final report on gateway rail distriparks
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SUMMER TRAINING REPORT
On
Role of Inland Container Depot in International Business
Gateway Rail Distriparks Limited
Submitted in partial fulfilment of the requirements of
Post Graduate Programme
By
Kunal Kothari
PGP 2010-2012
PGP20102158
IILM Institute for Higher Education
New Delhi
i
CERTIFICATE BY COMPANY
ACKNOWLEGDEMENT
‘No learning is possible without any proper guidance and no research endeavour is a solo
exercise, some contribution is given by various individuals.’
I hereby acknowledge my profound gratitude to Mr. Rajguru S Behgal General
Manager – ICD, Gateway Rail Distriparks Ltd., Gurgaon for giving his valuable time and
guideline regarding this project.
I offer my great sense of gratitude and thanks to Mr. Prakash Veer Tyagi Senior
Manager (Operations) – ICD, Gateway Rail Distriparks Ltd., Gurgaon, who gave me a
chance to work under him. I am obliged to him for encouraging me and for providing me
valuable knowledge.
I also owe enormous debt towards Mr. Rajesh Saini Warehouse Manager, ICD,
Gateway Rail Distriparks Ltd., Gurgaon, for giving me a chance to visit their terminals and
learn the overall operation.
I would also like to thank all the customers and CHAs who filled my questionnaire
patiently and gave their unbiased responses.
Last but not the least, I feel indebted to all those people in the organization who have
helped directly or indirectly in the successful completion of this project.
ii
TABLE OF CONTENTS
HEADING PAGE NO.
Executive summary v
Objective vi
Company Profile vii
Industry Overview x
Shipping container and types xv
Background - GRL xxi
GRL Structure xxiii
Export Import Operation Process xxv-xxx
Porter’s Five Model xxxiii
SWOT- GRL xxxvi
Customer Value Analysis xxxvii
Recommendations l
Questionnaire lvi
Limitations lxii
Declaration lxiv
iii
EXECUTIVE SUMMARY
Gateway Rail Distriparks Ltd. is a very uniform player in ICD’s all over India. New private
sector ICD’s have entered the market to withstand the competition from public sector player
like CONCOR. It has also come up with innovative products and superior services. This
study attempts to assess the possibilities to promote different schemes & products to the
existing customers in Gateway Rail Distriparks Ltd. It also helps to analyze the services
provided by the Gateway Rail Distriparks Ltd, what are the important areas where they are
lacking & the areas where they need to improve upon.
The purpose of the research was to study how to promote the products to the customers &
how to convince the customers by telling them, benefits of the products according to their
need. Also this study enables us to analyze the customers’ behaviour in the marketing of
export and import.
This study has been done by the primary data collection through the questionnaires. To take
the overall view of the Gateway Rail Distriparks Ltd, Garhi Hasuru I have taken the
convenience sample. The population of interest was specially the existing customers and
CHA’s of Gateway Rail Distriparks Ltd. Also I have taken the views of the employees
working inside the branch like operations department, transport department, export-import
department etc.
iv
OBJECTIVE
Gateway Rail Distriparks Ltd. is a very consistent player in the new private player ICD’s.
The new private sector players have entered the field to withstand the competition from
public players and have come up with innovative products and superior services. I have taken
this research project to analyze the importance of existing customers & also to assess the
possibilities to promote other products to them.
Research done keeping following objectives in mind:
1. To assess the possibilities of promoting various schemes offered by ICD’s to its
existing customers.
2. To focus on strengthening the business.
3. Realizing the customers need towards different facilities.
4. To assess the impact of demographics on customers behavior for taking a product.
v
Company Profile
Gateway Distriparks Ltd. is a well established Logistics Service Provider in the EXIM space.
It was incorporated in 2005 and is based in New Delhi. Gateway Rail Freight Ltd. operates as
a subsidiary of Gateway Distriparks Ltd. The company has created a niche for itself at Port
cities with state of the art Container Freight Stations offering Logistics solutions to its
customers that have today become the benchmark in the industry. It has facilities in Navi
Mumbai, Chennai, Garhi Hasaru (Gurgaon) and Vishakhapatnam.
Gateway Rail Freight Limited provides rail freight transportation services in India. The
company transports goods such as steel, chemicals, paper, meat and grains through containers
on railroad. It operates trains as well as offers logistics services through in-house fleet of
trailers at Delhi/NCR and Mumbai terminals. The company also engages in the provisional of
clearing, containers stuffing and de-stuffing, bonded and non-bonded warehousing and other
terminal based services.
Gateway Distriparks Limited (GDL) was incorporated in 1994 and is one of the leading
private sector container, rail and cold chain logistics facilitator in the country. GDL operates
in four business segments viz. Container Freight Stations (CFS), Rail Transportation, Road
Transportation and other. It’s subsidiaries include Gateway East India Private Limited,
Gateway Distriparks (South) Private Limited, Gateway Rail Freight Limited (GRFL),
Gateway Distriparks (Kerala) Limited and Snowmen Frozen Foods.
GDL has diversified revenue stream of which CFS segment contributed 55%, rail
transportation contributed 30%, Road Transportation contributed 10% and other segment
contributed 3.8% to total revenues of the company. This diverse stream of revenue mitigates
the risk of downturn in a particular revenue segment.
The company has taken several initiatives for growth and expansion during FY10. It has
taken over Punjab State Container and Warehousing Corporation Limited’s CFS at JNPT
under an operations and management contract for a period of 15 years from Feb07. This CFS
has now been revitalised and renovated. The company is in process of setting up a new CFS
at Kochi port in a joint venture with Chakiat Agencies Private Limited. GDL’s subsidiary
Gateway Rail Freight Limited has expanded its business by putting in place a fleet of
vi
railways rakes/trailers and Inland Container Depot (ICD) to provide end-to-end solutions to
customers. The company is also developing a terminal at Faridabad in Haryana. The
company is also in a process of refurbishing its operations by setting up a new cold stores and
increasing the existing capacity of the cold storage facilities.
GLOBALIZATION
Globalization is a process of interaction and integration among the people, companies, and
governments of different nations, a process driven by international trade and investment and
aided by information technology. This process has effects on the environment, on culture, on
political systems, on economic development and prosperity, and on human physical well-
being in societies around the world. Distinguishing this current wave of globalization from
earlier ones, author Thomas Friedman has said that today globalization is “farther, faster,
cheaper, and deeper.”
This current wave of globalization has been driven by policies that have opened economies
domestically and internationally. Taking advantage of new opportunities in foreign markets,
corporations have built foreign factories and established production and marketing
arrangements with foreign partners. A defining feature of globalization, therefore, is an
international industrial and financial business structure.
Technology has been the other principal driver of globalization. Advances in information
technology, in particular, have dramatically transformed economic life. Information
technologies have given all sorts of individual economic actors—consumers, investors,
businesses—valuable new tools for identifying and pursuing economic opportunities,
including faster and more informed analyses of economic trends around the world, easy
transfers of assets, and collaboration with far-flung partners.
The globalization of business has had a tremendous impact on the way companies operate
today. The scope of globalization runs the gamut from foreign purchasing of raw materials
and supplies and selective sales in international markets with extensive use of intermediaries,
to multi faceted international manufacturing and marketing strategies encompassing
international production sites, multiple staging of inventory, and counter-trading product
sales. The growing international dimension of both the inbound and outbound portions of
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supply chains has had, and will continue to have, a major impact upon the logistics system
and transportation requirements of companies. In particular, transport demand requires
efficient integrated moves, premium package services, and making the best use of available
modal transport operations and international distribution centres. Thus, the role of
international distribution centres as home bases for merchandise transportation and
distribution has become increasingly important.
