NEED FOR DEVELOPMENT OF DRYPORTS IN INDIA ALONG WITH CASE STUDIES

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This study attempts to co-relate the functioning and facilities provided at Riyadh dryport with the proposed Auranagabad-Jalna dryport, for its success as a dryport, as Riyadh dryport shows similar geographical and capacity characteristics to the latter.

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International Journal of Management (IJM) Volume 8, Issue 4, July–August 2017, pp.118–124, Article ID: IJM_08_04_015 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=4 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication NEED FOR DEVELOPMENT OF DRYPORTS IN INDIA ALONG WITH CASE STUDIES Shivani Vijay Dhotre School of Construction Management, PGPACM, NICMAR, Pune, India Ayush Srivastava School of Construction Management, PGPACM, NICMAR, Pune, India ABSTRACT For a land locked area, aiming for its economic, environmental and social development through ease in logistic transportation via means of water transport, provision of dryport is the suitable solution. This study attempts to co-relate the functioning and facilities provided at Riyadh dryport with the proposed Auranagabad- Jalna dryport, for its success as a dryport, as Riyadh dryport shows similar geographical and capacity characteristics to the latter. Key words: Dryport, Seaport, Water Transport, Transportation. Cite this Article: Shivani Vijay Dhotre, Ayush Srivastava, Need for Development of Dryports in India Along with Case Studies. International Journal of Management, 8 (4), 2017, pp. 118–124. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=8&IType=4 1. INTRODUCTION Recently union government of India has decided to establish Dry port in Marathwada region which will come up on 500 acres land on the Aurangabad-Jalna road. This dry port would facilitate import of raw material and export of finished goods and reduce the costs of goods transportation considerably. This Rs 15,000 crore project will be funded by the union government. The port will enable easy transportation of cargo as it will link Aurangabad with the Jawaharlal Nehru Port on the western coast of the country. Concept of Dry port is designed for a land locked area to facilitate economic and business growth in the region. As Marathwada region is a land locked region aiming to develop as an industrial hub, Dry port will bring in much needed push for development. This seminar is attempting to study the concept of dry port and develop an understanding of its functions and usefulness. 2. DEFINITION A general definition of the dry port concept offered by Leveque and Roso (2002) is as follows: A dry port is an inland intermodal terminal directly connected to seaport(s) with high http://www.iaeme.com/IJM/index.asp 118 editor@iaeme.com
Need for Development of Dryports in India Along with Case Studies capacity transport mean(s), where customers can leave/pick up their standardized units as if directly to a seaport. Similarly, Ng &Gujar (2009) described dry port as an inland setting with cargo-handling facilities to allow several functions to carry out, such as, cargo consolidation and distribution, temporary storage of containers, custom clearance, connection between different transport modes, allowing agglomeration of institutions, both private and public, which facilitates the interactions between different stakeholders along the supply chain, etc. There are wide ranges of definitions available for Dry Port in the literature review. However, these definitions shows similar conceptualization of dry port: Intermodal terminal, situated inland, rail connection to a seaport, offers services such as custom clearance, maintenance of containers, storage, forwarding, etc. 3. CONCEPT OF DRY PORT Violeta Roso from Chalmers University of Technology, Sweden (2009) has done extensive work in defining the concept of dry port. According to him – „The dry port concept is based on a seaport directly connected by rail to inland intermodal terminals, where shippers can leave and/or collect their goods in intermodal loading units as if directly at the seaport. In addition to the transshipment that a conventional inland intermodal terminal provides, services such as storage, consolidation, depot, maintenance of containers and customs clearance are also available at dry ports.' In the dry port concept majority of freight is transported by rail from seaport to inland intermodal terminals, which are called dry ports and vice versa. Only the final leg