Top Banner
Report on ICD Dadri Dry Port Visit Report on dry port ICD (CONCOR) Dadri visit on 05 Nov 2011 Prepared by Vivek Malhotra MBA PT 2009-12 Roll No 63 MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 1/48
48
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Report on dry port ICD (CONCOR) Dadri visit

on 05 Nov 2011

Prepared by Vivek MalhotraMBA PT 2009-12Roll No 63

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 1/37

Page 2: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

BACKGROUND

CONCOR - The Multimodal Logistics Professionals

Ever since globalization transformed the transport sector, national boundaries have become permeable to penetration by trade, creating the need for flexible transport solutions. Intermodalism and containerization were the by-products of this era and were poised to metamorphosize transport of "general cargo", moving it 'seamlessly' through sea and land arteries. Forty years ago, the physical process of exporting or importing goods was arduous. Goods needed to be transported by lorry to the port, unloaded into a warehouse and then reloaded into the ship 'piece by piece'.

Malcolm McLean's idea of containerization changed the basics of cargo transport by standardizing the dimensions of the container and simultaneously improving the productivity of ports by mechanizing handling of container-carrying 'cellular' ships and reducing their handling to a few hours only. Unitisation helped elimination of multiple handling of cargo and made transfers quick, cheap and easy. As containerization came to stand for 'cargo care', it grew by leaps and bounds the world over.

Indian Railway's strategic initiative to containerize cargo transport put India on the multi-modal map for the first time in 1966. Given the continental distances in India (almost 3000 km from North to South and East to West), rail transport could be the cheaper option for all cargo over medium and long distances, especially if the cost of inter-modal transfers could be reduced. Containerized multi-modal door-to-door transport provided the ideal solution to this problem. It was this idea that saw the Indian Railways entering the market for moving door-to-door domestic cargo in special DSO containers starting in 1966.

Though the first ISO marine container had been handled in India at Cochin as early as 1973, it was in 1981 that the first ISO container was moved inland by the Indian Railways to India's first Inland Container Depot (ICD) at Bangaluru, also managed by the Indian Railways.

Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers, and along the way, a strong view had emerged that there was a need to set up a separate pro-active organization for promoting and managing the growth of containerization in India.

The Company

Container Corporation of India Ltd. (CONCOR), was incorporated in March 1988 under the Companies Act, and commenced operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways.

From its humble beginning, it is now an undisputed market leader having the largest network of 61 ICDs/CFSs in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for India’s International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road services and also provided to cater to the need of door-to-door services, whether in the International or Domestic business.

CONCOR is committed to providing responsive, cost effective, efficient and reliable logistics solution to its customers. It strives to be the first choice for its customers. CONCOR is a

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 2/37

Page 3: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

customer focused, performance driven, result oriented organization, focused on providing value for money to its customers.

MISSION STATEMENT

“ OUR MISSION IS TO JOIN WITH OUR COMMUNITY PARTNERS AND STAKE HOLDERS TO MAKE CONCOR A COMPANY OF OUTSTANDING QUALITY. WE DO THIS BY PROVIDING RESPONSIVE, COST EFFECTIVE, EFFICIENT AND RELIABLE LOGISTICS SOLUTIONS TO OUR CUSTOMERS THROUGH SYNERGY WITH OUR COMMUNITY PARTNERS AND ENSURING PROFITABILITY AND GROWTH. WE STRIVE TO BE THE FIRST CHOICE FOR OUR CUSTOMERS. WE WILL BE FIRMLY COMMITTED TO OUR SOCIAL RESPONSIBILITY AND PROVE WORTHY OF TRUST REPOSED IN US.”

OBJECTIVES

“ WE WILL BE A CUSTOMER FOCUSSED , PERFORMANCE DRIVEN , RESULT ORIENTED ORGANISATION, FOCUSSED ON PROVIDING VALUE FOR MONEY TO OUR CUSTOMERS..”

“ WE WILL STRIVE TO MAXIMISE PRODUCTIVE UTILISATION OF RESOURCES, DELIVER HIGH QUALITY OF SERVICES, AND BE RECOGNISED AS SETTING THE STANDARDS FOR EXCELLENCE.”

“ WE WILL CONSTANTLY LOOK FOR NEW AND BETTER WAYS TO PROVIDE INNOVATIVE SERVICES. WE WILL AIM FOR CUSTOMER CONVENIENCE AND SATISFACTION, LEARN FROM OUR COMPETITORS AND ALWAYS STRIVE FOR EXCELLENCE.”

“ WE WILL SET MEASURABLE PERFORMANCE GOALS TO SUPPORT THE OBJECTIVES AND MISSION OF OUR ORGANISATION AND WORK AS A PROFESSIONAL, COMPETENT AND DEDICATED TEAM FOR THE ORGANISATION TO ACHIEVE EXCELLENCE IN ALL AREAS OF OUR BUSINESS AND OPERATIONS BY BENCHMARKING OURSELVES WITH OUR COMPETITORS.”

“ WE WILL FOLLOW HIGHEST STANDARDS OF BUSINESS ETHICS AND ADD SOCIAL VALUE FOR THE COMMUNITY AT LARGE BY DISCHARGING SOCIAL OBLIGATIONS AS A RESPONSIBLE CORPORATE ENTITY.”

“ WE WILL MAINTAIN ABSOLUTE INTEGRITY, HONESTY, TRANSPARENCY AND FAIR-PLAY IN ALL OUR OFFICIAL DEALINGS AND STRIVE TO MAINTAIN HIGH STANDARDS OF MORALITY IN OUR PERSONAL LIFE.”

CORE BUSINESS

CONCOR's core business is characterized by three distinct activities, that of a carrier, a terminal operator, and a warehouse operator.

Carrier

Rail is the mainstay of CONCOR's transportation plans & strategy. Majority of CONCOR terminals are rail-linked, with rail as the main carrier for haulage. Facilities are, however, provided for first and last mile transportation by road also. As rail is price-competitive over long distances, the price advantage can be passed on to clients, thus allowing for flexible and competitive pricing. The rail link also plays a major role in decongesting our ports and the road corridors that lead to these ports.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 3/37

Page 4: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Though rail is the mainstay of CONCOR's transportation plan, some CONCOR terminals are exclusively road-fed as well. Road services are mostly in the form of supplementary services to provide the door to door linkages having carried the bulk of long lead by rail. However, where ever it is operationally or economically a superior option, road is used as an alternative to rail as well.

Terminal and CFS Operator

CONCOR started operations in November 1989 with 7 Inland Container Depots (ICDs). We have since extended the network to a total of 61 terminals, of which 18 are export-import container depots, and 13 exclusive domestic container depots and as many as 30 terminals perform the combined role of domestic as well as international terminals. The company expects the number of terminals to increase to 61 in the next few years (terminal map)

CONCOR's customs bonded Inland Container depots are dry ports in the hinterland, and serve the purpose of bringing all port facilities including Customs clearance to the customer's doorstep. The terminals are almost always linked by rail to the Indian Railway network, unless their size or location dictates that they be linked by road. The rail links enable us to facilitate the moving of large volumes over long distances in the most cost effective manner.

CONCOR's terminals provide a spectrum of facilities in terms of warehousing, container parking, repair facilities, and even office complexes. As CFS operator, CONCOR adds value to the logistics chain by offering value added services such as

Transit warehousing for import and export cargo

Bonded warehousing, enabling importers to store cargo and take partial deliveries, thereby deferring duty payment

Less than Container Load (LCL) consolidation, and reworking of LCL cargo at nominated hubs

Air cargo clearance using bonded trucking

In the area of domestic business door pick up and door delivery services are the most popular. We also use our terminal network to plan hub and spoke movements that allow single customers to move cargo to multiple locations at a single time, with CONCOR taking care of the distribution and re distribution requirements.

The key value we offer is the provision of a single-window facility co-ordinating with all the different agencies and services involved in the containerized cargo trade, from Customs, Gateway Ports, and Railways, to road hauliers, consolidators, Forwarders, Custom House Agents and shipping lines. To achieve a high degree of customization, we offer packages designed to provide the most cost-effective combination of road and rail. This enables us to offer services which can be individually tailored to every customers specifications, minimizing customers own efforts.

Financial and Physical Performance

Financial and Physical figures of CONCOR for the last ten years are displayed as under. As can be seen, the financial and physical performance during the last decade clearly brings out to success story of CONCOR’s growth.

(Rs. In Crores)

S.No. 

