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Multimodalism refers to transportation of goods between two points by more than one mode
of transport. This could be by road-rail, road-rail-coastal or any other combination.
The distance over which the goods have to be transported is an important consideration
because the characteristics of haulage charges and terminal charges vary widely from mode
to mode.
After the goods are loaded in a “multimodal equipment” at the commencement of the
journey, they travel across multiple transport modes without any further handling of the
goods until the goods reach the intended destination.
The carrier responsible for the entire carriage is referred to as a multimodal transport
operator, or MTO.
Multimodalism& Containerization
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Benefits of Containerization
• Reduces transit time through quicker cargo handling & by reducing the number of
individual pieces of cargo that need to be handled
• Obviates the need for covered warehouses, for containers can be stored in the open,
thereby reducing warehousing cost
• Eliminates the intermittent handling of cargo during transit- cargo arrives in better
condition at destination
• In 1981, first ISO container moved by IR to India’s first Inland Container Depot
(ICD) at Bangalore, managed by IR
• CONCOR set up to develop multimodal logistics support for India’s international &
domestic containerized cargo & trade
• CONCOR has three distinct activities- a carrier, a terminal operator and a warehouse
operator
• CONCOR’s ICDs are dry ports in the hinterland and bring all port facilities including
customs clearance to the customer’s doorstep
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• In terms of Twenty-foot Equivalent Units (TEUs) handled every year, CONCOR’s
Throughput has grown tremendously (52,000 TEUs in 1989-90 to 3.11 million TEUs
in 2014-15)
• The companies expected to invest in rolling stock, ICD and logistics parks
• Container Storage
• Customs facilitation
The container traffic handling at all Indian gateway ports has grown at a CAGR of 6.84%
during last ten years period, with numbers going up from 7.58 million TEUs in 2007-08 to
14.69 million TEUs in 2017-18.
With the anticipated growth rate of external trade to be faster than GDP growth, better trends
are expected to usher in future. Similarly, the possibilities of growth in container traffic in the
Domestic sector are immense with continued strong trends in growth of manufacturing based
GDP and impending 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 professionally managed cargo delivery systems.
Keeping in tune with the developments, CONCOR has already adopted suitable strategies
for growth in the highly competitive external business environment emerging after almost a
decade of opening up of Rail sector for container train operations in 2006.
As one of the 17 licensed CTOs (Container Train Operators) in the field, Company is already
focused on providing total logistics and transport solutions to its customers by holding on to
its basic strengths and expanding its presence in all the segments of the transport value chain
in Exim as well as Domestic business segments.
Continuous attempts have been made in the recent past and still the further possibilities are
being explored for strategic alliances, both for optimal utilization of infrastructure as well as
expansion into other segments of the value chain.
The emergence of CONCOR as a group of 16 companies (comprising of CONCOR, four
subsidiaries & eleven Joint Venture companies) is a testimony to this.
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There is a strong likelihood of the group size going up.
Encouraging have been the trends of extremely good growth in container handling at the key
private port terminals of Mundra, Pipavav, Vizag and Tuticorin.
This, and the impending growth in container handlings at the newly established
port/transshipment terminals of Vallarpadam, Ennore, Krishnapatnam, Karaikal, Dahej,
Hazira & likely emergence of some other minor ports in Gujarat like Nargol, Porbandar,
Okha, Maroli etc. will have large effect on the hinterland movement of containers in the
country.
Further, the existing low hinterland penetration levels of the container traffic in existing ports
are also bound to see 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.
Continuing its thrust in this area beyond JNP (third berth) and Cochin (Vallarpadm),
CONCOR has plans to forge strategic partnerships with many of the newly emerging ports
as the existing Joint Venture with M/s. MAERSK A/S Copenhagen for third birth at JN Port
has already placed CONCOR in the category of highly successful Port terminals operators.
This has opened new possibilities for further expansion in this field.
Though long haul by Rail will continue to remain the main stay of CONCOR's transportation
plans, its focus will be on providing integrated transport services encompassing all modes.
Business trends clearly indicate and demand more and more "door-to-door" clearances.
This would entail providing single window clearance facilities to its customers, requiring
close co-ordination and/or alliances with other relevant agencies and transport intermediaries
for "door-to-door" movement of cargo in containers with all facilities provided under single
roof for avoiding multiple handlings & associated costs.
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 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 will also further innovate and promote the use of technology for minimizing
operational costs, by way of continuing to adopt state-of-the-art technology and practices and
maximizing movement of Double Stack Container Trains between its terminals and the
gateway ports of Pipavav and Mundra with suitable Hubbingenroute.
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The double stack trains are already providing cost-effective transportation between these
ports and ICD's in Northern India. With the imminent coming of Western Dedicated Freight
Corridor within near future, using high rise OHE wires and adjusting/altering other fixed
structures on P-way, double stack trains will be run elsewhere also.
CONCOR looks at this as the most exciting opportunity and is reading for it by way of
developing Rail Transshipment Hubs at suitable locations.
It will also be entering into MOUs with other CTOs for consolidating large movements and
minimize the operating costs, which will correct the rail road mix of freight traffic for Indian
economy, hence reducing carbon emissions.
It will also forge special relations with some of the leading players in the container transport
field for transporting their containers between ports and ICD's on an agency basis.
CONCOR has already been operating the Air Cargo business having two components, of Air
Cargo handling in its select terminals and organizing Bonded Trucking Services.
Company arranges bonded trucking services between its ICD's and major international
airports like Mumbai, Bangalore, Amritsar 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 is also operational. Plans are in advanced stage for setting up of more cargo handling
facilities within some of the existing ICD's. In the meanwhile, the company is also targeting
International Airports and as a preliminary step, has set up CONCOR Air Ltd as a 100%
subsidiary which has taken over both International and Domestic Air Cargo operations in
Mumbai.
This company has been a grand success within first year of its complete operations, and will
expand its scope in very near future.
Keeping in tune with the developments, CONCOR has already adopted suitable strategies
for growth in the highly competitive external business environment emerging after almost a
decade of opening up of Rail sector for container train operations in 2006.
As one of the 17 licensed CTOs (Container Train Operators) in the field, Company is already
focused on providing total logistics and transport solutions to its customers by holding on to
its basic strengths and expanding its presence in all the segments of the transport value chain
in Exim as well as Domestic business segments.
Continuous attempts have been made in the recent past and still the further possibilities are
being explored for strategic alliances, both for optimal utilization of infrastructure as well as
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expansion into other segments of the value chain. The emergence of CONCOR as a group of
16 companies (comprising of CONCOR, four subsidiaries & eleven Joint Venture
companies) is a testimony to this. There is a strong likelihood of the group size going up.
In the Cold Chain business, the company is seriously contemplating some restructuring of its
wholly owned subsidiary Fresh & Healthy Enterprises which has established its presence in
the Apple trade in North India & its first Controlled Atmosphere Store(CAS).
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 are 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 than that of bulk traffic, with the shares of
both becoming decidedly better.
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 services will be expanded to several more origin-destination (O-D) points. Greater
efficiency will be introduced through the use of BLC/BLL and other suitable redesigned
rolling stock in accordance with SFTO/AFTO policies.
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 optimizing the internal logistics chains within the organization.
In the effort to move from being a service integrator, CONCOR has already moved towards
becoming a Third Party Logistics(3PL) service provider by expanding the core business into
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areas such as warehousing, refrigerated cargo storage and movement, and the provision of a
large number of other value added services.
CONCOR has already formed a JV Company with Transport Corporation of India to focus
on securing door-to-door contracts of corporates by way of reverse auctions and operate
specific contracts for them to target meeting their end-to-end logistic requirements.
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 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 benefits of upcoming GST policy of Govt. of India and
existing Private Freight Terminal (PFT) policy of India Railways and establish Multi Modal
Logistics Parks (MMLP) at strategic locations with the help of State Governments and trade
bodies for which process has already been initiated.
This will help CONCOR to be a significant player in all newly planned industrial satellites
likely to emerge across the highly potential corridors like DMIC (Delhi-Mumbai Industrial
Corridor) & AKIC (Amritsar-Kolkata Industrial Corridor), likely to be developed alongside
Eastern & Western Dedicated Freight Corridors (W & EDFC), emerging as the final game
changer in logistics in India
BACKDROP
Multi-modal or inter-modal transport refers to door to door movement of goods by a single
transport operator.
Cargo is thereby less prone to damage and pilferage during transfer and mechanized
handling also minimizes costs of all intermodal transfers.
The transport of goods from origin to destination becomes seamless and the customers can
avail of door to door deliveries.
Multi-modal transportation thus optimally uses each mode’s specific advantages to ideally
deliver the lowest cost transportation service.
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It implies the availability of different transport networks – road, rail, coastal shipping and
airways, facilities for efficient multi-modal transfers, and service providers who take
responsibility for deliveries from door to door.
While containers have been in use since the 1960s and standardized ISO containers since the
1970s, the phenomenal growth of container traffic in international trade in the last 10 years is
due both to expansion of trade, removal of trade barriers and great improvements in
information and communication technology in this period.
In India, containers of imported cargo were first moved inland by Railways in 1981 (though
containers were first handled at Indian ports much earlier in 1973). In 1988, CONCOR was
set up and it took over the existing 7 ICDs of the Railways, increasing them in number to 57
in 2008-09
. Movement of containers inland, as Indian industry is not concentrated just along the coasts
(as in China) is a cost imperative that is crucial for India’s foreign trade and with
globalization also for all domestic manufacturing.
It is not sufficient in this context to develop road, rail and coastal shipping as separate
networks, but to have a sufficient intermodal connectivity which can facilitate multi-modal
transportation.
The adequacy of our modal networks and services has to be tested against this new
transportation demand
In the US, where containers first traveled long distances inland, it was the deregulation of
railways in the 1980s which gave the railways the freedom to offer services in conjunction
with road and shipping, for door to door deliveries of long distance cargo.
In fact, the addition of the inland component completed the standardization process for the
container.
The disadvantage of few ports offering container services was set off by low cost integrated
inter-modal networks to carry double stacked containers inland.
Expansion of containerization worldwide both facilitated and was driven by the removal of
trade barriers in the 1990s.
The savings in time and cost possible because of the new transport technology are especially
significant in the context of the present global markets, where worldwide net-centric logistics
and supply chains determine the cost competitiveness of the Planning Commission Total
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Transport System Study Special Report 1: Multi-Modal Traffic: Growth & Potential SP1-2
final finished product1 .
With the removal of trade barriers, transportation is the most significant part of production
costs and distribution logistics.
A Consignee prefers to deal with one multimodal transport operator who arranges firstly, the
delivery of goods from door to door and secondly, assumes responsibility throughout
irrespective of whether this is the party that carries out the different stages of transport.
Starting in the corporate world of the US, with firms like Federal Express who created a
worldwide network facilitating real time transactions, the modern business has a production
chain corresponding with a complex logistics chain straddling continents.
A transportation system in the new business environment has to transform itself from a static
network that links origins and destinations, into a flexible system able to quickly adapt to
constant fluctuations of origins and destinations.
The transportation requirements for the new business environment are listed as follows2
♦ Easy access to a large number of destination terminals for each originating terminal
♦ Minimizing freight damage vulnerability. To minimize costs for providing such services,
aggregation or bundling becomes necessary.
However, transshipment from these nodes would also add to costs and time, and also result
in increasing total distance moved compared to a direct route.
Optimum locations, best management practices and flexibility would ensure the viability of
the mode.
