Game changer initiative for reducing Logistics cost and Turnaround time of Containers from month to days
Union Minister for Ports, Shipping and Waterways Shri Sarbananda Sonowal, virtually flagged off the dwarf container train service from Jawaharlal Nehru Port Trust (JNPT) today. With this, the first consignment of laden Dwarf containers from the Dwarf container depot (DCD) at the port was moved by train to ICD Kanpur.
The port is set to gain steadily from the implementation of the Dwarf container train services from JNPT, as the rail movement of EXIM cargo through double stacked dwarf containers would offer a competitive cost advantage to the EXIM community, resulting in an increase in port cargo traffic via rail route. The ‘Dwarf Containers’ are lesser in height by 660 mm than normal ISO containers, giving them a logistical edge. The Low height of dwarf containers loaded on trailers can pass through rural, semi-urban, and urban roads, through limited height subways & level crossing in electrified sections.
Furthermore, the ‘Dwarf’ containers provide a 67% increase in volume when double-stacked and can carry a weight of 71 tons, against 40 tons by an ISO container. In addition, Indian Railways has offered a 17% discount on haulage cost compared to double stack ISO container trains, resulting in an overall 33% discount to shippers making Indian Railways competitive. Thus the rail movement of cargo through Dwarf containers has the potential to lower the EXIM logistics costs, making Indian exports globally competitive
Speaking at the inaugural event, Shri Sarbananda Sonowal said, the commencement of Dwarf container train services from JNPT is a pivotal step towards streamlining the rail movement of EXIM cargo via double-stacked dwarf containers. He said, this will give the EXIM community a competitive cost advantage by lowering hinterland logistical costs, while simultaneously enhancing rail-cargo traffic at JNPT. Shri Sonowal added that Dwarf containers are pot-friendly and can be manufactured in India at a cost-efficient price point, thereby opening up opportunities for Make in India.
The move will result in more competitive Exports and enhance export from India. A robust logistics sector can go a long way in boosting India’s quest for being a manufacturing giant and promote ‘Make in India’. This will also help JNPT in increasing throughput, reduce congestions at the gate and road; increase DPD which will further reduce the cost of logistics for shippers, also improve the turnaround time of shipping line containers, and address container shortage issues.
In line with this, a location within the JNPT container terminal was identified for the establishment of Dwarf Container Depot, where cargo transfer from ISO containers to dwarf containers would be carried out thereby making the availability of empty ISO containers at the Port itself for export repositioning. Currently, the trade is facing a shortage of ISO containers for exports and this initiative can be a game-changer as the turnaround time of containers will come down from month to few days as the import laden ISO containers need not go all the way to the Hinterland.
The cargo will be emptied and shifted to dwarf containers and the empty ISO containers would be readily available to the nearby CFS/factory for export stuffing.
The commencement of the dwarf container train services from JNPT will further diversify the Port’s interlinked logistical trade avenues. Furthermore, it will enable the port to offer lower logistics costs to the EXIM community, increase rail as well as overall container volume throughput, decongest gate and road cargo traffic, promoting direct port delivery.