Particulars  2001-02 

2002-03 

2003-04 

2004-05 

2005-06 

2006-07 

2007-08 

2008-09 

2009-10 

2010-11

1 Total Income (Including other Income) 

1,335.41

1,533.84

1,807.40

2,043.33

2,489.16

3,141.94

3,510.33

3,628.25

3,885.73

4,030.18

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 4/37

Page 5: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

2 Expenditure ( Incl. increase/decrease in stock) 

909.9 1,056.36

1,253.15

1,366.82

1,735.54

2,166.11

2,455.49

2,486.10

2,744.04

2,971.91

3 (1-2)Operating Margin 

425.51 477.48 554.25 676.51 753.62 975.83 1,054.84

1,142.15

1,141.69

1,203.50

4 Interest Expenses 

2.87 2.74 0.25 0.29 0.23 - - - - -

5 Depreciation  33.47 43.94 55.28 66.62 83.26 93.58 106.34 115.91 135.1 145.23

6 Profit before Tax  389.17 430.8 498.72 609.6 670.13 882.25 948.5 1,026.24

1,006.59

1,058.27

7 Profit after Tax  249.48 272.85 367.59 428.6 525.8 703.82 752.21 791.2 786.69 785.95

8 Dividend  64.99 71.48 81.24 94.23 116.98 142.98 168.98 181.98 181.98 97.49

9 Profit & Loss Account Balance 

782.83 947.75 1,186.72

1,465.38

1,805.21

2,273.49

2,752.78

3,251.95

3,747.47

4,442.15

10 General Reserve  61.48 88.77 125.53 168.39 220.97 291.35 366.15 380.28 458.95 546.54

11 Term Loan  54.65 14.37 11.99 10.6 - - - - - -

12 (9+10)Reserves & Surplus 

844.32 1,036.52

1,312.25

1,633.77

2,026.18

2,564.84

3,118.93

3,632.23

4,206.42

4,968.69

13 Fixed Assets (Gross Block) 

752.65 982.5 1,198.79

1,538.62

1,793.61

2,025.33

2,244.24

2,640.95

2,988.86

3,286.15

14 Sundry Debtors  9.04 8.34 5.78 5.73 8.52 9.9 13.83 15.72 17.64 17.27

15 Foreign Exchange Earnings 

- 0.19 0.26 0.66 - - - - - -

16 Share Capital  64.99 64.99 64.99 64.99 64.99 64.99 64.99 129.98 129.98 129.98

17 Capital Employed 

956.09 1,114.96

1,387.90

1,600.86

1,940.09

2,456.61

3,030.16

3,507.20

4,107.70

4,764.13

18 Government Investment 

41 41 41 41 41 41 41 82 82 82

19 (12+16)Net Worth 

909.31 1,101.51

1,377.24

1,698.76

2,091.17

2,629.83

3,183.92

3,762.21

4,336.40

5,098.67

20 (6÷17) Profit Before Tax to Capital Employed 

0.41 0.39 0.36 0.38 0.35 0.36 0.31 0.29 0.25 0.22

21 (3÷17) Operating Margin to Capital Employed 

0.45 0.43 0.4 0.42 0.39 0.4 0.35 0.33 0.28 0.25

22 (7÷16) Profit after Tax to Share Capital 

3.84 4.2 5.66 6.59 8.09 10.83 11.57 6.09 6.05 6.74

23 (2÷1)Expenditure to Income 

0.68 0.69 0.69 0.67 0.7 0.69 0.7 0.69 0.71 0.74

24 Number of Employees 

781 841 915 988 1,036 1,080 1,134 1,176 1,129 1,147

25 (1÷24)Income per Employee 

1.71 1.82 1.98 2.07 2.4 2.91 3.1 3.09 3.44 3.51

26 (15÷24) Foreign Exchange Earnings Per Employee 

- - - - - - - - - -

27 Current Ratio  2.68 2.27 2.51 2.38 2.47 2.98 3.54 3.51 4.09 6.67

28 (11÷19)Debt/Equity Ratio 

0.06 0.01 0.01 0.01 - - - - - -

29 Investments  0.66 0.66 3.45 84 129.38 131.7 155.36 203.08 240.54 243.96

Physical Performance (TEUs)* 

1 International Handling 

905058 1031925

1251618

1376516

1556714

1715661

1977399

1854959

1882277

2018551

2 Domestic 326775 351238 350501 351460 373848 389605 470370 453273 538970 543746

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 5/37

Page 6: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Handling 3 Total (1+2)  123183

31383163

1602119

1727976

1930562

2105266

2447769

2308232

2421247

2562297

Technical ResourcesHandling Equipment

CONCOR has generally followed a policy of organizing specialized cargo/container handling services by deployment of state-of-the-art equipment on contractual basis. In addition, at ICD Tughlakabad, in Delhi, which is the company's flagship terminal, we also own, operate and maintain the most modern and sophisticated handling equipments such as a Rail Mounted Gantry (RMG) , Rubber Tyre Gantries (RTGs), and Loaded and Empty handling Reach Stackers.

Wagons

After starting operations with make-shift container wagons that were provided by the Indian Railways, CONCOR started acquiring state-of-the-art high speed container flats (BLC wagons), capable of running at 100 kmph. Since last 9 years. These have been progressively introduced on major container circuits in the last three years, as a result of which transit times have reduced and service quality has shown considerable improvement. 7200 such wagons are already deployed, and CONCOR plans to add to that fleet every year to cater to the growth in business as well as to replace outworn rolling stock. CONCOR has also purchased some 7200 container flat wagons from the Indian Railways, which have been since upgraded and retrofitted to also provide improved service quality and better transit times.

Infotech

IT forms the backbone of any service industry, where information correlates directly with improved levels of efficiency. In the transport sector, antiquated, cumbersome paper-based procedures cause an enormous waste of time and money. All too often, goods move through transport systems at a frustratingly slow speed, especially in developing countries. The physical side of trade transactions should aspire to become as efficient as the electronic transfer of money. This can be done through working partnerships among all those involved to improve logistics services through the use of information and network technology.

A primary component of CONCOR's overall business strategy has been the development of an advanced information system. A container and cargo logistics information system went online at Company's Inland Container Depot at Tughlakabad in 1994 and most other facilities have been equipped with computer systems to monitor traffic movement and maintain inventory records.

CONCOR is using various online applications like Export/Import Terminal Management System (ETMS), Domestic Terminal Management System (DTMS), Oracle Financials-ERP, HR-Payroll system etc. which are based on Centralized architecture deployed through Citrix environment and running over VSAT based hybrid network.

RDT’s are being used in the ICD/TKD yard and ICD/Dadri for online container tracking and entry of unloading / loading of containers on to wagons. Interface software was developed for automatic updation of entries through RDT’s into CCLS and ETMS database for EXIM operations. RDT’s are also interfaced with our Domestic Terminal Management System (DTMS) at DCT/Okhla, TNPM/Chennai and WFD/Bangalore. This has enabled any user to query the system either through LAN or Web to get the latest status and location of a container in the yard.

CONCOR has been certified to ISO/IEC 27001: 2005 standard for establishing and maintaining Information Security Management System (ISMS) for its IT functionality. CONCOR has been awarded for its project titled “Web based Integrated Container/Terminal Management System” which has been adjudged by AFACT (Asia Pacific Council for Trade Facilitation and Electronic Business) as winner for e ASIA 2009 award for the category "Electronic Business in Public Sector".

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 6/37

Page 7: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Facility for electronic filing (e-filing) of commercial documents of CCLS(Container and Cargo Logistic System) has been provided to customers. This facility enables customers like Shipping lines, Importers, Exporters and CHA's to file the required documents online for process and take necessary printouts of processed output through web from anywhere without physically coming to ICD at Tughlakabad. Digital Signatures have been integrated with e-filing on CCLS to make the system more secure.

RDT’s are being used in the ICD/TKD yard and ICD/Dadri for online container tracking and entry of unloading / loading of containers on to wagons. Interface software was developed for automatic updation of entries through RDT’s into CCLS and ETMS database for EXIM operations. RDT’s are also interfaced with our Domestic Terminal Management System (DTMS) at DCT/Okhla, TNPM/Chennai and WFD/Bangalore. This has enabled any user to query the system either through LAN or Web to get the latest status and location of a container in the yard.

CONCOR has its own WebServer for providing web interface to the commercial applications i.e. ETMS, CCLS, DTMS etc. The web interface enables our customers to access information regarding their shipments by means of the website. An integrated track and trace system was also implemented on CONCOR website for providing Container Tracking Details, Train Summaries and current train running position. CONCOR has also introduced automated e-mails for PDA statement, Rail out and SMS for Rail out cases for EXIM system. For availing such facility the intending customers may contact ED (MIS) at email id [email protected]

Web interfaces to access ETMS have been developed for providing queries such as list of containers arrived/ departed, Container status, PDA balance etc.

MANAGEMENT STRUCTURE

CUSTOMER SATISFACTION

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 7/37

Page 8: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

We are regularly making efforts to improve our business processed to provide for improved quality of customer satisfaction. Some of the practices adopted by the organisation for achieving these goals are listed below:

On line Information & Container Tracking Container Repair & Cleaning Facilities Cargo Palletisation, Strapping etc. Cargo Lashing/Choking Facility Fumigation of Cargo/Containers Supply Chain Management Door Delivery/Pick Up of Containerised cargo Container/Cargo Survey Pre Deposit Accounts Round the Clock Security at Terminals Facilitation of Customs Clearance Flexible Payment Arrangements

We conduct Customer Satisfaction Survey regularly to get a feedback from the customers and also take action to rectify/improve our services. CONCOR had also introduced on Company’s website “Feedback. Com” wherein Customers can obtain information and seek remedies on our services in the format available under menu “Customer Feedback Facility”. Prompt action on these observations/suggestions is taken to improve the quality of our services to the customer.

FUTURE PLANSThe container traffic at all Indian ports have increased at a CAGR of 13.95% during the period 2000-01 to 2010-11 including a CAGR of 11.81 % for major ports. During these period containerised cargo has gone up from 2.47 million TEUs to 9.11 million TEUs. With the growth of external trade being faster than GDP, the similar trends are expected to continue in future as well. Similarly the possibilities of growth in container traffic in the Domestic sector are immense with continued strong trends in growth of GDP and the need of the industry for value added services. Logistics parks, large cargo hubs will be the requirement of the industry in very near future, as large retail chains generate the demand for professional managed cargo delivery systems.

There will be a need for CONCOR to adopt different strategies for growth in the changed external business environment due to opening up of Rail sector for container train operation for 16 other players. More emphasis will be required on providing total logistics and transport solutions to its customers by seeing the possibilities of expanding the presence of the company in all the segments of the transport value chain in the Exim as well as Domestic segment. Possibilities are to be explored for strategic alliances, both for optimal utilization of infrastructure as well as expansion into other segments of the value chain.

The emergence of number of new ports viz. Mundra, Pipavav, Vizag, Tuticorin, Vallarpadam, Ennore, Krishnapatnam, Karaikal & some minor ports in Gujrat like Porbandar, Okha, Maroli etc. will have a large effect on the hinterland movement of containers in the country. Further, the hinterland penetration levels of the container traffic, which are very low at present, are also bound to see a many fold increase. This change in the environment offers immense potential for CONCOR to identify new business opportunities and remain the market leader by expanding into new corridors. CONCOR is forging strategic partnerships with many of the new ports.

Rail remains the main stay of CONCOR's transportation plans, currently. Business trends are now changing towards more and more door-to-door clearances. This needs to provide single window clearance facilities to its customers. This will require close co-ordination and/or alliances with other relevant agencies and transport intermediaries for door-to-door movement of cargo in containers. In order to compete with road sector that provides door-to-door movement of containers on the basis of single price, single window service through a single document, will be a key USP for the future. The company will continue to adopt cost effective

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 8/37

Page 9: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

key processes across various terminals and areas of business associated with key critical success factors, the factors which are important to its customers, through the process of Benchmarking. CONCOR has introduced movement of Double Stack Container Trainsbetween Kanakpura (Jaipur) & Pipavav and Kankakpura & Mundra. These trains will provide cost-effective transportation between these ports and ICDs in Northern India.