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frequent deliveries of smaller volumes over long distances, as a challenge to the existing
norms in transportation
. For these countries an expanding transportation demand also compels looking for new
solutions that will reduce costs, energy consumption, congestion and environmental damage
in view of the ever increasing share of road transport3 .
The expansion of this new transportation demand is driving transport infrastructure growth
and new transportation planning in many parts of the world.
The US leads the world is international trade, with the highest volumes of imports being
received from China.
The major traffic flows for inter-modal traffic within the US are from west to east from the
container ports on the west coast to the markets on the east coast.
Though, the share for inter-modal traffic for rail in terms of tonnage is 16 %, whereas for
bulk traffic it is 70
2, 2001, by Hugo Priemus and Rob Konings. 3 Development of Multi-modal transport and
Logistics Services, 15th July 2003, report by UNCTAD Secretariat. Planning Commission
Total Transport System Study Special Report
2: Multi-Modal Traffic: Growth & Potential SP1-3 %, this rail share is critical for the US
economy
4 The Panama Canal restricted the size of ships that could reach the east coast, and now the
west coast ports face congestion with waiting time increasing for container ships.
Along with US ports, rail and road capacity are now facing capacity shortages with
expanding trade with China. Transshipment hubs are anticipated to come up in the
Mediterranean area catering to European and the US east coast ports.
Europe was the earliest to develop all transport modes, from maritime, inland waterway, to
road and rail.
Since the 1970s containers were moved inland by barges to inland commercial centers and
river ports like Rotterdam and Antwerp, and thereafter by road.
Today, containerized cargo comprised 16% of freight handled at ports, after liquid bulk (41
% of freight handled at ports), and dry bulk (26 % of freight handled at ports). Economic
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growth resulted in increase of freight traffic, but annual increases in road freight are greater
than volumes moved over inter-modal systems that is rail or coastal shipping5 .
For inland freight, the modal shares are 76.5 % for road, 17.6 % for rail and 5.9 % for inland
waterways .
Most inland movement of freight is concentrated on roads, already congested along important
routes especially where there is no connectivity of inland waterways or coastal shipping,
because despite the progress in European unification, only the road and inland waterways
network has been unified.
As Europe faces an expansion in transport demand with globalization and the expansion of
the European Union eastwards, there is increasing concern over congestion, environmental
pollution and energy conservation, which have resulted from the expansion of road traffic.
A more efficient use of each mode and inter-modal connectivity for use of each mode in
combination was highlighted in the 2001 European White paper on Transportation.
The major challenge for European transport, along with capacity expansion for each mode, is
to unify the rail freight market in order to improve inter-modal options, reduce congestion on
European roads and environmental pollution.
The major factor behind the growth in international trade and increase in containerized
freight transport in the US and EU is the emergence of China as a major trading partner of the
US and Europe in the last 5 to 6 years. In China itself, industrial development started along
the east coast where shipments were containerized and transported to the ports by barges and
coastal ships.
Transport overseas was made possible at low cost in large container ships that crossed the
Pacific to the US west coast leading to the development of the west coast ports in the US7 .
In order to have a more balanced growth, the Chinese “go west” policy includes the
development of highways and railways to spread development into the interior. However,
Chinese railways continue to be primarily bulk goods carriers and inter-modal transport, like
industrial development has not penetrated inland to a large extent.
1.4 TRENDS IN CONTAINER TRAFFIC IN INDIA The present container freight flows are
analyzed in this section, with a view to assessing both the increase of total traffic of Exim
traffic at the ports, and the potential growth that can result in future.
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This stream of traffic has increased on an average by 12.6 % percent per year since the 1990s
when economic liberalization was initiated, and a high rate of growth is projected on the basis
of the trend seen in the last few years.
Freight –Rail Bottom Line Report, 2002, by American Association of State Highway and
Transportation Officials 5 Challenges for Transport Policy in Europe: Supporting Inter-
modality, 2002, by Jack Short, Secretary, European
The major factor behind the growth in international trade and increase in containerized
freight transport in the US and EU is the emergence of China as a major trading partner of the
US and Europe in the last 5 to 6 years.
♦ Total cargo handled at Major Indian Ports in 2007-08 was 519,314* thousand tonnes, of
which 92,269 thousand tonnes, comprising 17.77 % of total traffic was containerized.
♦ Total traffic handled at intermediate and minor ports was an additional 203,621 thousand
tonnes in 2007-08, of which 11,052 tonnes or 5.43 % was container traffic. Thus, of total
traffic of 722,935 tonnes handled at ports, containerized traffic was 103,321 thousand tonnes
or 14.3 %.
♦ Out of the 12 major ports, only 7 ports have substantial container traffic exceeding 2000
thousand TEUs, and only 4 major ports have a more than 5 % share of container traffic of
total container traffic handled. These are JNPT, Chennai, Kolkata, and Tuticorin. JNP
handled 51,923 thousand tonnes in 2007-08 of a total container handling of 103,321 thousand
tonnes for all Indian major and minor ports, i.e. more than 50 % of total container traffic of
India. Chennai handled 18,050 thousand tonnes in 2007-08, i.e. 17.46 % of total container
traffic, and Tuticorin, and Kolkata, 5630 thousand tonnes, and 5139 thousand tonnes,
respectively.
♦ Minor ports had a substantial share of container traffic specially the GMB ports of Pipavav
and Mundra. In 2007-08 they contributed 10,746 thousand tonnes of container traffic and
their combined share of container traffic was 10.4 % of total container traffic, and next only
to the share of JNPT and Chennai.
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♦ Container traffic is concentrated in few ports, although most ports handle some container
traffic. The share of container traffic to total cargo in 2007-08 varied at the major ports, from
less than 5 % in the case of Paradip, Vishakapatnam, New Mangalore, and Mormugao,
Kandla, and Mumbai to over 20 % in the case of Cochin, Tuticorin, Chennai, Kolkata and
specially JNPT, where more than 93 % of traffic handled is containerized. CONTAINER
TRAFFIC AT MAJOR PORTS : 2007-08 (In 000’ Tonnes) PORTS TOTAL TRAFFIC*
CONTAINER TRAFFIC % SHARE CONT. TRAFFIC TO OVERALL CONT. TRAFFIC %
SHARE CONT. TRAFFIC TO TOTAL TRAFFIC AT PORT VISAKHAPATNAM 64597
1133 1.2 1.8 CHENNAI 57154 18050 19.6 31.6 KANDLA 64920 2617 2.8 4.0 MUMBAI
57038 1632 1.8 2.9 JNPT 55838 51923 56.3 93.0 HALDIA 43588 2397 2.6 5.5 PARADIP
42438 54 0.1 0.1 MORMUGAO 35128 135 0.1 0.4 NEW MANGALORE 36019 320 0.3 0.9
TUTICORIN 21480 5630 6.1 26.2 COCHIN 15810 3239 3.5 20.5 KOLKATA 13741 5139
5.6 37.4 TOTAL 507751 92269 100.0
♦ Growth of container traffic at major ports was at an average rate of 15.84 % from 1993-94
to 1997-98, at the rate of 14.90 % between 1998-99 and 2002-03, and at the rate of 12.54%
between 2003-04 and 2006-07.
With the emergence of Mundra port in 2003-04, the share of minor ports has gone up. The
growth, including both major and minor ports in the last 5 years from 2001-02 to 2007-08 is
almost 19 %. Significantly, the rate of increase has gone up between 2005-06 and 2006-07 to
over 20 % and in 2007-08 to over 25 %. Planning Commission Total Transport System Study
Special Report 1: Multi-Modal Traffic: Growth & Potential SP1-5 CONTAINER TRAFFIC
AT MAJOR & MINOR PORTS: 2007-08 (In 000 Tonnes) YEAR MAJOR PORTS MINOR
PORTS TOTAL GR./YEAR 2001-02 37230 * 37230 BASE YEAR 2002-03 43672 * 43672
17.30 2003-04 51002 * 51002 16.78 2004-05 54761 * 54761 7.37 2005-06 61980 3929
65909 20.36 2006-07 73437 7652 81089 23.03 2007-08 92269 10746 103015 27.04 Avg.
Gr./Yr 18.9 CAGR 18.5 * Official Figures for these years were not available
♦ The share of container traffic to total traffic at major ports has also increased from 8.2 % in
1995-96 to 18 % in 2007-08. The above overview shows that container traffic is concentrated
in two major ports and two minor ports, but there is substantial share of container traffic in
total traffic at some other ports like Tuticorin, Cochin and Kolkata.
It is significant that the share of container traffic in total traffic at ports has increased from 8
% to 18 % in the last ten years. The rate of growth of Exim container traffic in the last few
years indicates the urgent necessity of catering to this increase in traffic. CONCOR moved
1716 thousand TEUs (22,811 thousand tonnes) of Exim\ISO containers, out of total of 6069
thousand TEUs (81,089 thousand tonnes) of container traffic, handled at Indian ports in
2006-07.
However, CONCOR’s share of ISO containers represents only 28 % of containers that were
transported inland either after arrival or before dispatch overseas. DSO Containers
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♦ Domestic container movement was started by CONCOR in the year 1991, but this was for
bulk commodities for which wagons were not available.
Promotion of Container traffic with the purpose of consolidating piecemeal cargo and giving
door-to-door service was started when the Domestic Division of CONCOR was set up in
1997. At present there are only 5 exclusively domestic terminals and 20 combined terminals
handling both Exim and domestic containers; whereas there are 41 container depots dealing
with Exim traffic Domestic container traffic was only 23 % of ISO traffic of CONCOR in
2006-07.
♦ Growth of domestic containers vis a vis Exim containers is shown in the following table.
The low rate of growth is indicative of the neglect of this traffic by the agencies involved in
container transport, rather than a reflection of potential as road traffic figures of non-bulk
high value commodities show.
Report 1:
Multi-Modal Traffic: Growth & Potential SP1-6 Rail and Road Shares of Container Traffic
ISO Container Of the total of 81,089 thousand tonnes container traffic handled at major and
minor ports in 2006-07, rail share in inland movement, both originating and terminating, was
16,099 thousand tonnes or 19.85 %. The table below shows the share of rail container
movement in total container traffic at each port for 2006-07. No rail movement of containers
is shown from New Mangalore, Mormugao and Tuticorin and Kandla ports. (In numbers)
PORTS TOTAL CONT. TRAFFIC HANDLED AT PORT TOTAL CONT. TRAFFIC
HANDLED BY RAIL % OF RAIL PERCENTAGE OF RAIL MOVEMENT OF CONT.
HANDLED AT PORT JNPT 40810000 12274476 30 CHENNAI 14166000 921940 7
KOLKATA 4003000 213690 5 COCHIN 2949000 127889 4 KANDLA 2778000 -- 0
MORMUGAO 127000 --- 0 VISHAKAPATNAM 799000 39301 5 NEW MANGALORE
265000 -- 0 MUMBAI 1580000 6787 0 TUTICORIN 4011000 -- 0 PARADIP 31000 185 1
HALDIA 1918000 156 0 MUNDRA & PIPAVAV 7652000 2515008 34 TOTAL 81089000
16099432 20 It can be seen from the above table that only JNPT and Mundra and Pipavav
have a rail share of at least 30 %.
The other ports have a very low share of rail movement of containers, which could be the
result of several factors, for example shorter lead distances to and from inland destinations,
low volumes insufficient for introducing container train services or the lack of a two-way
traffic which only can justify carriage of containers by rail, in the present pricing scheme.
The development of rail infrastructure for freight transport would generate more traffic.
