Turnaround time, the time taken by a ship to load or
unload cargo in a port has seen significant improvement in Indian Ports. Over the past decade, the average
turnaround time for the major ports has decreased by about 50 per cent. The
average turnaround time for Indian ports declined from 4.3 days in 2012-13 to
2.1 days in 2022-23. This remarkable progress is also reflected in India’s
improved ranking in the World Bank’s Logistics Performance Index.
Among the major ports, Jawaharlal Nehru Port had the
lowest turnaround time of 1.2 days, followed by Cochin Port with 1.4 days, New
Mangalore Port with 1.8 days, Kamarajar port near Chennai and Paradip port with
1.9 days. In
contrast, Deendayal Port, Vishakhapatnam
Port, and Mumbai Port, registered relatively longer turnaround times of 3.2
days, 3 days, and 2.8 days, respectively. Their performance remained tardy even
in 2012-13.The respective figures for these ports were 6.3 days, 5.4 days, and
5.6 days, during that period
Indian ports still need to do more to catch
up with our global peers. The global median ship turnaround time was 1.04 days
in 2022. Norway had a median turnaround time of 0.4 days, Netherlands of 0.6
days, and Singapore of 0.8 days
Another metric to evaluate the overall efficiency of the
international trade cargo clearance process is the average release time. This metric includes the end-to-end
duration from the arrival to the departure of cargo from the port, encompassing
all processes such as custom clearance, other regulatory clearances, dwell time
and logistics. The Central Board of Indirect Taxes and Customs has been
providing data on this parameter through the National Time Release Survey since
the past three years.
Average release time for Exports declined by 6.5 per cent
in the last two years, from 7.8 days in 2021 to 7.3 days in 2023. Within the 7.3 days, only 0.8 days on
average, was needed for getting the customs clearance. The remaining 6.5 days,
which is close to 90 per cent of total time taken, was needed after getting the
customs clearance. This indicates that, though the customs clearance happens
really quickly for exports, it still takes an inordinate amount of time for the
final departure of goods. But corruption among the lower rung of the
customs personnel continued to be rampant in both sea ports and air ports
though they have introduced several business friendly measures as part of ease
of doing business. It is time that the customs leadership put down the rampant
corruption among the lower rung customs personnel industry sources said.
Despite the fact that the customs process
is now taking little time on average, why is there is still a long longer time
at the seaport?
The reason for this needed closer examination. One part of it is that the other
processes at the seaports such as entry of the trucks at terminal premises, security
clearances, loading of the cargo into vessels, take an inordinate time. This
needs attention.