Due to the presence of OHE wires and other fixed structures on P-way, double stack trains cannot be run elsewhere. CONCOR has also drawn MOUs with some of the leading players in the container transport field for transporting their containers between ports and ICDs.

CONCOR has created a special division to look after the Air Cargo business which has two components 1) Bonded Trucking Services and 2) Air Cargo Complexes. Company arranges bonded trucking services between its ICD’s and major international airports like Mumbai, Bangalore, Hyderabad, Indore, Ahmedabad, Amritsar, Chennai and Delhi. Company is expanding these services to/from other locations by linking Airports with hinterland Customs clearance. Air Cargo Complex at HAL, Ozar Airport, Nasik has commenced operations. Centre for perishable cargo for handling of EXIM perishable cargo at Goa International Airport has also commenced operations. Plans are in advanced stage for setting up of Air Freight Stations within the existing ICDs like New Mulund, Sabarmati, Ludhiana, Bangalore and Pune.

The Joint Venture with M/s. MAERSK A/S Copenhagen for third birth at JN Port has placed CONCOR in the category of Port terminals operators. CONCOR has also entered in a JV with Dubai Port World for setting up & managing container terminal at Vallarpadam Port. This has opened new possibilities for further expansion in this field.

CONCOR's wholly owned subsidiary Fresh & Healthy Enterprises has established its presence in the Apple trade in North India & its first Controlled Atmosphere Store(CAS) at Rai near Sonepat(Harayana) started its operations.

For domestic business, CONCOR is committed to bring back to rail a significant share of containerisable general goods cargo through aggressive marketing efforts. The main competition in this area comes from road transportation of goods by trucks. However, since we provide better risk coverage, in addition to controlled transit times and overall reliability, we feel we geared to woo traffic that presently uses road. Domestic business has a very large potential for growth today. Given that consumption centres are vast distances away from production points, there will always be a big demand for transport. The setting up of high capacity consumer goods industries also indicates that the growth of non-bulk traffic is expected to be faster then that of bulk traffic, with the shares of both becoming decidedly better than the current 35-65 ratio. Significantly most of this non-bulk traffic is containerisable, and represents a huge market potential for CONCOR in the domestic sector.

The main strategy to capture domestic traffic so far has been to run regular scheduled point-to-point services by rail. These CONRAJ/CONTRACK services will be expanded to several more origin-destination (O-D) points. Greater efficiency will be introduced through the use of newly acquired BLC/BLL rolling stock. Special cargo and corporate will get particular focus by customization of services, and a wider terminal network will be put in place.

A major aspect of the growth strategy for both international and domestic business will involve optimising the internal logistics chains within the organization. In the effort to move from being a service integrator, CONCOR will move towards becoming a Third Party Logistics(3PL) service provider by expanding the core business into areas such as warehousing, refrigerated cargo storage and movement, and the provision of a large number of other value added services. CONCOR has also formed a JV Company with Infinite Logistics Solutions Private Limited to look after end to end domestic requirements. Another JVC has been formed with NYK Line (India) Limited named CONYK Cartrac Private Limited to cater to the auto logistics sector. As part of the overall strategy to increase market share, CONCOR will also look to provide multi-modal, transportation and logistics consultancy services to its potential users. These could be shippers directly, or intermediate agencies such as shipping lines, forwarding

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 9/37

Page 10: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

agents, terminals operators etc. Even government bodies and private trade associations chamber of commerce etc. may be targeted as potential clients.

CONCOR also hopes to avail the Private Freight Terminal (PFT) policy of India Railways and establish Multi Modal Logistics Parks (MMLP) at strategic locations for which process has already started.

DADRI (DADRI) NORTH CENTRAL REGION ICD/ DADRI (DADRI)

Facts Location

Located adjacent to Dadri Railway Station of North Central Railway on Delhi-Howrah rail route.

33 km from New Delhi station and 42 kms from TKD. Connected to entire BG rail network of Indian Railway.

Road connectivity through Surajpur – Dadri road which links ICD with Grans Trunk Road (2.4 km away) as well as NOIDA.

Construction of a Road Over Bridge(ROB) across the main line near Ddri is in fullswing.

A wide network of roads to facilitate vehicular movement incorporated in the Master Plan 2021 of the Greater Noida Authority.

24 hrs. free access to the terminal with absolutely no traffic restrictions.

Infrastructure

Total area – 110 hectares; cost – 172 crores.

Rail yard with four full length rail tracks (to be upgraded to 07 later).

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 10/37

Page 11: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

On terminal Maintenance facilities for wagons and equipment.

3,05,600 sq.mt of Concrete Block paving for rail handling and stacking of containers.

60,000 Sq.m Bituminous paved area for parking of trailors and trucks.

EXIM warehouse of 9,000 sqm alongwith Bonding Facility

Power supply through 33KV line for uninterrupted & reliable servaice. In addition complete power back up with 1000 KVA DG sets.

2000 Sq.m new warehouse and 25,600 Sq.m new HMS yard.

Fullfledged Customs setup.

4 Joint venture CFSs. a unique feature of ICD-Dadri combining the strengths of shipping lines and CONCOR. One more joint venture CFS to be commissioned within a year.

Fully operational CBS branch of Punjab National Bank for smooth functioning of trade.

Office space provided in the administrative building to Customs, Bank, Trade Tax Deptt. and various business associates like shipping lines, CHAs, Transporrters, Surveyors etc.

Main facility for wagons and Equipments

Container repair facility provided in the terminal. Repair facility for Reefer containers to be setup soon.

Four Rubber Tyred Gantry Cranes Five Reach Stackers for loaded containers Two 3 Ton Fork Lifts One 10Ton Hydra

Internal Transportation-15 Trailers

Reefer Handling/Plugging Points/Powerpacks- 190 Plugging Points- 24 Powerpacks

38 BLC rakes to cater to the Export-Import movement and to provide excellent connectivity to the gateway ports. Daily four services to JNPT/NSICT/GTIL and bi-weekly services to Mundra Port and weekly servaice to Pipavav Port.

Weigh Bridge inside the CONCOR CFS area.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 11/37

Page 12: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Services Offered

EDI- Electronic Data Interchange Facility for online business

Cargo consolidation and de-consolidation facilities. Bonded cargo handling and its secured storage facilities.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 12/37

Page 13: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Container handling and stacking. Rail and road transportation of containers, Direct rail connectivity provided with

JNPT/NSCIT, Pipavav, Mundra and Vizag inform of regular services for these ports. Services also available for other ports on demand. Rail and Road connectivity

between TKD & DADRI also provided. Specialized reefer container stacking facilities for stacking and handling of reefer

containers. Container repair facility. Electronic IWB printing for imports from JNPT/MDPT/PIPAVAV. Round the clock gate and train handling operations. Electronic PDA statement & Train Summary for Customers. Round the clock security. CCTC Camera facility is provided inside warehouse and at

the Gates.

Catchment Area

Western UP, Haryana,Delhi, Greater Noida, Noida, NSEZ, Sahibabad.

Rail Linkages

JNPT/NSCIT, Pipavav, Mundra Port, Vizag, Tughlakabad, Ludhiana. Scheduled Services

Daily for JNPT/NSCIT/GTIL Weekly train for Mundra Port Weekly train for Pipavav

Milestone of ICD/Dadri

First reefer container railed out in April 2004.

First Full reffer train in August 2004 wtih 03 power packs, October 2007 with 02 power packs and NOvember 2008 with 01 power pack.

ISO 9001:2000 certified Inland container Depot.- Date 27th March, 2007.

13% annual growth in the cumulative throughput in FY pril-March09.

A growth of 17% in the loaded Export & 22% in the loaded import during April08-march09 as compared to the corresponding period in previous financial year.

On 18-Nov, 2008 ICD-Dadri has commissioned a state of the art Mobile power generating set(powerpack), which is capable of supplying power to a full train of refrigerated containers.

Electronic data Interchange Version 1.5(ICEGATE) facility for customers to file their EXIM related doucments online.

AddressContainer Corporation of India Ltd.Inland Container DepotNear Tilpatta VillageDadri, Greater Noida, UP.Phone 0120-2352827Fax 0120-2560030/2351800/2352826

NEW SERVICES

E-Filing Software

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 13/37

Page 14: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

E-Filing software is a web based application for EXIM locations being operational at Terminal/Inland Container Depot of CONCOR.

The objective of this software is to provide one platform for entire import/export trade to perform online all their commercial transactions with EXIM locations from anywhere. This will in turn provide the trade savings in terms of time, energy and at the same time faster clearance of containers.

Through this software, any importer/exporter/shipping agent can file his documents including billing and take necessary print out’s. Various Queries and Reports are also part of this web based software to keep track of containers at every stage and also to find out due amount to be paid to CONCOR.

All registered users of this software should have digital certificate and electronic token for security and authenticity of documents filed.

HUB AND SPOKE SERVICES

One of the areas in which CONCOR faces competition in the transportation of goods is from truck operators offering transportation by road. Competition with such operators is primarily on the basis of price and dependability. The Company believes that it competes favorably with road transportation on the basis of price on movement of heavier cargoes over longer distances, although the truck operators may offer, among other things, greater flexibility with respect to the timing of shipments. Volvo trucks, with vastly reduced transit times as compared to conventional trucks, are challenging the rail transit times of CONCOR and are set to heighten competition.

In order to take full advantage of the rail linkages offered, while at the same time offering the reach and dependability of road services, the concept of "hub and spoke" operations are likely to become crucial in the company's long term development. Hub and Spoke operations are feasible for both the international and domestic business segments. Such operations involve the linking of road or short lead rail shuttle services within defined catchment areas, to long lead point to point train services.

In the international domain, some hubs like Tughlakabad are fed by several satellite locations like Panipat or even Gwalior, until traffic justifies running a scheduled service from the satellite itself, as was done in the case of Ludhiana and Moradabad, both of which started out as remote locations linked to the hub terminal at Tughlakabad, but now function as stand alone terminals.

