Wednesday, 1 October 2014

“Go Paperless” initiative by Shipping Ministry for Port Operations

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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