A distribution centre has been defined as "a warehouse of finished goods; also applied to the
facility from which wholesale and retail orders may be filled; a materials warehouse would
also be a distribution centre
for buyers of its stock". It provides a number of services attribute to shippers, such as storage,
cargo tracking, inland transport service, customs clearance service, consolidation, packaging,
labelling, assembly, and documentation services. Some of these attributes can be expected to
be more important
than others to customers, and not all customers will attach the same importance to any
particular attribute. To develop a distribution centre service responsive to customer needs, it
is necessary to determine the individual importance of service attributes.
Intermodal freight transport involves the transportation of freight in a Container or vehicle,
using multiple modes of transportation (rail, ship, and truck), without any handling of the
freight itself when changing modes. The method reduces cargo handling, and so improves
security, may reduce damages and loss, and may allow freight to be transported faster. A
reduced cost versus over road trucking is the key benefit for intra continental use.
viii
INDUSTRY OVERVIEW
The logistics industry in India is evolving rapidly and it is the interplay of infrastructure,
technology and new types of service providers that will define whether the industry is
able to help its customers reduce their logistics costs (which are also growing) and
provide effective services. Changing government policies on taxation and regulation of
service providers are going to play an important role in this process. At the firm level, the
logistics focus is moving towards reducing cycle times in order to add value to the
customers.
The logistics industry is highly fragmented in terms of service offerings, with each
company offering a specialized service. The larger conglomerates offer complete end to
end solution, backed by joint ventures, subsidiaries or acquisitions.
The primary growth drivers of this industry are as under:
Investments in the infrastructure sector: Increased efficiency and productivity
of the transport system would result in lower transit times.
Streamlining of the indirect tax structure: The introduction of Value Added
Tax (VAT) and the proposed introduction of a singular Goods and Services Tax
(GST) are expected to significantly reduce the number of warehouses which are
required by manufacturers to maintain in different states, thereby resulting in the
substantial increase in demand for integrated logistics solutions.
Robust trade growth: Strong economic growth and liberalization has lead to
considerable increase in domestic and international trade volumes in the past five
years. Consequently, the requirement for transportation, handling and
warehousing is growing at a good pace and is driving the demand for integrated
logistics solutions.
Globalization of manufacturing systems: Globalization of manufacturing
systems coupled with advancements in technology are increasingly compelling
companies across verticals to concentrate on their core competencies and avail
the cost saving potential of outsourcing. This expected to contribute to an
increase in the need for integrated logistics solution, which is the niche of every
Third Party Logistics Service (“3PL Services”) providers.
ix
Components of Logistics Chain
Figure: Components of a logistic chain
x
The exporter selects the logistics provider based on the quality of service, efficiency and presence in that region
E x p o r t e r
Undertakes the shipment from the exporter and liases with various intermediaries in the supply chain to deliver the goods to the importer
L o g i s ti c s P r o v i d e rThe stuffed container is sent to the CFSs/ICDs where custom clearance takes place. these companies charge a fee for the services provided.
C F S / I C D
These agents complete the custom clearance procedures and are in charge of forwarding the containers to the shipping lines.
F r e i g h t F o r w a r d e r s / C H A s
Since manufactured products are typically shipped in containers, these companies consolidate cargo from different logistics players in to a single container load.
L C L C o n s o l i d a t o r s
These companies own ships and transport the containers to the destination country . They run on a fixed schedule between ports and charge rates per container.
S h i p p i n g L i n e s
Shipping lines deliver the containers to CFSs/ICDs at the destination country to complete custom formalities. the latter charges a ground rent apart from the other services provided.
C F S / I C D
They work in conjunction with the ICDs to customs formalities in the destination country.
F r e i g h t F o r w a r d e r s / C H A s
These companies split a container load in to different components based on the importer and final destination.
L C L C o n s o l i d a t o r s
The logistics provider hired by the export uses its international network to transport the goods to the importers.
L o g i s ti c s P r o v i d e r
These are the end customers of the supply chain, and depending upon the agreement with the exporter, these companies sometimes bear the cost of the supply chain.
I m p o r t e r s
The annual logistics costs in India is estimated to be 14% of the GDP, which translates in
to USD 140 billion assuming the GDP of India to be slightly over USD 1 trillion. Out of
this USD 140 billion, almost 99% is accounted for by the unorganized sector and slightly
over 1% is contributed by the organized sector. So, one can see that logistics industry in
India is in a nascent stage. However, the industry is growing at a fast pace and if India
can bring down its logistic costs from 14% to 9% of the GDP (level in the US), savings
to the tune of USD 50 billion will be realized at the current GDP level, making Indian
goods more competitive in the global market. Moreover, growth in the logistic sector
would imply improved service delivery and customer satisfaction leading to growth of
export of Indian goods and potential for creation of job opportunities.
Rail Logistics
Rail haulage is one of the least expensive forms of transportation, and railways have a
33% share in the container haulage. Railways are used extensively for EXIM traffic
since custom clearance is possible at the ICDs and exporters are not required to go to the
ports to complete these formalities. Since Railway haulage is cheaper and faster than
transportation by roadways, exporters are enticed to send their shipments via rail.
However, on the domestic container traffic, manufacturers prefer road transportation
despite being more expensive since railway terminals are not located close to every
industrial zone. In order to overcome this challenge, rail haulage companies are now
providing door to door services through tie-ups with trucking companies.
The cost advantage of rail haulage is significantly higher than that of road haulage.
The Indian container traffic is expected to grow at a faster pace driven by rising
participation with global trade, faster port development and increasing investment in
road and rail sector. Globally, the world containerization level has doubled to 70% of
total global cargo movement in last decade. However, in India it is rising at less than
50%. Strong upside is seen in the Indian containerization level. International container is
expected to grow at 8% p.a. for the next five years whereas Indian container traffic is
expected to grow at 15% p.a.
xi
Break-up of EXIM cargo handled in India in 2010
Figure: EXIM Cargo Handled in India in 2008
Private Participation in Container rail Haulage
The government has permitted private participation in container rail haulage for a
license fee of Rs. 500mn to operate on all tracks and Rs. 100mn for point to point
operation. There has been significant interest to receive railway licenses and 15
companies have received approval till date. The economics of rail haulage is highly
attractive. The main entry barrier is the lack of terminal network, and all the new entrants
have to construct terminals and ICDs across the country to provide rail haulage services
effectively.
xii
List of Players in ICD
Adani Logistics Gateway Rail Freight
Arshiya International Hind Terminals
Boxtrans Logistics India India Infrastructure and
Leasing
Central Warehousing
Corporation
Innovative B2B logistic
solutions
CONCOR Pipavav Railway
Corporation
Container Rail Road
Services
Reliance Infrastructure
Engineering
Delhi Assam Roadways Sical Logistics
Emirates Trading
Agency
Kribhco
xiii
SHIPPING CONTAINERS AND TYPES
A shipping container is a container with strength suitable to withstand shipment, storage, and
handling. Shipping containers range from large reusable steel boxes used for intermodal
shipments to the ubiquitous corrugated boxes.
Standard Container: Standard containers are also known as general purpose containers.
They are closed containers, i.e. they are closed on all sides. Standard containers are mainly
used as 20' and 40' containers. Containers with smaller dimensions are very seldom used.