Competition in the field of container handling is increasing, especially in the metropolitan ports. Several companies have started operations in ports. In the deep hinterland, other operators have entered the market in the sense that new terminals have been set up. However, as CONCOR concentrates on its hub-spoke strategy, these developments can become complementary to CONCOR's operations, as our competitors in the CFS business often become customers for transport of containers from and to gateway ports.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 14/37

Page 15: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

In the domestic arena as well, hub and spoke movements allow for a better utilization of transport potential and allow for long lead services to be generated on the basis of short lead traffic collections using road and rail shuttle services. This service can be especially useful for big corporates for whom production centers are concentrated in a single location, but distribution needs are national in scale. CONCOR has already successfully moved white cement as a commodity using this experiment, whereby the product has been distributed over various locations after being picked up from a single production center.

HUB & SPOKE

Transportation to become seamless and "door-to-door"

INTEGRATED FRIEGHT TERMINALS

As part of the overall strategy for expansion of business and movement toward the provision of complete logistics services, the company is considering the option of moving into operating large railway goods-shed hubs.

This will mean managing integrated freight terminals. To achieve this, CONCOR in the long term plans to set up Distriparks/ Freight Centres/ Trade Development Centres etc. at some of its terminals. The focus of providing such services will be on the backward and forward integration of various value added services with the core business of transport logistics, in which the company already has an established foothold.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 15/37

Page 16: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

COASTAL SHIPPING

As part of its overall strategy of expansion and entry into areas of business that would compliment its position as a multi-model logistics service provider, Coastal Shipping is an area of business the company is examining for making an entry.

CONCOR's interface with coastal shipping can be easily established by undertaking all port operations for coastal vessels or only taking up the rail interface for such vessels at port terminals and providing hinterland connectivity. For getting into Coastal shipping per se, we can pick up equity stake in sea-going vessels and identify a strategic partner with adequate experience and resources.

COLD CHAIN/REEFERSA key business area with high potential for growth is the provision of Cold Chains. This involves providing transportation to perishable products from source to end-user, while maintaining a certain temperature along the route. Today 85% of the cold storages are in the private sector and not a single complete cold chain solution provider is available in the market. Absence of Reefer container linkages and high and increasing power costs are proving to be major impediments.

CONCOR is already providing basic rail based reefer services between Delhi and Mumbai, and could get into providing cold chains by making a few arrangements that would expand its market presence. These would mainly include:

Tie up with an international major, preferably with developing country experience with both technology and equity commitment for bringing in the basic equipment. Organize terminal to factory transport, refrigerated warehouses-where needed, and delivery, while maintaining both temperature controlled environments, as well as transit commitments. Identify viable corridors for specific products. This will require tying up with producers and consumers independently or tie up with a food processing major to distribute its products. Return trips wherever possible make cold chain operations more profitable, and sometimes represent the difference between break even and loss.

TOTAL LOGISTICS SOLUTIONThe concept of total logistics, like that of marketing, has been somewhat alien to traditional Indian business ethos. Logistics signifies the integration of two or more activities for the purpose of planning, implementing and controlling efficient flow of raw materials, in-process inventory and finished goods from point of origin to point of consumption. Transportation is often the single largest cost in the logistics process. Logistics is a source of value addition. By streamlining transport, storage and handling operations, by reducing inventories (and the corresponding financial and storage costs) and by making the most cost-efficient use of available assets, logistics reduces the overall cost of the delivered goods while increasing their time and space utilities (right time, right place).

According to a study commissioned by CONCOR, presently in India there are about 15 players as logistics service providers out of which only 5 to 6 have turnover of Rs. 50 crores plus. Though there are over 1500 transportation companies in India, only about 25 offer third party logistics services. Others offering similar services are courier companies, freight forwarders, brokers and booking agents.

In the market, about 75% of the revenue being generated by this segment is on account of transportation and balance 25% is on account of services. The study further showed that in-house logistics service arrangement is still predominant (80-90%). Major users of 3PL spend about 0.5% to 8% of their turnover on getting these services.

Within the realm of logistics, transportation, customs brokerage, freight consolidation and freight forwarding as services are almost always outsourced, whereas Inventory management is the only key element of the logistics chain that is seldom outsourced.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 16/37

Page 17: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Advantages offered by CONCOR as Logistics Service Provider

Efficient rail transportation of containers

Massive warehousing capacity

Country-wide network

Large fleet of containers

Relationship with top-end customers

Relationship with various intermediaries in logistics

Intellectual capital.

For the growth of business, CONCOR plans to carve a niche for itself as provider of third party logistics services. This could involve the setting up of Distriparks, Freight Centers, Trade Development Centers etc. IT could be achieved through Alliance, associations, Joint Ventures or just on its own, and the services offered could be total logistics solutions to select customers or, if required, as a common user service.

TECHNOLOGY THRUST

The Indian Railways provided approx. 7200 dedicated container wagons to CONCOR for moving containers. These were supplemented over a period of time by certain over-age rolling stock modified for container carriage. These wagons, however were technologically dated, and unable to provide the kind of transits and reliability that state-of-the-art inter-modal services required. CONCOR therefore initiated procurement action for state-of-the-art, high-speedbogie low height container flat-wagons (type BLC) in service. Over 5200 BLC wagons have been procured by CONCOR and inducted in service so far.

In the new BLC type wagons, the increased length (new rakes have 45 BLCs per train) results in an increased payload per train. These wagons are also equipped with superior characteristics such as automatic twist locks, low beds through reduced wheel diameter, slack-less draw bars etc. The wagons are designed to run at 100 km/h, and have already revolutionized train transits between hinterland terminals and Mumbai gateway terminals of JNPT/NSICT. The reduced transit and turn round enhances earning potential while the negligible en-route detachments improve service reliability.

The main technical features of the new BLC Wagons are as follows:

Speed-100 kmph

Low wheel diameter to permit

Transportation of high cube containers at maximum speed

Slackless draw bars

Automatic twist locks (ATLs) and load sensing device (LSD).

Anti-Pilferage device

90 teu's per train

A total of 405 longer high speed bogie low height container flats (type BLL) capable of transporting of 20', 22', 40' & 45' domestic containers have also been inducted in service. These have similar features viz. Retractable Anchor Locks, LSD etc. as BLC wagons. During the period 1999 to 2001 CONCOR also acquired from Indian Railway 1357 BFKI type of container flats as a strategic move to control all dedicated container rolling stock. These have subsequently been upgraded and retrofitted with air brakes to improve their reliability and transit performance and are now designated as BFKN wagons. These wagons are mostly deployed in dedicated domestic CONTRACK circuits. The present size of the wagon fleet in use on CONCOR's network is approximately 8374 wagons, of which more than 85% are owned by the company.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 17/37

Page 18: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

INFORMATION SYSTEMIT forms the backbone of any service industry, where information correlates directly with improved levels of efficiency. In the transport sector, antiquated, cumbersome paper-based procedures cause an enormous waste of time and money. All too often, goods move through transport systems at a frustratingly slow speed, especially in developing countries. The physical side of trade transactions should aspire to become as efficient as the electronic transfer of money. This can be done through working partnerships among all those involved to improve logistics services through the use of information and network technology.

A primary component of CONCOR's overall business strategy has been the development of an advanced information system. A container and cargo logistics information system went online at Company's Inland Container Depot at Tughlakabad in 1994 and most other facilities have been equipped with computer systems to monitor traffic movement and maintain inventory records.

CONCOR is using various online applications like Export/Import Terminal Management System (ETMS), Domestic Terminal Management System (DTMS), Oracle Financials-ERP, HR-Payroll system etc. which are based on Centralized architecture deployed through Citrix environment and running over VSAT based hybrid network. CONCOR has been certified to ISO/IEC 27001: 2005 standard for establishing and maintaining Information Security Management System (ISMS) for its IT functionality.

CONCOR has been awarded for its project titled “Web based Integrated Container/Terminal Management System” which has been adjudged by AFACT (Asia Pacific Council for Trade Facilitation and Electronic Business) as winner for e ASIA 2009 award for the category “Electronic Business in Public Sector”.

Facility for electronic filing (e-filing) of commercial documents for EXIM locations have been provided to customers. This facility enables customers like Shipping lines, Importers, Exporters and CHA's to file the required documents online for process and take necessary printouts of processed output through web from anywhere without physically coming to terminal/ ICD. Digital Signatures have been integrated with e-filing to make the system more secure.  

RDT’s are being used in the ICD/TKD yard and ICD/Dadri for online container tracking and entry of unloading / loading of containers on to wagons. Interface software was developed for automatic updation of entries through RDT’s into CCLS and ETMS database for EXIM operations. RDT’s are also interfaced with our Domestic Terminal Management System (DTMS) at DCT/Okhla, TNPM/Chennai and WFD/Bangalore. This has enabled any user to query the system either through LAN or Web to get the latest status and location of a container in the yard.

CONCOR has its own WebServer for providing web interface to the commercial applications i.e. ETMS, CCLS, DTMS etc. The web interface enables our customers to access information regarding their shipments by means of the website. An integrated track and trace system was also implemented on CONCOR website for providing Container Tracking Details, Train Summaries and current train running position.

CONCOR has also introduced automated e-mails for PDA statement, Rail out and SMS for Rail out cases for EXIM system. For availing such facility the intending customers may contact ED (MIS) at email id [email protected]

Web interfaces to access ETMS have been developed for providing queries such as list of containers arrived/ departed, Container status, PDA balance etc.

EQUIPMENT

Handling Equipment

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 18/37

Page 19: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Successful operation of container terminals requires close attention to be provided in planning for the deployment of equipment that will be used in the handling operations at the terminal. Keeping in view the goal to provide efficient and satisfactory customer service, CONCOR has consistently been a leader in introducing and using the most modern handling equipment available at our terminals.

CONCOR's strategy in the development of a pool of equipment that can be used at its terminals has been two fold. For smaller terminals, we have generally sought to outsource the equipment while ensuring quality by setting stringent conditions on the vintage of machines deployed, the number of moves to be carried out per hour or per shift, and also by imposing tough penalty conditions on non-performance. CONCOR has also been proactive in terms of offering financing support for acquiring modern equipment as a vendor development strategy.

In recent years, the company has also acquired equipment such as reach stackers directly, and outsourced the operations and maintenance activities. This has been done to ensure that the most modern and efficient equipment is deployed at our terminals, while keeping in check unnecessary manpower expansion, and ensuring operational efficiency by contracting equipment operations and maintenance and at the same time keeping a check on the maintenance and operating practices.

