Ranking States to improve outcomes
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Logistics ranking of States (under "Logistics Ease across Different States") will help states to focus on logistics weaknesses to get better industrial growth. This is because all chosen parameters impact on trade competitiveness.
Role played by Centre
NITI Aayog will work with states to optimise their investments. Commerce ministry will support export drive of states. Centre has already improved its Global ranking in World Bank's Logistics Performance Index (54 to 35th in 2016). It has many logistics projects under planning and construction:
¶ Transport infra (eg. rail, road, waterways, airports, ports)
¶ Integration of logistics (eg industrial parks, multi-modal logistics hubs, dry ports, warehousing, cold chains, port connectivity);
¶ Infra status to reduce cost of finance.
LEADS has 8 categories (modelled on LPI) :
1) infrastructure 6) safety of cargo
2) services 7) operating environment
3) timeliness 8) regulatory process
4) track and trace
5) competitiveness of pricing
Inadequacies (states were under-par, inefficient by report)
♦ Not enough done for scaling up infra, automation, technologies, human capabilities
♦ Bottlenecks like inadequate terminal capacity or poor last mile connectivity
♦ Labour unions are a problem for WB, Kerala, Maha and HP.
Areas of Improvement (many improvements identified)
♦ Capacity on bigger scale
♦ New transport infra & multi-modal logistics
♦ Modernisation of transport fleet and logistics infra
♦ Standardisation across the board
♦ Regulatory infrastructure
Logistics ranking of States (under "Logistics Ease across Different States") will help states to focus on logistics weaknesses to get better industrial growth. This is because all chosen parameters impact on trade competitiveness.
Role played by Centre
NITI Aayog will work with states to optimise their investments. Commerce ministry will support export drive of states. Centre has already improved its Global ranking in World Bank's Logistics Performance Index (54 to 35th in 2016). It has many logistics projects under planning and construction:
¶ Transport infra (eg. rail, road, waterways, airports, ports)
¶ Integration of logistics (eg industrial parks, multi-modal logistics hubs, dry ports, warehousing, cold chains, port connectivity);
¶ Infra status to reduce cost of finance.
LEADS has 8 categories (modelled on LPI) :
1) infrastructure 6) safety of cargo
2) services 7) operating environment
3) timeliness 8) regulatory process
4) track and trace
5) competitiveness of pricing
Inadequacies (states were under-par, inefficient by report)
♦ Not enough done for scaling up infra, automation, technologies, human capabilities
♦ Bottlenecks like inadequate terminal capacity or poor last mile connectivity
♦ Labour unions are a problem for WB, Kerala, Maha and HP.
Areas of Improvement (many improvements identified)
♦ Capacity on bigger scale
♦ New transport infra & multi-modal logistics
♦ Modernisation of transport fleet and logistics infra
♦ Standardisation across the board
♦ Regulatory infrastructure
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REPLY Jan 9, 2018 - 300 Inland container depots will be modernised, and regulations upgraded to global standards — to optimise functioning with other ports & hinterland, to alter subsidy regime, etc
Findings:
▬ obsolete procedures for cargo movement & clearances, leading to inefficiencies and high cost
▬ Port led development (under Sagarmala) and Industrial corridors will create demand for new dry ports, container freight stations and air freight stations
REPLY Jan 10, 2018 - Sagarmala in practice
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Central govt ports have doubled profits to $1B in 4yrs. This will part-fund port expansion/ modernisation, new ports and inland waterways.
Development is also a means to compete, or turn the tide against strong private ports, eg. JNPT is against Adani-backed Mundra port.
$240B Sagarmala project illustrated--------------------------------------
☼ Capacity build or upgrade
▬ Overall capacity at JNPT port (Mumbai) will be doubled. New container terminal at JNPT has been built for $1.2B (Singapore's PSA in PPP)
☼ SEZ near port
▬ New SEZ at JNPT port has attracted very high interest (eg 40 bids @ $9B). Foxconn bid involves $900m, 13acres & 40,000 jobs
☼ New major ports
▬ 6 new ports will be set up in next few years. Wadhwan & Colachel are two locations.
