Container Corporation of India (CONCOR) and Bharat Mumbai Container Terminals (PSA Mumbai) signed a memorandum of understanding last week to expand rail-based movement of cargo through Jawaharlal Nehru Port Authority. This deal is said to address some long-standing pressure points in India’s port logistics chain.
Here are three factors that make the arrangement a landmark step.
Rail as the default, not the exception
For years, road transport has remained the dominant mode of cargo evacuation from JNPA, partly out of habit, partly because rail connectivity and scheduling have not always kept pace with port volumes. This agreement attempts to change that default.
Under the MoU, the two companies will work towards operating scheduled container train services between PSA Mumbai and CONCOR’s network of Inland Container Depots across the country. The emphasis on “scheduled” services is significant. Ad hoc rail movement has existed for a while; predictable, timetabled services are a different proposition for shippers planning supply chains.
The scope covers domestic cargo, cabotage, and customs-cleared EXIM containers.
Making better use of infrastructure already in place
One of the less-discussed inefficiencies at major container terminals is underutilised yard space and rail-handling infrastructure. Cargo tends to pile up or get moved prematurely because aggregation and staging are poorly coordinated.
As per the MoU, the two organisations will focus on optimising yard space at PSA Mumbai and improving how the terminal’s rail-handling infrastructure is used for aggregation, staging, and evacuation of containers. In practical terms, this means cargo meant for the same inland destination can be consolidated at the terminal before being dispatched.
Reducing road pressure around the port
Traffic congestion in and around JNPA is a well-documented problem, with truck queues affecting turnaround times and raising costs for exporters and importers alike. CONCOR and PSA Mumbai say the partnership is expected to improve cargo turnaround time and enable more cost-efficient movement.