With the Shipping Ministry pushing for dry ports across the country, experts feel that such facilities will not only aid ‘Just in Time’ manufacturing but also provide a cushion for business operations.

The Ministry under Nitin Gadkari is keen to set up three dry ports in Maharashtra and two for the landlocked Telangana.

Dry ports in other States are also being explored. The groundwork for a dry port in Jalna, Central Maharashtra, has already commenced.

Director (Transport), CRISIL Infrastructure Advisory, Jagannarayan Padmanabhan, said that companies rather than shipping out their goods immediately from the dry port, could hold the goods in the port warehouse and Custom-clear the goods only when they require it for the manufacturing operations. It will help them in the ‘Just in Time’ manufacturing processes.

If a power company is setting up a power plant and has ordered for expensive equipment from an overseas destination, then the equipment could remain at the warehouse and get Customs cleared and transported to the plant site only when it is required.

It will provide a cushion to the cash flows of the company as Customs duty will only have to be paid when the equipment leaves the port, he said.

The dry port could also be used by manufacturing companies for assembling goods in a semi-knocked down format in the warehouse and Customs-clear the goods only when it is required.

Companies could get more elbow room while operating through such ports, Padmanabhan said.

Other developments A senior Jawaharlal Nehru Port Trust (JNPT) official said that along with the dry port, developing Free Trade and Warehousing Zones in the vicinity of the ports and industrial areas is also on the Ministry’s radar.

Such a facilities cluster will help speed up faster processing of cargo and the customer will have more control over the cargo. If a customer is closer to the dry port, then, in the event of a problem, the customer, rather than depending on a Customs agent at JNPT or any other coastal port, could solve the problem himself, the official said.

The CEO of Krishnapatnam Port, Anil Yendluri, said that dry ports alone will not be sufficient for the development of the port sector.

All other parts of the logistics chain need to be integrated. Hinterland industrial activity along with road and rail connectivity is a must for operating dry ports. Faster Customs Department clearance is a must, he said.

Manpower training Stressing on the need for well-trained officers for Customs clearances, Yendluri said that many times, lesser number of Customs officers are stationed at ports, who may not be well-versed with all the Department's formalities. Due to shortage of staff, sometimes, personnel from the Central Excise Department are stationed at the port.

However, the approach of both the departments is very different. The Central Excise Officers orientation is of carrying out policing while that of the Customs is of facilitation plus policing, he said.

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