Indeed, the trend is towards even longer dimensions, e.g. 45'. This type of container is
suitable for any general cargo.
High Cube Containers - High-cube containers are similar in structure to standard containers,
but taller. In contrast to standard containers, which have a maximum height of 2591 mm
(8'6"), high-cube containers are 2896 mm, or 9'6", tall. High-cube containers are for the most
part 40' long, but are sometimes made as 45' and 20' containers.
Many 40' containers have a recess in the floor at the front end which serves to centre the
containers on so-called gooseneck chassis. These recesses allow the containers to lie lower
and therefore to be of taller construction.
xiv
Open-Top Container: The walls of open-top containers are generally made of corrugated
steel. The floor is made of wood. The roof consists of removable bows and a removable
tarpaulin. The door header may be swivelled out.
These two structural features greatly simplify the process of packing and unpacking the
container. In particular, it is very easy to pack and unpack the container from above or
through the doors by crane when the roof is open and the door header is swivelled out.
Usual open-top container dimensions are 20' and 40'.
Flat Rack: Flat racks consist of a floor structure with a high loading capacity composed of a
steel frame and a softwood floor and two end walls, which may either be fixed or collapsible.
The end walls are stable enough to allow cargo securing means to be attached and several flat
racks to be stacked on top of one another. Flat racks are available in 20' and 40' sizes.
Platform: Platforms consist solely of a floor structure with extremely high loading capacity;
they have no side or end walls. This high loading capacity makes it possible to concentrate
xv
heavy weights on small areas. A platform consists of a steel frame and a wooden floor
structure.
Platforms are available in 20' and 40' sizes. 40' platforms have a gooseneck tunnel at each
end.
Hardtop Container: The walls of hard-top containers are generally made of corrugated
steel. The floor is made of wood.
It has two typical distinguishing structural features. On the one hand, it is equipped with a
removable steel roof and on the other hand the door header can be swivelled out.
Usual hard-top container dimensions are 20' and 40'.
Ventilated Container: Ventilated containers are also known as passive (naturally) ventilated
or coffee containers. Ventilation is provided by ventilation openings in the top and bottom
side rails. The openings do not let in spray, to prevent depreciation of the cargo by rain or
xvi
spray, for example.
If actively ventilated containers are required, i.e. containers with adjustable ventilation,
"porthole" containers may be used, which simultaneously act as insulated or refrigerated
containers.
Refrigerated: Refrigerated container or Reefer is an intermodal container (shipping
container) used in intermodal freight transport that is refrigerated for the transportation of
temperature sensitive cargo.
While a reefer will have an integral refrigeration unit, they rely on external power, from
electrical power points at a land based site, a container ship. When being transported over the
road on a trailer they can be powered from diesel powered generators ("gen sets") which
attach to the container whilst on road journeys.
Some reefers are equipped with a water cooling system, which can be used if the reefer is
stored below deck on a vessel without adequate ventilation to remove the heat generated.
Insulated Container: These are a type of packaging used to ship temperature sensitive
products such as foods, pharmaceuticals, and chemicals. They are used as part of a cold
xvii
chain to help maintain product freshness and efficacy. The term can also refer
to insulated intermodal containers or insulated swap bodies.
Tank Container: Tank containers must be at least 80% full, to prevent dangerous surging of
the liquids in transit. On the other hand, they must not as a rule be over 95% full, or there will
not be sufficient space for thermal expansion. Tank containers intended for transporting
foodstuffs must be labelled "Potable Liquids only".
Some hazardous materials must be transported in tank containers with no in- or outlet
openings below the surface of the liquid
For the transport of liquid food, Alcohols, Fruit juices, Edible oils, Food additives.
SWOT ANALYSIS OF ICD
xviii
BACKGROUND: GATEWAY RAIL DISTRIPARKS LTD.
xix
STRENGTH
Multiple mode of transport
Less time consuming and faster
processing
Away from congested port
Better customer service
WEAKNESS
Capital Intensive
highly dependent on external
agencies such as Indian Railways,
port terminal operators and shipping
lines.
Long gestation period(around 10
years)
Unskilled workforce
High cost of rolling stock
OPPURTUNITY
Increasing trade because of
Globalization
Rise in EXIM
Double stacked trains
Better utilization of rolling stock and
track capacity.
Huge scope in untapped virgin market
THREATS
Lack of proper infrastructure
Competitors
Unfavorable trade policies in future
Increasing fuel costs
Increasing container traffic may lead to
congestion at ports
Unstability of rakes
Incorporated in 1994, GDL is today one of the leading private sector logistics facilitator .The
company was initially set up as a joint venture by Newsprint Trading and Sales Corporation
(NTSC),Parmeshwara holdings Ltd, Windmill International Private Limited & Thakral
Corporation Limited. The company has the distinction of being the first private- sector
company to operate container trains. The company enjoys a pan-India presence .GDL has
four business segments viz. Container Freight Station, Rail Transportation, Road
Transportation and other segment. GDL’s subsidiaries include Gateway East India Private
Limited, Gateway Distriparks (South) Private limited, GRFL, Gateway distriparks (Kerala)
Limited and Snowmen Frozen Foods. The company operates CFSs at Navi Mumbai,
Chennai, Vishakapatnam & Inland Container Depot at Garhi Harsaru. GRFL operates
container trains & rail linked ICDs in northern India and also provides rail & transport
services from Navi Mumbai. The company’s rail linked terminals are at Gurgaon& Ludhiana.
GRFL owns & operates 18 container trains and 235 road trailers. The other segment of
company comprises Cold Chain Logistics business which provides services to large FMCG
companies & organized retail chains.
The company is the second largest container operator in India. It has the highest market share
of 22% at JNPT, India’s largest container port. The company is expanding its container
freight station capacities and setting up new ICD’s at key locations to benefit from the high
growth in the container traffic in India. It has also forayed into the lucrative rail container
business.
In the domestic sector, the company offers tailor made solution for the clients and takes the
responsibility of the entire range of activities starting from picking up the cargo from the
point of production to delivering it to the point of consumption. All this while giving the
customer complete visibility of the movement of cargo.
The company has developed special expertise in handling refrigerated cargo in containers and
are offering unique one stop propositions to the customers in this complex stream of
movement.
BOARD OF DIRECTORS
xx
DIRECTOR NAME DESIGNATION
Mr. Gopinath Pillai Non-Executive Chairman, Promoter-Director
Mr. Prem Kishan Gupta Managing Director, Promoter-Director
Mr. Arun Agarwal Promoter-Director
Mr. Saroosh Cowasjee Dinshaw Non-Executive Director
Mr. Shabbir Hakimuddin Hassanbhai Non-Executive Director
Mr. Sat Pal Ishar Das Khattar Promoter-Director
Mr. Michael Philip Pinto
Non-Executive Director
Mr. Karangalpadi Jathindra Shetty Non-Executive Director
Mr. Kirpa Ram Vij Non-Executive Director
Share holding pattern
Share holder % holding
Promoters 39.62
Institutional investors 39.79
Other investors 9.36
General public 11.23
BUSINESS MODEL OF GATEWAY RAIL
xxi
xxii
GDL STRUCTURE
GATEWAY DISTRIPARKS
LIMITED
GATEWAY EAST INDIA (P) LTD.
CFS Vizag
Gateway Distriparks
(South) Pvt. Ltd.
CFS, Chennai
CFS DRONAGIRINavi Mumbai
PUNJAB CONWARE CFS (O&M) Navi Mumbai
Gateway Distriparks
(Kerala) Pvt. Ltd.