CONCOR’s share includes the rail share, together with a much smaller road volume
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representing container movement from and to ICDs close to Bombay in the Western Region.
While CONCOR’s share of 28 % of containers handled at ports represents mainly rail share,
the remaining over 70 % containers represent short or long distance road transport, for
consignees within the hinterland and more distant locations. DSO Container As per 2007-08
Railway data for Containers moved, 20.90 thousand tonnes (76.56%) of container traffic
comprised of Exim or ISO containers from and to ports, and 6.4 thousand tonnes (23.44 %)
comprised DSO containers. Road share of domestic container movement for CONCOR is
negligible. Origin Destination Flows Of Rail Container Data As per the railway data, the
main origin destination flow of ISO containers is between Planning Commission Total
Transport System Study Special Report
♦ ICDs of the northern, western and central regions, especially Tughlakabad and Dhandari
Kalan from the Northern region, Dadri from the North Central region, Sabarmati from the
Western region, and Nagpur from the Central region, to the west coast ports of JNPT,
Mundra and Pipavav. (Refer pg. 3.22)
♦ Between Tughlakabad and Tondiarpet There are 31 ICD locations handling a volume of
more than 1 lakh tonnes of ISO containers. These are listed in Annexure 3.7 of Annexure
volume -1. The movement of DSO containers has a mostly north-south movement between
Tughlakabad and Tondiarpet, Whitefield, Sanatnagar, Turbhe APM Complex (near Bombay),
and Vishakapatnam. This is followed by a movement from west to east from Khodiyar and
Turbhe Complex to Shalimar, and from Alipur to TKD.
There is also important movement between Sanatnagar and Tondiarpet in the south and the
Shalimar in the east, among others.
As drivers for growth in container traffic in exim cargo are principally determined by the
international trade; and as the emphasis in the international trade is for greater
containerization; Indian exim cargo gets containerized inexorably.
Thus projection of exim container traffic is essentially driven by the growth of exim trade.
The more critical issues in growth of exim container traffic would be availability of policy
and infrastructure support.
However, in the domestic trade the scenario is entirely different. The essential driver as
perceived in international trade is absent.
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Traffic in Exim cargo Future projections of container traffic based on the average rates of
growth observed (between 2001-02 and 2005-06) of 15.1 % indicate that traffic will increase
to 10.0 m TEUs by 2010-11 and to 20.3 m TEUs by 2015-168.
The National Maritime Development Programme (NMDP) forecast projects container traffic
to grow at 18.3 % during 2004-14, and that major ports would have 72 % share. Container
traffic growing at this rate will reach 26.8 m TEUs by 2015-16. Though the recent economic
downturn will necessary reduce the rate of growth, it is expected to increase again. Not only
port infrastructure, but inland movement of containers will require expansion of rail capacity
to handle bulk movement of containers at optimum cost. Regional aspects of future port
development are therefore relevant. Factors on which the relative growth of each port will
depend are
(ii) improvements in port connectivity that can improve accessibility of some ports more
than others,
(iii) changes in Indian and global shipping patterns that can cause changes in routing
decisions of Indian shippers,
(iv) actions by local governments and local managements to increase port’s attractiveness for
container trade9.
The Western sector will continue to dominate container transport in the future with 66 % of
container traffic, because of the proximity to the northern and western markets. However the
growth of Mundra and 8 Containerization – Building Global Trade Competitiveness, 2007,
Raghuram G and Rachna Gangwar, Research and Publications, IIM Ahmedabad. 9 India:
Port Sector Development – Possibilities for Accelerating Growth, 2007, World Bank.
Planning Commission Total Transport System Study Special Report 1: Multi-Modal Traffic:
Growth & Potential SP1-8 Pipavav will offer stiff competition to JNPT whose share is
expected to decline though it will continue to increase in terms of absolute volumes.
The share of the southern ports is estimated to continue to be 27 %, though the NMDP
projection envisages a share of 33 %. Growth is expected to be the most for Cochin
(Vallarpadam) and Tuticorin compared to more modest expansion at Chennai.
Ports in the eastern sector are expected to grow more slowly, being handicapped by the
lower manufacturing base, and distance from the main international shipping routes, despite
proximity to Asian markets.
Vizag port is expected to show high growth on the east coast related to the economic growth
in Andhra Pradesh. Projections of Container Traffic in Domestic Cargo Though the initiatives
for domestic container movement started in early nineties, the growth has been sporadic and
very slow.
- 16 -
The annual growth of rail based container movement of domestic containers from 2000-01 to
2006-07 presented in the previous section (see sub section on DSO containers) shows that the
highest growth of 1.2 per cent was registered in 2001-02.
While for three years the growth varied between 5 and 7 per cent; for the rest of the period
growth was less than five percent - with 2003-04 showing a decline of 0.2 per cent over the
previous year.
This however does not represent the true picture. Around 22 per cent of the total truck
movement in the country is accounted by closed body trucks indicating the potential for
domestic container movement.
Hence, the consultants decided to generate the base demand for domestic container
movement using data generated in this study. Central Statistical Organization (CSO) reports
data of production for 350 commodities on its CSO Publication (Web Source:
http://www.mospi.gov.in/mospi_cso_rept_pubn.htm/25.04.09) and the production for 2007-
08 is given at Appendix 1 of the special report 1.
The objective is to convert the production into measurable tonnage data and then estimate the
containers required.
♦ Conversion into tonnes: CSO reports data into different measuring units. To standardize all
the commodities into a comparable base the quantities were converted to tones. The
conversion factors for each commodity are also given in Appendix 1. The conversion factors
were arrived at by looking at sample commodities in each of the 350 commodity groups and
then conversion ratios worked out.
The conversion factors so worked out are applied uniformly to the commodity group.
However, the method is still an approximation.
♦ To assess the container traffic two factors were assessed for each commodity group;
suitability for containerization and extent of cargo loading. Suitability for containerization is
assessed at 6 levels varying from NIL to 90 per cent. The extent of loading is also assessed in
6 ranges varying from NIL to 27 tonnes.
Table below gives the values for suitability for containerization and extent of loading.
- 17 -
♦ By applying both the factors assessed in the Table above, numbers of containers were
obtained for each commodity group. ♦ The 350 commodities were segregated into 52
commodity groups of TTSS. The matching group for each of 350 commodities is given in
Appendix 1.
♦ The final production, containerisable cargo, and the number of containers is estimated for
52 commodities. The details are given in Appendix 2. ♦ In the next the cargo was split
between rail and road by using the study estimates.
♦ The distance break up for rail and road for each of the commodity groups were obtained
and multiplied with rail and road shares. This was summated to obtain the total commodity
moving in each distance group. Data for distance slabs more than 400 kms is presented in
Appendix 2.
Total estimated potential for domestic containers in different distance slabs is given in the
Table below. In the table it is assumed that cargo less than 400 kilometers would not be
containerized. Potential for containerization in the distance slab more than 400 kilometers is
8.47 million containers and above 1500 kilometers the potential is about 2.12.12 million
containers
This necessitates a broader view of transport infrastructure and services, beyond the past
experience and practice of development of road, rail, shipping and airways, to a consideration
also of more efficient provision of transfers from one mode to the other, and encouragement
of more optimal combinations of different modes.
With the vast east-west and north-south expanse of the internal market, the pattern of future
economic development itself rests on the way that the constraints of distance are overcome,
and at what price.
- 18 -
Multi-Modal Transportation of Goods Act and Customs
Procedures The new global business environment has introduced a new factor in the
traditional pattern of freight flows between producers and consumers, namely the logistics
provider or the multimodal transport service provider.
New legislation was required to regulate the operations of such service providers. In India,
the Multi-modal transportation of Goods Act of 1993 was enacted laying down conditions
under which such operators could do business.
Several lacunae in the aspects covered by the Act, (it initially only covered export
transactions), and the way in which its provisions were to be implemented, failed to attract
sufficient interest in the sector.
Amendments were made to remove the perceived shortcomings, but industry expects a more
secure and facilitating regime for this sector to develop. Modernization of Customs
procedures especially with the availability of new ICT is urgently required.
This will speed up checking and reduce delays, which are increasing with the increasing
volumes of transactions, and locations at which these transactions originate.
- 19 -
ABOUT THE COMPANY CONCOR
INTRODUCTION
From its humble beginning, it is now an undisputed market leader having the largest network
of 79 ICDs/CFSs in India (72 terminals and 7 strategic tie-ups).
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 in 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.
Currently ,CONCOR is a fast progressing towards its goal to create logistics infrastructure
that would enable customers to access a single window for all their logistics requirements like
multimodal transport state of the art specialized storage ,packaging etc at large facilities
called "logistics park ".
- 20 -
The globalization, competition and technological innovation has changed the
business scenario across the world. The packaging and transporting of cargo
have also changed more efficiently.
Manufacturing industries have come torealize that the capital tied up in logistics
(sourcing of new materials,
packaging,
warehousing,
transportation and distribution cost of finished
products) often exceeds the investments made in production equipment. The
cost of handling, transportation and storage may also exceed the cost of
production.
In view to consolidate non bulky cargo and to minimize the cost of product,
containerization has been the successful option for transportation of cargo from
one place to another.
Indian railways introduced a fleet of small 5 tonne
domestic containers in the 1960’s.
They started door to door receipt and
delivery services in these containers in selected metropolitan cities. Indian
Railway’s main target was to attract low volume and high value cargo through
container services.
CONCOR’s share of 28 % of containers handled at ports represents mainly rail share, the
remaining over 70 % containers represent short or long distance road transport, for
consignees within the hinterland and more distant locations.
DSO Container As per 2007-08 Railway data for Containers moved, 20.90 thousand tonnes
(76.56%) of container traffic comprised of Exim or ISO containers from and to ports, and 6.4
thousand tonnes (23.44 %) comprised DSO containers. Road share of domestic container
movement for CONCOR is negligible.
Origin Destination Flows Of Rail Container Data As per the railway data, the main origin
destination flow of ISO containers is between Planning Commission Total Transport System
Study Special Report
- 21 -
- 22 -
CONCOR CORE BUSINESS :
1 EXIM business segment is comprised of operating dry ports (icd/cfs) and running EXIM
trains .
2 domestic business segment comprising of operating domestic container terminals and
running DSO trains .
Basically ,company's prime core business is characterized by three key activities namely
carrier ,terminal operator and warehouse operator .
CONCOR is firmly commited to the social responsibility and prove worthy of trust in
respond in us.
" we do this by providing responsive ,cost effective and reliable logistics solutions to
our customer through synergy with our community partners and ensuring profitability
and growth ."
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To set measurable performance goals to support the objectives and mission of the
organisation and work as a professional, competent an dedicated team for the organisation to
achieve excellence in all areas of business and operations.
To follow highest standards of business ethics and add social value for the community at
large by discharging social obligations as a responsible corporate entity.
To maintain absolute integrity, honesty, transparency and fair-play in all its official dealings
and strive to maintain high standards of ethics.
MANAGEMENT STRUCTURE
- 24 -
The globalization, competition and technological innovation has changed the
business scenario across the world.
The packaging and transporting of cargo
have also changed more efficiently. Manufacturing industries have come to
realize that the capital tied up in logistics (sourcing of new materials,
packaging, warehousing, transportation and distribution cost of finished
products) often exceeds the investments made in production equipment. The
cost of handling, transportation and storage may also exceed the cost of
production.
In view to consolidate non bulky cargo and to minimize the cost of product,
containerization has been the successful option for transportation of cargo from
one place to another.
