CFS re­mains cru­cial for cargo evac­u­a­tion

The 14th An­nual Day cel­e­bra­tions at CFSAI brought to the fore the cru­cial role CFS plays in faster evac­u­a­tion of cargo.

Maritime Gateway - - Cfsai Annual Day -

CFS are the es­sen­tial cog in the wheel if ports are to ex­pe­dite their cargo evac­u­a­tion process, an­nounced Gopal Kr­ishna, IAS, Sec­re­tary, Min­istry of Ship­ping, at the 14th An­nual Day Cel­e­bra­tion of CFSAI. Em­pha­sis­ing on the sig­nif­i­cant role of CFS in quick de­liv­ery of cargo, the Chief Guest of the event fur­ther said, “In or­der to en­hance DPD from 40 per cent to 70 per cent, the gov­ern­ment is try­ing to re­model the cargo evac­u­a­tion sys­tem with the CFS at the ful­crum. Ports need to con­cen­trate on their core func­tion, while the CFS should take the bur­den of be­ing the first repos­i­tory of the boxes so that evac­u­a­tion is achieved in 24 hours.”

How­ever, he added, DPD was not the panacea that will bring down con­ges­tion as out of the 40 per cent DPD achieved al­most 30 per cent

DPD evac­u­a­tion was be­ing done by CFSS. He ap­pre­ci­ated the lead taken by CBEC and Dr Vivek Johri to change their image from reg­u­la­tory body to fa­cil­i­ta­tor.

As per the lat­est gov­ern­ment plan, within 24 hours of land­ing, a con­tainer will move out of the port to a CFS with min­i­mal pro­cess­ing. The reg­u­la­tory pa­per­work and bundling, un­bundling and repo­si­tion­ing of cargo would hap­pen at the CFS. If a truck bring­ing ex­port boxes to the port can carry im­port boxes to CFS on its re­turn leg then it can re­duce con­ges­tion at the port.

“CFS in­dus­try un­til a few years ago was in a bad state, but has now moved a long way ahead,” em­pha­sised Shashi Ki­ran Shetty, Chair­man, All­cargo Lo­gis­tics, in his key­note ad­dress. Ear­lier the ports in In­dia were al­ways con­gested and the gov­ern­ment had ap­pointed Prof. Raghu­ram, the Re­search Head of IIM Ahmed­abad to study and con­sult on how to de­con­gest Ports. He sug­gested to de­velop more CFS and ICDS, and thus CFS as an in­dus­try de­vel­oped.

He sug­gested that gov­ern­ment should pro­mote PPP projects, act­ing as a fa­cil­i­ta­tor with­out be­ing in­ter­ested in mon­e­tary ben­e­fits. These in­vest­ments will be game chang­ers.

In­tro­duc­tion of GST has re­de­fined the roadmap for lo­gis­tics, re­sult­ing in de­vel­op­ment of larger ware­houses. Cab­o­tage re­lax­ation has brought a big boost to coastal ship­ping. CBIC and Cus­toms have brought about a par­a­digm shift from be­ing a reg­u­la­tor to be­come a fa­cil­i­ta­tor. The Guest of Hon­our Dr John Joseph, IRS Mem­ber (Bud­get and In­ves­ti­ga­tion) Cen­tral Board of In­di­rect taxes and Cus­toms (CBIC) high­lighted how they dealt with crit­i­cal chal­lenges with ini­tia­tives for im­prove­ments such as - dou­ble decker trains, E-way­bill, SDT, Fast Tracks, Cus­toms’ e-seal linked to GST and cargo track­ing.

“The in­dus­try is at a thresh­old of big change,” re­marked Shantanu Bhad­kamkar, Pres­i­dent, AMTOI, and the change driv­ers are dig­i­ti­za­tion, e-com­merce, Block chain and reg­u­la­tory changes. Shar­ing cus­tomer’s point of view, Pramod Sant, VP, Siemens said cus­tomers’ have been ob­serv­ing pos­i­tive change in the lo­gis­tics in­dus­try and in his view glob­al­i­sa­tion has played a key role.

The changes are hap­pen­ing at the bor­der and be­hind bor­der in Cus­toms area. In line with WCO, AEO is hand­hold­ing and re­ward­ing those who are com­pli­ant. Count­ing the trends that brought about a par­a­digm shift in the lo­gis­tics sec­tor, Capt Deepak Te­wari, Chair­man, CSLA, pointed at digi­ti­sa­tion in lo­gis­tics, ex­ten­sion granted to ves­sel shar­ing agree­ment, re­lax­ation of Cab­o­tage and grow­ing tran­ship­ment at In­dian ports.

Neeraj Bansal, IRS, Chair­man in-charge, JNPT said his port once had high­est de­pen­dency on ICD. Reg­u­lar meet­ings of min­istries are be­ing sought with fo­cus on dwell time, oper­a­tions and ef­fi­ciency. Now there is a spe­cial vi­sion and lo­gis­tics has an in­de­pen­dent spe­cialised team in the min­istry.

Vivek Johri, IRS, Chief Com­mis­sioner, JNCH said, the fo­cus had to change from doc­u­men­ta­tion to cost and time ef­fi­ciency for re­leas­ing goods, and for this cre­ation of ap­pro­pri­ate in­fra­struc­ture is nec­es­sary. The fo­cus is now strongly on pre-ar­rival pro­ce­dures and rigid tar­gets are set for re­leas­ing goods in spe­cific time.

Anant Swarup IRPS, Joint Sec­re­tary (Lo­gis­tics) ap­pre­ci­ated the es­tab­lish­ment of a spe­cific wing for lo­gis­tics in Eco­nomic Min­istry. The in­dus­try for many years was stag­nant at $300 bil­lion, but is now work­ing on di­ver­si­fi­ca­tion, reach­ing out to dif­fer­ent mar­kets such as Latin Amer­ica, Sub­sa­ha­ran Africa, he said. “The govt is now mak­ing us run our busi­ness in a good way con­nect­ing all dots,” re­marked Nailesh Gandhi, Pres­i­dent, AMTOI. GST has brought in ef­fi­ciency and the man­u­fac­tur­ing sec­tor in the coun­try has got a boost with this re­form. New cor­ri­dors are open­ing and more of mini and small busi­nesses will crop up soon.

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