association of multimodal transport operators of india amtoi recommendations on cargo community...

ASSOCIATION OF MULTIMODAL TRANSPORT OPERATORS OF INDIA

www.amtoi.org

AMTOI Recommendations on

Cargo Community System

National Trade Community Portal System (NTCPS)

Date 28th October , 2015

www.amtoi.orgASSOCIATION OF MULTIMODAL TRANSPORT OPERATORS OF INDIA

NTCPS – Ultimate Objective

• Ease of Doing Business • Digital India• Reduction of Transaction Cost• Dashboard to MOS & GOI for Real Time MIS on

Shipping movements & Exim transactions

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NTCPS – Salient Features

• A self sustaining model to fund development, maintenance and timely enhancement to keep up with trade dynamics

• Eliminate the duplication of data entry by integrating multiple systems like Ice gate , ICES, Terminals, CFSs, Shipping Lines etc

• Data Flow to be multidirectional and availability to be on reciprocal basis, currently it its one way traffic that too with very limited entities

• A time bound plan to Identify and dematerialize all paper transactions between all the entities involved in EXIM trade

• Joint Ownership of all Stake Holders to ensure participation

• A futuristic platform, a model for other industries to follow

• Participation of all Govt Bodies/Depts/organizations under 4 ministries of Shipping, Finance, Commerce and Civil Aviation .

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NTCPS – Possible Model at home

NTCPS can be structured on basis of a classical and more recent

example in the financial industry (payments business) is the

recently created NPCI (National Payments Corporation of

India), which is a section 25 company held by 10 core banks

each with a paid up capital of Rs 10 crore and a total paid up

capital of 100 crores.

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NTCPS – Objective

The purpose of this presentation is to create the background and the

next steps for the creation of the National Trade Community Portal

System (NTCPS). The objective of creating the NTCPS is to bring

efficiency, speed, convenience in the flow and use of information,

documentation, movement of goods across multiple modes of

transport and across various stakeholders in a seamless manner,

thereby contributing to the motto of “Ease of Doing business” and

“Digital India”, a national objective of the Government of India.

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NTCPS – Stakeholders

1. Cargo Interest - Exporters and Importers 2. Revenue Authorities- Customs and Central Excise & Service tax

(Future GST)3. Ocean and Air Carriers: Shipping Lines, Air Lines, NVOCCs, Feeder

Operators, Ship Owners, Ship Operators, Cargo Consolidators etc4. Land and Rail Carriers: CONCOR, Private Train Operators, Trailer and

Truck transporters5. Ports and terminals6. Intermediaries: Custom House Agents/Custom Brokers, Freight

Forwarders, 3 PL Operators7. Cargo Storage and Handling Agencies: CFS Operators, Inland

Container Depots, Bonded warehouses, Customs and Excise Notified Warehouses, Surveyors, Labours, Fork Lift Operators, Container Repairs etc

8. Statutory Bodies: FSSAI, Quarantine Agency, Textile Committee, Wild Life Agency, ADC etc

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NTCPS – Stakeholders

9. Industry Bodies, interest groups, lobbies: FIEO, TEXPROCIL, CHEMCXIL, EEPC, AMTOI, CAI, CSLA, ACTO, FFFAI, CFSAI etc

10.Financial Institutions and Regulatory Bodies: RBI, Commercial Banks, ECGC, Forex Dealers etc

11.Insurance Companies: Cargo Insurance, Professional Liability insurers for Carriers, Handling Agencies, Ports, terminal etc

12.Industry Nodal Agency - Office of Director General of Shipping Ministries (Govt. of India)

Ministry of Shipping Ministry of Finance Ministry of Commerce Ministry of Civil Aviation

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NTCPS – Scope of Services

Vessel Schedule / Tracking

General Cargo Services

Container Tracking / Request

Pre-advice / Documentation

e-GatePass services

Cargo & Commodity Services

Manifest & BOL Services

e-Delivery Order

Customs Handling/ Clearance

enquires

Logistics and Transport Services

Special Handling services8

Port Authority

CFS and Warehouse Services

Rail Operations (ICD) Services

SEZ & Freezone Services

Customs Services

Weighment Certification

Payment Gateway - Online

Services

Banking Services

Insurance Services

Trade Notifications

Tariff services


NTCPS – Structure of Participation

• NTCPS to be incorporated as a Section 8 Companies Act 2013 (old Section 25 of Companies Act, 1956) and can be set up by AMTOI or a Confederation of Logistic Associations or any other trade organization with the size and influence in the trade under a mandate from the Ministry of Shipping/ Ministry of Finance.

• NTCPS could be initially be promoted by large shareholders from trade associations with share of equity funding. IPA can be a share holder of this entity. Banks and Financial institutions such as EXIM Bank, SIDBI, IDFC, ICICI etc. may also be considered for taking equity ownership in NTCPS.

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NTCPS – Legal Authority

We need to evaluate the appropriate legal framework that

would provide the basis of legal authority to act and also

provide teeth to NTCPS. Further the mandate for this initiative

has to come from Ministry of Shipping / Ministry of Finance. If

any suitable provisions in existing legal framework exists it

would be important to use those to invoke and create the

legal authority of NTCPS.

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NTCPS- Communication and Buy in From Stake Holders

Lots of efforts need to be spent in creating consensus

around all stakeholders and all their concerns arising from a

shift to a new system need to be addressed through

effective communication and through the process of building

a NTCPS system that addresses local issues and concerns

and makes it user friendly.

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NTCPS – Board of Governance

An initial board should comprise of eminent personalities from the private sector as its Chairman (for example Mr. Nandan Nilakeni, Mr. Narayanamurthy, Mr Ratan Tata etc). A full time CEO should be appointed who shall drive the process of implementation of NTCPS. The Board will also have representatives from the above 4 ministries

An illustrative structure is depicted below: Board of Directors MD & CEO Advisory Panel

Below this level would be (reporting to MD & CEO) Chief Operating Officer (COO) Chief Risk Officer (CRO) Chief Finance Officer (CFO) Board secretariat

The reportees into COO would be: Chief Technology Officer (CTO) Head of various Business

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NTCPS – Board of Governance

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NTCPS – Funding

Funding aspect of this initiative needs to ideated.

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NTCPS – Appointment of Consultants

Technical, Legal and IT consultants to be appointed, Technical committees, IT committees to be formed

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NTCPS- Planning and Execution

A detailed 100 days, 1 year, 3 year plan should be articulated and suitable help of consultants should be sought in putting together such business plans.

We can partner with any one of the International Port community system along with an Indian consultant with domain expertise as a technical partner and use their IT provider as the system designer working closely with any Indian or offshore IT company working on providing the solution.

This is what we need to do once the broad contours are agreed by all stakeholders.

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NTCPS – Benefit to the Stake Holders and Govt.

The formulation and implementation of NTPCS will bring in huge

benefits to the trade.

Our ranking in the following Global Indices will rise rapidly,

• Ease of Doing Business

• Logistics Performance Index.

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THANK YOU !!!

You are today where your thoughts have brought you,

You will be tomorrow where your thoughts take you.

association of multimodal transport operators of india amtoi recommendations on cargo community...

Documents

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cfs operators

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fork lift operators

private train operators

national objective

shipping lines

multiple modes of transport