CFS, Cochin
Snowman Frozen Foods
Ltd.Cold Chain
Logistics Business
PUNJAB CONWARE CFS (O&M) Navi Mumbai
Snowman Frozen Foods
Ltd.Cold Chain
Logistics Business
PUNJAB CONWARE CFS (O&M) Navi Mumbai
Gateway Distriparks
(Kerala) Pvt. Ltd.
CFS, Cochin
Snowman Frozen Foods
Ltd.Cold Chain
Logistics Business
PUNJAB CONWARE CFS (O&M) Navi Mumbai
Gateway Distriparks
(Kerala) Pvt. Ltd.
CFS, Cochin
Snowman Frozen Foods
Ltd.Cold Chain
Logistics Business
PUNJAB CONWARE CFS (O&M) Navi Mumbai
Gateway Distriparks
(Kerala) Pvt. Ltd.
CFS, Cochin
Snowman Frozen Foods
Ltd.Cold Chain
Logistics Business
PUNJAB CONWARE CFS (O&M) Navi Mumbai
Gateway Distriparks
(South) Pvt. Ltd.
CFS, Chennai
Gateway Distriparks
(Kerala) Pvt. Ltd.
CFS, Cochin
Snowman Frozen Foods
Ltd.Cold Chain
Logistics Business
PUNJAB CONWARE CFS (O&M) Navi Mumbai
GATEWAY EAST INDIA (P) LTD.
CFS Vizag
Gateway Distriparks
(South) Pvt. Ltd.
CFS, Chennai
Gateway Distriparks
(Kerala) Pvt. Ltd.
CFS, Cochin
Snowman Frozen Foods
Ltd.Cold Chain
Logistics Business
PUNJAB CONWARE CFS (O&M) Navi Mumbai
CFS DRONAGIRINavi Mumbai
GATEWAY EAST INDIA (P) LTD.
CFS Vizag
Gateway Distriparks
(South) Pvt. Ltd.
CFS, Chennai
Gateway RailFreight Limited
Gateway Distriparks
(Kerala) Pvt. Ltd.
CFS, Cochin
Snowman Frozen Foods
Ltd.Cold Chain
Logistics Business
PUNJAB CONWARE CFS (O&M) Navi Mumbai
Fig: BUSINESS MODEL OF GATEWAY RAIL
xxiii
GDL – Three ICD’s and Four CFS facilities operational across India
EXPORT PROCEDURE OF ICD
Process chart showing export procedure
xxiv
First level
CHA files Checklist at EDI CustomConsignor gives Invoice to CHABook container from Shipping Line whogives all the details.Stuffing of goods is done in container at factory or ICDSubmit Checklist copy at EDI and shipping bill number at gateGate In
Second
level
Factory give ARE-2,gatepass,self seal report to CHACHA files all documents at custom for goods arrivalExamination of goods is done by the custom examination officerCustom examination officer gives the report to supretendentSupretendent gives LET OUT ORDER and Seal
Final level
CHA gives container number, seal number at computerFinal Shipping Bill comes outCHA has to get the final shipping bill signed by customThe xerox of shipping bill has to be submitted to surveyor who gives Forwaring Note to CHACHA gives to forwarding note to GDL EXIM CellContainer is ready o be loaded on Rail
IMPORT PROCEDURE OF ICD
Process chart showing export procedure
xxv
First level
Importer gives Bill of Lading,Invoice,packing list,cerificate of origin,analysis report to CHAShipping line gives Import General Menifest to CHACHA files all these papers at customs after which checklist comes out
Second
level
CHA submits checklist after which Bill Of Entry comes outCHA gives Bill of Lading to Shipping Line and clears all the due after which Shipping Line gives Delivery OrderCHA gives Delivery Order and Bill of Entry at Operations GDL who issues Seal Cutting Order
Final level
After the seal is cut, examination of the goods is done by the examination officerExamination officer writes report to supretendent who verifies itOut of charge is given by supretendent and the document is submitted to OperationsAfter all the dues of GDL is cleared, an out of charge is issued after which the goods can be moved out
PRECEDURE OF TRANSHIPMENT GOODS (PORT TO ICD)
Process chart showing transshipment procedure
xxvi
.All the goods must be mentioned in Import general menifest submitted by CHAGoods can be transhipped without payment of duty if custom officer is satisfiedIGM and Bill of transhipment has to be submitted to custom officer
.
The goods should be sealed by the custom officerA transit bond is exeuted for the processAfter execution of bond, a certificate from custom officerhas to be submitted within one month that goods have been properly transferred
.Outward Memo is issued by the port authorityGDL issues forwarding note to Railway which issues Inland Way BillThe Inland Way Bill has to be given to goods supervisor at the nearest railway station
GATE OPERATIONS AT ICD
xxvii
CHA gives checklist/shipping bill to gateDocumens like Invoice, Packing List, Form D3 are required at gateMatch shipping bill with InvoiceGate In
EXPORT
Custom gives gate passOut of charge order given by GDL EXIM CellGate out
IMPORT
Empty OUTletter is issued from line surveyorPermission is taken from GDL EXIM departmentOne copy of letter is given at gateOn behalf of shipping line empty tralior comes inContainer is loaded and details is matched with the letterGate OUT
EMPTY INLetter is taken from line surveyor who gives containor detailsThe driver has GR/Builty which is matched with letter after surveyGate In
Empty IN/OUT
WAREHOUSE OPERATIONS (IMPORT)
WAREHOUSE OPERATIONS (EXPORT FACTORY STUFFING)
xxviii
Seal cutting permission slip and bill of entry is given by CHA to Warehouse in chargeSeal cutting takes placeCustom examins the cargoCargo is put in warehouse and warehouse in charge makes entry in stack card Bonding
CHA files green bill of entryCHA deposites the necessary dutiesCustom gatepass and bill of entry is given to warehouse in chargeWarehouse in charge checks the cargo in warehouse and loads the cargo in containerWarehouse in charge make necessary entry in stack cardDe-Bonding
- Hand over the container to the ICD custodian
- ICD sutodian releases the conatiner on behalf of
forwarding note
- Custom examines all goods- After that custom seal no.
is issued
- Shipping bill is filed by CHA- Export conatiner Gate In on behalf of shipping bill- ICD custodian receives
goods
WAREHOUSE OPERATIONS (EXPORT ICD STUFFING)
Warehouse space occupation commodity wise
OthersPolyolFrame CompCooker HoodsSteering PartsFork TubesSteel CoilFree SpaceAbs Resin
xxix
- Shipping Bill is filed- Loose cargo Gate In on the belf of shipping bill and
invoice- ICD custodian receives goods and warehouse
incharge pus the cargo in export warehouse
- Warehouse incharge makes entry of receiving goods, date, party name, container no.
- Empty conatiner is allocated- Custom exams the cargo
- Custom seal and line seal is issued and cargo is stuffed in container
- Container is sealed before custom inspector and company supervisor
- Container is handed over to comaony supervisor- ICD custodian releases the conatiner on behalf of
forwarding note
Distinction between an ICD and a CFS
Functionally, there is no distinction between an ICD/CFS as both are transit facilities
which offer services for containerization of break bulk cargo and vice versa. These could
be served by rail and/or road transport. An ICD is generally located in the interiors of the
country away from the servicing ports. CFS, on the other hand is an off hook dock
facility located near the servicing ports which helps in decongesting the port by shifting
cargo and customs related activities outside the port area. CFSs are largely expected to
deal with break bulk cargo originating/terminating in the immediate hinterland of a port
and may also deal with rail borne traffic to and from inland locations.
