You are here: Home » Companies » News
Business Standard

JNPT to shift imported cargo to Mumbai Port warehouses in economy drive

Move to cut transaction cost by Rs 14,000 per container; transit time to halve to 24 hours

Aditi Divekar  |  Mumbai 

JNPT Mumbai port
File photo of Jawaharlal Nehru Port

The Jawaharlal Nehru Port Trust (JNPT) will be shifting its imported cargo to Trust warehouses from January to reduce the cost and time taken in transactions.

Currently, all of JNPT’s 4.5 million TEU (twenty-foot equivalent unit) cargo is transported via road to the warehouses of Bhiwandi, which is 59 kms from the port. From warehouses, traders have to lift their cargo to designated areas of the city, in turn overlapping the route and increasing road congestion.  

“A disciplined movement of cargo is shaping up at and as part of this realignment, imported goods of about 0.4-0.5 million TEUs meant for Mumbai alone will be shifted to nearby Trust warehouses via barges,” Neeraj Bansal, chairman-in-charge, told Business Standard. “This will not only decongest roads but also reduce transit time by half leading to transaction cost savings of about Rs 14,000-15,000 per container,” he added.

The transit time of cargo to and fro currently takes over 48 hours.

For other imported cargo meant for the Maharashtra hinterland, will be making use of dry ports being planned in the central part of the state to facilitate faster and smoother movement of goods. For export-oriented cargo, the has identified 2,000 acres near where goods from within Maharashtra and other states will be collected and taken to to be exported.

“We are still working out cost and time-saving calculations for these realignments but are confident it will create value for both parameters,” Bansal said. “The export-oriented cargo hub will be multi-modal in nature with the location identified at Mira Road-Bhayander."

JNPT to shift imported cargo to Mumbai Port warehouses in economy drive
The is willing to start its service for cargo as it opens up two new revenue streams for it.

“The wharf readily available for loading-unloading of vessels along with closed warehouses, which are partly vacant can be used by JNPT,” said Yashodhan Wanage, deputy chairman at  

“This will bring us (Mumbai Port) two new streams of revenue with wharf usage charges being much lower than road transportation cost for This will be a win-win situation for both as well as JNPT,” Wanage added.

With the realignment of cargo movement at JNPT, the port is set to hit another level of Recently, the direct-port-delivery (DPD) system, which featured in the World Bank report that put India 30 notches higher, was initiated at and Chennai ports where container congestion has been the highest. Today, about 40 per cent of JNPT’s cargo is moved via the DPD system leading to sizeable transaction cost savings as usage of CFS (container freight stations) is completely eliminated in this process.

First Published: Wed, November 29 2017. 02:03 IST
RECOMMENDED FOR YOU