INTERNATIONAL TRADE AND LOGISTICS

UNCTAD liner shipping connectivity index and the development

strategy of Port of JNPT (Draft)

Under the guidance of:

Dr. Ram Singh

Prepared by:

Dhruv Goyal 15B

Faozia Quraishi 16B
Harshad Mohod 19B
Naishadh Nannaparaju 29B
Varnika Goel 51B
Introduction

By quantifying liner shipping connection, the Liner Shipping Connectivity Index (LSCI) tries to
capture the degree of integration into the current liner shipping network. It is calculable
both at the national and port levels. LSCI can be used as a stand-in for the ease of access to
international trade provided by the maritime network. The easier it is to access a high
capacity and frequent worldwide maritime freight transport system and efficiently engage in
global trade, the higher the index. LSCI can therefore be viewed as both a metric of trade
facilitation and connectivity to maritime transportation. It represents the tactics used by
container transport firms to increase profits by covering as much market space as possible.
The following factors are used to generate the index:

 Scheduled ship calls: This refers to the quantity of ships that are scheduled to call
each week. These calls may relate to import, export, or transshipment operations.
The number of ship calls in the case of a high level of transshipment calls can be
somewhat deceptive because those calls are tied to the presence of a transshipment
hub rather than access to the global trade system. Importers and exporters can still
access maritime services.
 Deployed capacity: While the preceding measure primarily relates to the frequency
of services, adding the total capacity of these services enables a connection to be
made between port calls and the associated physical capacity. The opportunity to
trade on international marketplaces increases with capacity. It doesn't necessary
follow that the capacity is open for imports or exports, though.
 Number of shipping firms and liner services: This refers to the number of firms that
service the nation or the port, as well as the number of scheduled services that these
firms employ to offer this coverage.
 Average vessel size: Since they result in lower transportation costs per TEU, the
average vessel size serves as a proxy for the scale efficiencies that are accessible.
Ships larger than 8,000 to 10,000 TEU can only be accommodated in a few number
of ports.
 Directly connected ports: This is the total number of ports connected to the
reference port. A direct link implies that a port is connected to another as long as
they are a part of that loop and that any container carried between them does not
need to be transshipped because maritime shipping services are organised along a
sequence of port calls (loops).

A rating of 100 is given to the nation or port that received the highest score in the reference
year of 2006; this figure acts as a standard against which other nations and ports are
measured.

The distribution of the port LSCI indicates a high level of concentration among a select
number of interconnected ports that serve as the entry points and hubs of international
trade. The nations with the highest LSCI scores are heavily engaged in world trade. China
and Hong Kong, whose economies are focused on exports, come in top, with Singapore's
transshipment centre coming in third. Among the top 15 are major traders like the United
Kingdom, Germany, South Korea, the United States, and Japan. Due to the significant
transshipment role that their ports carry out, nations like Malaysia, Spain, the United Arab
Emirates, Egypt, and Oman all place highly in this ranking.

JNPT (Jawaharlal Nehru Port Trust)

The largest container handling port in India is the Jawaharlal Nehru Port Trust (JNPT). JNPT,
sometimes referred to as JLN Port and Nhava Sheva Port, is situated east of Mumbai in the
Raigad district of Navi Mumbai. Thane Creek leads to the port, which is located on the
Arabian Sea.

The Dedicated Freight Corridor (DFC), the Multi-Modal Logistics Park (MMLP), and
expanding port-to-road connectivity are ongoing initiatives that will soon improve the port's
hinterland rail and road access. When DFC is finished, the current train capacity of 27 to 100
trains per day will be increased.

JNPT has connections to 47 inland container depots (ICDs) and 34 container freight stations
(CFS) located all throughout the nation. Three regional ICD destinations are accessible by
train.

More than half of India's total container volume handled at 12 public ports and over 40% of
the nation's total containerized ocean trade are handled by JNPT. By 2022–2023, it is poised
to accommodate 10 million twenty-foot equivalent units (TEUs) of containers.

JNPT is able to respond to shipper needs effectively and quickly due to its proximity to the
economic centres and satellite districts of Mumbai, Navi Mumbai, and Pune as well as
airports, hotels, and exposition centres, among other locations.

Terminals and Planned Logistics Infrastructure

Five container terminals are part of JNPT. The Jawaharlal Nehru Port Container Terminal
(JNPCT), the fifth terminal, is run by the port trust. The other four terminals are managed by
private companies.

The four private terminals are:

1. Gateway Terminals India Pvt Ltd (GTIPL), the facility run by a joint venture between A
P M Terminals Management B V and Container Corporation of India Ltd (Concor).
2. Nhava Sheva International Container Terminal Pvt Ltd (NSICT), run by the Dubai
government-owned D P World Private Ltd.
3. Nhava Sheva (India) Gateway Terminal Pvt Ltd (NSIGT), also run by D P World.
4. Bharat Mumbai Container Terminals Private Limited (BMCT), run by Singapore’s PSA
International Pte Ltd.
The BPCL-IOCL consortium-managed JNPT also has a shallow water port for general cargo
and another liquid cargo terminal. According to port authorities, 1.04 million tonnes (MT) of
LPG from 70 vessels was handled by JNPT BPCL Liquid Cargo Terminal during 2020–21.
When compared to 0.85 million tonnes from 57 boats in 2019–20, this was 22.35 percent
greater.

The BMC Terminal will be connected to the other four terminals at the port by a new inter-
terminal channel that will only be used for transhipment and inter-terminal rain handling
operations, JNPT said in March 2021. According to JNPT officials, the new route will cut the
current 5 km in one direction of container transportation in half, to 2.5 km. The amount of
transhipment containers arriving at the Port and the rail share are anticipated to rise as a
result.

