As per
recent decision taken by the government, ports under the shipping ministry plan
to go paperless. This move will not only reduce logistics costs but also cut
bureaucratic delays faced by exporters and importers.
A senior
government official said that the idea is to do away with the requirement of
manual stamping at each point for moving containers, which adds to delays in
cargo evacuation.
The new mechanism will first be tried out at the Nhava Sheva Container Terminal
at Jawaharlal Nehru Port Trust over the next two months. If successful, the
'go-paperless' initiative will be extended to all the other major ports under
the shipping ministry.
"Congestion is a big problem. If trucks can simply drive through once
Customs has given clearance, then it will solve a lot of problems," the
official said.
The move
will have a direct impact on efficiency of ports, which have been trying to
mechanise operations for long. Once a system is put in place, evacuation time
per container will go down to 15 seconds, from 4-5 minutes, which will bring
down logistics costs in the long run. Besides, the automated system will ensure
transparency and curb any unnecessary payments that traders might have to make
to get their trucks moving
"This
is a delayed but much desired decision," said Ajay Sahai, Director-General
and CEO of Federation of Indian Export Organisations (FIEO). "While
Customs and banks are on Electronic Data Interchange mechanism, shipping hasn't
come on board yet completely." According to FIEO, the initiative will
bring down transaction costs by 2-3%, which will accrue benefits of $16-24
billion.
Under the
new system, a container will not require a 'gate pass' to be transferred from
one point to the other. A simple electronic message by Customs will be enough
for smooth passage through the remaining stops in the journey.
The
shipping ministry is also in the process of upgrading software of the existing
port community system to achieve seamless connectivity between different
points. At present, all cargo requires dock receipt, customs clearance, mate
receipt by the shipping line and finally the bill of lading, saying the goods
have been put on board.
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