Functions of ICDs/CFSs
Receipt and dispatch/delivery of cargo
Stuffing and stripping of containers
Transit operations by rail/road to and from servicing ports
Custom clearance
Consolidation and desegregation of LCL cargo
Temporary storage of cargo and containers
Reworking of containers
Maintenance and repair of container units
The operations of ICDs/CFSs revolve around the following centers of activity
1. Rail Siding
The place where container trains are received dispatched and handled in a terminal.
Similarly the containers are loaded to and unloaded from rail wagons at the siding
through overhead cranes and other lifting equipments.
xxx
2. Container Yard
Container yard occupies the largest area in the ICD. It is a stacking area where the
export containers are stored till custom clearance and where emphasis awaits onward
movement. Likewise, some stacking areas are earmarked for keeping special
containers such as refrigerated, hazardous, overweight/over length etc.
3. Warehouse
A covered space/shed where export cargo is received and import cargo is stored;
containers are stuffed or reworked. LCL exports are consolidated and LCL imports
are unpacked, and cargo is physically examined by customs. Export and Import
consignments are generally handled either at separate areas in a warehouse or in
different nominated warehouse/sheds.
4. Gate Complexes
The gate complex regulates the entry and exits of road vehicles carrying cargo and
containers through the terminal. It is a place where documentation, security and
container inspection procedures are undertaken.
Benefits of ICDs/CFSs
The benefits as envisaged from an ICD/CFS are as follows:
Concentration points for long distance cargos and its utilization. Service as a
transit facility
Custom clearance facility available near the centers of production and
consumption
Reduced level of demurrage and pilferage
No customs required at the gateway ports
Issuance of Bill of Lading by shipping lines, hereby resuming full liability of
shipments
Reduced overall level of empty container movement
Competitive transport cost
Increased trade flows
xxxi
Porter’s Five Force Model
Fig: Five Force Model
Supplier’s Power (Railways)
Gateway Rail benefits from the close relationship with the Indian Railways. Several of its
terminals are situated on leased Railway land. Many of its key operating personnel are on
secondment from Indian Railways or have previously been employed by the Indian Railways.
Wagons and operational support from Railways have always been there for the company.
xxxii
Potential Entrants
Buyer Power
Substitutes
Supplier PowerIndustry Competitors
Buyer power
Earlier CONCOR was the only company which provided the logistics solutions. But at
present some of the private players have also taken the license. This has motivated the
customers to switch comfortably when they don’t get the desired service at the desired price.
Hence the buyer has become smarter in choosing and evaluating the options he has. This has
forced the companies to formulate aggressive strategies to attract and retain the customers.
Threats from New Entrants
New entrants have entered the industry and a lot more will enter keeping in mind the effect of
globalization on international trade. In this industry the entry barriers are low and the exit
barriers are high. Already around 15 players have entered the field. The industry will soon
turn in to a customer oriented industry with lots of customization and attractive schemes for
the customers. The facilities like door to door service; single window facility; online tracking
and tracing facility are the result of the entry of new entrants. More of such facilities will
come as the entrants will keep on entering the logistic industry.
In this situation there will be a need for Gateway Rail to be agile and adopt different
strategies for growth in this industry. More emphasis will be required in providing the
complete logistics and transport solutions to its customers.
Threat from Competitors
Private players have brought CONCOR’s monopoly to an end and the profits are really
dependent on the GDP and EXIM trade which will benefit all the players. The competitors
are private institutions due to which their strategies are a lot more aggressive and flexible.
The competitors are willing to provide:
1. Low freight fare
2. Low plugging charges
3. Door to door delivery
4. Single cost for multi modal logistic
5. A better experience
xxxiii
Threats from Substitutes
Private road transporters are the main substitutes that the exporters look in to while
sending the goods to the ports. For short distances, road transport is cheaper than the
rail transport. The road transporters provide the following facilities:
1. Door to Door service faster than rail for short haulage.
2. Flexibility of routes and size of transport
3. Customized services
4. Greater reach
5. Transportation of over dimension and overweight cargo possible
Competitive Strategies Adopted By GATEWAY RAIL
Flank Attack
The strategies being adopted by GATEWAY RAIL is that of a Flank Attack. We are
targeting CONCOR’s weak points. The weaknesses of CONCOR are that they don’t
provide any discounts, they don’t give credit facilities and they don’t customize their
services. We have targeted these points and have formulated strategies to give
customers all these facilities and are quite successful in implementing these strategies.
Due to this many customers have stopped dealing with CONCOR. Many of them
demanded the same services as provided by us. This indicates the shift of attitude in
the customer with the implementation of these strategies.
xxxiv
SWOT ANALYSIS OF GATEWAY RAIL
The above 4 x 4 matrix shows the SWOT of Gateway Rail
Distriparks Ltd.
Customer Value Analysis
xxxv
STRENGTH
Multiple mode of transport i.e. Rail
and Road
Less time consuming and faster
processing
Away from congested port
Better customer service
Renowned
Trained human recourse
Strong infrastructure
Abundant advertising budget
GDL owned racks
WEAKNESS
Capital Intensive
highly dependent on external
agencies such as Indian Railways,
port terminal operators and shipping
lines.
Long gestation period(around 10
years)
Lack of educated manpower
High cost of rolling stock
OPPURTUNITY
Increasing trade because of
Globalization
Rise in EXIM
Double stacked trains
Better utilization of rolling stock and
track capacity.
Huge scope in untapped virgin market
Attract customers because of Goodwill
Increase Racks in future
THREATS
Lack of proper infrastructure
Competitors like CONCOR
Unfavorable trade policies in future
Increasing fuel costs
Increasing container traffic may lead to
congestion at ports
Unstability of rakes
Dependence on Indian Railway for
Rail Engines
1. Since how long have you been associated with Gateway Rail Distriparks
Ltd?
Years of Association
The pie chart above shows that 65% customers are associated with Gateway Rail for
less than 2 years. Out of these there were some customers who are doing business
with CONCOR since 25 years. One interesting thing to note is that there are many
customers with less than 2 years of association. This shows that the company has put
much effort to bring in new customers in recent years.
2. Do you use only Gateway Rail for the transshipment of goods?
30%
70%
.
YESNO
Figure: Loyal Customers
The pie chart shows that only 30% of the respondents use only CONCOR for the
transhipment of goods. The rest 70% used the services of other private players along with that
of CONCOR. This shows the level of competition due to the entry of private players. It also
shows that most of the customers are switch users, which means they are not loyal to any one
service and they switch as and when they get a better deal.
3. Rank the following in order of the importance you give while choosing
the service.
Tariffs
Security and safety of goods
Availability of trains, containers and equipment
xxxvi
Reliability of service
Value added features
Tariffs
Security and Safety of goods
Availability of trains, containers and equipments
Reliability
Value added features
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
3
1
3
3
4
Median of Ranks
Median of Ranks
Figure1: Median of Ranks
This Bar graph shows that most of the customers feel that security of their goods is
the most important factor and value added features is the least important factor that they
look in to while choosing a service. Let us analyze each of these factors in order of their
importance.
