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Pricing cuts at JNPT yet to fuel rail demand
MUMBAI's Jawaharlal Nehru Port Trust Intermodal will still struggle to persuade shippers to shift to rail from trucks in the face of the introduction of rail-road tariff equalisation.
With equal pricing, the port now charges INR844 (US$12) per TEU for truck and rail against INR476 for truck handling against INR1,547 for rail, reports IHS Media.
Although it's far too early to tell what impact rate equalisation will have on the rail-truck volume ratio, current traffic trends indicate it will be a struggle for India's top port to win 25 per cent for rail.
Port statistics collected by IHS Markit, show JNPT's rail share in December, the first month after rate equalisation, was essentially flat with the prior month, at 14 per cent. By volume, the four terminals in the harbour together handled 53,333 TEU by rail out of total monthly throughput of 379,142 TEU, compared with 53,665 TEU and 372,201 TEU, respectively, during November.
By contrast, the share of truckloads last month increased to 85 per cent from 84 per cent in November, accounting for 323,152 TEU versus 312,490 TEU, statistics show.
To help a shift from road to rail, JNPT together with state-owned rail operator Container Corporation of India (Concor) is also introducing lower rates.
Concor seeks approval to move import units cleared under the direct port delivery scheme, which requires shippers to remove containers within 48 hours of landing.
Though those are positive steps, rail reliability will be the biggest draw for hinterland shippers moving goods through terminals at the West Coast port.
With JNPT handling most of India's containers through major ports, better rail infrastructure is imperative to efficient cargo flows, especially when more mega-ship calls are expected at the port following completion of a dredging project meant to deepen its fairway to 15 meters.
The latest port data shows JNPT's throughput in the first three fiscal quarters through the end of December edged up one per cent year on year to 3.38 million TEU from 3.35 million TEU.
With equal pricing, the port now charges INR844 (US$12) per TEU for truck and rail against INR476 for truck handling against INR1,547 for rail, reports IHS Media.
Although it's far too early to tell what impact rate equalisation will have on the rail-truck volume ratio, current traffic trends indicate it will be a struggle for India's top port to win 25 per cent for rail.
Port statistics collected by IHS Markit, show JNPT's rail share in December, the first month after rate equalisation, was essentially flat with the prior month, at 14 per cent. By volume, the four terminals in the harbour together handled 53,333 TEU by rail out of total monthly throughput of 379,142 TEU, compared with 53,665 TEU and 372,201 TEU, respectively, during November.
By contrast, the share of truckloads last month increased to 85 per cent from 84 per cent in November, accounting for 323,152 TEU versus 312,490 TEU, statistics show.
To help a shift from road to rail, JNPT together with state-owned rail operator Container Corporation of India (Concor) is also introducing lower rates.
Concor seeks approval to move import units cleared under the direct port delivery scheme, which requires shippers to remove containers within 48 hours of landing.
Though those are positive steps, rail reliability will be the biggest draw for hinterland shippers moving goods through terminals at the West Coast port.
With JNPT handling most of India's containers through major ports, better rail infrastructure is imperative to efficient cargo flows, especially when more mega-ship calls are expected at the port following completion of a dredging project meant to deepen its fairway to 15 meters.
The latest port data shows JNPT's throughput in the first three fiscal quarters through the end of December edged up one per cent year on year to 3.38 million TEU from 3.35 million TEU.
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