Indian railways introduced a fleet of small 5 tonne
domestic containers in the 1960’s.
They started door to door receipt and
delivery services in these containers in selected metropolitan cities. Indian
Railway’s main target was to attract low volume and high value cargo through
container services.
India’s first1 ISO marine container had been handled at Cochin in 1973. It was
in 1981 that first ISO container was moved inland by the Indian Railways to
India’s first Inland Container Depot (ICD) at Bangalore, also managed by the
Indian Railways. Indian Railways were operating seven inland container
depots (ICDs) at Delhi, Ludhiana, Whitefield, Coimbatore, Amingaon, Guntur
and Anaparti.
2. Evolution of CONCOR:
The company was set up under the direct administrative control of Ministry of
Railways, which has a share of 63.09% in the paid-up equity capital of the
company with the objective of developing the infrastructure to support &
managed multimodalism and infrastructure to support Country's growing
International trade as well as for transport of domestic containerized cargo and
trade.
- 25 -
CONCOR has commenced operations from November, 1989 taking over the
existing network of 7 ICDs from the Indian Railways.
3. CONCOR’S Mission:
Objectives of CONCOR are common for all regions which are as follows:
4. Objectives:
- 26 -
developing containerized transport and multimodal infrastructure.
5. Management of CONCOR:
Given below the functions of CONCOR:
6. Functions of CONCOR:
There are three functions of CONCOR as below:
6.1 Carrier:
Many of its key operating personnel are on deputation from Indian Railways or have
previously been employed by theIndian Railways.
The rail link also plays a major role in decongesting the Ports and the road corridors that lead
to these Ports.
CONCOR provides94% of inland transport through the Indian Railways network and road
servicesto provide the door delivery
- 27 -
However, where ever it is operationally or economically a superior option, road is used as an
alternative to rail as well for direct delivery from & to Ports.
6.2 Custodian:
As per Customs act 1952 Customs has notified CONCOR as a custodian of
cargo and though containers belong to shipping lines, it act as custodian of
containers.
Likewise, it cannot deliver the cargoor cannot allot the containers without obtaining delivery
order from shipping
line.
- 28 -
Set up of terminals across the country is a major infrastructure created by
CONCOR for domestic and international trade:
a. Terminal:
b. Equipment’s:
1. Wagons: Originally Indian Railways provided approximately 1300
dedicated container wagons for moving containers.
These weresupplemented by certain over age rolling stock modified for container
carriage. Since this was inadequate to deal with the growth in business,
CONCOR initiated procurement action for state –of - the – art, high
speed container flat wagons in 1994-95. As many as 3200 wagons were
procured in three phases for which CONCOR entered into a loan
agreement with IBRD. Currently 1900 new wagons are deployed.
- 29 -
Information technology is a major area of concerned for the convenience of
trade and smoothens day to day working:
c. Information Technology:
The company has also set up their website to facilitate the usersand as a source of information
for the people. CONCOR has implemented
CONCOR has expanded its network to provide single window clearances for
domestic & international trade through multimodal logistics management
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CONCOR’s Network:
CONCOR’s network details are as given below
CONCOR’s Corporate Office is located at New Delhi and it has eight regional
offices across the country. Given below the list of CONCOR’s regional offices:
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6) North Western Region, Ahmedabad, Gujarat
7) Central Region, Nagpur, Maharashtra
Inland Container Depots are operating under different regional offices. These
inland container depots are categorized as follows:
i) Tughlakabad (Delhi)
- 32 -
b) Combined (Domestic & International) Container Terminals:
There are five combined container terminals in Northern region as follows:
i) Moradabad
ii) Rewari
iv) BallabhGarh
Southern region consists of ten ICDs. Out of ten ICDs, five ICDs are
international container terminals, four ICDs are combined container terminals
and one ICD is domestic container terminal. Details of ICDs in southern region
as follows:
i) Pondichery
v) Tiruppur
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iv) Cochin
i) Salem Market
There are eightICDs in eastern region. Out of eight ICDs, one ICD is international container
terminal, five ICDs are combined container terminal and two ICDs are
domestic container terminal.
ii) Balasore
iv) Haldia
v) Kolkata Port
b) Fatuha (Patna)
South Central Region has four ICDs in the region and all five ICDs are
combined container terminals. Details are as given below:
i) Sanatnagar (Hyderabad)
- 34 -
ii) Guntur
iii) Visakhapatnam
iv) Desur
Western region consists of eight ICDs and out of eight ICDs, five ICDs are
international container terminal, two ICDs are combined container terminal
and one ICD is domestic container terminal. Details are as given below:
v) Ratlam
i) Sabarmati (Ahmedabad)
- 35 -
b) Combined (Domestic & International) Container Terminals:
i) Vadodara
ii) Gandhidham
iii) Ankaleswar
i) Khodiyar (Ahmedabad)
Central Region has four ICDs and out of four ICDs three ICDs are combined
container terminal and one ICD is international container terminal.
i) Daulatabad (Aurangabad)
ii) Bhusawal
North Central Region has five ICDs in the region. Out of five ICDs, two ICDs
are international container terminal and three ICDs are combined container
terminal.
ii) Kanpur
- 36 -
CONCOR is providing different services to its users and these services can
differ as per requirement of individual terminal.
In some terminals there isneed to perform all defined activities but in some terminals
selective activities
are performed.
9. Strengths:
- 37 -
Cabotage of ISO containers
Rail Services
Road Services
FCL is when there is full container load in a single container as per capacity of
container. In case of FCL 20’ and 40’ containers are stuffed according to the
weight and volume of cargo respectively.
Reworking means thecontainer is destuffed at the CFS / Gateway Port, all the packages are
segregated port-wise, and packages stuffed in a new container, Customs sealed
and shipped directly to the destination port.
Earlier reworking of LCL cargo was done only at transshipment hubs like
Singapore, Dubai, and Colombo. This resulted in additional cost of freight and
cost of transshipment to the shipper, thereby making Indian exports costly and
uncompetitive.
- 38 -
Customs vide Circular No.55/2000-CUS dated 30 June 2000 permitted
reworking of LCL cargo.
Customs has notified CWC’s facility at Dronagiri,and CONCOR’s facilities at New Mulund
and Tondiarpet for reworking of
LCL cargo.
Drawback is paid to the exporters at the ICD without waiting for actual
shipment from Gate Way Port.
d) Bonding Facility:
As per section 57 of the Customs Act 1962, the ICD is notified as a Public
Bonded Warehouse.
Bonding is when importer keeps goods in the Bonded Warehouse due to:
space constraint in the factory
financial constraint
- 39 -
Third Green IWB is for RailwayAccounts and sent to Railways. Forth Brown copy is kept
for CONCOR office
records.
All IWBs are generally issued on “Paid” basis. “To Pay” IWBs are accepted in
exceptional cases only, on payment of surcharge.
One IWB can contain booking of six containers, this is done when entire
consignment is of one party through the same shipping line.
The goods have to be bonded for a minimum period of two weeks at least.
At the time of debonding, importer specifies the quantity of goods to be
debonded, files Bill of Entry for the quantity required and pays customs duty.
1. CONCOR has also started acceptance of air cargo in ICDs for which a
separate Notification is issued by Customs. The procedure for Customs
clearance for air cargo is similar to the sea cargo.
2. The air cargo after Customs clearance is loaded in the CBT (Close Body
Trucks) or CMTs (Container Mounted Trucks) or any vehicle that can be
sealed by Customs and is transported to the Airport for further shipment by air.
The movement of such cargo in a sealed vehicle is commonly known as
“bonded trucking”.
- 40 -
3. The sensitive cargo mainly goes by air.
4. Cargo in the sealed vehicle is transported to the airport and the seal of the
bonded truck is removed in the presence of Customs. Customs cleared cargoes
handed over to the respective airlines at the airport. The charges applicable in
case of air cargo are:
Since the airlines are charging freight on per kilo basis, CONCOR has
also adopted the same unit for charging their freight from ICD to
airport.
TSP charges: are Terminal, Storage, and Processing charges. These are
fixed by CONCOR and collected from the shipper. The TSP charges are
paid by CONCOR to the Airport.
At the time of Book Delivery, shipping line must indicate the handling code.
It is mandatory for shipping lines to effect book delivery within two working
days whereafter IWB is issued after collection of “Delayed Payment
Surcharge”
g) Rebooking Facility:
When a container is wrongly booked by the shipping line or party wants to take
delivery at some other location, the container needs to be rebooked for the new
destination by filling in the Forwarding Note again and a fresh IWB is issued.
For change in destination, Customs permission is essential.
- 41 -
h) Carriage Of Dangerous Goods Facility:
5. All dangerous goods should be stacked separately and a separate area should
be earmarked for stuffing / destuffing of hazardous cargo.
8. If the commodity is not listed in IRCA Red Tariff / IMDG Code / IRCA
General Tariff then that commodity will be booked only with the prior
approval of the Railways.
All claims arising out of traffic booked by CONCOR are settled by CONCOR.
If the loss / damage to cargo / container occurs while in transit, CONCOR
settles the claim of the party and submits reimbursement claim to the Zonal
Railways, provided CONCOR can prove that the loss / damage occurred while
the container was in Railways custody.
Parties must file their claims within the time limit of six months from the date
of booking. If not received within six months it should be treated as time
barred and repudiated under section 106 of Railway Act, 1989.
Claims cases are settled by the destination station of the region.
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As per the Delegation of Power (DoP) issued on 1 February, 2002 Functional
Directors are empowered to settle claims for compensation for loss, damage,
etc.
While processing claims cases, documents in original, required to be submitted
by the Region are:
Invoice
If Railways delivers container with lock and seal intact, no liability accrues to
the Railways.
The joint survey takes place in the presence of Customs, shipper, security, and
CONCOR officer of the level of Supervisor / Asstt. Manager. CONCOR
officer must ascertain the extent and cause of damage.
CONCOR is not liable for the loss / damage caused on account of:
Latent defects.
- 43 -
Cargo should be weighed to determine the extent of shortage.
The Joint SurveyReport forms the basis of claims and should be submitted without prejudice.
After preparing report it is signed by all the representatives and copy given to
shipper to forward his request for claims and one copy is kept for CONCOR’s
record.
It should be noted that packing rules had been followed to restrict movement of
cargo from getting-damaged. Position of damaged / deficient cargo is also
required to be mentioned.
CONCOR loads the ODC on the wagon. TXR inspects the ODC and submits
report. On the basis of TXR’s report, Railways classified it as A, B, C c1ass.
Railways instructions regarding the ODC are passed on to all the stations en
route giving details of train, time, date, etc.
ODC is also carried by road. In such cases CONCOR decide rates for
transportation on case to case basis reference to enquiry and nature of ODC
consignment. CGM is empowered to sanction the rates for the movement of
ODC in special cases by road. The TSCs for ODC containers is three times the
normal rate.
- 44 -
l) Payment Facility:
Payment facilities are honored by cheques and to pay basis at CONCOR to its
esteemed customers as follows:
i) Cheque Facility:
Details of cheque facility are explained as under:
10% of the cheque amount if payments are cleared after 5 bank working
days excluding the day of dishonoring.
- 45 -
ii) “TO PAY” Facility:
1. “To Pay” facility means consignee shipping line will pay all outstanding
dues (freight, THC) at destination terminal, at the time of book delivery.
Low value cargos (woolen rags, scrap, carbon block, waste oil. zinc
waste paper).
Dangerous cargo.
Reefer cargo.