☼ Modernisation and mechanisation of existing ports
▬ DP World has aligned IT system with customs at Mumbai and Chennai. Import paperwork is approved before docking so cargo can pass through quickly.
☼ Port connectivity via road or rail $60B under Min of Shipping (Indian Port Rail Connectivity Corp or IPRCL)
▬ Port-rail from PSA terminal at JNPT will shift cargo to railways. Container corp of India has signed MOU to operate railways
▬ Indore-Manmand rail ($900m)
▬ JNPT-Thane rail
☼ Inland logistics
▬ JNPT is in process of setting up Inland Container depots at 4 locations: Wadha (construction to start), Jalna (DPR stage), Nashik (land acquisition nearing end), Sangali (construction to start in 1yr)
▬ DP World is investing in cold storage, inland container depots near Mumbai, besides all of the above
☼ Smart city
▬ Smart city being set up at Mumbai (also Kandla, Paradip)
☼ Inland waterways
Some of 111 rivers will be developed by dredging to 3m
☼ Cruise terminal
$150 million cruise terminal is being set up in Mumbai (also Chennai, Mangalore and Goa)
☼ Blue revolution
Support for fisheries and allied trades
REPLY Jan 24, 2018 - Performance improvements at JNPT & Mundra
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DMIC (once completed) will create a need for higher cargo handling capacity and world-class efficiency at NW ports. Mundra at 20% y-o-y growth is outpacing other Indian ports. It is doubling container handling capacity. JNPT is also on an expansion mode.
1. EODB and digitising initiatives of GOI need more work. For example, JNPT fares poorly in customs clearances compared to global peers (4 days vs 0.6 days or less).
EODB: Trading across borders
"Impact of our reforms was not felt. If shipping firms align IT systems with customs, paperwork can be done prior to docking. Customs clearance process must deliver seamless results."
https://plus.google.com/100789863972538583352/posts/BFSseZo25Ks
2. JNPT's "direct port delivery program" has reduced dwell times so JNPT is slightly better than Mundra (48 vs 53hrs). Better connectivity infra is required to match global leaders.
3. DMIC's Logistics Data Services (DLDS) has made a marked improvement in productivity at both JNPT & Mundra. For example, "vessel turnaround times" for Mundra are among the best in world at <1day.
DLDS / RFID will further lower logistics costs--------------------------------------------------------------
DLDS is a collaboration with Japan's NEC. It uses radio-frequency identification (RFID) for tagging and tracing of cargo from ICD, container freight stations to end-users.
In 1yr of operation, benefits were seen in container tracking, benchmark performances, congestion and bottleneck analysis and value-added services. Predictability of cargo movements has improved operations and reduced costs. Learning about the cargo flow (eg points of congestion) allows users to identify cost inefficiencies and bottlenecks.
DLDS is operating in 4 other private container ports. DLDS will be inducted in every major port (incl bulk cargo), as part of a digital/ tech overhaul, expected to optimise costs, improve services and lift EODB.
REPLY Jan 21, 2018 - Easier transit with E-ways Bill
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EODB measure to ease inter-state logistics. An e-way bill can be generated online or via other tools (with personal ID & Vehicle ID required). It will allow movement of goods-laden trucks, etc anywhere in India. Exceptions or changes like transshipment can be easily added. Training guide is also provided.
REPLY Jan 13, 2018 - World of dredging
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Dredging is becoming a sought after activity as ports look to deepen channels to facilitate large vessels, eg Capesize vessels. Ports can quote lower, competitive rates because of it. Dredging is also a maintenance function, so dredging firms are investing in new fleets and capacities to match growing no. of improved ports. Dredgers can often double up to reclaim land and build coastal roads.