3.1 Security and Safety of goods
According to the respondents, security and safety of goods is the most important feature
that they look in to while choosing a service. 60% respondents have ranked it No. 1. Let
us see the level of satisfaction of the respondents with Gateway Rail when it comes to
security and safety of goods.
xxxvii
Highly Dissatisfied Dissatisfied NDNS Satisfied Highly Satisfied0
10
20
30
40
50
8.713.04
4.35
39.1334.78
Percentage
Percentage
Figure: Level of Satisfaction with the security and safety of goods
This chart shows that around 39% respondents are satisfied and around 35%
respondents are highly satisfied. This means that around 74% respondents are happy
with the security and safety of goods provided at Gateway Rail. Around 22%
respondents were not really happy with the security and safety at Gateway Rail due to
the recent mishappening that took place at Garhi Hasuru terminal.
3.2 Reliability
This is the second most important feature that the customers look in to while choosing
a service. Under reliability the most important thing that they look in to is the timely
delivery of goods.
3.2.1 Delivery on scheduled time
xxxviii
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
1020304050607080
06.25
0
68.75
25
Percentage
Percentage
Figure: Level of satisfaction with the on time delivery
The chart above shows that the customers are really satisfied with the time taken to
deliver the goods. In fact 25% respondents said that they are extremely happy with the
on time delivery of goods at Gateway Rail. Around 70% respondents said that they
are satisfied with the on time delivery of goods at Gateway Rail. Among these there
were some who said that they have no idea of how much time Gateway Rail takes to
transship their goods because they hand it over to their CHAs but they said that they
are satisfied as they have never faced any problems because of the delay in the
transshipment of goods.
When compared with other competitors, following result was obtained:
GDL CONCOR Adani hind0
0.51
1.52
2.53
3.53 3.09 3
2.25
Series1
Figure: Comparison with the competitors for the on time delivery
The chart above shows that along with Gateway Rail, CONCOR and Adani also
deliver goods on time and the customers are equally satisfied with all of them. This
indicates that when it comes to reliability the customers are indifferent in choosing the
service providers (CONCOR, GDL, Adani).
xxxix
3.3Tariffs
Tariffs also play a very important role when the customers choose a service provider.
20% of the respondents said that they choose the service provider who gives them the
best tariff.
3.3.1 Rail Tariffs
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
1020304050
0
22.2227.78
44.44
5.56
Percentage
Percentage
Figure: Level of satisfaction with the rail tariffs
The chart above shows that around 50% of the respondents are happy with the tariffs
offered by Gateway Rail. Around 28% respondents were neither satisfied nor
dissatisfied with the tariffs. They said that for a customer, tariffs are always high. He
always feels that there are some chances of reduction in prices. Around 22% felt that
the tariffs offered are too high, this response was due to the recent rise in slabs. Many
customers said that the recent rise in slab is unnecessary and this has reduced their
profits.
When compared with other competitors, following results were obtained:
GDL CONCOR Adani hind0
0.5
1
1.5
2
2.5
3
3.5
2.6 2.75 2.83.2
Series1
Figure: Comparison with the Competitors on Rail Tariffs
xl
The chart above shows that Hind provides the best tariffs. In fact it was found that
Hind has adopted a very aggressive strategy to attract the customers from CONCOR
in Ludhiana by giving them the best prices possible. Except Hind, GDL and Adani
follow CONCOR when it comes to rail tariffs. The customers rated the tariffs
provided by GDL, CONCOR, and Adani as ‘NOT SO GOOD, NOT SO BAD’.
3.3.2 Discounts and Schemes offered
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
20
40
60
80
100
2033.33 26.67 20
0
Percentage
Percentage
Figure: Level of Satisfaction with the Discounts Offered
The graph above suggests that 80% respondents were not happy with the discounts
and schemes offered by Gateway Rail. Around 20% respondents said that Gateway
Rail has never offered them any discounts and that they are really disappointed by
this.
When compared with other players, following results were obtained:
GDL CONCOR Adani Hind1
2
3
4
2.252
2.753
Series1
Figure: Comparison with the Competitors on Discounts Offered
xli
The graph shows that the respondents are getting huge discounts from Adani and
Hind. As mentioned earlier Hind offer their customers the best price possible. Adani
is also giving discounts and is offering schemes to their customers. Gateway Rail is
offering volume discounts to some of their customers but is far too low than the other
players. The respondents were really disappointed with Gateway Rail and hence it has
scored the second lowest points.
3.4 Availability of trains, containers and equipments
In this multimodal logistics industry the players need to have a lot of operating
capital to run their business properly. They need wagons, equipments such as Reach
Stackers, Gantries etc and they have to maintain sufficient inventory of containers.
Hence availability of all these becomes an important factor for making profits. Let us
take a look at each of these:
3.4.1 Availability of trains
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
102030405060
010
0
55
35
Percentage
Percentage
Figure: Level of Satisfaction with the Availability of Trains
xlii
The graph above shows that around 90% respondents are happy with the availability
of trains. 35% of the respondents were highly satisfied with the availability of trains.
Some of them even claimed that no other service provider can ever compete with
Gateway Rail when it comes to availability of trains. 10% of the respondents were not
happy with the availability of trains. These were the CHAs at the ICD. They said that
Gateway Rail needs more trains because the traffic is too high. Most of respondents
thought that Gateway Rail uses the wagons owned by Indian Railways. I assured them
that CONCOR has over 18 wagons of its own and it uses its own wagons for the
transshipment.
Availability of Containers
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
20
40
60
80
100
0
29.4111.76
35.2923.53
Percentage
Percentage
Figure: Level of Satisfaction with the Availability of Containers
The graph above shows that around 60% of the respondents were happy with the
availability of containers at Gateway Rail. Around 30% of the respondents were not
happy with the availability of containers. Out of this 30% there were some who said
that they are equally dissatisfied with all the players in terms of availability of
containers. Some of the CHAs said that availability of containers is good at all the
other terminals of Gateway Rail but at Garhi it is not good because of the heavy
traffic. They said they have to wait for days to get the containers.
When compared with other players, following results were obtained:
xliii
GDL CONCOR Adani Hind2.4
2.5
2.6
2.7
2.8
2.9
3
2.83
2.92
2.6
2.8
Series1
Figure: Comparison with Competitors on Availability of Containers
As it can be seen CONCOR scores the highest point among all the other players. As
already mentioned there were some respondents who were equally dissatisfied with
all players in terms of availability of containers but there were many who didn’t even
take a second to answer that Gateway Rail is excellent in terms of availability of
containers. But it should be noted that CONCOR and Hind are also doing quite well
in terms of availability of containers.
3.4.2 Availability of Equipments
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
5
10
15
20
25
14.29
21.43 21.43 21.43 21.43
Percentage
Percentage
Figure: Level of Satisfaction with the Availability of Equipments
The chart above indicates that the respondents have mixed responses when it comes to
availability of equipments. Around 42% of the respondents were happy with the
availability of equipments. They said they never had a problem due to the non-
availability of equipments. Over 35% of the respondents were disappointed with the
availability of equipments. None of the CHAs were happy with the availability of
equipments. They claimed that the equipments are few in number. The CHAs said
that the company is using the same cranes from and many times it does not work
xliv
specially during summer. The number of reach stackers at the Garhi terminal is also
limited keeping in mind the heavy traffic there.
3.5 Value added services
When the respondents were asked the level of importance they give to the value added
services provided by the service providers, most of them said that they really don’t
look in to the value added services while choosing the service provider. But while
filling up their questionnaires, it was quite visible that at many occasions they have
chosen some other players just because of some extra facilities provided by them. So,
one cannot just rule out the importance of Value Added Services. Let us see the level
of satisfaction of the respondents with CONCOR which we will take as a base to
compare it with GDL.
