What is a Dry port / CFS in export-import trade?.
Enlighten yourself with the information regarding different ports and their functionality. There are two sides of a trade. One would be the manufacturer who is eyeing to export and two would be the buyer who wants to import. Although it is not necessary that both parties have easy access to seaports. It tends to get difficult for them to coordinate or even handle commodities.
Container Freight Station
The government has set up container freight stations or CFS in different parts of the country, which are far away from seaports to facilitate those involved in international trade in fulfilling the formalities associated with trade under the supervision of customs department. The exporters can carry out all the formalities in these CFS without moving the cargo to the seaport. Similarly, importers can accept delivery of freight in their preferred location after completing procedures at CFS. They do not have go to the port in order to acquire their cargo. Cargo can either move to the nearest seaport from CFS or can come to the CFS from the nearest seaport by rail, road, or plane.
What is Dry Port?
These Container Freight Stations act like ports but are located away from the sea. That is why they are called Dry Port.
Benefits of Dry Ports
The most significant advantage of Dry Ports is that they resolve the infrastructure constraint of the exporters and importers in a country. This directly affects the price of the products exported adding fillip to India’s international trade. This facility also impacts the domestic market price of the imported products meant for resale. Even if the imported products are not intended for direct resale, when the transaction cost of the imported goods gets down, it automatically pulls down the cost for production or services utilised in the process and thereby influences the price level.
The dry ports also support the seaports by improving logistics, supply chain and reducing their capacity constraints. Moreover, they boost efficient transportation system.
Another very significant effect of Dry Port is that it helps bring economic development from port regions to hinterlands and create employment opportunities there. The Dry Ports have the potential to turn into Special Economic Zone or SEZs in the future.
Proposal For New Dry Ports
The then Union Minister of State for Shipping and Finance Shri Pon. Radhakrishnan informed the Lok Sabha on February 6, 2018, that 21 new Dry Ports are under development in the country. An Inter-Ministerial Committee (IMC), operates as a single-window clearance mechanism for establishing CFSs in India, has approved these initiatives. The list of Dry Ports granted for construction by IMC is as follows:
- Kakinada, East Godavari Distt, AP
- Surareddypalem, Praksam, AP
- At Kikinada, Andhra Pradesh, AP
- Patna, Bihar
- Naya Raipur, Chhattisgarh
- Kapashera, Delhi
- Hazira, Surat, Gujarat
- Paiki, Village Motakapaya, Mundra, Gujarat
- Viramgam, Ahmedabad, Gujarat
- Rajkot, Gujarat
- Attible, AnekalTaluk, Bangalore, Karnataka
- Mihan Area of District Nagpur, Maharashtra
- Jharsuguda, Odisha
- Kila Raipur, Ludhiana, Punjab
- Kila Raipur, Ludhiana, Punjab
- Hindaun, Rajasthan
- Ayyanadaippu, Tuticorin, Tamil Nadu
- PonneriTaluka, Thiruvallur, Tamil Nadu
- Kattupalli Village, Thiruvallur, Chennai, Tamil Nadu
- Khidirpur, Kolkata, West Bengal
- South -24 Pargana, Sonapur, Kolkata, West Bengal