Unlocking Growth: The Power of Dry Ports in Solving Road and Port Congestion

Introduction:

In today's fast-paced world of global trade, road and port congestion have become major obstacles hindering the efficient movement of goods. However, there is a hidden gem that holds the key to unlocking a smoother and more streamlined supply chain, that is dry ports.

It is said that ports with extended gates or dry ports are the key to unlocking seamless trade and efficient logistics, bridging the gap between land and sea, and driving economic growth.

A definition of a dry port is an inland location as a logistics center connected to one or more modes of transport for the handling, storage and regulatory inspection of goods moving in international trade and the execution of applicable Customs control and formalities.

These inland locations are strategically located away from congested port areas, and are revolutionizing logistics and offering a solution to the ever-growing challenge of road, border and port congestion.

Enhancing Efficiency and Connectivity:

Dry ports serve as key nodes in the global supply chain, offering seamless connectivity between various modes of transportation, including rail, road, and waterways. By providing a hub for cargo consolidation, customs clearance, and value-added services, they streamline the movement of goods and reduce the burden on traditional ports. However, to fully realize their potential, trade facilitation measures must be implemented to simplify customs procedures, improve cooperation among stakeholders, and harmonize documentation requirements.

Alleviating Road Congestion:

One of the primary benefits of dry ports is their ability to divert cargo away from congested road networks. By providing a closer and easily accessible alternative to seaports, they reduce the reliance on long-haul trucking and alleviate the strain on road infrastructure. However, this diversion can only be effective if trade facilitation concepts, such as simplified customs procedures, electronic documentation, and efficient border management, are adopted. Such measures would expedite the movement of goods, reduce wait times, and minimize congestion on highways.

Relieving Port Congestion:

Traditional seaports often face capacity constraints, leading to congestion and delays in cargo handling. Dry ports offer a solution by providing additional capacity for container storage, transshipment, and value-added services. By diverting cargo to inland terminals, port congestion can be relieved, allowing seaports to operate more efficiently and handle higher volumes of goods. To ensure seamless operations and maximize the effectiveness of dry ports in relieving port congestion, trade facilitation measures, such as advanced electronic cargo tracking and streamlined customs procedures, are indispensable.

Promoting Regional Development:

Dry ports can also serve as catalysts for regional development by attracting investment, generating employment, and stimulating economic growth in their surrounding areas. These terminals create opportunities for logistics service providers, warehousing facilities, manufacturing industries, and support infrastructure. However, to fully tap into their potential, trade facilitation concepts must be applied to ensure smooth operations, reduce administrative burdens, and enhance connectivity with the broader transportation network.

Customs:

In terms of Customs controls, the following needs to be considered:

1.????? The establishment of dry ports necessitates effective coordination and collaboration between Customs authorities and other stakeholders involved in the logistics chain. Customs administrations need to establish mechanisms to handle inspections, document verification, and clearance procedures at these inland ports. This requires the adoption of advanced technologies and streamlined processes to ensure efficient Customs controls while maintaining trade facilitation.

2.????? Dry ports must also implement strict security measures, including perimeter fencing, lightning, and surveillance equipment, to ensure Customs clearance services and prevent unauthorized access to restricted areas.

3.????? National Customs laws should recognize dry ports as locations where Customs and Border Control procedures can be efficiently conducted, allowing for on-site completion of all Customs clearance procedures without duplication of documents.

4.????? A single window Customs concept in dry ports integrates border control processes and documentation filing in a single office. It eliminates duplication, reduces costs, and expedites clearance. It allows parties involved in trade and transport to submit standardized information and documents once to fulfill regulatory requirements. Each country should have one official national Single Window. Multiple single windows can coexist in an economy as long as they have a government mandate and serve as a single-entry point for users.

Conclusion:

As the global economy continues to expand, the need for efficient transportation and logistics becomes even more critical.

Dry ports have emerged as a game-changer, providing a strategic solution to the persistent problem of road and port congestion. By diverting cargo away from congested areas and offering streamlined customs procedures, dry ports not only alleviate traffic bottlenecks but also enhance trade facilitation and economic growth.

As we look towards the future, it is clear that dry ports will play a crucial role in shaping a more efficient and sustainable global supply chain, ensuring that goods can flow seamlessly and unhindered, unlocking new opportunities for businesses and economies around the world.

Not surprisingly then that it is said dry ports and ports with extended gates are and will become the backbone of global connectivity, serving as the dynamic hubs that facilitate the smooth flow of goods, connecting businesses, and driving international trade.

Rodrick (Ronnie) van Rooyen

(PD International Business and Trade and PhD Maritime and Customs Management)

?

?