- Avoid storage, demurrage and late documentation fee
In the traditional transit system, non-availability of documents in time meant that goods were often stopped at taxing points or check nakas or sea ports. This results in either a late arrival of the cargo to the port or the cargo being stuck at the sea port, thus incurring additional storage costs, truck interception, demurrage or late documentation charges. Now with the introduction of dry port, cargo and documents reach the dry port at the same time. In case of any emergency, the importer or exporter may also prefer to personally visit and see that the cargo is being cleared and stuffed/stuffed by customs in their presence.
Possible to avoid the need to extend the period of marine insurance:
After the discharge of the cargo at the port, the marine insurance cover is valid for 60 days and in the traditional transit system, marine insurance was required to be extended in most cases. With dry port, there is no delay of more than 60 days and hence there is no need to extend the term of marine insurance
Optimal use of rail or road transport
If the replacement of existing long distance road transport by rail transport can be encouraged, it will result in huge cost and time savings for the exporter/importer.
Benefits to Sea Ports
- Apart from reducing congestion, setting up of dry ports also reduces
- Handling of goods at sea port, reducing storage of goods at sea port
- Inventory Savings
One of the main objectives of Dre Port is to accelerate the movement of cargo and increase the predictability of arrivals. Therefore, dry ports have implications for the amount of goods in transit at any given time, the level of stock held within the country, and the timing of payments for imports and exports. The date on which domestic exporters receive payment for their goods will depend on the terms of the trade deal negotiated. Due to uncertainties in transit time and the way in which exchange rates fluctuate, the purchase price of exports in a land-locked location includes a risk premium to cover exchange rate fluctuations while the goods are in transit. More reliable and predictable transit times will reduce the higher risk premium. Fast and reliable transit enables importers and exporters to have low stock levels of commodities. Savings can also be made through the interest that can be earned on working capital issued by maintaining low stock levels. This capital can be used productively in other business areas as well.
- Lower customs staff costs
Since dry ports allow customs clearance to be concentrated at a few sites, it may be possible to effect similar amounts of clearance with less customs involvement, particularly where dry port access by two or more gateway ports is done.
- Benefits of Units Train
Dry ports encourage the use of unit trains or block trains. The major source of benefits of introducing unit train operations in place of conventional freight trains is shunting cost at terminals and intermediate marshaling yards can be avoided and higher wagon and locomotive utilization rates can be achieved. The introduction of unit trains is best suited when freight traffic between two points is sufficient, fairly continuous and relatively balanced.
- Improved communications
Simple, rapid transfer of documents and information, fundamental to efficient cargo transit, can be achieved by computerized freight tracking or by linking the flow of documents or customs clearance to a dry port provision. The benefits are due to the introduction of computerized processes.
- Additional benefits
Dry ports can have many benefits of such a type that cannot be attributed to a monetary valve. Benefits which are difficult to quantify, therefore ate o measuring monetary terms include the following:-
1. Enabling the exercise of greater national control over dry port transit operations
2. With less paperwork and more accurate documentation, there is less scope for confusion or lost papers, less delays, less cargo loss and better flow of information.
3. Importers and exporters can recognize the benefit of greater reliability in transit routes. (This can translate into a real benefit when importers and exporters switch to a cheaper transit route, or exporters can avoid monetary penalties associated with late delivery, or if low inventory levels can be maintained);
4. Improved Tuning of Cargo Delivery Schedule
5. Fewer transit-transport difficulties, greater chances of gaining foreign market entry with potential incentives for other sectors of the economy,
6. Creation of a more stable domestic investment environment with fewer transit-transport difficulties for manufacturers importing cargo or already exporting overseas.
7. A dry port and simplified procedures associated with containerization mean fewer steps and fewer officers involved in processing the required documents. With fewer control points, there is less scope for corruption or malpractice. If questions arise regarding documentation, these can be easily resolved at dry port by all parties represented on the site.
8. Introduction of simplified work practices at sea ports.
- The Distribution Benefits
Dry ports naturally include the activities of both domestic and foreign transport operators, clearing and forwarding agents, shipping agencies, financial institutions and insurance companies. When assessing dry ports, it is essential to identify who will benefit. Cost savings or additional revenue received by the foreign-owned enterprise as a result of the operation of the dry port should not be counted as a direct benefit
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