Example : ESSAR
Has 3 dredger fleets of 13m cu capacity. It recently added 4m cu for Hazira port.
○ In one project it developed a 15m channel to create a turning circle for safe navigation.
○ In another project, it dug depths between 1m to 12m, for a 300m wide, 7km long deep water channel.
REPLY Jan 18, 2018 - Ranking players to change behaviour and improve policy
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Highlights what has been the case all along: ie. rankings show Bihar is a hibitual laggard (eg AT&C losses). No one wants to be a laggard in the age of competitive elections, so publicising rankings has a salutary effect, eg Bihar completed village electrification on time & wants to finish Saubhagya Y 3-months before schedule!!
Competitive rankings is now a movement at all levels of govt incl GP, universities, discoms, and has had some successes. States govts are improving policy initiatives and pushing bureaucracy into reform. Bureaucracy is also learning fast on the job.
Intense competition is shown to boost productivity (London study). Rankings gets people engaged (Laskey study)
▬ Competitive rankings by virtue of "naming, shaming & fame" or "relative status" elicits behavioural change and improves performance.
▬ Many countries, incl US, UK have a behaviour insights team to motivate their bureaucracy
Centre initiatives on rankings-------------------------------------------
○ Ease of Doing Business under DIPP
○ Swachh Bharat Mission
○ 500 cities cleanliness under HUDA
○ Railways stations, zones
○ New: GP ranking under Rural development
○ Proposed: Telco service quality under Telecoms ministry
○ Smart cities - selected cities by competition + scoring
Effects:
1. MP has set very specific goals in vision doc. They are ambitious because they want to retain top 5-10 position: eg by 2023, want all town households to have piped gas and water supply.
2. Telangana has hired consultants to reach top spot in EODB. Most top 10 states did this.
Working in partnerships to improve outcomes----------------------------------------------------------------------
NITI Aayog wants not only behavioural change/ improved policy through ranking states but also action through "working in partnership".
It is about sustainable outcome-based monitoring, feedback, bench-marking, prioritising action, devising best practice, planning and innovating.
Working in partnerships creates an ecosystem that generates solutions. The teams fulfil a purpose, be it innovating, stay ahead or improving. There is engagement, and proactive players can get most from it.
Frequent workshops & establishing best practice
▬ Sharing experiences & outcomes data is critically discussed for shared learning
▬ Further analysed and presented in workshops, etc
▬ Best practice can be represented via statistics and narrative
▬ It becomes actionable information - inserted in action plans
Propagate best practice and improve implementation
▬ Virtual classrooms for field officials, often tagging laggards with performing districts
▬ Batches of district officials, especially those that need special help, can have face-to-face meetings, Q&A with experts.
Impact of technology------------------------------
Previously evaluation were anecdotal, limited, delayed, and not amenable to meaningful action.
◘ Technology allows easier verification, so info displayed is more credible, eg. GPS for geo-mapping & digital pics or drones for progress/ completion.
◘ Baseline measurement is done by collecting large variety of all-inclusive data from all localities. Change in baseline is then derived at each iteration. Eg of data collection:
▬ AP does regular studies and surveys
▬ Tata trust & Gates foundation volunteer team gather data.
▬ Fair price shops for PDS using PoS smart devices
▬ Parcel tracking using RFID (eg drugs from warehouse to primary health centre)
◘ Technology gathers data in real-time across departments and regions. It can pinpoint performances at GP or block level. Thus action can be multifaceted (eg immediate action, comprehensive action, planned future initiatives).
◘ Dashboard, video conferencing
▬ Up-to-date data is available, analysed & shared simultaneously
▬ Remote communication
◘ Virtual workshops and virtual classrooms
▬ Action can be churned out in double quick time
REPLY Jan 30, 2018 - Jan 29, 2018
- Jan 29, 2018
- Jan 29, 2018
- Jan 29, 2018
- Jan 29, 2018
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