Perishable cargo.
There are some special services provided by CONCOR which may be provided
on case to case basis or as per specific requirement:
Cold Chain
- 46 -
Refrigerated Warehousing
Under section 64 of the Indian Railways Act 1989, the consignor executes a
Forwarding Note for booking a consignment. The Forwarding Note is of three
types:
The Forwarding Note should be filled with details regarding cargo description
and weight of cargo.
- 47 -
Full Container Loads (FCLs) / Less than Container Loads (LCLs).
Original is handed over to the shipping line to take deliver at the Gateway Port.
Second copy is sent to CONCOR’s office at destination Delivery is effected
only when original IWB is surrendered. CONCOR office at destination
matches details of original IWB with the invoice (pink copy) and then only
book delivery of container is permitted. Third Green IWB is for Railway
Accounts and sent to Railways. Forth Brown copy is kept for CONCOR office
records.
All IWBs are generally issued on “Paid” basis. “To Pay” IWBs are accepted in
exceptional cases only, on payment of surcharge.
One IWB can contain booking of six containers, this is done when entire
consignment is of one party through the same shipping line.
- 48 -
After booking of container, Forwarding Note, CONCOR CONSIGNMENT
NOTE (CCN) slip and IWB (4th copy) are filed together.
Since the IWB is a money receipt, all IWBs that are cancelled, also must be
sent to the Railways for accountal.
a) Indemnity Bond:
- 49 -
theGate Pass is produced as evidence in court of law.
Only one Gate Pass is issued per container.
.A major aspect of the growth strategy for both international and domestic business will
involve optimizing the internal logistics chains within the organization. In the effort to move
from being a service integrator
CONCOR has already moved 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 already formed a JV Company with Transport Corporation of India to focus
on securing door-to-door contracts of corporates by way of reverse auctions and operate
specific contracts for them to target meeting their end-to-end logistic requirements.
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 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 benefits of upcoming GST policy of Govt. of India and
existing Private Freight Terminal (PFT) policy of India Railways and establish Multi Modal
Logistics Parks (MMLP) at strategic locations with the help of State Governments and trade
bodies for which process has already been initiated.
This will help CONCOR to be a significant player in all newly planned industrial satellites
likely to emerge across the highly potential corridors like DMIC (Delhi-Mumbai Industrial
Corridor) & AKIC (Amritsar-Kolkata Industrial Corridor), likely to be developed alongside
Eastern & Western Dedicated Freight Corridors (W & EDFC), emerging as the final game
changer in logistics in India.
Stock Watch
- 50 -
Performance review of concor
CAPITAL STRUCTURE
In the month of February 2017, issuance of one bonus equity share for every four equity
shares held was recommended by board for which approval of shareholders through postal
ballot route was taken by the Company. After the approval of shareholders, the Board of
Directors allotted bonus shares on 10.04.2017 to the shareholders as a result the paid up share
capital of the Company increased from `194.97 crores to `243.72 crores comprising of
24,37,17,739 equity shares of `10/- each.
The Board of Directors of your Company recommended sub-division of one equity share of
face value of `10/- each into two equity shares of face value of `5/- each for which approval
of shareholders through postal ballot route was taken by the Company. After the approval of
shareholders on 12.06.2018, the equity shares of your Company have been sub-divided from
one equity share of face value of `10/- each to two equity shares of face value of `5/- each and
as a result the capital structure of the Company has undergone change and now the paid up
share capital is `243.72 crores comprising of 48,74,35,478 equity shares `5/- each from earlier
`243.72 crores consisting of 24,37,17,739 shares of `10/- each.
- 51 -
To enable the above sub-division the Authorized Share Capital of the Company has also
undergone a change from `400 crores comprising of 40 Crores equity shares of `10/- each to
`400 Crores comprising of 80 Crores equity shares of `5/- each. New ISIN allotted for
Company’s equity shares is INE111A01025 having face value of `5/- each. The shareholding
of Government and others in the Company as on 31.03.2018 was 54.80% and 45.20%
NEW TERMINALS & TERMINAL NETWORK EXPANSION During the year, the
Company has further strengthened its existing Terminal Network to provide efficient services
to its customers.
The Company has 72 Terminals in total as on 31.03.2018, of which 14 are pure EXIM
Terminals, 36 are Combined Container Terminals, 22 are pure Domestic Terminals. In
addition,
CONCOR has also entered into Strategic Tie ups at seven locations with other logistics
players. Six facilities were developed in FY 2017-18 are as under:-
• Mihan (Nagpur)
The 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).
Presently in India there are about 17 container train operators including CONCOR. In
addition, there are numerous road transportation companies offering container logistics
- 52 -
services. Given the fierce market competition, every player is fighting to grab a chunk of the
market share.
CONCOR's aim is to provide total logistics solutions for containerized cargo of both EXIM
and Domestic nature. In a bid to do the same, CONCOR is now focusing on creating Multi
Modal Logistics Parks across various strategic locations in India which shall provide a single
window clearance to all the logistics related needs of the customer.
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.
Stock Watch
- 53 -
ABOUT ICD TKD
It also touches the NH-2 and is conveniently located, having approach to major roads in Delhi
connecting all National Highways leading out of the state. It is also certified ISO 9001-2008.
Infrastructure
- 4 full length rail lines
- 10, 000 sqm covered Export warehouse
- 6, 000 sqm covered Import warehouse
- Two bonded warehouses of 8500 sqm
- 3, 500 sqm dedicated for LCL export cargo
- Open stack space for 12000 loaded TEUs and 2000 empty TEUs
- Separate empty parks for stacking of 8000 empty TEUs
- 66000 sqm parking area for parking of approx. 750+ trailers
- 84 BLCA rakes of base depot at ICD/TKD, each of 45 High Speed wagons (1000
kmph) for carrying containers
- Fully computerised Export & Import documentation
- Administrative building of 8000 sqm of built up area - housing offices of CONCOR,
Customs, Bank, ATMs, Canteen, Shipping Lines, CHAs, Transporters, Surveyors &
Business Centre etc.
- Two computerised weigh bridge
Equipment’s
- 2 rail mounted Gantry Cranes (RMG)
- 9 rubber tyred Gantry Cranes (RTG)
- 21 Reach Stackers
- 50 trailers for internal shifting
- Sling crane and fork lifts for cargo handling
Types of Services
- Multimodal Transport Logistics and Infrastructure to support EXIM trade
- Daily services between ports (JNPT/GTIL/NSCT, MDPT, PPSP) and ICD/TKD
- Regular container train services to hinterland ICDs
- Block booking of trains on round trip basis
- LCL Hub Services
- 54 -
- Bonded warehousing facility
- Booking of containers under cabotage scheme
- Incentive scheme for exporters on traffic volumes
- RTGS/ECS for payment of CONCOR dues and all type of refunds
- E-filing of documents
- Container track and trace facility available on CONCOR
website (www.concorindia.com)
- Regular auction of containers (twice in a month) under section 48 of the Customs
Act
- Electronic Data Interchange (EDI) facility between Customs and CONCOR
- Central, Regional and Local PDA (Pre Deposit Account) facility
- Business Centre
- Exim Cell and Customer care cell for seamless services and information
- CISF deployed for security services
- Special cages / security for high value cargoes
- GOH (Garments on Hanger) fabrication facility at repairing yard
- 55 -
Information Technology Services
- Direct feeding of container details into CCLS through radio linked hand held
terminals to enable online access
- Touch screen kiosks for container enquiries at EXIM cell and CHA lobby
New Initiatives
ICD/TKD is a pioneer in taking innovative steps and facilities for smooth and seamless exim
business through CONCOR.
- 56 -
Following innovative steps have been taken at ICD/TKD
- Touch screen kiosks for container enquiries at EXIM cell and CHA lobby
(R&D) of a Mobile Application as a customer friendly initiative for ease of doing business.
The functionalities available on the App as on date are Track & Trace of containers, Tariffs
and other important information about the Company customized type tank container of mild
steel for carrying non hazardous liquid cargo.
Implementing E-filing & KYCL in all EXIM Terminals. In the process of acquiring 05 more
Gantry Cranes, 49 no. of Reach Stackers and 10,000 containers including 6,000 High
Capacity Containers of having Gross Weight of 34T. CONCOR is under the process of
modifications of existing BLC rakes to BLCM rakes in which carrying capacity Ø per wagon
will increase from 61 Ton to 68 Ton. Analytical Studies were conducted on key topical issues
- 57 -
such as the Impact and the Opportunities available in “Direct Delivery of Containers from
JNPT” and “Minimization of Empty Running Ratio”.
VIGILANCE
To achieve this objective, the Vigilance Department carries out preventive, proactive and
punitive actions with greater emphasis in the preventive and proactive functions. Following
activities were undertaken during the financial year 2017-18. Periodic surprise checks were
conducted regularly in vulnerable areas of the Company.
During the year 2017-18, 23 Preventive / Surprise checks /CTE type checks were conducted
at various Regional Offices / Inland Container Depots/ Container Freight Stations. In
addition, cases were registered / investigated on the basis of complaints and other
information. Suitable penal action was taken against erring officials and contractors. An
amount of `47.42 lakhs was recovered from various contractors/ customers during the
financial year
The TierII committee is headed by ED(MIS & CSR) including two other senior officers &
assisted by Sr. Manager (OL & CSR). Under CONCOR’s CSR policy various thrust areas
have been identified in accordance with the provisions of Companies Act, 2013 and include
health & medical care, sanitation, education/literacy enhancement, community development
and rehabilitation measures, environment protection, conservation of natural resources,
natural calamities and infrastructure development, rural development, etc.
CONCOR CSR committee headed by CMD/CONCOR and having one Independent Director
and one functional director as its members met on quarterly basis in order to sanction and
oversee the progress of sanctioned projects for the benefit of its stakeholders.
- 58 -
CONCOR board on recommendation of CSR committee approved an amount of `25.22
crores towards CSR expenditure in terms of Companies Act, 2013 for the year 2017-18,
which was further fixed to `26.75 crores due to recasting of accounts of year 2015-16 by
Company.
CONCOR implemented it’s major projects in the area of education, health, sanitation, skill
development & environment sustainability.
Some of it’s CSR initiatives are as under: Solar lights have been installed in the unelectrified
rural areas of Bhadohi, Shrawasti and Ghazipur districts of Uttar Pradesh to benefit a large
number of rural population.
Support was extended towards solar electrification of Shyamgarh and Bhawani Mandi
Railway stations in Rajasthan alongwith completion of solar electrification of Abu Road and
Bhilwara railway stations.
Solar electrification in Bhadohi and Shrawasti Passenger amenities were upgraded at New
Delhi and Vadodara Railway stations by providing water coolers, maintenance of track
cleaning machines, solar electrification of platforms of New Delhi Railway station.
Skill development activities were initiated for weaker section of society in the field of
Garment and Logistics section in Uttar Pradesh, Andhra Pradesh, Tamilnadu and Gujarat
benefiting 560 youths belonging to backward classes who will be skilled enough to sustain in
society on their own.
CONCOR has two Tier CSR Committee system for implementing it’s CSR activities. The
Tier-I committee is headed by Chairman & Managing Director including two Independent
Director as it’s member.
- 59 -
Literature review
The review of existing literature is not customary, rather it is an essential part of research
work. It also facilitates the comparison between the earlier findings and findings of the
present study.
The aim of literature review is to show that “the writer has studied existing work in the field
with insight”. So, a good literature review raises questions and identifies areas to be explored.