At larger terminals, especially at the Flagship terminal of Tughlakabad, Dadri & Dhandari Kalan (Ludhiana), CONCOR has itself invested in procuring, operating and even maintaining heavy equipment like Gantry Cranes and Reachstackers. Over the years, CONCOR has developed an in-house technical department that is well equipped to handle not only the routine operation, but also the regular maintenance of these machines.

At At present, there are more than 10 gantry cranes operating at Terminals of Tughlakabad, Dadri & Dhandari Kalan (Ludhiana).

Containers To meet the transportation requirements of domestic industry and to increase its market share for movement of domestic cargo in containers, CONCOR has to provide cargo-specific containers to the domestic customer. In order to meet the requirements of domestic users, CONCOR has also procured some Non-ISO Standard containers. Some of the Non-ISO Standard containers already in operation. In order to meet the growing and changing needs of the market, customization is the key, and it is in this area that CONCOR is focussing its plans for container acquisition.

CONCOR presently owns 3600 Containers. About 8000 containers are taken on operation lease bringing the total population to about 12000. While acquiring new containers, CONCOR is also replacing its old containers, which have either out-lived their life or are beyond repair.

TERMINAL FACILITIESCONCOR started its operations by taking over 7 existing ICDs from the Indian Railways, and has now grown to a network of 57 terminals. Most of these terminals have been developed on land obtained on lease from the Indian Railways. Most of this land had been idling or identified as surplus land, and the inputs that have been put in by CONCOR have completely changed the face of these locations. Modern container handling terminals have been developed with state-of-the-art facilities for handling and amenities for the users.

Container handling terminals have been designed and built by CONCOR's in house engineering department. The design is invariably modular in nature. This means that the terminals have been developed keeping in mind the minimum investment while seeking to provide the best facilities. As the terminals have grown in terms of business handled, the utilized space has also been expanded by both adding facilities such as warehouses and paving, and/or by upgrading existing facilities to allow for the handling of higher volumes.

One of the major technological inputs put in by CONCOR in the area of terminal development has been the use of heavy duty paving using M-50 concrete blocks. This paving is not only

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 19/37

Page 20: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

easy to lay down, it also provides considerable long term savings due to minimum maintenance and upkeep requirements.

In the area of warehousing as well, use of the latest technology has resulted in the development of state of the art facilities. At Bangalore, use of pre-fabricated structures resulted in the commissioning of warehouses within 3 months of starting construction. Facilities such as refrigerated warehouses, multi-tier stacking facilities, special handling areas for heavy cargo, hazardous cargo etc., have also contributed to making CONCOR's terminals the most modern logistics hubs in the country.

FACILITIES AND SERVICES

INTERNATIONAL

CONCOR was incorporated in March 1988 as a Public Sector Enterprise under the Ministry of Railways with the prime objective of developing modern multimodal transport logistics and infrastructure to support the country's growing international trade.

The company commenced operations on November 1, 1989, by taking over seven Inland Container Depots from the Indian Railways located at Delhi, Ludhiana, Bangalore, Coimbatore, Guwahati, Guntur and Anaparti. Since then, CONCOR has developed a vast network of container terminals at prime locations all over the country. At present, it has a total of 41 Exim Terminals (Rail / Road linked ICDs and Port Side Container Terminals (PSCTs), with another 13 in the pipeline.

Containerization of exports and imports does not begin and end at the ports. CONCOR provides transport linkages between ports and the hinterland. Regular container trains are run to and from ports to CONCOR's terminals in the hinterland. Some of the terminals are also served by road. With liberalization and opening up of the India economy, lowering of import tariffs and reduction in the number of commodities whose import/export was prohibited by the Government, there is an increasing trend of containerized imports/exports into/from India. Along with the growth of container business at Indian Ports, the level of containerization itself is increasing.

The advantage of containerized movement into the hinterland are self evident, a major plus being the decongestion of ports which would lead to higher turnover and added growth. CONCOR'S existing presence at port-towns is sizeable. CONCOR's Terminals at Mumbai at Mulund, New-Mulund & Wadibundar cater to the Ports of Jawaharlal Nehru Port Trust and Mumbai Port Trust. Similarly, we have presence at Tondiarpet and the Harbour of Madras for Chennai Port, and Cossipore Road and Shalimar terminals at Kolkata cater to Kolkata & Haldia. There are terminals also at Cochin and Tuticorin and Vishakapatnam.

Presence in the port towns, in addition to the hinterland, would help tie-up both end points of the shipment route facilitating control over the entire logistics chain. Carrying the strategy further, CONCOR may also consider operating container berths in greenfield ports in order to provide integrated transportation logistics solutions to customers. Having already developed requisite expertise in operating hinterland terminals, port terminals should not pose any technical problems. As more port container terminal privatization takes place, it may be difficult for CONCOR to gain entry into quayside operations. Rail face operation at Port terminals still remains a strong possibility even at Private Ports.

One of the major thrusts in improving the quality of service in area of exim business has come with the introduction of new State-of-the-art Rolling Stock by CONCOR for running long lead export and import special trains to and from the gateway ports. Around 1900 High speed flat wagons have already been procured and and another 1300 odd are in the pipeline. These wagons run at higher speeds (100kmph) and safety norms than conventional railway wagons, and have contributed significantly in reducing transits and improving the reliability of exim train services.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 20/37

Page 21: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

To meet the growth in Exim traffic at some of its terminals, and to meet the challenge head on, CONCOR is also acquiring more modern container handling equipment as well. The plan is to commission a new Rubber Tyre Gantry Crane, and a Rail Mounted Gantry Crane at our biggest facility in Tughlakabad, New Delhi soon. Similarly, RTGs are to be procured for ICD Dadri also. Apart from above, deployment of tailor-made equipment like Grappler arms etc. in some of the terminals is being contemplated to increase their handling capacity and efficiency.

The total warehousing space available for CONCOR's Exim business is presently approximately 110000 sqm. By 2003-04, the Exim warehousing space should exceed 150000 sqm. , with facilities for handling bonded cargo, multi stacking, consolidation of LCL cargo, air cargo handling etc. besides conventional transit warehousing. CONCOR has plans of introducing value-added services like Palletisation/Fumigation of cargo, Repacking/strapping of cargo etc. at all its terminals. Though presently CONCOR is providing this service through contractors at some of its Exim terminals, these services are proposed to be extended, and once they have been introduced, CONCOR will be able to provide almost all warehousing-related services to its users.

CONCOR sees its future growth in accessing the untapped potential market within the country by opening more terminal facilities. The global trend in containerization of general cargo, particularly in relation to inter national trade has been rapid from the 1960's. Abroad, 75-80% of general cargo is containerized, as against approx. 50% in India. In India the percentage of container traffic out of the total Port traffic has also risen from 0.2% in 1981 to 10% in 1999-00. The growth in containerization has been faster than the growth in volumes of general cargo. This is partly because international trade in geared primarily to handle containerized cargo.

The global trend is that 70-80% of containerized cargo moves directly between the hinterland customers and the seaports in containers. Of total container handled at Indian Ports, CONCOR at present moves 30%. There is therefore intrinsic potential for further growth in CONCOR business apart from the push given by increase in foreign trade. In the decade of its existence, the throughput growth of the company's exim business has been almost 20% per annum.

As a CFS operator, CONCOR provides a number of value added services:

transit warehousing for import export cargo.

bonded warehousing, which helps importers to store import cargo and take partial deliveries as and when required, thereby deferring duty payment.

provision of air cargo complexes in some terminals

consolidation of LCL cargoes

reefer movements

DOMESTIC

The modal split between rail and road has shifted from 80:20 in 1950-51 to 40:60 in 1997-98. Substantial 'small volume' transit-sensitive' general goods traffic that typically needed to be consolidated went over to road because of several perceived advantages. 'Client-focussed' customized services are the backbone of this segment. Each service will have to be tailor-made to suit the specific requirements of the client concerned. Large companies with substantial movement requirements shall be the ones in focus.

The advantages of rail for long and heavy hauls are clear. By contrast, the road situation today is marked by poor maintenance, congestion and delays (38% of travel-times spent waiting at check posts). Given a choice, the shipper is willing for a modal shift, if one can guarantee speed, safety and ensure reliability.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 21/37

Page 22: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Indian Railway's strategic initiative to containerize cargo transport put India on the multi-modal map for the first time when the Indian Railways entered the market for moving door-to-door domestic cargo in special Indian Railway Specification (IRS) containers starting in 1966.

Though CONCOR, was incorporated in March 1988, it embarked on the transportation of domestic cargo only in 1991, using ISO standard containers for the job. Between 1993 and 1996, there was a major thrust in the domestic business, so much so that domestic business represented almost half of CONCOR's total business in 1995-96. This business, however was dependent on large scale chassis-to-chassis movement of cement, which had come CONCOR's way due to shortage of conventional rail wagons.

By 1997, it became clear that while there was a vast potential of domestic traffic to be tapped, this could only be done by focussing the strategy on the movement of goods that were erstwhile moving on road, and not on bulk, rail based traffic. A separate Domestic Division was therefore created in December 1997.

The objective of the division is to bring back to rail, goods which are now being transported by road. The division aims to do this by containerizing piecemeal cargo and offering a comprehensive door to door intermodal service.

The domestic division functions through a network of terminal/hubs. There are at present 5 exclusively domestic terminals, but as many as 20 of the other terminals on the CONCOR terminal map also offer domestic services. As a matter of policy, most of the new terminals being introduced are now being planned as combined domestic/international terminals.

The main asset in which domestic cargo is carried is the standard 20ft container. CONCOR's fleet of TEUs in domestic service is currently at approximately 8500 TEUS. Of these, some are owned and some are brought in on short or long term lease depending on the demand requirements. Besides leasing, CONCOR also uses conventional ISO (international) containers by offering special Cabotage rates for empty movements. In this practice, containers that would otherwise move as empty are 'borrowed'/leased on an extreme short term basis (usually for a single trip) for domestic cargo movement, thereby increasing the carrying capacity for domestic cargo as a whole. There are also different types of specialty containers such as Open Top, Side Doors, Tanks, and 22ft/high cube containers to cater to special types of cargo.

