The recently introduced National Logistics Policy promises to speed up the development of jobs while also revolutionizing India’s logistics sector. Talk about it. (Answer in 250 words)
Jawaharlal Nehru Port (JNP) is one of the leading container ports of the country and is ranked 26th among the top 100 global ports. It is a container handling port accounting for around 50% of the total containerized cargo volume. The JNP became the first 100% Landlord Major Port of India. A LandlorRead more
Jawaharlal Nehru Port (JNP) is one of the leading container ports of the country and is ranked 26th among the top 100 global ports. It is a container handling port accounting for around 50% of the total containerized cargo volume. The JNP became the first 100% Landlord Major Port of India.
A Landlord Port is characterized by its mixed public-private orientation. Under this model, the port authority acts as the regulatory body and landlord, while port operations (especially cargo handling) are carried out by private companies. Today, the Landlord Port is the dominant port model in larger and medium-sized ports.
The features of the Landlord Port include:
- The port authority manages the basic port assets by letting land and infrastructure to port operators in an efficient manner. It would also be involved in planning, lease negotiation, safety, navigation and overall coordinating functions.
- Cargo services, marine service, ancillary services, berths etc. are privatised on captive/BOT(Build-Operate-Transfer) basis to the primary port users.
- Port operators and other undertakings which need to be located in the port, lease the land, infrastructure and associated services and provide them to the secondary users cargo owners, ship owners and cargo ship owners.
Other types of models employed in port management are as follows:
- Public service port model: In this model, the public authority owns the land and all available assets-fixed and mobile-and performs all regulatory as well as operational tasks. The main objective is to provide a smooth and secured transaction through the port and create employment rather than focusing on profit.
- Tool port model: It is close to the public service port model with the public authority owning all the land and providing all the infrastructure and superstructure including, cranes, port control equipment, and other supplies. The port operator uses the provided equipment to continue the port operation. A tool port is a transitional form between a public service port and a landlord port.
- Corporatized port model: These ports are almost entirely privatized, with the exception that the ownership remains public and often assumed as a majority shareholder. The port authority essentially behaves as a private enterprise. This management model is unique since it is the only one where ownership and control are separated.
- Private service port model: The port authority is entirely privatized with almost all the port functions under private control with the public sector retaining a standard regulatory oversight. Still, public entities can be shareholders and thus gear the port towards strategies that are deemed to be of public interest.
The government enacted the Major Port Authorities Act, 2021 to empower the ports and enable them to perform with greater efficiency on account of increased autonomy in decision-making and by modernizing their institutional framework. Further, as part of the Maritime India Vision (MIV) 2030, globally benchmarked targets have been defined to help India develop best-in-class port infrastructure.
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The National Logistics Policy (NLP) formulated by the Ministry of Commerce and Industry was launched in September 2022. It aims to lower the cost of logistics from the existing 13-14% and lead it to par with other developed countries. The Policy lays down an overarching interdisciplinary, cross- secRead more
The National Logistics Policy (NLP) formulated by the Ministry of Commerce and Industry was launched in September 2022. It aims to lower the cost of logistics from the existing 13-14% and lead it to par with other developed countries. The Policy lays down an overarching interdisciplinary, cross- sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector. The policy complements the PM GatiShakti National Master Plan. Following major steps would be taken under NLP that have the potential to transform India’s logistics ecosystem:
The above-mentioned processes will not only help in streamlining the regulatory environment in the country but also boost employment creation:
NLP is a significant step as it endeavours to make India to be among the top 25 countries by 2030 in the Logistics Performance Index ranking, and create data driven decision support mechanism for an efficient logistics ecosystem. However, for its effective implementation and desired outcome all stakeholders including the states should be aligned to the stated objectives of the policy.
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