JNPT's tender for moving import Containers fetches 18% lower quotes

Posted by Daily Shipping Times on 02-04-2018        Tweet

MUMBAI: Importers routing their container cargo through the Jawaharlal Nehru Port Trust (JNPT) located near Mumbai, will save as much as 18 per cent on existing rates for transporting them onwards to final destinations over five different routes, the trust said.

Transport firms have quoted substantially lower rates on a tender issued by JNPT for hauling containers landing at India’s busiest container gateway as part of the direct port delivery (DPD) scheme introduced to speed-up imports and cut time and costs.

“The rates quoted by the transporters are 2-18 per cent lower than the existing rates,” a Shipping Ministry official said after price bids were opened by the port authority last week. “The rate quoted by transporters is Rs. 14,000-70,000 per container for different routes,” he said.

JWC Logistics have emerged the lowest bidder for two routes, while Royal Translines, Vora Trans Freight Services and Ekta Transport Co quoted lowest rates for three other routes.

The tender, a first of its kind in India, involves selecting road transporters which will deploy around 2,665 tractor trailers (TTs) (both owned and aggregated), manufactured after April 1, 2009, for evacuating containers landing at the port, to locations in Gujarat, Ahmednagar, Nashik, Aurangabad, Nagpur, Indore and Hyderabad, Goa, Bengaluru and regions near Mumbai over distances of 40-1,100 kms.

According to the transport solution proposed by JNPT, all DPD containers will be distributed route-wise. Port terminal operators will arrange DPD import boxes route-wise in separate stacking area.

The lump sum rate quoted by the transporter for moving containers from the port yard to the premises of the importer as well as movement of empty containers to the empty container yard shall be fixed for the duration of the contract without scope for variations.

JNPT will not enter into any direct commercial arrangement with the transporter. It will be mandatory for importers to hire the selected transporters for taking the DPD import delivery by entering into a commercial arrangement with them. The successful transporter shall have the exclusive right to clear the DPD containers from the port for the corresponding route for which it is selected.

Importers will not be allowed to use their own fleet.

The transportation arrangement will be for an initial period of three years with a provision to extend it by another two years at negotiable rate, terms and conditions on mutual consent.

Efficient logistics

The purpose of the tender is to re-organise the existing players, said Mr. Neeraj Bansal, IRS, Chairman in-Charge, JNPT.

JNPT is looking to adopt a cheaper and more efficient logistics solution model so that importers willingly align with the thought process. “While doing so, we will re-arrange the local business in a more scientific, business-friendly manner, provide assured business to transporters over a longer period, facilitate end-to-end delivery of containers with transparency and certainty in cost of transaction,” he said. The selected transporter has to clear the import containers from the port within 48 hours and deliver them at the factory / premises of the importer/location as designated by the importer.