An attempt has been made here to make a review of the studies on Customs House Agents.
Many scholars have shown great interest in studying the various aspects related to Customs
House Agents in India.
It would be appropriate to have a brief review of some of the work done so far in this field.
Available literature with rich body of information has helped the researcher a lot in
developing an insight into the problems that have been studied and explained here.
George N. Kenyon et al., (2002)1 in their article state that Logistics outsourcing has a
significant effect on how manufacturing firms produce and deliver products to their
customers.
Indeed, many manufacturing firms do not own or manage the transportation 1 George N.
Kenyon., and Mary J. Maxell, Success factors and Cost Management Strategies for Logistics
Outsourcing, ‘Journal of Management and Marketing Research’ 2002. 38 and warehousing
resources used for inbound and outbound shipments from their facilities.
Earlier research, however, has cast doubt on the efficacy of outsourcing, as some companies
experience favourable performance outcomes while others do not.
Their research investigates the effects of logistics outsourcing on cost by analyzing empirical
data across a wide variety of industries, using data from a survey of manufacturing plant
managers.
Our analysis indicates that outsourcing logistics activities slightly increased COGS, but the
existence of moderating factors suggests interesting new strategies for outsourcing the
logistics functions.
The concept of innovation is regarded in most organizations as an effective tool to create and
sustain competitive advantages.
In International trade, central region has started with 445 TEUs and which
increased to 55944 TEUs in 2004-05. Inland Container Depot at Nagpur made
- 60 -
its modest beginning from January 1997 with only 445 TEUs (Twenty
Equivalent Units, i.e. 20 ft container) in 1996-97 got augmented to 46990
TEUs in 2004-2005 and provides various services required for “Single
Window” clearance of containerized cargo and general cargoes. It offers
services of custom clearance for export & import cargos, facility of export &
import under various export promotion schemes, round the clock professional
The logistics function is an area that is increasingly seeking ways of adding value through
innovation (Soosay and Hyland, 2004). It has transformed from the business concept of
transportation to that of serving the entire logistical needs of customers. The service
component offers a very good chance of gaining sustainable competitive advantage in the
hypercompetitive global market.
Conversely, poor service or a reluctance to innovate offers a fairly good chance of losing
customers (Chapman et al., 2002; and Esperet al., 2007). Chapman et al. (2002) also found
that the advances in technology and communication have compelled this industry to strive
permanently for new products and solutions. Pradeep Kumar Dubey and Janat Shah (2002)2 ,
examines the relationship between
Maritime Corridors International trade and maritime transportation are closely related and
enable the establishment of closer trading links between continents. There also exists an
important logistic process for the operational exploitation of maritime transportation by a
management of transhipment infrastructures and means of shipping.
- 61 -
transportation. Ports are often the chief facilities linking an economic system with the
international market and therefore represent the main hub centres of trade
(Takel, 1978). Ports are above all multimodal places and points of convergence of inland
transportation (Hayuth, 1987). With the economic growth of their foreland and hinterland, an
increasing demand over port system is felt.
The capacity of ports to transit goods imposes a limit to economic development. One of the
strategies is therefore to enable the multimodal capacity of the port to fulfil joint demand of
the foreland and hinterland with a heavy reliance on the logistics performance of the
infrastructures for shipment and transhipment. The logistics of maritime transportation have
experienced important changes during the last 25 years and several ports have specialised in
the concentration of transhipment activities (Hayuth, 1982; Wang, 1998).
Containers ensure flexibility of shipments and several ports have opted for this multimodal
transportation technology to keep and consolidate their status of hub centres. Economic
transformations are restructuring the nature and pattern of maritime transportation with new
demands on regions. Hub centres thus require specialised high capacity transhipment
infrastructures. However, infrastructures are not the only one dimension in port restructuring,
where others like location, maritime services, and strategies pursued by maritime companies,
and inland distribution system play a crucial role (Bryan, 1998).
48 Maritime transportation is very flexible in terms of choice of routes. However, the fixity
of ports coupled with economic, political, and physical constraints between them impose the
creation of maritime corridors (Pearson &Fossey, 1983).
The maritime corridor is a non-discrete path between maritime hub centres, which are places
of transhipment functions. The summation of those functions implies a maritime/land
interface where maritime corridors are connected with fluvial and land corridors. Considering
that maritime corridors have almost an unlimited capacity, the capacity of maritime
transportation is related on the transhipment capacity of ports1 . Maritime corridors are
structured by the integration of maritime services and transhipment functions to maritime
distribution functions at hub centres (Frankel, 1999a).
The world has become a system of shipping networks in which individual ports are linked
into intricate patterns of dependency in hub/feeder relationships as well as into end to end
shipping linkages that reflect the increasing trade dependencies between regional and global
economy (Robinson, 1998).
The majority of regional economies have long been constrained by regulation in trade, in
ports and in national and international shipping operations. They have exposed themselves to
a greater or lesser degree to the demand of economic rationalism; so that over the last decade
there has been a loosening of the regulatory framework, a reorientation of the interventionist
roles of Governments and a more liberal view of the role of the market.
According to Frankel (1999b), the rapid growth of some regional ports provide the necessary
cargo threshold conditions for inclusion in new or existing feeder or mainline networks.
These ports provide new options for maritime corridor development. But in a competitive
regional environment, inclusion in shipping networks has underlined the need for efficiency
as well as growth; and these conditions have impacted on, and will continue to impact on
management and ownership strategies ports around the world (Flemming, 1999).
- 62 -
A schematic representation of Evergreen’s round-the-world maritime service, which is a
good example of a major liner strategy in providing global shipping capacity.
This service thus represents one of Evergreen’s main maritime corridors..
Evergreen’s Round-The-World Maritime Corridor Source: http://www.evergreen-
marine.com.tw 3.2.3 Inland Waterways
An inland waterway, even if slow, offers a high capacity and a continuous flow. Ports
perform the role of hub centres by providing fluvial/land and fluvial/maritime interfaces.
The fluvial/land interface, often rely less on transhipment infrastructures and is thus more
flexible. Ports may seem less relevant to fluvial transportation but fluvial hub centres are
experiencing a growing integration with maritime and land transportation, notably since the
emergence of the container. Several industrial regions have emerged or are emerging along a
major fluvial axis such as the Rhine River axe in Europe.
On Port, Cargos are loaded onVessel (Ship) and then it reaches to the Port of Destination.
In case of imports after consignments reaches at Port, it is carried by rail to ICDs and after
custom clearances, containers/ cargo can be delivered to point of
consumptions/ consignee warehouses by road which involves more than one
mode of transports to deliver single consignments without multiple handling o
cargo.
As such, activities of delivering the cargo are started from land and
Chennai, Mumbai and Ludhiana. Domestic Container Terminals are also
commissioned at Aurangabad, Bhusawal, and Raipur in central region.
In the area of domestic business door pick up and door delivery services are
most popular. With the use of terminal network, to plan Hub and Spoke
movement that allow single customer to move cargo to multiple locations at a
single time.
The main competition in this area is from road transportationof goods by trucks.
- 63 -
Research Methodology Of The Study
Introduction
In this chapter research methodology of the study is given. As physical Distribution has
become a specialist function today with vast marketing area to be covered,
specialist products requiring delicate handling, face difficulties in transport
sector and so timeliness required in movement of goods and products.
Rightfrom the procurement of raw materials, logistics performs major role to fulfill
the requirement of physical distribution of goods.
On Port, Cargos are loaded onVessel (Ship) and then it reaches to the Port of Destination. In
case of imports after consignments reaches at Port, it is carried by rail to ICDs and after
custom clearances, containers/ cargo can be delivered to point of
consumptions/ consignee warehouses by road which involves more than one
mode of transports to deliver single consignments without multiple handling of
cargo. As such, activities of delivering the cargo are started from land and
ended to land involving the various modes of transport and activities.
The Geographical advantages are enjoyed by ICDs in central region, Nagpur.
- 64 -
Being a traditional centre for transshipment of cargo moving by road through
the Domestic Container Terminal (DCT), which enhance the logistics
capabilities of this natural transshipment hub of domestic cargo. Central region
has handled throughput of 3582 in 1999-00, which was increased to 31434
TEUs in 2004-05. DCT at Nagpur was commissioned in 1999 and made
business of 2848 TEUs in 1999-2000, which is augmented to 10354 TEUs in
2004-05. This ICD has started services to Delhi, Kolkata, Ahmedabad,
In International trade, central region has started with 445 TEUs and which
increased to 55944 TEUs in 2004-05. Inland Container Depot at Nagpur made
its modest beginning from January 1997 with only 445 TEUs (Twenty
Equivalent Units, i.e. 20 ft container) in 1996-97 got augmented to 46990
TEUs in 2004-2005 and provides various services required for “Single
Window” clearance of containerized cargo and general cargoes. It offers
services of custom clearance for export & import cargos, facility of export &
import under various export promotion schemes, round the clock professional
- 65 -
Domestic and International trade promotion in Central Region.
b) Temporal and
c) Functional
a) Geographical:
Central Region comprises business of Nagpur, Aurangabad and Bhusawal. In
Central India, Nagpur the Central place, having immense scope for business is
connected with main stream of Rail to the East-West and North-South trunk
Rail route making it possible to run trains from & to all parts of India. It is also
well connected to the National highway no. 6 (Mumbai-Kolkata) and National
Highway No. 7 (Varanasi-Kanyakumari) and main linkage of Gate Way Ports.
Inland Container Depot (ICD) at Nagpur caters to a large hinterland covering
most parts of Maharashtra, Madhya Pradesh &Chhatisgarh in Central India.
The “Service area” of the Inland Container Depot serves the industrial areas
located at Yavatmal, Wardha, Butibori, Hingna, Mauda, Bhandara,
Kalmeshwar, Raipur, Bhilai, Chindwada, Saunsar and Rice Mills doting
Chhatisgarh, Madhya Pradesh and Maharashtra, and having potential of Global
business for domestic and international trade in the Country. One of the well
established and leading port in India, i.e. Jawaharlal Nehru Port Trust (former
Nhava Sheva), Nhava Sheva International Container Terminal (NSICT) and
Mumbai Port Trust (MbPT) are directly connected with this stream.
There are renowned and major industries located in and around Aurangabad.
Waluj Industrial area is located about 22 kms, Chikalthana industrial area is at
a distance of 25 kms, Chitegaon is at a distance of 35 kms, Paithan is around
60 kms and Shendra Industrial area approx 45 kms from ICD. Apart from these
Industrial areas, some more Industries are located at Jalna (75 kms from ICD) ,
Nanded (275 kms from ICD) and MIDC Station Road (15 kms from ICD).
Bhusawal is big junction of railways and connected with the major rail trunks.
Bhusawal is close to Jalgaon and Jalgaon is known to be the capital of
Khandesh. ICD, Bhusawal comprises the business of Bhusawal, Jalgaon,
Akola, Burhanpur etc.
- 66 -
b) Temporal:
This study is completed with the help of last 10 years data of CONCOR and
last five years of Central Region. The study is done with the help of statistical
information (Throughput in TEUs) of last decade of CONCOR and last five
years of Central Region, Nagpur.
c) Functional:
CONCOR is the service industry, which is playing vital role in India’s
Domestic and International Trade. The service industries in the 21st Century
will have to develop understanding about the emerging changes/challenges
caused due to competition and their requirements.
To improve working of ICD and to accelerate the turn over of business in
terms of TEUs in Central India is an ultimate objective of the study
For study no. of TEUs handled by CONCOR is taken into consideration. Only
operational data of CONCOR is available, hence operational data is
fundamental in this study.