The thrust of domestic operations is to run a series of point to point scheduled trains. These 'CONTRACK' services form the spokes in a wider hub-spoke strategy whereby cargo is consolidated through road or even rail, at major hub terminals from where such CONTRACK services operate.

Extensive movement of shipping-line empty containers is undertaken by CONCOR to balance the differential levels of exports and imports in the country today. By "Cabotaging" these containers. CONCOR can offer a substantial discount to both shipping lines and the potential domestic client. This seen as an area of focus and a strategy to boost volumes and profitability.

For the charging of freight, all commodities carried by CONCOR fall into three categories:

1. CC(carrying capacity): These are heavy commodities, which when stuffed normally reach the carrying capacity of the container (usually 21.5t in a 20' container, and 27.5t in the 40' container) before the container is filled to its volumetric capacity. The Indian Railways has only retained 5 specific commodities as 'CC' for use of CONCOR. These are (1) Cement, (2) Iron & Steel despatched from steel plants, (3)Petroleum and other hydrocarbon oils, (4) Grains & Pulses, and (5) Edible Salt.

2. M (mixed goods): Commodities other than the five listed above, which have 'CC' loadability in the Railway Goods tariff are included in this category. When

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 22/37

Page 23: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

commodities with 'CC' loadability and less than 'CC' loadability are loaded in a container, they will also be charged under this category.

3. W (weight condition): These are light commodities which have loadability less than 'CC' even after occupying the total space of a container. These commodities are separately listed in the Railway Goods Tariff.

List of CC, M, and W commodities as per Railway Tariff

CONCOR's business strategy for its domestic business growth can be summed up as under:-

CONCOR plans to become more flexible in the pricing of services. Road hauliers have strong leverage in varying their prices to suit fast changing market conditions. While CONCOR cannot match the road hauliers' flexibility in pricing, but the company can leverage its own strengths of being a rail service provider, as also a terminal/warehouse operator such that it has door service capability. It can also offer discounts on volumes, customer profile, cargo characteristics, container availability, empty flow patterns etc. We also plan to reduce our empty return radio (ERR), in order to reduce the amount of unproductive haulage, and offer more competitive prices.

Consolidation of Cargoes: Cargo consolidation at originating terminals will not remain the domain of freight forwarders only. CONCOR itself plans to enter into consolidation and distribution management systems.

Need has been felt not only for customization of services, but also for the assets in service. Containers, terminals, warehouses, wagons etc. will be designed to customer requirements. The Company may also invite customer's stake holding (financial commitment) in the asset to be provided. The road hub and rail spoke concept will be extensively used by CONCOR to feed hubs from which trains can be run to the next major hub. This system will help CONCOR achieve complementarity between road and rail in its operation.

CONCOR had introduced Asia's biggest ICD at Dadri in the year 2003. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for India's International and Domestic containerization and trade. CONCOR's core business is characterised by three distinct activities, that of a carrier, a terminal operator, and a warehouse operator.CONCOR handles 2.5m TEU’s/year accounting for 25% of total for India.

What is an Inland Container Depot (ICD)Inland Container Depots, otherwise known as ICDs, are dry ports equipped for handling and temporary storage of containerized cargo as well as empties. This means that hinterland customers can receive port services more conveniently closer to their premises. The present trend in the international trade is containerization of cargo. The full benefits of containerization can be derived only when the containers are, permitted to be moved to points in close proximity to important industrial station so that the importers can get clearance of the imported goods at the nearest point to their factory/premise. The facility is helpful to the exporters as they can export the goods from the nearest point of their factory/premise in order to provide this facility some statutory conditions are to be fulfilled and necessary infrastructure provided.To start with, the Government of India issued a notification under Section 7 of the Customs Act 1962 appointing a suitable place as inland container Depot for the unloading of the import goods and the loading of export goods or any class of such goods. After issue of such notification, the Commissioner of Customs having jurisdiction over that place issues a notification under Section 8 of the Customs Act, 1962 approving proper places in the ICD for the loading and unloading of the goods and also specify the limits of Customs area and post Customs Officers and staff to attend to work. The capital of India is a dry port and serviced by several inland container depots (ICDs), with shipments routed through Mumbai / JNP

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 23/37

Page 24: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

(NhavaSheva) gateway ports. Delhi has three major ICDs - Tughlakabad, Patparganj and Dadri.

ICD Tughlakabad is on the south-east fringe of the city and caters predominantly to FCL import and export traffic. The rail head comes up to Tughlakabad. ICD Patparganj is on the north-east side of Delhi. There is no rail head at Patparganj. Containers are moved by road to/from Tughlakabad for connection by rail. This ICD predominantly caters to LCL import and export cargo.ICD Dadri was commissioned in 2003 and offers superior infrastructure to that available at the other two ICDs, with vast open tracts of land earmarked for CFS and container yard space. There is a large rail head at Dadri but at this time only a limited number of carriers are operating from this ICD. Movement from ICD to gateway port is undertaken by Container Corporation of India, a subsidiary of Indian Railways. A host of direct flights to European, Middle-East and South-East Asian destinations are available from Delhi International Airport. Other destinations are reached via hubs in Europe & South East Asia.

DISTINCTION BETWEEN AN ICD & A CFSFunctionally there is no distinction between an ICD/CFS as both are transit facilities, which offer services for containerization of break bulk cargo and vice-versa. These could be served by rail and/ or road transport. An ICD is generally located in the interiors (outside the port towns) of the country away from the servicing ports. CFS, on the other hand, is an off dock facility located near the servicing ports which helps in decongesting the port by shifting cargo and Customs related activities outside the port area. CFSs are largely expected to deal with break-bulk cargo originating/terminating in the immediate hinterland of a port any may also deal with rail borne traffic to and from inland locations.Keeping in view the requirements of Customs Act, and need to introduce clarity in nomenclature, all containers terminal facilities in the hinterland would be designated as "ICDs".

Procedure for Setting up of ICDs/CFSsTo monitor the growth of ICDs/CFSs, a regulatory authority in the form of an Inter-Ministerial Committee (IMC) under the chairmanship of the Additional Secretary(Infrastructure), Ministry of Commerce, has been set up. It comprises representatives from the Department of Revenue, Ministry of Surface Transport, Ministry of Railways and the Ministry of Commerce. The Committee considers the proposals submitted by Public Sector as well as Private Sector entrepreneurs for setting up of new ICDs/CFSs at different centres in the country and monitors their progress. There were about 30 ICDs/CFS prior to constitution of the IMC. After its constitution in the year 1992, the IMC has approved about 135 ICDs/CFS and out of total 165 ICDs/CFSs, about 100 are reported to be already in operation and others are in pipe line.An Inter-Ministerial Group (IMG) under the chairmanship of Revenue Secretary with other members from Planning Commission, Shipping, Commerce Ministries and Central Board of Excise and Customs was constituted in pursuance to a decision taken in a meeting of the Committee on Infrastructure on the Ports Sector. The Group obtained feedback from the trade and other stakeholders and deliberated in detail on streamlining customs procedures in the functioning of Container Freight Stations (CFS) and ports in the background of existing international standards.

Guidelines for approval of ICD/CFSThe proposal for setting up of ICDs/CFSs are examined by the IMC on the basis of following guidelines: Feasibility report: A survey/feasibility study must precede the setting up of ICDs/CFSs and copy of the report should invariably accompany the application for setting up such a facility. The facility has to be economically viable for the management and attractive to users, to the railways for full train movements; and to other transport operators; shipping lines; freight forwarders, etc.In the background of growing international trade, the infrastructure facilities have to precede the actual generation of demand. This is particularly important, as such facilities have a long gestation period for being fully operationalised. For approval of an

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 24/37

Page 25: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

ICD/CFS, following minimum level of traffic volume is prescribed:For ICD - 6,000 TEUs per year (Two way) AND

For CFS - 1,000 TEUs per year (Two way)

Land requirements: The minimum area requirement for a CFS would be One Hectare and for ICD Four Hectare. However, a proposal could also be considered having less area on consideration of technological upgradation and other peculiar features justifying such a deviation.Design and Lay-out of ICD/CFS: The design and layout should be the most modern state-of-art equipped with mechanical/electrical facilities of international standards. Key to a good lay-out is the smooth flow of containers, cargo and vehicles through the ICD/CFS. The design and lay out should take into account initial volume of business, estimated volume in 10 years’ horizon and the type of facilities exporters would require. The initial lay out should be capable of adaptation to changing circumstances. The design broadly should encompass features like (rail) siding, container yard, gate house and security features, boundary wall (fencing), roads, pavements, office building and public amenities. The track length and number of tracks should be adequate to handle rakes and for stabling trains where relevant.The perimeter fencing and lighting must meet the standards required by Customs authorities. The gate being the focal point of site security should be properly planned.The administration building is the focal point of production and processing of all documentation relating to handling of cargo and containers and its size will be determined by the needs of potential occupants. Fixed provisions should be made for sanitation facilities and possibly a food service facility.A good communication system and computerisation and EDI connectivity is essential. Following Infrastructure should be available at the ICDs/CFSsProvision of standard pavement for heavy duty equipment for use in the operational and stacking area of the terminal. In cases where only chassis operation is to be performed, the pavement standard could be limited to that of a highway.  

Office building for ICD, Customs office and a separate block for user agencies equipped with basic facilities.

Warehousing facility, separately for exports and imports and long term storage of bonded cargo.

Gate Complex with separate entry and exit. Adequate parking space for vehicles awaiting entry to the terminal. Boundary wall according to standards specified by Customs. Internal roads for service and circulating areas. Electronic weighbridge. Computerised processing of documents with capability of being linked to EDI.

 Equipping the ICD/CFS: The ICD/CFS would select most modern handling equipment for loading, unloading of containers from rail flats, chassis, their stacking, movement, cargo handling, stuffing/destuffing, etc. Following minimum equipment should be made available at ICDs/CFSs

Reach stacker may not be mandatory Dedicated equipment such as lift truck (front end loader, side loader or reach-

stacker), straddle carrier, rail mounted yard gantry crane, rubber tyred yard gantry crane, etc. of reputed make and in good working condition (not more than 5 to 8 years old) and equipped with a telescopic spreader for handling the 20 ft and 40 ft boxes. The equipment must have a minimum residual life of 8 years duly certified by the manufacturer or a recognized inspection agency. An additional unit of equipment should be provided when the throughput exceeds 8000 TEUs per annum or its multiples for lift truck based operations.