3.5.1 Payment options
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
20406080
100
7.14
50
0
28.5714.29
Percentage
Percentage
Figure: Level of Satisfaction with the Payment Options Available
The chart above shows that over 57% of the respondents were not happy with the payment
options available. Some of them said that other operators like GDL give them credit but
CONCOR always takes payment in advance. Some of them even said that extra amount in
their accounts is never returned back to them. Around 43% of the respondents were happy
and said that they never asked for the credit and they are quite comfortable with the advance
payments. It was quite surprising to see that many of the respondents did not know about the
online payment options available.
When compared with other players, following results were obtained:
xlv
GDL CONCOR Adani Hind0
1
2
3
4
2.8
2.1
2.8 2.67
Series1
Figure: Comparison with the Competitors on Payment Options Available
As it can be seen from the graph above, Gateway Rail scores the highest
among all other players. The reason for this dissatisfaction is the non availability of credit
payments and the delay in settlement of extra amount deposited. The other private players
provide this facility and many of the customers prefer them due to this.
3.5.2 Behavior of Staff
When compared with other players, following results were obtained:
xlvi
GDL CONCOR Adani hind0
0.5
1
1.5
2
2.5
3
3.5 3.25
2
3.25 3.33
Series1
Figure: Comparison with the Competitors on Behavior of Staff
It can be seen that Gateway Rail scores very high among all in terms of behavior of
staff. Respondents were very happy with the kind of experience they have when they
deal with other players like GDL. But with CONCOR, they said that they get the
feeling that they are dealing with a government organization.
As it can be seen from the graph, the respondents were happy with the behavior of
staff. Around 85% of the respondents were satisfied and said that they consider
CONCOR as any other government organization where the employees are so ignorant
that they just don’t listen to the clients.
3.5.3 Web services
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
102030405060
09.09
54.55
18.18 18.18
Percentage
Percentage
Figure: Level of Satisfaction with the Web Services Offered
Gateway Rail provides web facilities like online tracking and tracing of containers.
Those who know were satisfied with it and said that it is a good initiative by the
company. Many players like Hind e-mail them the information daily about the
location of the container.
xlvii
3.6 Time taken for stuffing and shifting
Highly Dissatis-fied
Dissatisfied NDNS Satisfied Highly Satisfied0
102030405060
2013.33 13.33
53.33
0
Percentage
Percentage
Figure: Level of Satisfaction with the Time Taken in Stuffing and shifting of Containers
It can be seen from the graph that over 53% of the respondents are happy with the
time taken in stuffing and shifting of containers but on the other side almost one-third
of the respondents were disappointed with the time taken. The CHAs at Garhi said
that it almost takes a day or two in shifting and stuffing the container. Many a times
the exact location of the shifted container is not given to them and this creates a lot of
chaos.
3.7 Other Findings
Some of the respondents said that no priority is given to them at Gateway Rail
even in the case of an emergency.
Some of the respondents wanted the information regarding the tracking and
tracing of containers through e-mail on a daily basis. They said that they don’t
have time to visit the web sites and currently Hind sends them the information on
a daily basis.
Some of the respondents said that they want their containers to be railed out from
Gateway Rail but their CHAs insist that they use Hind. This shows that Hind has
developed strong relations with the CHAs there due to which they don’t want to
deal with Gateway Rail.
RECOMMENDATIONS
xlviii
1. Identify the Valuable Customers:
The company should first identify their valuable customers and depending upon the
value the customer holds, the company should formulate schemes. The management
can divide the entire customer base in to four parts and then formulate strategies for
each type of customers separately.
Figure: Identifying the Type of Customer
a. Valuable – Vulnerable: These are those customers that are profitable to the
company but are not completely happy with the company. For these customers the
company should address their issues and convince them for better services next
time.
b. Valuable – Non vulnerable: These customers are those who are loyal and
profitable to the company. The company should not take them for granted but
should also maintain margins and reap the benefits of their satisfaction.
c. Non Valuable – Vulnerable: These customers will only waste the time and
energy of the company. I recommend that such customers should not be paid
much attention.
xlix
Valuable – Vulnerable Valuable – Non vulnerable
Non valuable - Vulnerable Non valuable – Non vulnerable
d. Non valuable – Non vulnerable: These unprofitable customers are happy with
the current service. Try to make them valuable or vulnerable. Either ways are
good for the company.
2. Privilege Customers:
Company should give added advantages to the customers who transship high
volumes of commodities through Gateway Rail. These customers will be called
“Privilege Customer”. For example a customer who transships around 1000
containers per year can be a “Privilege Customer”. Privilege Customers will enjoy the
following benefits:
a. Privilege customers will get special discounts based on volumes.
b. Privilege customers may get a credit facility of several days.
c. Special window at the counters for the Privilege Customers will be there. This will
save a lot of time and energy.
d. Privilege Customers will enjoy the facility of getting the first priority at the time
of Rail Out
e. Free door pick up and free repositioning of containers for Privilege Customers.
This will attract the customers who are not able to use Gateway Rail because of its
unavailability or because of competitor’s availability in their region.
f. The issues of Privilege Customers will be resolved quickly. They will get first
priority in settlement of claims.
The points given above will attract the customers to use Gateway Rail. They may
then try to transship as much containers as possible to be the Privilege Customer
and enjoy the benefits.
This will also make the valuable customers of Gateway Rail happy. They will be
happy with the service and there will not be any issues.
This will also change the reputation of the company which is known to be
“Unfriendly to Customers” at present. This will make them customer centric.
3. Better services
Through the customer value analysis it was found that customer doesn’t mind paying
money if he gets good service in return. The company should aim at providing
l
services as per the ‘Customer Perceived Value’. For this the company should do the
following:
a. There should be a proper Time Table of train movement which should be given to
customers so that they can plan their transshipment in a better way.
b. The company should aim at providing one stop logistic solution and single
window clearance. This will add a value to the service provided by Gateway Rail
which in turn will attract the customers.
c. Installation of Toll Free Numbers will be very beneficial for the customers. They
would feel that the company is always available to solve their issues. This will
make Gateway Rail more reliable and responsible service provider.
d. Always be in contact with the customers through e-mails. Send them monthly
statements of their accounts and also send them the mails regarding the location of
their containers on a daily basis. Customers are reluctant to use the web site for
tracking of containers. Some of them did not even know about the tracking facility
available at the web site.
e. At the end of every financial year, announce ‘Customer of the Year’. The
customer who has brought the highest revenue may be awarded by this title.
Mention it on your web sites also and give him special discounts for the next year.
f. Introduce ‘Emergency Quota’. The customer who wants to send his commodity
urgently may send his goods through ‘Emergency quota’ by paying some extra
money. Limit this service to 5 times in a year and also maintain a limit of
minimum number of containers that must be transshipped to avail this service so
that the customers don’t make it a habit to send goods by using ‘Emergency
Quota’.
4. Quick Action on Grievances
li
The company should be able to solve the grievances as soon as possible; when the
customers feel that the company is not responsive they switch to other companies.
The company must do the following:
a. Respond as quickly as possible to the complaints and try to resolve it. Appoint
personnel to resolve the complaints if possible.
b. Claim settlement process should not take much time. Many of the customers
complained that it takes a lot of time to settle the claims.
c. Many of the customers said that the balance in their PDA accounts is never
returned back to them. This should not be done as it spoils the image of the
company.