- 67 -
RESEARCH METHODOLOGY
The research is in common parlance refers to a search for knowledge. One can also define
research as scientific and systematic search for pertinent information on a specific topic.
Well, all possess the vital instinct of inquisitiveness for, when the unknown confronts, we
wonder and our inquisitiveness makes us probe and attain full data and fuller understanding
of the unknown, can be termed as research. Research comprises defining and redefining
problem, suggesting solutions, collecting, organizing and evaluating data, making deductions
and reaching conclusion and at lest carefully testing the conclusion.
RESEARCH DESIGN
A research design is the arrangement of conditions for the collection and analysis of data in a
manner that aims to combine the relevance to research purpose with economy in procedure.
In fact the research design is the conceptual structure within research is conducted, if it
constitutes the blueprints for the collection measurement and the analysis of the data.
The research work which is undertaken is to get a detailed knowledge about the project [role
and scope of fulfilling multimodal logistics in concor
SAMPLE SIZE
SAMPLING TECHNIQUE
The target group comprised the employees of CONCOR. The sample was distributed in equal
ratio both male and female officer. The respondents were selected randomly from each all the
department in CONCOR
- 68 -
Nature of Information:
In order to project a full-fledged scenario of CONCOR in general and Central
Region in particular the nature of information is as given below,
A) Primary Data:
The information of CONCOR’s central region i.eicdtuglakabad is collected through
questionnaire , personal interview and observation.
B) Secondary Data:
Secondary data means the data which is already available and properly used by
the research student. It includes personal documents, Government Publishing,
Business Periodicals, Agricultural Periodicals, Market Committee Review and
CONCOR’s Official Journal, its website etc.
Secondary data is mainly collected from the annual reports of CONCOR and
its unpublished reports. The data is also collected from the individual ICDs in
central region. As this study is based on operational activities of CONCOR, the
throughput i.e. no. of containers handled by CONCOR in TEUs is taken into
consideration of the study.
With the help of above said sources last fourteen years throughput from 1991-
92 to 2004-05 is collected. The international throughput handled in sixteen
years at CONCOR is studied from 1989-90 to 2004-05.
As this study is based on central region, thorough study of this region and its
ICD has been done. The study of domestic trade from 1999-2000 to 2004-05
and from 1996-97 to 2004-05 of international trade at central region is done.
The data of ICD-Nagpur, ICD-Aurangabad and ICD-Bhusawal has been
studied in detail from its inception.
.
The secondary data is analyzed by two methods i.e. fixed base and changed
base method. Fixed base method is an analysis of data over a period of time in
time series. Data is taken for the first year as the base year for all successive
years. Changed base method is an analysis of data where every previous year is
the base year.
- 69 -
Limitations of the Study:
The following may be considered as limitations of the study.
1. The study is confined to only one region i.e. central region one from
amogst the eight regions of CONCOR, i.e. a big national
organization. This is because of limitations of time, energy and
space are limitations of the study. Thus the observations /
conclusions drawn in the study may not be generalization strictly
applicable to all other regions of the CONCOR.
2. In some attributes of the study, the required the data for all the years
of the study of reference period was not available / made available.
Hence the data for few years got to be worked out by certain
research techniques like intrapollation and extrapollation. As such,
such data were in form of close to reality if not the reality in it self.
- 70 -
DATA ANALYSIS
AND
INTERPRETATION
- 71 -
1. Is multimodal logistics helpful for Concor.
18%
agree
disagree
82%
- 72 -
2. Are customer getting satisfied through Concor logistics.
26%
agree
disagree
74%
- 73 -
3. Is there any future opportunities of multimodal logistics.
22%
Agree
Disagree
78%
- 74 -
4.Through multimodal logistics are interdimeries getting effected.
21 %
Agree
Disagree
79%
- 75 -
5. As Concor is moving more toward multimodal , are there any
interference by government.
18%
Agree
Disagree
82%
- 76 -
6.Through multimodal transportation is there any difficulties faced by
exporter in fulfilling documentation
10%
Agree
Disagree
90%
- 77 -
7.Is Concor thinking about building more multimodal logistics plant
across country for effective working
24 %
Agree
Disagree
76 %
- 78 -
8.Does multimodal help in saving the time and effort of shipper and carrier
forwarders
27%
Agree
Disagree
73%
- 79 -
FINDINGS
Only 26% employees feel that through multimodal logistics intermediaries are
getting effected
76% of employees feel that CONCOR should build more multimodal plants across
country for more effective working
73% employees thinks that multimodal is saving time and efforts of shippers and
carrier forwarder
the time saved through multimodal 73% of the employees are agreed whereas 27% of
the employees are not agreed
the documentation filling 90% of the employees are agreed that they do not faced any
issues and 10% of the employees think that faced issue in filling the documentation
- 80 -
CONCLUSION
FUTURE OUTLOOK
With the economic scenario picking up and with Goods and Services Tax (GST)
having been implemented, your Company is determined to achieve higher growth
rates both in EXIM as well as Domestic segments. The aim of your Company is to tap
on the enormous potential becoming available in the coming months in areas such as
Coastal Shipping, Offshore as well as expanding network in international arena for
development of Dry Port, Warehousing, E-commerce, Value Added Services, etc.
CONCOR is also expanding its business by way of using Mobile App for long haul
and short haul transportation. Information Technology (IT) will play a very important
role in this endeavour with the objective of providing continuous visibility of cargo.
CONCOR Mobile App is being expanded to provide various services to the
Customers. Your company has also made a progress in “Know Your Container
Location” KYCL which will give the exact location of the customer’s container.
Double stack movement from the fast growing North Western ports especially with
the commissioning of our MMLP at Kathuwas has helped increase the rail coefficient
of container movement and attract more light weight cargo from the road sector. More
than 200 Double Stack Train are being run per month and this will be increased
regularly.
SWOT ANALYSIS
STRENGTHS
- 81 -
Fairly large infrastructure base of rolling stock, especially the ownership of high-speed
container flats (BLC/BLL wagons) and specialized container handling equipment etc
The Company owns a total of over 322 rakes Ø including 288 high speed (BLC + BLL) and
34 BFKHN rakes as on 31.03.2018. Large network of “state-of-the-art” terminals located
across the country, giving it an unparalleled reach and penetration.
Distinct cost advantage offered by CONCOR CFSs to users by virtue of their locations
within ICD Ø premises. Over 30 years of presence in organising efficient rail movement of
containers & highly professional terminal management and operations of ICDs, combined
with the experience of coordinating /liaisoning with Indian Railways, Customs and other
Central & State Government agencies.
Highly committed team of experienced and skilled manpower with in depth knowledge of
multi modal logistics business with a customer sensitive outlook. Ability to provide choice of
mode of transportation between rail/road/sea (coastal) / air according to the needs of the
customer.
WEAKNESSES
Overdependence on a single rail corridor for Exim Business, 60% of the traffic flow remain
between North and West India, which is also a necessity as per our country’s maritime
strategy. Any disruption in these sectors can Ø have serious repercussion on business.
All the same, vagaries of road based logistics makes it difficult for CONCOR to directly
enter this sector – Ø especially given its PSU status and hence leaves it dependent on other
agencies. Gaps between quality of service and the ever growing expectations of the
customers. At some places outsourced Ø services are not of desired level on account of
differences in the objectives of the service providers and CONCOR. Ø Overdependence on
EXIM traffic & resultant exposure to vagaries of international business/trade trends. Ø
Land Acquisition – A big constraint.
- 82 -
OPPORTUNITIES & THREATS
Your Company is an undisputed leader in the field of Multi-modal Logistics in India with the
largest available network of “state-of-the-art” intermodal terminals across the country
providing an unparalleled reach and penetration, combined with a strong presence at almost
all container handling ports.
It has strong financials and highly committed team of experienced and skilled manpower
with in-depth knowledge of multi modal logistics business.
Availability of fairly large fleet of rolling stock (especially high-speed BLC/BLL wagons),
specialized container handling equipments, customized owned/leased containers and fully
computerized commercial operations with internet based customer and customs interface
provide it a strong competitive advantage in availing opportunities for further growth.
There is severe competition from the Road Sector specifically for short lead and light weight
cargo and the Export – Import imbalance leading to Empty Running
. Your company is well poised to tap the new business opportunities arising from potential
Growth in EXIM container volumes, and the likely increase in container traffic due to
development of Dedicated Freight Corridors. Its initiative to use the terminal capacity for
promoting double stack movement between hinterland & gateway ports of Gujarat have
helped increase rail coefficient & make its services competitive.
Signs of economic recovery coupled with growth in the manufacturing sector, which is likely
to gain impetus with the ‘Make in India’ campaign, will give boost to the growth plans of the
Company. The growing market potential in air cargo, automobile sector, food supply chain
management and coastal shipping offers scope for diversification which will be effectively
worked upon.
The putting back of the Indian Economy on high growth paths is bound to result in additional
transport demands. This, coupled with the anticipated changes in profile of traded goods -
from intermediate to finished goods, is bound to increase the opportunities for
containerization in domestic market. Added to this, the large number of Industrial Parks,
SEZs etc. being established by State Governments and Ports offer your company the
excellent opportunity
- 83 -
Important observations & recommendations:
summarized as follow:
- 84 -
and coordinate the business very closely.
- 85 -
result, it is recommended that there is a need to increase the
inventory of containers and to induct the adequate number of
wagons/rakes to justify the domestic business. It is also important to
understand the need of domestic customers and also there is need to
study the specific requirement of domestic customers.
- 86 -
It is observed that there is progress in handling international TEUs at
CONCOR but growth is quite slow and has not been increasing with equal rate
due to inadequate infrastructure and insufficient rakes availability.
- 87 -
CONCOR in Central Region and to keep this trend growing there is a need of
consistent performance in throughput handling.
It is also observed that the growth in domestic business at ICD, Nagpur has not
been increasing with equal rate and is leading to instability in the throughput
handling which is happened due to lack of marketing and customer services. It
is also observed that adequate number of rakes for domestic business are not
allotted to ICD-Nagpur despite of good business potential.
It is observed that CONCOR is running only four services between ports and
ICD-Nagpur. It is also observed that there is immense scope for agricultural
and industrial EXIM business at Nagpur. It is also observed that ICD-Nagpur
has done significant growth in the throughput during reference period of study.
But the growth in first half of the reference period was quite slow which is
needed to be improved.
It is observed that there was significant business growth but not steady at one
instant at ICD-Aurangabad. This has happened due to inconsistency in the
services provided by this ICD. It is also observed that CONCOR has stopped
services for domestic trade from ICD-Aurangabad due to lack of proper
response from the trade of Marathwada region. It is also observed that there is
no target oriented marketing strategy and expertise with CONCOR to develop
domestic & international business at central region. It is also observed that
ICD-Aurangabad is provided with all facilities and infrastructure considering
the business potential but growth in business is not satisfactory.
- 88 -
It is observed that space is a constraint for further development of ICDs
especially at ICD-Nagpur in central region. At ICD-Nagpur there is a need
to develop space to carry out operations of domestic and international
containers. The total area of ICD is 1,10, 000 Sqr. Mtrs, since the
commissioning of this terminal in 1997.
- 89 -
containers from one point to other. At inland container depots, there are
different activities which are performed for domestic & international
cargo/container handling. It is observed that more than one mode of logistics
i.e. rail and road logistics modals are used at the ICDs of Central Region for
the transportation of cargo/containers whereas only road as a single logistics
modal is given least priority for the movement of cargo/containers.
