Logistics

Commerce Ministry suggests model handbook for ports

Our Bureau Chennai | Updated on July 24, 2020 Published on July 24, 2020

There are several issues of inefficiency in logistics, including port documentation and processes, that are hurting EXIM trade, said Pawan Kumar Agarwal, Special Secretary, Logistics, Ministry of Commerce.

Referring to a recent study by Asian Development Bank, Agarwal said in JNPT and Vizag ports it was found that 80-145 documents are required and nearly 30 per cent of them are redundant and one-third are required more than once, he said at a webinar on EXIM Trade in New Normal organised by the Madras Chamber of Commerce of Industry.

He suggested a uniform port documentation model can be formed at the national level but can be customised by each port according to their local requirements.

On logistics cost, Agarwal said there are different numbers. For instance, a study in 2018 by a private agency said that it was around 13 per cent. However, a report by the National Council of Applied Economic Research last year pegged it at 8.1 per cent, which is nearly the global average. “We should not give too much importance to the figures. Rather than focussing on the numbers, we should look at addressing inefficiencies in the system. There is a lot of scope to improve logistics cost,” he said. “Whatever be the logistics cost, our focus should be to reduce the logistics cost by five per cent,” he added.

Agarwal said that the National Logistics Portal would be ready in 6-8 months.

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Published on July 24, 2020
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