5. Behavior Of Employees
Behavior of the employees is good at Gateway Rail. Customers feel that it is a
‘friendly organization’ and to keep up with this, following steps must be taken:
a. Provide some autonomy in the system so that employees are free to take small
decisions and resolve the matter. Customer feels helpless when he is asked to meet
10 to 15 people to resolve his issue.
b. A training program must be conducted for the employees to train them how to
treat the customers. Many private firms have done that and have seen good results.
ICICI Bank has done this and has snatched many loyal customers from SBI.
Customers should have a nice experience dealing with Gateway Rail.
6. Aggressive Marketing Strategies
The company should adopt aggressive marketing strategies to attract and retain the
customers. The company requires branding of image.
lii
a. Appoint a team who can continuously pitch the customers for orders. Many of the
customers are indifferent to the service providers; whoever comes first takes the
order. The company should try to convert these customers. This will also help in
maintaining a personalized relation with the customers.
b. The company should try to convert customers who are using Road as the medium
of transport. This can be done by making them understand the safety that they
would get by using rail. The company should also place big hoardings on the
highways.
c. The company must adopt “One to One Marketing” as its strategy. This means
identifying the needs of a particular customer, see what are the things that he
values the most and then provide him the services he wants. This will make the
services customized according to the requirement of the customer.
g. CHAs are the mediator between the company and the customers. If the CHAs are
not happy, the customer will also not be happy. Try to please the CHA’s. It was
found that many service providers give commissions to the CHAs to divert the
traffic to their terminals. Gateway Rail should also give them commissions so that
they don’t lose out on customers
h. Gateway Rail should convince the customers to use Gateway Rail’s containers by
offering discounts to them on using their terminals. This will bring extra revenue
to the company.
7. Capacity Expansion at ICD Garhi
There is a need for capacity expansion at ICD Garhi. Though the terminal is the large
of its kind, still there is a need of expansion keeping in my mind the heavy traffic
there at the terminal. Many of the CHAs complained about the over utilization of
capacity at ICD. Some of them said that the recent fire that took place at the terminal
was due to the over utilization of capacity.
liii
a. Separate shed for the hazardous commodities should be provided. The traffic is so
high that even a small mistake can burn out commodities worth crores of rupees.
So it’s better to provide separate shed for keeping hazardous commodities.
b. Better public facilities should be provided. Drinking water, clean toilets, seating
facilities and proper ventilation should be provided at the terminal. The CHAs
were not at all happy with the basic amenities provided at the terminal.
c. There is a need for a scientifically designed parking facility for the trailers. It was
a personal observation that the trailers were blocking the gate and no one was
there to remove them from there. Such things create unnecessary chaos.
d. More frequent trains are required at the terminals. It was found out that there are a
lot of pending orders.
e. The company must look in to the matter of delay in time taken in stuffing and
shifting of containers. Customers said that it takes days to shift the container in to
the yard for rail out. Sometimes the container itself is not available. So the
company must also take a look at the inventory of containers at the terminals.
f. The equipments there at the terminal are outdated and need replacement. The
equipments are also few in numbers which is one of the reasons in the delay in
stuffing and shifting of containers.
g. Installation of CCTV cameras at the terminal is very important. This will improve
the efficiency of the staff and also stop unwanted things happening at the
terminals.
Appendix 1: Questionnaire
1. Since how long have you been associated with Gateway Rail?
a. Less than 2 years
b. Between 2 and 5 years
c. Between 5 and 8 years
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d. Greater than 8 years
2. Rank the following in order of the importance you give while choosing a logistic
service
(Rank 1 for most important and rank 5 for least important)
a. Tariffs _________
b. Security and safety of goods _________
c. Availability of trains, containers and equipments_________
d. Reliability of services _________
e. Value added services _________
3. Have you ever used services other than Gateway Rail for the transhipment of goods?
a. YES
b. NO
If your answer is NO proceed from Part A else go to Part B
Part A
Instructions for question no. 4 to 17
Mark the appropriate column on the basis of your level of satisfaction.
Q. Statement Highly Dissatisfied NDNS Satisfied Highly
lv
No. Dissatisfied Satisfied
4 Rail tariffs
5 Payment options
6 Discounts and
schemes
7 Availability of
containers
8 Time taken for
stuffing and shifting
9 Security and safety
10 Computerized system
11 Behavior of
employees
12 Availability of trains
13 Web services
14 Delivery on
scheduled time
15 Availability of
equipments
16 Availability of civic
amenities
17 Time taken at the
counter
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Part B
18. Tick mark the services you use for the transhipment of goods
a. GDL
b. CONCOR
c. Adani logidtics
d. Loni
e. Others (please specify) ___________________________
Instructions for question no. 19 to question no. 30
Mark for each of the service providers used by you for every statement
Q.
No.
Statement Service
providers
Excellent Good Fair Poor
19 Rail tariffs GDL
CONCOR
Adani
Hind
20 Security and
safety
GDL
CONCOR
Adani
Hind
21 Discounts and
schemes
GDL
CONCOR
Adani
lvii
Hind
22 Time taken in
stuffing and
shifting
GDL
CONCOR
Adani
Hind
23 Payment options GDL
CONCOR
Adani
Hind
24 Availability of
trains
GDL
CONCOR
Adani
Hind
25 Behaviour of
employees
GDL
CONCOR
Adani
Hind
26 Web services GDL
CONCOR
Adani
Hind
27 Availability of GDL
lviii
containers CONCOR
Adani
Hind
28 Delivery on
scheduled time
GDL
CONCOR
Adani
Hind
29 Availability of
equipments
GDL
CONCOR
Adani
Hind
30 Time taken at
the counter
GDL
CONCOR
Adani
Hind
Part C
31. Are you aware of Gateway Rail’s feedback system?
a. Yes
b. No
32. Please mention the commodities you tranship along with their annual volume
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33. Mention the ports you use for exporting these commodities
34. Name the shipping lines you use
35. Name the CHAs you hire
________________________________________________________
36. Name of the terminal you use ________________________________
37. Any other suggestions
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
____________________________________________________________
38. Name of the person: ________________________
39. Designation: _______________________
40. Name of the organization: ________________________
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LIMITATIONS OF THE PROJECT
Research Limitations:
It was not possible to understand thoroughly about the different marketing and
promotional aspects of the products within 74 days.
All the work given to me was limited.
The area of research was ICD Garhi Hasuru where I was working.
Population of interest was the existing customers and CHA’s of Gateway Rail.
I was mainly able to contact with the general customers of the branch as the proffered
customers are in direct contact with the RMs (Relationship Manager), I have less
contact with them.
lxi
REFERENCES
Book-
Marketing Management by Philip Kotler, Kevin Lane Keller, Abraham Kelly and
Mithileshwar Jha.
Marketing Research by George A Aaker, V Kumar, George S Day
Websites:
www.gatewayrail.co.in
www.infrastructure.gov.in
www.fao.org/es/ESC/en/15/70/highlight 71.html
www.google.co.in
www.apeda.com
Others:
Gain report 2009-2011
Annual Reports, Gateway Rail
Contact Details Obtained from Gateway Rail
lxii
DECLARATION
I hereby declare that the summer training report entitled Role of ICD in International
Business and consumer insight submitted by me to IILM – Institute For Higher Education
represents my own work except for guidance and suggestions received, which have been
suitably acknowledged. I further state that this work is not a part of my or any other report
submitted to university for the award of the degree.
lxiii
DECLARATION
lxiv
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