VPT set to implement EDI from April 1

In the EDI system, both the port and the port users transact bills online with the help of some designated banks.

The port officials had recently held discussions with port users associations like Stevedores Association, Clearing and Forwarding Agents Association, Steamship Agents Association and with different bankers for the smooth implementation of this system.

The VPT collects pre-paid charges like port dues, berth hire charges, pilotage charges, cargo storage charges and the like in addition to post-paid charges like equipment hiring charges, railways charges and other related charges from the port users.

In the present system, pre-paid charges have to be paid via bank demand drafts before the cargo ship enters the port.

But during bank holidays and similar exigencies, traders faced the problem of getting DDs for these pre-paid charges. Consequently, the ships had to wait outside the port, adding unnecessarily to the expenditure.

"If this new system is implemented, port users need not come to the port anymore with their DDs to pay the pre-paid charges. They can do their payment online anytime from their offices," K V Gupta, financial advisor and chief accounts officer, VPT, told Business Standard.

For post-paid charges, after the cargo ship leaves the port, the staff prepares the bills and sends it to the respective traders. After issuing the bills, in the present system, traders usually take seven to 10 days time to clear these bills.

"But in the EDI system, the port will get the post-paid bill amounts as soon as the bills are raised. That is, after raising the post-paid bills, we will collect that amount from the respective traders' bank accounts, without even an hour's delay. Also, in this system traders have to keep a certain amount of money in their accounts. In the case of a lack of sufficient funds in the account, the designated banks can pay the amount," Gupta said.

Some major ports like Chennai, Kochi, Tuticorin, Marmugao and JNPT are already implementing the EDI system, he added.

"The proposed EDI system will bring more convenience to the trading community in the payment of port charges and our bank transaction costs will also reduce slightly. Therefore, the port traders are welcoming this new system. But we are seeking more time from the VPT officials to implement this system as most of the port users are not aware of this online payment mode. Some people do not even have internet knowledge. Besides, the traders' staff need some training in this new system and also some time is needed for acquiring the software," K V Krishna Kumar, secretary, All India Federation of Association of Stevedores, told Business Standard.