,” Lohia says. Direct Port Delivery (DPD), a globally popular concept, has been introduced by Jawaharlal Nehru Port Trust (JNPT) in India last December with Nhava Sheva port on the outskirts of Mumbai, necessitates the delivery of a shipment from the port to the consignee instead of initially holding it at a container freight station (CFS) has so far proved to be beneficial to most registered importers. However, among the 778 registered importers, several big companies have experienced hiccups in the operations due to constraining policies under the model, as per the latest reports.