of transportation is accomplished by road i.e. main transport type of dry port concept is rail. The dry port concept is a way to improve the capacity and cost-efficiency of a transport system; especially seaport's inland access. The dry port concept also improves transport system's environmental friendliness. The concept decreases external costs of the transport system, since railroad is environmentally friendlier transport mode than road. There are also other benefits of the dry port concept such as reduced congestion, noise and accidents at the whole transportation system. Johan Woxenius et.al. (2004) stated that Dry port create the economy of scale by having relatively large goods‟ flows concentrated between the dry port and the seaport, hence creating a room for other traffic modes than road, i.e. rail. As shown in Error! Reference source not found., under a conventional arrangement, the sea port is connected with numerous links by road and a few by rail. Rail transport is generally limited to serving major conurbations at rather far distances from the port and the interface towards containers arriving by rail is comparable to that of those arriving by road. This arrangement leads to condition where majority of transportation are taking placing via roads and hence causing road congestion, non-reliability in travel time and cost. http://www.iaeme.com/IJM/index.asp 119 editor@iaeme.com
Shivani Vijay Dhotre, Ayush Srivastava Figure 1 A sea port connected with hinterland A (conventional) intermodal road-rail terminal can be described as a place equipped for the transshipment and storage of intermodal loading units between road and rails (Anderson and Roso, 2015). When custom and allied services are available such terminals are then called as dry port. Based upon the function of a dry port, they can be categorized as distant, mid- range and close dry ports (Error! Reference source not found. to Error! Reference source not found.). Figure 2 A sea port with a distance dry port http://www.iaeme.com/IJM/index.asp 120 editor@iaeme.com
Need for Development of Dryports in India Along with Case Studies Figure 3 A sea port with a mid-range dry port Figure 4 A sea port with a close dry port 4. NEED FOR DRY PORT Sea ports are the must have infrastructure for any country aiming to develop as an export led economy. As ocean shipping has the largest carrying capacity as compared to any other transport, sea ports provides the cheapest gateway for the ingress and egress cargos. As we know, sea port is situated near sea. However, industrial developments are happening in the hinterlands. So in such situations where the importer or exporter is far away from sea port, it creates inconvenience to them to co-ordinate and handles the goods properly for the sea port. There raise the needs of having a facility, called Dry Port, close to industry parks, where the functions of sea port, such as handle export and import formalities under customs supervision can be replicated. 5. BENEFITS OF DRY PORT A report produced by Transport Division of UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific), grouped the roles of dry port as - Economic benefits, Environmental benefits, and Social benefits. They are -  Help bring economic development from coastal area to hinterland (particularly for LLCDs) o Dry ports can grow to SEZs  Reconciliation of between transport infrastructure and supply chain management o Improving supply chain, logistics o Reducing transportation cost  Shifting distribution function from seaport terminals o Coping with capacity constraints at seaport  Adding value to market players  Modal shift to a more efficient mode of transport  Reduction in GHG emission through modal shift at dry ports  Reduce road congestion (Free up cars from roads)  Reduce queue length at port could lead to reduce anxiety of truck drivers, thus decreased risk of accidents  Increased employment opportunities http://www.iaeme.com/IJM/index.asp 121 editor@iaeme.com
Shivani Vijay Dhotre, Ayush Srivastava 6. CURRENT ACTION Government of India is planning to build 12 new dry ports across the length and width of the country. The aim of these new dry ports is to spruce up the major ports (Error! Reference source not found.), so that they can dock super-sized ships and set up a new entity to speed up the port connectivity projects. Figure 5 Major and intermediate sea ports in India 7. CASE STUDY ON RIYADH DRY PORT OVERVIEW: Riyadh dry port is located in Saudi Arabia. Its parent sea port is King Abdul- Aziz Portin Dammam (henceforth called Port of Dammam), which is located about 460 km http://www.iaeme.com/IJM/index.asp 122 editor@iaeme.com