Terminals resorting to purely chassis-based operations do not require dedicated box handling equipment. However, chassis-based operations should be restricted to CFSs proposed to be set up near ports.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 25/37

Page 26: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Small capacity (2 to 5 tonnes) forklifts must be provided for cargo handling operations in all terminals.

 Rail head ICDs: The parties desirous of setting up a rail based ICD, have to provide at their own cost all infrastructure facilities including land, track, handling equipment for containers, maintenance of assets including track, rolling stock, etc. as per extant railway rules applicable to private sidings. Tariff:Tariff structure and costing is to be worked out as a part of the feasibility study. General: The main function of an ICD/CFS being receipt, despatch and clearance of containerised cargo, the need for an up-to-date inventory control and tracking system to locate containers/cargo is paramount. Each functional unit of the facility (e.g. siding, container yard, gate, stuffing, de-stuffing area etc.) should have uptodate, and where possible online information about all the containers etc., to meet the requirements of customers, administration, railways etc.

Procedure for approval of ICD/CFSProposals for setting up ICD/CFS will be considered and cleared, on merits, by an Inter Ministerial Committee for ICDs/CFSs, which consists of officials of the Ministries of Commerce, Finance (Department of Revenue), Railways and Shipping. Views of the State Governments as necessary would be obtained.

Application 10 copies in enclosed form should be submitted to the Infrastructure Division in the Ministry of Commerce, UdyogBhavan, New Delhi. Application must be accompanied by 10 copies of feasibility reports mentioned in the guidelines.

The applicant should also send a separate copy of the application to the jurisdictional Commissioner of Customs. The Commissioner of Customs will send his comments to the Ministry of Commerce and the Central Board of Excise & Customs (CBEC) within 30 days. In case, the project is planned in a port town, a copy of the proposal should also be sent to the concerned Port Authority who would furnish their comments within 30 days to the Ministry of Surface Transport and the Ministry of Commerce.

The applicants are also requested to familiarise with the statutory Custom requirements in relation to Bonding, Transit Bond, Security Insurance and other necessary procedural requirements and cost recovery charges payable before filing the application. On receipt of the proposal, the Ministry of Commerce would take action to obtain the comments from the jurisdictional Commissioner of Customs and other concerned agencies within 30 days. Wherever necessary, a copy of the proposal should also be sent to Zonal Railway Manager, under intimation to the Ministry of Railways One copy of the proposal would also be made available to the IMC Members for advance action. The decision of the IMC would be taken within six weeks of the receipt of the proposal under normal circumstances. On acceptance of a proposal, a Letter of Intent will be issued to the applicant, which will enable it to initiate steps to create infrastructure.

The applicant would be required to set up the infrastructure within one year from the date of approval. The Ministry of Commerce may grant an extension of six months keeping in view the justification given by the party. Thereafter, a report would be submitted to IMC to consider extension for a further (final) period of six months. The IMC may consider extension or may submitted to IMC to withdraw the approval granted.  The applicant, after receipt of approval, shall send quarterly progress report to Ministry of Commerce. Three formats (given as annexure I to III) for sending the quarterly/ annual report shall have to be submitted to Department of Commerce through electronic mode as well as through hard copy. After the applicant has put up the required infrastructure, met the security standards of the jurisdictional Commissioner of Customs and provided a bond backed by bank guarantee to the Customs, final clearance and Customs notification will be issued. The approval will be subject to cancellation in the event of any abuse or violation of the conditions

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 26/37

Page 27: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

of approval. The working of the ICD/CFS will be open to review by the Inter Ministerial Committee. Once required infrastructure for an ICD/CFS is developed, a notification under section 8 of the Customs Act declaring the facility as a custom area is issued by the jurisdictional Commissioner of Customs. The operators of the ICDs/CFSs are appointed custodians under section 45 of the Customs Act, 1962, provided they satisfy the conditions relating to development of infrastructure & facilities and furnish bonds and securities as laid down for such purpose in the CBEC Circular No.128/95-Cus., dated 14.12.95. Custodians are responsible for safety and security of the goods stored in their ICD/CFS.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 27/37

Page 28: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Operations of ICDs and CFSs

Rail Siding (in case of a rail based terminal): The place where container trains are received, dispatched and handled in a terminal. Similarly, the containers are loaded on and unloaded from rail wagons at the siding through overhead cranes and / or other lifting equipments.  Container Yard: Container yard occupies the largest area in the ICD.CFS. It is stacking area were the export containers are aggregated prior to dispatch to port, import containers are stored till Customs clearance and where empties await onward movement. Likewise, some stacking areas are earmarked for keeping special containers such as refrigerated, hazardous, overweight/over-length, etc.  Warehouse: A covered space/shed where export cargo is received and import cargo stored/delivered; containers are stuffed/stripped or reworked; LCL exports are consolidated and import LCLs are unpacked; and cargo is physically examined by Customs. Export and import consignments are generally handled either at separate areas in a warehouse or in different nominated warehouses/sheds.  

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 28/37

Page 29: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Gate Complex: The gate complex regulates the entry and exist of road vehicles carrying cargo and containers through the terminal. It is place where documentation, security and container inspection procedures are undertaken.

Operational Procedure of an ICD/CFS

Dry Port Operational Procedure Receipt and despatch of cargo Truck Operation Loading/Unloading of Cargo/ Container to and from Trains Custom Clearances Gate check systems Storage of Cargo Containers Container Repair Information Flow and Communications Record Keeping and data storage Billing and Cash Collection Centres of Dry Port

o Rail siding o Container Yard o Custom Bonded Space

 Operation Activities Imports

Operating Activities Check List/ Advance ActivityReception of Train from Sea Ports Receiving Advance train manifest from PortRecording of container on trains, marking comparison with manifest

Inform railway/ Port Authority of Any Discrepancies

Unloading and Stacking containers  FCL Container from Stack onto Road Vehicles Present cargo at customs bay for examination

after the importer has filed the paperLCL Container are taken to CFS Unpacked return to Stacks

Segregate of Cargo, present it to customs

Collection of Charges due to container and Cargo

Issue Receipts

Preparation of Gate-pass for removal of container / Cargo

Check the Customs cleared the goods

Check at Gate: Condition of container and cargo, correctness of removal

Record condition, get acknowledgment

Filing of Record of the transaction

Operation Activity Exports

Operating Activities Check List/ Advance ActivityReception of Cargo/Container from Factory  Gate Check on Condition of Cargo/Container Record Condition, Check if export control

regulations allow shipmentPresentation of document by exporter to customs

 

FCL container to stack  Break bulk Cargo to CFS Place Emty at CFS, Stuffing of Cargo in

containerRemoval of container from CFS to Stack Issue Combined Bill of Lading by Shipping

Line Preparation of Train Manifest  Stacking of container in proper order Collect Charges DueIssue of Rail receipt for each container  

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 29/37

Page 30: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Load container onto Trains Check SealsTransmit Train manifest with details of Container to Sea Port

 

Record All Transactions

Procedure for Arrival and Dispatch of Trains

1. Trains should run on fixed schedule, timing of arrival and departure should be monitored

2. Places should be allocated for incoming trains for arrival trains preferably with morning arrivals so that unloading / dispatch can be done on same day

3. System of checking seals and the condition of containers by ICD Operators, Railways and customs should be clearly specified

4. A system of Train Examination should be laid down so that containers are not detained at any immediate points, prior information should be available to dry ports as to any wagons that are not to be back loaded

 Procedure for Loading and Unloading Containers

1. The container stack should have sufficient leeway otherwise reach stacker productivity would suffer and no. of moves in retrieving a container will increases

2. Container stacking should be done in such a way that Import, Export and Emty container can identifiable

3. Reefer containers should have priority in loading/ Unloading operations to avoid unnecessary heating.

4. Stream of Road vehicle between rail siding and stacks should be well organized to avoid accidents.

5. Very careful recording should be done of packaging while stuffing/ destuffing of a container.

 Gate Procedure and Container Under Control

1. Checks Import/ Export Documents 2. Check delivery / receipt Instructions or waybill 3. Fill gate log and notes particulars of vehicles 4. Inspects the container seal and weigh records 5. Preparation of Inventory reports

Operational Analysis of an ICD / CFS

Analysis of Traffic Inflow and optimum Location of a dry port depends on 1. Production of Consumption of Ports

o Commodities o Directional splits : Imports/ Exports o LCL v FCL % Split o Forecast of future growth  in trade inflows o Relative Locations of Inland Centres

2. Corridor Capacities 3. Possible reduction in TEU Per Km Cost 4. Transport Infrastructure

 Unit Train Working

1. Total Containerized Trade Volume = xxx MT per Annum 2. Incoming Traffic Import = a % 3. Outgoing Traffic Export = b% 4. Carrying Capacity of Trains = 90 TEUs

 Conversion can be done as below

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 30/37

Page 31: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

5. TEUs Generation = XXX MT/ Average wt of Cargo carried by a TEU 6. Volume of Export = TEUs Generation x a% 7. Volume of Import = TEUs Generation x b% 8. Generation of Empties = Volume of Export-Volume of Import 9. Total Throughput = Volume of Export + Volume of Import + Generatio of empties 10. No. of Incoming Trains = a%/ 90

 Capacity of ICD Calculation

1. No. of TEUs Per Annum 2. No. of Stacking 3. Limit of Stacking 4. Dwell Time 5. No. of Working Days in a year

o (1 x 2 x 3 x 4) / 5  Equpment required at ICD/ CFS

1. Reach Stacker 2. Forklift 3. Crane

 Management Structure of ICD CFS

1. Controlling Body o General Manager

Security Operations Engineering Accounts Marketing Operations

Rail Operations Yard Operations CFS Operations

Operational Analysis of ICD  Daily Container Throughput

1. No. of Containers - By Rail 2. No. of Containers - By Road 3. No. of Empties at Yard

 Tractor TrailorsDailywise Detail as Last Leg solution

1. TT in Transit and Distance from Customers 2. Time Spent at Customer 3. Time Spent at Terminal 4. Ratio of Tractor Trailor to TEUs 5. No. of Trailors Required of Daily Need 6. No. of Journeys per TT / Day 7. Total No. of Incoming Journeys per TT to TEUs = Factory Destuffing by ICD Unit 8. Total No. of Outgoing Journeys per TT to TEUs = Factory Stufing by ICD Unit

