The government would soon put in place a system to track the movement of containers real time with a view to remove logistical bottlenecks and ensure timely delivery of consignments.
The project — Logistics Data Bank (LDB) — is being developed under the Delhi-Mumbai Industrial Corridor (DMIC), which is at an advance stage of implementation.
Different departments and ministries including the Department of Industrial Policy and Promotion (DIPP) and the Shipping Ministry are in the process of finalising the project, conceptualised by Japan-based NEC Corporation.
“It will provide near to real time tracking of containers across the complete logistics value chain by way of integrating the software of different service providers and tracking of containers through installation of Radio-frequency identification (RFID) tags,” a senior official told PTI.
Regulatory framework for charging mandatory user charges has been deliberated with the Shipping Ministry, the official said.
The LDB would address the issue of tracking and viewing the movement of containers across the ports to the Inland Container Depot (ICDs) and end users.
“The LDB would be an overarching solution that will integrate the information available with various agencies across the supply chain to provide detailed real time information within a single window,” the official added.
It would also enable the centre, states, importers, exporters and other stakeholders to assess comparative performance, identify inefficiencies and bottlenecks to develop strategies to ensure the development of the sector.
Reduction in the lead time and transaction cost as a result of predictability and optimisation achieved through LDB would attract companies to set up or open new centres in the DMIC zone.
Almost 60 per cent of the container traffic currently in India is in the Western Corridor.
With the establishment of new DMIC cities and the expected increase in container traffic, it is more essential to provide a world class logistic infrastructure to the operating entities to boost the manufacturing and other related sectors, the official added.
The project would be first implemented at Jawaharlal Nehru Port Trust (JNPT).
“The proposal has been submitted to the JNPT for onward submission to Tariff Authority of Major Ports (TAMP) after getting comments from private terminal operators. Meeting for considering the notification of mandatory user charges for the LDB project is scheduled on October 29,” the official said.
India’s ambitious $90 billion DMIC project is aimed at creating mega industrial infrastructure along the Delhi-Mumbai Rail Freight Corridor. Japan is giving financial and technical aid for the project, which will cover seven states covering 1,483 km.