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Direct port delivery saves Rs 500 cr for importers

Companies such as Asian Paints and HP have even reported savings of over Rs 1 crore by opting for DPD

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At least Rs 500 crore has been saved by importers who have opted for Direct Port Delivery (DPD) facility at the Jawaharlal Nehru Port Trust (JNPT).

Companies such as Asian Paints and HP have even reported savings of over Rs 1 crore by opting for DPD, which cuts down time and cost in movement of cargo by delivering the shipment from the port directly to importer’s warehouse.

By opting for DPD, an importer can save between Rs 8,000 and Rs 60,000 per container, or twenty-foot equivalent unit (TEU) in shipping parlance.

Asian Paints said it has managed to clear approximately 500 TEUs through DPD facility and has benefited with a “minimum saving of Rs 20,000 per TEU”.

Alpesh Vyas, manager (imports), Asian Paints, told DNA Money, “For Container Freight Station, the charges were in the range of Rs 25,000 to Rs 30,000 per TEU. Now only Rs 2,500 needs to be paid as shifting charge per TEU.”

Likewise, Hewlett-Packard too has reported savings of Rs 1.2 crore between February-April 2017.

Siemens, which received over 40 shipments between April and May under DPD, in a letter to Jawaharlal Nehru Custom House (JNCH) acknowledged, “We have carefully monitored the savings and for 20 containers we have saved Rs 9,000 to Rs 10,000 per container and for 40 containers we have saved Rs 12,000 to Rs 13,000 per container. In addition, we have saved almost two days in clearance time.”

On a conservative basis, if one takes into account Rs 10,000 as savings per TEU, the total savings to importers between January-May 2017 work out to be over Rs 155 crore. Apart from this, another Rs 360 crore of savings are attributed by way of costs and intangible advantage such as saving dwell time or clearance time.

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