Two phases of construction are taking place on the Fourth Container Terminal. While Phase-
I is now active, Phase-II is anticipated to be completely operational by 2022–2023 with a
2,000-metre quay length, adding 4.8 million TEUs to the yearly capacity.

Satellite and Dry Port Plans

To encourage industrialization in the hinterland of Maharashtra, the JNPT is also building a

satellite port at Vadhvan and four dry ports at Jalna, Wardha, Sangli, and Nashik.

Top Export and Import Items

 Textiles, sporting goods, carpets, textile machines, boneless meat, chemicals, and
medicines are among the top exports from Jawaharlal Nehru Port.
 Chemicals, equipment, plastics, electrical equipment, vegetable oils, aluminium, and
other non-ferrous metals are the main imports.

The majority of the cargo traffic handled by JNPT comes from or is headed for the major
industrial states of Gujarat, Madhya Pradesh, Karnataka, and most of North India.

JNPT Traffic Capacity

 Even though March saw the biggest traffic growth (527,792 TEUs) since the port's
opening due to the COVID-induced closure, container traffic at JNPT decreased by
nearly six percent to 4.7 million TEUs in the fiscal year 2020–21.
 In 2019–20, JNPT saw a 5.03 million TEU increase in container traffic.
 In FY21, the port handled 6,097 rakes as opposed to 5,127 rakes in FY20.
 In 2020–21, the average turnaround time for all ships decreased to 28.64 hours from
29.42 hours, while for container ships, it decreased to 25.30 hours from 25.82 hours.
Customs

JNPT has a complete customs office. The Jawaharlal Nehru Custom House reports that the
average turnaround time for ships calling on the port is less than one day, and that it
typically takes one day to move the containers to the various container freight stations for
customs inspection and clearance.

Special Economic Zone

On 277.38 hectares of JNPT-owned land along the Panvel-Uran road connecting the cargo
ports to state highways, JNPT has created a multi-product Special Economic Zone (SEZ).
Since the SEZ is only 5 km from the port, it offers inexpensive last-mile expenses for
manufacturers who focus on exports.

Co-developers have received 21 plots for 20 micro, small, and medium-sized business units
(MSME) and one free trade warehousing zone so far from the port's SEZ (FTWZ).

Among those who received an allocation, building has begun on five units. Additionally, the
Development Commissioner, SEEPZ, SEZ, declared M/s OWS LLP Oil Field Warehouse Pvt.
Ltd. and M/s Krish Food Industry (India) active units as of June 24, 2020, after completing
their first phase of operational activity.

The JNPT SEZ and incentives provided have the following salient characteristics:

Land

 The SEZ is the first of its sort at a significant port complex in India, and co-developers
who are interested can lease property for 60 years, with the possibility of additional
extensions in accordance with the Port land policy.
 The mechanism for allocating land is a transparent e-tender cum auction. The initial
lease payment (reserved price) for the JNPT SEZ area is in accordance with the Tariff
Authority of Major Ports (TAMP).

Power Plan

 For the units at JNPT SEZ, power would be made available at a 45 MVA capacity.

Water Plan

 Water will be accessible for the units in JNPT SEZ in quantities of 15 MLD.
Road

 The primary thoroughfare is 60 metres wide. Both sides of the road will have lamps
installed and a storm water drainage system. The internal road has a width of 45 and
30 metres.

Other Features

 Twenty percent of the entire area of the land is covered with vegetation.
 One gate and one emergency exit are present at the SEZ site.
 The SEZ facility is located 5 kilometres from JNPT's container landing area.
 JNPT is developing a sewage treatment plant
 Railway access to adjacent industrial locations (Panvel-JNPT).

SEZ Initiatives

 Duty and tax exemptions, first-time stamp duty and registration fees, a GST rate of
0%, and FDI norm exemptions are also available.
 In coordination with the JNPT SEZ Development Commissioner (MoC, GoI), a single
window clearance for all matters

Ease of Doing Business

Centralized Parking Plaza

To encourage convenience of doing business, JNPT has opened a new Centralized Parking
Plaza (CPP) for container tractor trailers with customs facilitation. The parking area has a 45-
hectare footprint and can hold 2,832 tractor trailers at once.

The plaza was constructed specifically to allow tractor trailers to park factory export
containers at a single area rather than at many sites. This will facilitate the integration of
Customs' paperwork processing.

Allotment of office space to government regulators for setting up testing laboratories and
offices

 JNPT has given office space to the FSSAI, Animal Quarantine, Plant Quarantine,
Textile Commission, and Drug Controller in order to bring all regulators close to the
port area.
 For the purpose of building up laboratories, JNPT has also given land to the FSSAI,
Animal Quarantine, Plant Quarantine, and Drug Controller. The Port Users Building,
JNPT, is now home to the Textile Committee's office and lab.
Simplification of Processes and Digitization

As part of the process simplification, JNPT started the inter-terminal movements and did
away with the CISF seal verification at the Gate. Additionally, the port concentrated on
boosting direct port deliveries (DPD) and direct port entry (DPE).

Form-13 and Form-11 have been made available online as part of digitization. For gate
access, the RFID system has been introduced. The Indian Port Community System's
enhanced PCS 1x platform makes issuing e-DOs to shipping lines easier (electronic delivery
order).
https://www.ceicdata.com/en/indicator/india/liner-shipping-connectivity-index

https://www.india-briefing.com/news/a-guide-to-mumbais-jnpt-port-and-its-special-
economic-zone-22650.html/