Need for Development of Dryports in India Along with Case Studies Northeast of the dry port. Error! Reference source not found. shows the location of dry port and the sea port. The total area of the Riyadh dry port is 918639 m2. The dry port has rail connectivity with the sea port. Figure 6 Riyadh Dry Port with its parent sea port FACILITIES AVAILABLE: The dry port facility consists of –  Warehouses, each one having an area of 6480 m2,  A cold warehouse with an area of 2700m2  Stand-by electricity generator  Custom department,  Rail transport between dry port and warehouses  Fleet of trucks transport between dry port and warehouses  Lifting cranes.  Maintenance and repair area  84 residential units for staff, a restaurant and a clinic. CURRENT OPERATION: In the start 2013, Riyadh Dry Port had the capacity for 200,000 twenty-foot equivalent unit (TEU) containers per year for transport via rail through their facility. The port later increased the capacity to 400000 TEUs per year by adopting modern technology standard for managing the movement of cargo through its terminals. The increased capacity was achieved by increased efficiency and improves cargo turn-around time. TRANSPORT CONNECTIVITY: City of Riyadh has a good rail and road connectivity. The city overall has well-functioning and efficient services to Dammam. Several upgrading projects are ongoing, related to infrastructure development of the new lines east-west and north-south. The south location is located in direct connection to the two lines. Upgrade projects, such as the increased axle weight on the link Dammam-Arriyadh, will significantly improve throughput. Both locations have good road connections (regional roads) and are close to future ring roads. http://www.iaeme.com/IJM/index.asp 123 editor@iaeme.com
Shivani Vijay Dhotre, Ayush Srivastava 8. CONCLUSIONS This research work attempts to study factors relevant to the development of a Dry port. The focus of this report was to highlight the concept of Dry port, its need and benefits. A small case study on Riyadh Dry port was presented to highlight the necessary infrastructure required at proposed Aurangabad Dry port to function effectively. The report concludes, that is order to achieve the full objective of Aurangabad Dry port a detailed transport and traffic analysis should be conducted for Aurangabad – Jalna region such study is especially important so that bottlenecks in transport network connecting industrial areas and proposed dry port can be identified, analysed and mitigated. ACKNOWLEDGEMENTS We would like to thank our parents, Mrs.Chhaya Dhotre and Mr. Vijay Dhotre, Mrs. Manju Srivastava and Mr. Arvind Kumar Srivastava for their valuable supports and giving us the required strength and motivation throughout the completion of this project. REFERENCES [1] Anant Kishore Saran, (2014), “Dry ports in India- Need and challenges”, Ministry of shipping, India. [2] Bayram Blige Saglam, Sonar Esmer,”The dry ports: A review of the concept and its Applications in Turkey”, Dokuz Eylul University. [3] Johan Woxenius, Violeta Roso, Kenth Lumsden, (2004), “The Dry port concept- connecting seaport with their Hinterland by rail”, ICLSP, Department of Logistics & Transportation, Chalmer university. [4] Michael Laugsen. (2011), “The Dry port Concept” Association of Danish transport and logistics centers. [5] Rickard Bergquist, (2013), “Developing large-scale Dry ports- The case study of Arriyadh”, Journal of Transportation Technologies, 3, 194-203 [6] Shivani & Megha Nyyar, (2009), “Dry ports in India”, Institute of Industrial Management, http://documentationlogistics.blogspot.in/2009/11/dryports.html. [7] “The Roles of Dry ports in Economic corridors”, UNESCAP, Transport division. [8] Violeta Roso & Kent Lumsden, (2009), “the Dry port concept: Moving seaport activities inland; transport and communications” Bulletin for Asia and the Pacific. [9] Violeta Roso, (2008), “Emergence and significance of Dry ports”, Transport and Communications Bulletin for Asia and the Pacific, No. 78. [10] Dr. J. Rengamani and V. Venkatraman . Study on the Safety and Security of Indian Ports , International Journal of Management , 6( 10 ) , 2015, pp. 69 - 82 [11] Dr. J. Rengamani and V. Venkatraman A Study on the Performance of Major Ports in India , International Journal of Management , 6( 10 ) , 2015, pp. 48 - 55 http://www.iaeme.com/IJM/index.asp 124 editor@iaeme.com