Schedule a Call Back
Existential crisis looms over container freight stations this fiscal year
Industry News- Apr 18,18
Surging share of direct port delivery (DPD), especially at the Jawaharlal Nehru Port Trust (JNPT), means growth in the container freight station (CFS) industry in India would be facing an existential crisis sooner than later, starting with flatlining of revenues this fiscal.
Surging share of direct port delivery (DPD), especially at the Jawaharlal Nehru Port Trust (JNPT), means growth in the container freight station (CFS) industry in India would be facing an existential crisis sooner than later, starting with flatlining of revenues this fiscal.
The industry, with approx Rs 45 billion revenue in fiscal 2018, had grown at 6-8% annually over the past five years.
As of July 2017, there are 169 CFSs in India, and 67 inland container depots (ICDs). Both are extensions of port infrastructure. CFS is used for customs clearance and other regulatory procedures outside the port premises, while ICDs are located in hinterland. ICDs remain a key port logistics link given their rail connectivity to hinterland and provision for handling containers from multiple ports, while a CFS is linked to one port.
JNPT, which houses the largest CFS cluster in India, saw a 428% on-year surge in DPD volume (545,000 containers) last fiscal, compared with 53% (approx 103,000 containers) in fiscal 2017 – the first full fiscal after DPD was allowed in February 2016.
The share of DPD in total containers transported by road rocketed to 39% approximately in March 2018. For fiscal 2018, the share of DPD was 32% compared with 4-6% in fiscal 2017. The number of importers opting for DPD was 1,346 in March 2018 compared with just 11 in February 2016.
However, more than half of the DPD containers are resent to a CFS either because of non-clearance within 48 hours or voluntarily by importers for storage and onward transportation to hinterland.
Says Prasad Koparkar, Senior Director, CRISIL Research, “As more importers opt for DPD, the regulatory revenue of CFSs, comprising handling, storage and inspection charges, would dip further this fiscal. To offset this, CFS operators are expected to focus on alternative revenue sources from allied logistics and transportation services.”
CRISIL
direct port delivery
Jawaharlal Nehru Port Trust
container freight station
inland container depots
port infrastructure
Related Stories
Machine Tools & Accessories
C and C Laser Engineering Pvt Ltd (CnC) delivers precision laser marking, engraving and processing systems for industrial and craft applications.
CnC offers advanced CO?, fibre and UV laser processing solutions
Read moreAutomation & Robotics
Danfoss, PowerNEU Launch JV to Drive Decarbonisation in Metals Sector
New Danfoss PowerNEU JV in Jamshedpur strengthens local execution and decarbonisation solutions for India’s metals industry.
Read moreMachine Tools & Accessories
Phoenix Contact: A reliable power solutions provider for machine building
Key benefits of Phoenix Contact solutions include: Reduced operational complaints, early fault detection, lower downtime and increased system availability, and real-time power and system monitoring.
Read moreRelated Products
Pallet Shuttle Racking
Transportation, Storage and Mail Services
SCI Storage Solution offers a wide range of pallet shuttle
racking.
Gravity Flow Pallet / Shelving Racking
Transportation, Storage and Mail Services
SCI Storage Solution offers a wide range of gravity flow
pallet / shelving racking.
Auto Transformer
Transportation, Storage and Mail Services
HCS Power Ventures Pvt Ltd offers Auto Transformer. Servottam Autotransformer is an electrical transformer with only one winding. The "auto" prefix refers to the single coil acting on itself and no Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
