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Indian Government efforts fail to boost JNPT's rail share

Time:2017/12/15 19:42:33
JAWAHARLAL Nehru Port Trust (JNPT) is struggling to increase its share of rail volumes, despite various pro-active measures, as India steps up the pressure on transport-related agencies to improve supply chain efficiency.

Intermodal lifts at the country's top port during November fell to 14.5 per cent from 16 per cent in the prior month, after hitting a high of 17 per cent in August, according to a JOC.com port statistics analydia.


As a result, JNPT is facing a hard time meeting government goals regarding road-to-rail freight conversion, as part of a larger programme to shore up productivity, as its rail traffic share in the April-to-November period slowed to a long-term trend of 15 per cent.


Statistics shows railed export-import containers last month amounted to 56,465 TEU, out of JNPT's total throughput of 389,742 TEU, compared with 62,097 TEU and 382,529 TEU, respectively, in October.


By contrast, the over-the-road cargo share increased to 83.2 per cent in November from 82.7 per cent in the previous month, or up to 324,298 TEU from 316,395 TEU.


The analysis also shows rail volumes have been shrinking across all terminals in the public harbour, with those shares during November as follows: state-owned Jawaharlal Nehru Container Terminal, to 10.4 per cent in November from 10.8 per cent in October; APM Terminals-operated Gateway Terminals India, to 16.7 from 17.2 per cent; and DP World's Nhava Sheva International Container Terminal, to 16.8 per cent from 22.5 per cent. DP World's second facility - Nhava sheva (India) Gateway Terminal - also had a sharp fall, to 14.3 per cent from 20 per cent.


APMT Mumbai officials said that the company remains committed to offering strong rail support to the trading community within its hinterland. However, they said terminals in Gujarat, such as Mundra, Pipavav, and Hazira, are closer to the northern corridor and, as such, they enjoy a price advantage over JNPT for railed cargo from that region.


"As terminals in Gujarat are cost effective due to lower rail freight on account of their proximity to NCR [national capital region] and other major cargo clusters in northwest India, these volumes tend to get serviced from Gujarat terminals," the company said. That tendency is also driven by the fact that all mainline carriers using JNPT terminals have regular calls at one of the terminals in Gujarat, according to the company.
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