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JNPT to send cargo to Mumbai warehouses to cut costs, transit times

INDIA's Jawaharlal Nehru Port Trust (JNPT), near Mumbai, will shift imported cargo to Mumbai Port Trust warehouses from January to lower costs and cut transit times in half.

Under the existing system, JNPT's cargo volume of 4.5 million TEU is trucked to warehouses in Bhiwandi, 60 kilometres away. From Bhiwandi, traders must move their cargo to designated areas in the city, effectively overlapping the route and adding to road congestion 



"A disciplined movement of cargo is shaping up at JNPT and as part of this realignment, imported goods of about 0.4-0.5 million TEU meant for Mumbai alone will be shifted to nearby Mumbai Port Trust warehouses via barges," JNPT chairman Neeraj Bansal told New Delhi's Business Standard. 



"This will not only decongest roads but also reduce transit time by half leading to transaction cost savings of about INR14,000 (US$217) to INR15,000 per container," he said. The transit time of cargo to and from Bhiwandi takes 48 hours.



For other imported cargo destined for the Maharashtra hinterland, JNPT will make use of dry ports being planned in the central part of the state to facilitate the faster movement of goods. 



For exports, the Ministry of Shipping has identified 2,000 acres near JNPT where goods from within Maharashtra and other states will be collected and taken to JNPT to be exported.



"We are still working out cost and time-saving calculations for these realignments but are confident it will create value for both parameters," Mr Bansal said. "The export-oriented cargo hub will be multi-modal in nature with the location identified at Mira Road-Bhayander."
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