 Rail Operations

Rail Space Required Speed of Loading/ Unloading of each Train Cost of shunting equipment Rake Hiring Charges ROH Time for each rake wise operations

 ICD operations

Handling cycle time TEUs Handled/ Hectare TEUs Handles/ No. of Emloyee

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 31/37

Page 32: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Container Dwell Time No. of Lifts Per Container No. of Reach Stacker Required at Loading Point / Unloading Point / Shifting / Yard to

Yard Operations / Emty Yard No. of Fork Lift Equpment Productivity

o Moves/ Equipment Hours o TEUs / Equipment Hours

Revenue Analysis Activity Loaded 20' Loaded 40'  Emty 20' Emty 40'Stuffing/Desuffing [TEUs]

       

Storage Rs./Day        Handling Rs./TEU

       

Dwell Time (in Days)

       

Benefits from an ICD/CFSThe main benefits from ICDs/CFSs

Concentration points for long distance cargoes and its unitisation. Service as a transit facility. Customs clearance facility available near the centres of production and consumption Reduced level of demurrage and pilferage. No Customs required at gateway ports. Issuance of through bill of lading by shipping lines, hereby resuming full liability of

shipments. Reduced overall level of empty container movement. Competitive transport cost. Reduced inventory cost. Increased trade flows.

About ICD, DADRI: UTTAR PRADESH

The Container Corporation of India (Concor) started operating the country’s largest inland container depot (ICD) at Dadri in Uttar Pradesh in 2003. The Dadri ICD has been designed to handle 1 million TEUs (twenty feet equivalent units) of containerised cargo. It will supersede Delhi’s Tughlakabad ICD with a capacity of 4 lakh containers in a year considered so far the largest in the country. The Dadri ICD will meet the ever-increasing 15-20 per cent annual demand for containerised traffic in the northern hinterland, said a release. The Dadri ICD is spread over 110 hectares of land. Rail linkages to the Dadri ICD are provided through Dadristations which falls on the New Delhi-Howrah route of the North Central Railway.

LOCATION Adjacent to Dadri Railway Station of North Central Railway on Delhi-Howrah rail

route. 33 km from New Delhi station and 42 kms from TKD. Connected to entire BG rail network of Indian Railway. 

Road connectivity through Surajpur – Dadri road which links ICD with Grans Trunk Road (2.4 km away) as well as NOIDA.

Construction of a Road Over Bridge(ROB) across the main line near Dadri is in fullswing.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 32/37

Page 33: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

A wide network of roads to facilitate vehicular movement incorporated in the Master Plan 2021 of the Greater Noida Authority.

24 hrs. free access to the terminal with absolutely no traffic restrictions.

Functionsof ICD Dadri

The primary functions of ICD may be summed up as under:

a. Receipt and dispatch/delivery of cargo.b. Stuffing and stripping of containers.

c. Transit operations by rail/road to and from serving ports.

d. Customs clearance.

e. Consolidation and desegregation of LCL cargo.

f. Temporary storage of cargo and containers.

g. Reworking of containers.

h. Maintenance and repair of container units.

DESIGN,FACILITIES & INFRASTRUCTURE Total area – 110 hectares; cost – 172 crores. Rail yard with four full length rail tracks (to be upgraded to 07 later). On terminal Maintenance facilities for wagons and equipment. 3,05,600 sq.mt of Concrete Block paving for rail handling and stacking of containers. 60,000 Sq.m Bituminous paved area for parking of trailors and trucks. EXIM warehouse of 9,000 sqmalongwith Bonding Facility Power supply through 33KV line for uninterrupted & reliable servaice. In addition

complete power back up with 1000 KVA DG sets. 2000 Sq.m new warehouse and 25,600 Sq.m new HMS yard. FullfledgedCustoms setup. 4 Joint venture CFSs. a unique feature of ICD-Dadri combining the strengths of

shipping lines and CONCOR. One more joint venture CFS to be commissioned within a year.

Fully operational CBS branch of Punjab National Bank for smooth functioning of trade.

Office space provided in the administrative building to Customs, Bank, Trade Tax Deptt. and various business associates like shipping lines, CHAs, Transporrters, Surveyors etc.

Main facility for wagons and Equipments Container repair facility provided in the terminal. Repair facility for Reefer containers to be setup soon. Four Rubber Tyred Gantry Cranes Five Reach Stackers for loaded containers Two 3 Ton Fork Lifts One 10Ton Hydra Internal Transportation

- 15 Trailers Reefer Handling/Plugging Points/Powerpacks

- 190 Plugging Points

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 33/37

Page 34: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

- 24 Powerpacks 38 BLC rakes to cater to the Export-Import movement and to provide excellent

connectivity to the gateway ports. Daily four services to JNPT/NSICT/GTIL and bi-weekly services to Mundra Port and weekly servaice to Pipavav Port.

Weigh Bridge inside the CONCOR CFS area.

ICD Dari Port Facilities Custom control and clearance Custom Bonding Temporary storage during customs supervision Inventory Control Container handling equipment 20 ft and 40 ft Offices of clearing and forwarding agents Complete enclosure, fencing and security system Reliable and efficient communication facility CFS with stuffing and un -stuffing services Warehousing & Storage Offices of Shipping Line agents Railway goods office Road Haulage Brokerage Cargo Packing Services Consignment Consolidation Services Unit Trains Assembly and Booking Services Container Clearing Services Computerized Cargo-Tracking Services Container Repair Facilities Refer Refrigeration Points Weigh Bridges Survey Inspection Offices Emty Stacking Yard Appropriation of Security Adequate Communication facilities

SERVICES OFFERED AT ICD DADRI EDI- electronic data interchange facility for online business: Cargo consolidation and de-consolidation facilities. Bonded cargo handling and its secured storage facilities. Container handling and stacking. Rail and road transportation of containers, Direct rail connectivity provided with

JNPT/NSCIT, Pipavav, Mundra and Vizag inform of regular services for these ports. Services also available for other ports on demand. Rail and Road connectivity

between TKD & DADRI also provided. Specialized reefer container stacking facilities for stacking and handling of reefer

containers. Container repair facility. Electronic IWB printing for imports from JNPT/MDPT/PIPAVAV. Round the clock gate and train handling operations. Electronic PDA statement & Train Summary for Customers. Round the clock security. CCTC Camera facility is provided inside warehouse and at

the Gates.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 34/37

Page 35: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Catchment AreaWestern UP, Haryana,Delhi, Greater Noida, Noida, NSEZ, Sahibabad.

Rail LinkagesJNPT/NSCIT, Pipavav, Mundra Port, Vizag, Tughlakabad, Ludhiana.

Scheduled Services Daily for JNPT/NSCIT/GTIL Weekly train for Mundra Port Weekly train for Pipavav

MAJOR EXPORT COMMODITIESRice, Cotton Piece Goods, Readymade Garments, Brass / EPNS, Artware, Wooden Handicraft, Hand Tools, Bicycles / Spares, Biscuits, Fastners, Truck Fittings, Carpets, Caustic Soda, Agricultural Equipment, Stone

MAJOR IMPORT COMMODITIESBrass Scrap, Steel Scrap, Newsprint, Chemicals, Machinery, Zinc Ingots, Bonded Items (For Hotels, etc.)

MILESTONES OF ICD/DADRI First reefer container railed out in April 2004. First Full reefer train in August 2004 with 03 power packs, October 2007 with 02

power packs and November 2008 with 01 power pack. ISO 9001:2000 certified Inland container Depot.- Date 27th March, 2007. 13% annual growth in the cumulative throughput in FY pril-March09. A growth of 17% in the loaded Export & 22% in the loaded import during April08-

march09 as compared to the corresponding period in previous financial year. On 18-Nov, 2008 ICD-Dadri has commissioned a state of the art Mobile power

generating set(powerpack), which is capable of supplying power to a full train of refrigerated containers.

Electronic data Interchange Version 1.5(ICEGATE) facility for customers to file their EXIM related documents online.

LESSONS LEARNT AT ICD DADRI VISIT: Benefits for Actors of a Dry Port Concept

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 35/37

Page 36: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

Major ICD/CFS Operators in India 

1. Container Corporation of India

2. Central Warehousing Coporation

3. Gateway Distriparks Ltd.

4. Gateway Rail Freight Limited

5. Adani Logistics Ltd.

6. All Cargo Logistics Ltd.

7. CMA CGM Logistics Park Ltd

8. Worlds Window Infrastructure Private Limited

9. Hind Terminal Private Limtited

10. India Infrastructure Private Limited

11. Arshiya International Ltd.

Key Challenges at ICD Dadri Insufficient material handling equipments Inadequate road connectivity Inadequate rail connectivity Farness from Industrial towns Distance from the nearest airport Insufficient and inadequate power back up facilities

Conclusion

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 36/37

Page 37: Icd vivek malhotra 63

Report on ICD Dadri Dry Port Visit

ICD Dadri is a huge leap towards better container movement and handling. One can see that TKBD handles higher volumes but in value terms, Dadri takes the lead. Moreover, TKBD doesn’t cater to domestic movement but Dadri has started catering domestic segment from 2007 onwards. Eventually, this will enhance multi modal transportation; achievement of cost efficiencies for bulk transportation straight from docks; distribution management can be streamlined by many companies, thereby, promoting 3PL within the ICD and around. Thus, this will enhance operational as well as cost efficiencies.

However, it is necessary to bring it at par with international standards including better operational efficiency, better load capacity handling, better integration of tiered solutions and end-to-end transportation solutions including last mile connectivity. Security standards should be upgraded to ensure integrity and safety [on our visit, we could not see much security in-and-around the port, storage facilities, warehouse etc.]. Government and local bodies should also promote the port by making ancillary/support infrastructure available like thorough road connectivity, nearby airport, personnel movement and residential colonies along with basic amenities.

MBA Part Time 2009-12, Roll No 63 (Vivek Malhotra) 37/37