{"id":34515,"date":"2018-10-31T11:38:41","date_gmt":"2018-10-31T06:08:41","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34515"},"modified":"2018-10-31T11:38:41","modified_gmt":"2018-10-31T06:08:41","slug":"all-major-ports-to-get-ldb-services","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/all-major-ports-to-get-ldb-services\/","title":{"rendered":"All major ports to get LDB services\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/Industry\/all-major-ports-to-get-ldb-services-official-sources\/article19891233.ece\"><span style=\"font-weight: 400;\">All major ports to get LDB services<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><strong>Context:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The Logistics Data Bank\u2019s (LDB) services will soon be extended to all major ports in India.<\/span><\/p>\n<p><b>Introduction:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The discussions in this regard have begun between the Government and the Indian Port Association (IPA).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The IPA is the apex body for India\u2019s major ports under the shipping ministry\u2019s supervisory control.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Till now, the LDB project covered only the India\u2019s western logistics corridor.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Delhi Mumbai Industrial Corridor Development Corporation Logistics Data Services Ltd.(DLDSL) provides, container tracking services to around 70% of the container traffic in India.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Indian cost to export is double as compared to Malaysia, Singapore, and China etc.<\/span><\/li>\n<\/ul>\n<p><b>Objectives of LDB Project:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The LDB project\u2019s objective is to ensure greater efficiency in the country\u2019s logistics sector through the use of information technology.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To boost foreign trade: The LDB project was unveiled in July 2016 as an important \u2018ease of doing business\u2019 initiative to boost the country\u2019s foreign trade and bring about greater transparency.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It helps in reducing the overall lead time of container movement, besides bringing down transaction costs that consignees and shippers incur.<\/span><\/li>\n<\/ul>\n<p><b>Functions:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">As part of the LDB project, each container is attached to a Radio Frequency Identification Tag (RFID) tag and tracked through RFID readers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This, in turn, helps importers and exporters to track their goods in transit.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">About 4.93 million containers have been tagged and de-tagged under the project.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The project is implemented through a Special Purpose Vehicle called Delhi Mumbai Industrial Corridor Development Corporation Logistics Data Services Ltd.(DLDSL)- jointly owned by the Delhi Mumbai Industrial Corridor(DMIC) Trust and Japanese IT services major NEC Corporation.<\/span><\/li>\n<\/ul>\n<p><b>Advantages of LDB project:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The LDB project covers \u201cthe entire movement through rail or road till the Inland Container Depot and Container Freight Station\u201d.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The services include providing users the \u2018average delivery time\u2019 as well as notifications through SMS and email.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The project also provides other services such as \u2018congestion and bottleneck analysis\u2019 as well as \u2018performance bench-marking\u2019 that aids the users to pinpoint supply chain inefficiencies, and in turn help improve the system.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The project will help in cutting down the overall lead time of container movement as well as reduced transaction costs that consignee and shippers incur<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It is billed as a major \u2018ease of doing business\u2019 initiative aimed at boosting India\u2019s foreign trade and ensuring greater transparency.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The service integrates information available with the agencies across the supply chain to provide detailed, real-time information within a single window.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The services include providing users the \u2018average delivery time\u2019 as well as notification through SMS and email<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">LDB will generate visibility for containers during their transition.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The visibility would bring in more transparency and open up competition among each logistics operators to provide better services to end-customers i.e. export\/import related companies.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Competitive environment would help reducing lead-time and transaction cost for export\/import process<\/span><\/li>\n<\/ul>\n<p><b>Background:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">On July1, 2016, the LDB project was launched at the Jawaharlal Nehru Port, Mumbai.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">From May this year, its operations expanded to the container terminals at Adani Port Special Economic Zone, Mundra and Adani Hazira port, both in Gujarat.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Initial discussions on the LDB project were held in May 2012.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Talks were held on a regulatory framework from the Directorate General of Foreign Trade (DGFT) to ensure that all logistics players share data to make the project viable.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Later on, meetings were held between the DGFT, the shipping ministry and other stakeholders including the Tariff Authority for Major Ports regarding the regulatory framework on Mandatory User Charges (MUC) as well.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">In November 2014, TAMP passed an order for levy o f MUC for the project.<\/span><\/li>\n<\/ul>\n<p><b>Logistics Sector in India:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The logistics sector broadly comprises the road transport sector (consisting of unorganized small businesses, trucking, fleets and large transport companies), the storage and warehousing sector and finally third-party logistics (3PL). <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Logistic industry in India is evolving rapidly, it is the interplay of infrastructure, technology, and new types of service providers, which defines whether the logistic industry is able to help its customers reduce their costs in logic sector or provide effective services.<\/span><\/li>\n<\/ul>\n<p><b>Challenges faced by the logistics industry in India:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Inadequate logistics infrastructure has an effect of creating bottlenecks in the growth of an economy.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The logistics management regimen has the capability of overcoming the disadvantages of the infrastructure in the short run while providing cutting edge competitiveness in the long term.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Higher transaction cost in logistics is one of the major issues for India.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Leading to poor workforce planning and operations not being streamlined eventually causing delays in the container movement.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The most serious challenge faced by the logistic industry today is insufficient integration of transport networks, information technology, and warehousing and distribution facilities.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Regulations exist at a number of different tiers, is imposed by national, regional and local authorities.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The regulations differ from city to city, hindering the creation of national networks.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The disorganized nature of the logistic sector in India, its perception as a manpower-heavy industry and lack of adequate training institutions has led to a shortfall in skilled management and client service personnel.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is a lack of IT standard, equipment and poor system of integration.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Poor facilities and management are the reason for high levels of loss, damage and containers, but it is also partly down to lack of training.<\/span><\/li>\n<\/ul>\n<p><b>Government initiatives:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government\u2019s ambitious Sagar Mala project would transform the logistic sector and change the lives of those living along the 7,500 km coastline in the country. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The industry anticipates more schemes under Make in India, Skill India, and Digital India initiatives, which would help in the boost of the upstream and downstream economic activities.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Road Ministry has initiated a project for the development of Multimodal Logistic Parks at 15 identified locations at a cost of about Rs 30,000 crore, about one-third of which would be for land acquisition.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Another major development in the infrastructure sector is the enactment of the law on inland waterways, and the declared intention to promote cargo movement on these waterways.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Central government has reiterated its commitment to promote coastal shipping. The Foreign Trade Policy 2015-2020 consolidated and\/or modified several schemes and simplified the procedures for export.<\/span><\/li>\n<\/ul>\n<p><b>Conclusion:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Logistics is regarded as the backbone of the economy, providing efficient and cost effective flow of goods on which other commercial sector depends. Therefore, there is urgent need for reduction in logistics costs in order to increase the international competitiveness and to promote the expansion of export. Focus has to be on research in process excellence which can help to eliminate inefficiencies and bring Indian logistics on part with global practices.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>All major ports to get LDB services\u00a0 Context: The Logistics Data Bank\u2019s (LDB) services will soon be extended to all major ports in India. Introduction: The discussions in this regard have begun between the Government and the Indian Port Association (IPA). The IPA is the apex body for India\u2019s major ports under the shipping ministry\u2019s&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/all-major-ports-to-get-ldb-services\/\">Continue reading <span class=\"screen-reader-text\">All major ports to get LDB services\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34515","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704710869},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34515"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34515\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}