The move would obviate the need for cargo meant for Mumbai to be diverted to Bhiwandi
Jawaharlal Nehru Port Trust (JNPT) is in talks with Mumbai Port Trust (MbPT) for setting up of a warehouse on the latter's land that would obviate the need for cargo meant for Mumbai to be diverted to Bhiwandi warehouses.
JNPT wants the cargo which currently goes to warehouses in Bhiwandi from JNPT to be shipped to the MbPT warehouse, which can save about Rs 14,000 per container to the importer.
The move is also aimed at easing the traffic woes in Thane as hundreds of container movement takes from JNPT to Bhiwandi.
Speaking at a function on the occasion of 55 years of enactment of the Customs Act on Wednesday, JNPT's deputy chairman Neeraj Bansal said, "When you talk about customs, ports and logistics chain our whole concern is about the ease of doing business. We cannot be complacent with the part that we are improving. We have to set the benchmark internationally, so our ranking goes substantially high."
"The whole issue revolves around that as a facilitator and as a regulator we have to set the standards. Till date reforms have been seen as the responsibility of the government, and in that process, the role of other stakeholders is completely ignored. At theport we are working on various issues, performance enhancement, seaside and land side developments. We are coming up with Rs 3,000 crore road project, Rs 2,000 crore dredging project, so that the trade gets a comfort in bringing a bigger ships and evacuation becomes faster," he said.
He said the biggest issue is that a lot of complex kind of business flow is happening. "One area we have identified that pertains to is that the entire cargo from JNPT is moving to Bhiwandi. The city has a population of two crore, and even Mumbai cargo is going to Bhiwandi as cheaper warehouses are available there, and then this cargo is brought back to city again."
He said that this results in a wrong move of cargo from JNPT to Bhiwandi, and then the cargo is brought from Bhiwandi as storage in Mumbai is expensive.
"Our understanding is that there is a significant cargo which pertains to Mumbai, but goes to Bhiwandi, its a wrong side movement. We realised that warehousing is one missing link. If the city can provide a warehousing facility, this cargo can easily come to city area near to the market."
MbPT has a lot of land area and warehouses available which should be used for this. That's what the plan is. But the cargo comes at JNPT. We are working on how warehousing should be structured. Wrong direction movement creates traffic issue for Thane. More vehicles are moving on the road, more manpower is wasted, which can be saved. About Rs 14,000 should be saved per container is our estimate," he said.
LOGISTICS PLAY
- The move would obviate the need for cargo meant for Mumbai to be diverted to Bhiwandi
- This can save about Rs 14,000 per container to the importer
- The move is also aimed at easing the traffic woes in Thane
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