It is observed that there is growth in the movement of outward loaded & empty
containers by rail & road at ICD-Nagpur of Central Region. It is also observed
that the empty outward movement not stable, it means there is low preference
for the empty repositioning of domestic containers from ICDs. This is good
sign as inward loaded containers after destuffring can be used for stuffing and
for further outward movement.
- 90 -
It is observed that there is substantial growth in export containers by using
more than one mode of transport i.e. road & rail at ICD, Nagpur. This is the
clear indication that road is best option for local movements to pick up the
cargo in container from customer’s factory/warehouse and rail can be used for
further movement of containers after custom clearances to Port from ICD.
It is also observed that there is growth in import loaded containers by using
more than one mode of transport. This is the clear indication that carriage of
import loaded containers from Port to ICD by rail and after customs
examination and clearances, these containers are delivered to importer’s
factory/ warehouse by road. This cycle minimizes entire turn around time of
container and as a result containers can be delivered at optimum period.
It is observed that there is no Customer Relation department in CONCOR and
its ICDs. It is also observed that most of the respondents have shown their
dissatisfaction with Customer Relation at ICDs, which is the area of concerned
for CONCOR officials and need to be rectified immediately.
It is observed that the performance of major shipping lines e.g. APL and SCI
was not steady during reference period of study. But is found that shipping
lines e.g. Maersk, MSC, PIL and CONTSHIP has performed steadily during
the reference period of the study. This is the clear indication that the
restriction of services to particular sectors and availability of containers for
exports with competitive ocean freight is the main challenge for shipping lines
in Central Region.
Now a day banks are reaching at door step of customers but CONCOR is not
trying for extension counter of bank. An unavailability of bank’s extension
counter is a commercial problem in Central Region.
It is observed that CONCOR is working with rigid rules and regulations so in
most of the cases RED TAPISM is influenced in the working of CONCOR
which delays the clearances of consignment/shipment and causes
inconvenience to the trade and users of ICD. As per rule, cash can not be
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accepted at the billing counter which creates inconvenience to the trade.
It is observed that CONCOR deploy equipments as per tender clause, which is
decided as per business forecast. Some time it is not enough to satisfy the
customer’s need. To meet the trade’s requirement and business demand it is
necessary to deploy sufficient number of trailers in Central Region as and
when required.
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It is observed that CWC is handling port containers and facilitates the
clearances outside the port at its CFS because container clearance is not
allowed inside the port as per government of India (GOI) directives.
It is observed that there is a need to improve on entire working of CWC i.e. an
effective clearances, customer relations business promotions strategies etc so
that problems of users can be sorted out immediately and business will grow.
It is observed that CONCOR is providing services for eight domestic
destinations. These services are not regular and planned as per demand. It is
also observed that there are both way movements for empty domestic
containers in central region to meet the requirement of domestic customers.
It is observed that there is growth trend in the throughput performance of
domestic agents. The growth is not stable and there was decline in the year
2003-04 in the performance of all agents. This had happened due to lack of
proper supply of rakes against demand in central region. Due to irregularity in
train services of CONCOR for domestic trade, it is also observed that these
agents have preferred railways goods wagons and road carriers for the
movement of domestic cargo.
It is observed that there is growth trend in the movement of throughput for all
destinations of domestic trade in central region. It is also observed that the
growth is quite unstable and there is need of consistence performance in the
movement of throughput. It is revealed from the table that the year
2003-04 was the low performer year for almost all destinations which is the
area of concern for domestic business.
It is observed that there is growth in the movement of domestic commodities
in central region. It is also observed that “W” category commodity have made
successive growth in five years of study. There was decline seen in the year
2003-04 which was caused due to shortage of rakes and empty containers for
domestic business.
Most of the respondents stated that the Inland Container Depots are playing
major role in the development of their business. As per their opinion, ICDs are
cheaper source to Shipper/Consignee for logistics operations of domestic and
international trade. It is also stated that ICDs are important link to International
trade. According to their opinion, services of Inland Container Depots provide
Single Window Clearance facility so that one can perform different part of clearance.
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It is observed that there is majority of manufacturer importers at ICDs. Most of
the importers have moved their first consignments by rail in initial days. First
choice of importers for booking of import consignments is Shipping Line and
for clearances they prefer Custom House Agents.
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overcome on operational problems of shipping lines.
It is observed that non availability of banking facility and limited time for
commercial transaction are common commercial problems in central region as
stated by CHAs. It is also observed that accounting problems in pre deposit
accounts and non acceptance cash are also commercial problems at central
region according to CHA’s view.
It is observed that limited no. of trailers & handling equipments are the major
operational constraint for CHAs in central region. Limited space for handling
of containers has taken second place as operational problem in central region
for CHAs followed by lack of coordination between ports & ICDs and single
agency for repairs and maintenance of containers in central region.
It is observed that ICD locations in Central Region are satisfactory as per
respondents those are using the facilities of ICDs in central region, but the
location of ICD-Aurangabad is far away from the industrial belt of
Aurangabad. As per respondents, it costs higher for transportation and causes
inconvenience to deal with.
It is observed that insufficient & irregular train schedule / services are the
major barrier in the development of ICDs in central region. There are mixed
opinions on other factors.
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Recommendations:
In a view to maintain steady and collective growth trend for all ICDs aross the
country in handling the containers, it is recommended that CONCOR should
extend its services considering the requirement of individual ICD so that all
ICDs of CONCOR perform well.
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south central region. It is also recommended that CONCOR should explore
possibilities to start services to different sea ports for international trade.
To develop various terminals as traffic oriented, it is recommended that
container terminals of western region should start operations for domestics &
international trade with multiple facilities. These terminals should also run as
hub to carry out different activities.
To get the stability in the throughput handling and growth oriented result, it is
recommended that there is a need to increase the inventory of containers and to
induct adequate number of wagons/rakes to justify domestic business. It is also
important to understand the need of domestic customers and there is also a
need to study specific requirement of domestic customers.
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transportation of imports & exports containers. It is also recommended that
CONCOR should start domestic logistics services from ICD-Aurangabad and
accordingly proper marketing should be done.
To tap the potential for the LCL cargo movement in the central region, it is
recommended that there is need of marketing for this business and
consolidation facility should also be made available for shippers at ICD
locations itself. It is also recommended that scheduled services along with
regular and reliable transportation should be provided to gain confidence and
LCL cargo business from this region.
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To maintain profit oriented collection, it is recommended that there is need to
offer regular and prompt LCL cargo services from ICDs to Ports at Mumbai. It
is also recommended that LCL consolidation services should also be offered to
the shippers in central region.
To provide better services to the customers and to keep the track of containers,
it is recommended that trace & tracking systems in the form of accessibility,
geographic information system (GIS), Global Positioning system (GPS) can be
implemented at Central Region. In addition to this EDI and E- Business facility
should also be installed in central region to keep the documentation part easy
for users of ICDs.
It is recommended that CONCOR should concentrate on the domestics
business at ICD-Nagpur and multimodal logistics model should be designed to
increase the efficiency and growth in movement of outward domestic
containers by both modes of transport.
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There is need to run mix trainload to meet the requirement of customers and
get profit generated business, it will also act as value added services to the
trade. So it will convenience to the trade in the movement of loaded& empty
containers by both mode of transport and there should be viability in the
movement of containers between various destinations.
Import and export loaded containers are moved by rail but empty container
have least priority for movement by rail. It is recommended that mix trainload
comprising of loaded and empty containers should be organized to meet
customer’s satisfaction and to minimize the cost.
Multimodal logistics model is feasible at one point but this model should be
more economically viable too so it is recommended that there is need to
promote multimodal logistics model at ICDs.
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It is recommended that Customer Relation cell should be incorporated in
CONCOR and its ICDs to take care of problems of customers/users of ICD
under direct control of respective Chief General Managers’ (CGMs) of Region
and Director, Intl. Mktg. & Operations.
There are different kinds of customers in EXIM business with small or big
volume. To attract business volume based discount scheme can be offered. In
service industry it is essential to maintain the consistency in service, it is
recommended that customer services and its requirement should be given
priority especially in Central Region.
To maintain proper record of containers, its condition and also to increase the
life of containers by proper repairs & maintenance, it is recommended that an
independent survey agency should be appointed by shipping lines.
Shipping lines have developed their business in central region for various
sectors. To provide the reliable and efficient services, it is recommended that
shipping lines should open branch offices at ICD locations to facilitate the
customers.
Now a day, requirement of container status in transit is the top most priority for
everyone who is involved. To know the transit status of containers, it is
recommended that container-tracking system should be introduced by every
service provider for container business.
For speedy movements of containers from/to ports for final destination i.e.
ICDs/CFSs, it is recommended that connectivity with different port should be
maintained to minimize delays in movement of containers from port to
ICDs/CFSs.
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To develop business and to perform consistently, it is recommended that
shipping lines should open maximum service sectors to facilitate the trade so
that the availability of adequate number of destination will create choices for
the exporters/importers.
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handling and transportation facilities should be honored to this ICD
immediately and in addition to this, value added services should be also
provided to the users of this ICD at Aurangabad.
With a view to increase the inward domestic throughput & to increase the ICD
destuffing & factory destuffing activities in central region, there is need to
explore traffic from origin points where central region is running the trains for
domestic trade.
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It is recommended that business centre for Xerox, Fax, STD/PCO, Bank
facility should be introduced at ICD location. It is also recommended that
Speedy clearance and acceptance of cash should be done and dependability on
sub agencies viz H & T contractors, long lead transporters should be
minimized.
It is recommended that all type of exporters should be promoted to use the ICD
services in central region. There is need to convince the importance of
Multimodal logistics among the exporters so that they should make utilization
of Multimodal logistics in a big way. It is recommended that exporters should
negotiate the freight with shipping lines directly so that competitive rates can
be obtained. It is also recommended that exporters should not rely only on
custom house agents and they should understand the procedures and policies of
EXIM trade and CONCOR’s working to take maximum benefits of
Government policies for exports.
It is recommended that CONCOR should owe their trailers rather than hiring
from market. Besides modern handling equipments should also deployed at
ICD locations in central region. It is also recommended that CONCOR should
open their oversea offices and should provide total logistics solution right from
picking up of cargo/ container from factory to destinations. Container tracking
system and reefer container facility should also be provided by CONCOR to
develop the business based on Multimodal logistics systems at central region.
It is recommended that to avoid operational problems in central region,
shipping lines should understand the business and need of shipper first. It is
also recommended that shipping lines should set up independent branch offices
at ICD locations and they should improve connectivity with different ports to
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avoid operational problems.
It is recommended that the reports and Job Orders should be processed fast to
avoid delays. It is also recommended that systems should generate information
as per the requirement of the users so that users can enjoy the availability of
good infrastructure in Central Region.
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BIBLIOGRAPHY
Books:
Articles
Websites:
www.concorindia.com
www.scribd.com
www.wikipedia.com
www.slideshare.in
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APPENDICES
QUESTIONNAIRES
a) Agree b)Disagree
a)Agree b) Disagree
a).Agree b) Disagree
a)Agree b) Disagree
5.As Concor is moving more towards multimodal, are there any interference by
government.
a)Agree b) Disagree
a)Agree b) Disagree
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7.Is Concor thinking of building more multimodal logistics plant across the
country.
a)Agree b) Disagree
8.does multimodal help in saving the time and effort of freight forwarder
a)Agree b)Disagree
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