Don’t miss the latest developments in business and finance.

Major ports in India are turning efficient by digitising their operations

As the gateway for the export and import of goods, ports are a significant contributor to the country's economy, and hence, their operational efficiency is vital

Trade
Representative image
Aditi DivekarJayajit Dash
6 min read Last Updated : Jan 22 2020 | 11:09 PM IST
Mediterranean Shipping Company, a Geneva-based container shipping firm, has been operating in Jawaharlal Nehru Port (JNPT) in Mumbai for quite some time. But whereas earlier, it had to grapple with congestion and slow processes, today, the company says, the port has been transformed into a smart and efficient shipping hub. And this has been possible owing to the adoption of digital technologies, which has fast-tracked the entire container handling process.
 
The port gates are not as congested as they used to be, thanks to the RFID (radio frequency identification) based terminal gate transactions. The long waiting period has also been curtailed since the requisite approvals are being done digitally, eliminating slow, paper-based transactions. What’s more, a messaging system has been put in place which brings the customs, ports and shipping lines on the same platform and allows them to access information in a matter of minutes instead of the two days it used to take earlier.
 
JNPT, India’s largest container handling port, is just one example of how ports across the country are adopting the latest technologies to meet the ever growing challenge of handling massive volumes of cargo. As the gateway for the export and import of goods, ports are a significant contributor to the country’s economy, and hence, their operational efficiency is vital.
 
Among JNPT’s tech-based initiatives is the digitisation of the E-form 13/Form 11, by which the entry of containers into the terminals is regulated. By making the forms available online and the approval process electronic, the congestion at the port gates has come down from 10 minutes to about a minute.
 
The port authorities have also introduced the JNPT mobile app, RFID-based terminal gate transaction, RFID-based container tracking (for the first time in India), e-delivery of orders, upgradation of the port community system (PCS) and the terminal operating system, and so on. These measure have helped the port authorities match global trends in the maritime sector, apart from reducing cost.
 
“JNPT has been equipped with innovative technology, enabling us to deliver higher productivity and operational excellence, while ensuring enhanced safety standards. We have spent around Rs 175 crore to upgrade port technology,” said Sanjay Sethi, chairman at JNPT.
 
Today, the turnaround time at the port has been reduced significantly. The “dwell time” of import containers moved by rail has improved from 116.09 hours in 2018 to 66.16 hours in 2019. Also, the import dwell time of containers moved by road has reduced from 41.32 hours in 2018 to 28.65 hours at end of December 2019. (Dwell time is the time taken for exports inside terminal gates to be loaded on a ship and imports to be loaded into a truck or a train).
 
The JNPT mobile app, which was launched in January last year for all stakeholders, including traders and drivers, gives details about the vessel, the berth, when the ship will sail and so on. It also has a map for gauging the congestion estimates of cargo and helps in tracking containers inside and outside the port. The RFID-based terminal gate transaction is similar to fastag, which gives all information about the container and enables drivers to enter the premises without any physical check or exchange of documents. This, too, reduces congestion at the gates. JNPT has also introduced a single messaging window, called Port Community System (PCS), through which information gets shared with all 27 stakeholders, including customs officials, CFS (container freight station) players and port officials.
 
NAVIS, its terminal operating system, captures details about the containers, leading to faster billing and auto generation of invoices. The port has also roped in Bengaluru-based BlackBuck (Zinka Logistics Solutions) to provide transport solutions through its GPS-based trucking platform. According to the port authorities, this has cut down empty trailer movements between the port and container freight stations and  reduced truck idling time.
 
Needless to say, these initiatives have vastly improved the efficiency of the port. In FY19, JNPT handled 5.13 million TEUs (twenty tonne equivalent units), a growth of 6.20 per cent over the previous year’s traffic, making it the highest ever container traffic handled since its inception in 1989.

Other ports are also learning from the improvements at JNPT. Paradip Port Trust (PPT),  a major port on the eastern coast and part of the 100 million tonnes (mt) cargo club, diversified into container shipments in the second half of 2018. Though it has seen modest growth in this business, handling only 10,000 TEUs per annum till now, the port anticipates a surge in volumes in the near future and is adopting the necessary technologies to handle it.
 
“Our container volumes are projected to touch 50,000 TEUs in the next two years. So we are deploying several technologies to ensure that we do not face  congestion because of the spike in volumes,” said a source at PPT.
 
Since November 2019, PPT has been working in close collaboration with DMICDC Logistics Data Services (DLDS) — a joint venture between the National Industrial Corridor Development and Implementation Trust and Japanese IT major NEC Corporation.
 
DLDS uses RFID technology for container terminal and freight management globally. The company is now introducing the same technology at PPT. “RFID technology is used to trace containers. The RFID tag is attached to the containers and data is then transmitted to the server. There is also the app through which the port users get the information,” said Surajit Sarkar, chief operating officer at DLDS. The advantage of this system is that it provides complete visibility for the cargo and helps in reducing lead time and curbing inefficiencies.
 
At PPT, RFID technology has been integrated with the Terminal Operating System and Freight Operations Information System. According to Sarkar, within two months of its introduction, the technology has benefited all stakeholders. Now users get to know when the container shipment is offloaded and when it has cruised out of the terminal.
 
However, the use of RFID technology for tracking is regulated by prevailing maritime laws. “For import shipments, our technology can offer information only after the inbound cargo reaches the Indian territorial waters. Likewise, in the case of export cargo, we offer tracking on outbound container material till it reaches the first port of call.”
 
Exclusively deployed for container shipments now, plans are afoot to replicate the technology for bulk cargo in the next one year, said Sarkar.
 
Vizag Port Trust (VPT), too, is using RFID technology so that trucks entering and exiting the port gates can get instant clearance by showing their RFID cards. The port has also been able to improve the turnaround time by providing harbour mobile cranes and effective utilisation of storage plots, said VPT deputy chairman, P L Haranadh.
 
Like other major Indian ports,VPT has integrated its ERP system with the Port Operating System, which enables all types of clearances — for entry, exit, customs clearance, among others — without the customers having to interact with any official.
 
 B Dasarath Reddy in Hyderabad contributed to this report
 

Topics :Jawaharlal Nehru Port TrustDigitisationdigitisation of business process

Next Story