containerisation in india 23.10.2014
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containerisationTRANSCRIPT
CONTAINERISATION IN INDIA
Capt. Prakash Joag
What is an Inland Container Depot? Enumerate services provided by an ICD
Name six ICD in India and the year in which they are established
What is CFS and how does it functions differ from ICD
What is the role of CONCOR ? How does it help in the movement of containers?
Why has progress of multimodal transport been slow in India ? Discuss various problems
Give full forms of following abbreviations:
AISC INSA LCL CY CTD CONCOR
CWC PSWC
OBJECTIVES OF THE PRESENTATION
Prior to Containerisation Prior to Containerisation MULTIPLE MULTIPLE
HANDLINGHANDLING All cargoes other than bulk commodities were moved package by package and piece by piece with multiple handling, resulting in damage, pilferage and time loss.
Containerisation In IndiaContainerisation In India Indian railways introduced container services for the first
time in 1966 and provided an integrated intermodal door-to-door services with in the country
Containers with a pay load of five tonnes were loaded, sealed and taken over by railways
In 1969, Indian railways also started the Freight Forwarder Scheme (FFS) utilizing the services of road haulers between rail-head and godown
Railway Container Services Freight Forwarding
Popularity + Revenue generation
*But services were only confined to inland transportation only
With the advent of With the advent of ContainerisationContainerisation
Source : Slide Share ; A-brief-presentation-on-containerisation-presentation by Subhash
Ship sails out with the shipment
laden box is loaded to vsl
Shipper books shipment
Company advises port depot to release empty to Shipper
Port depot releases empty to Shipper
Released empty is taken to Shipper’s premises
At Shipper’s premises shipment stuffed into Contr.
At Shipper’s premises shipment stuffed into Contr.
Stuffed laden box returned to port by Shipper
Stuffed laden box upon return to port is stacked in CY
laden box taken to vsl side for loading
Pictorial flowchartPictorial flowchart
Source : Slide Share ; A-brief-presentation-on-containerisation-presentation by Subhash
Beginning & DevelopmentBeginning & DevelopmentConcept of ocean going containers was introduced in India
for the first time in 1968 in a seminar jointly by the INSA, DG SHIPPING, SCI, AISC at Mumbai
In early 1970s SCI acquired the first semi – container ship, other shipping companies like Scindia Steam Navigation Co. Ltd and India Steamship Co. Ltd followed on the steps of SCI
In 1973, the American President Lines began scheduling their cellular feeder container ships to Bombay and brought the necessary handling equipments with them, action was repeated by European lines and thereafter other countries started scheduling their ships to Indian ports
Beginning & Development Beginning & Development Contd..Contd.. India started seriously to adopt containerization in
1978.Major ports like Mumbai , Cochin, Chennai , Haldia/ Calcutta commenced to equip themselves for handling container ships
Shipper and consignees also responded to the opportunities and benefits of containerization
Hence, despite heavy investments and numerous problems in smooth flow of goods , Indian was forced into containerization to stay abreast with the dominant trend in the world economy
India finally entered into containerized transport of goods
ICDs – Roles & FunctionsICDs – Roles & Functions “An Inland Container Depot is an organization offering a total
package of activities to control container and general cargo flows between road , rail and waterways, and vice versa providing maximum services for inland transportation at minimum cost
ICDs / CFS ( container freight stations. ) are thus interfaces between connecting modes of transportation.
Full benefits of containerization can be only obtained if the containers are permitted to reach the locations of original cargo generation points and shipping formalities can take place there itself rather instead of at the exit gateway port, hence ICDs played a crucial role in this process
Activity revolve around Rail sliding, container yard, warehouse, gate complex.
ICDs / CFS – ServicesICDs / CFS – ServicesHandling of containers from road , rail and barges to a
temporary storage area (e.g., Container Yard) Intermediate cargo storage between various transportation
modes, managing the special containers such as DG cargo and Reefers
Receipt and delivery of containers and general cargoCargo consolidation and distribution, if the container cannot
be received or delivered directly at the final consignee’s door. In this case stuffing and de stuffing are done before cargo movement prior to dispatch. Temporary cargo storage.
Transit operations by rail/road to and from serving ports Custom clearance of import / export cargoes.Depot functions as storage for empty containers. Space may
also be required for temporary storage of loaded containers awaiting movement out of ICD
ICDS – Services Contd…ICDS – Services Contd…Maintenance and repair services for containers – container
handling equipments , refrigeration equipments , road chassis etc.
Reworking of containers.Custom’s clearance activities at inland terminals helps to
decrease the dwell time for containers in deep sea ports, this includes ;◦ Checking of LCL cargo prior to stuffing or after de stuffing◦ Checking container seals◦ Assessment and valuation of cargoPhysical distribution services are provided economically at
or close to the ICDs, a variety of cargo related services to finish the goods are normally placed near ICD itself (Garments can be ironed and packed , price tagged on consumer goods, liquid in bulk can be bottled in short etc .)
Inland Container Depots in Inland Container Depots in IndiaIndia On the initiative of Indian Railways below mentioned ICD have been set up first as
pilot projects Depots in India
Location Established
Bangalore Aug, 1981
Guntur Apr, 1983
Anaparti Apr, 1983
Coimbatore Dec, 1983
Delhi (Pragati Maidan) Mar, 1984
Delhi ( Tughlakabad Softcoke Siding) Feb,1985
Amingaon (Guwahati) Nov,1985
Ludhiana Aug,1986
ICDS – Contd…ICDS – Contd…Railways provided the transport link between the ICDs and
the gateway port Locations were selected on the basis of potential of
generating volume of export cargo or where distribution of import cargo can be easily facilitated
Locations of ICDs and CFS is regulated by the Ministry of Commerce and Government of India, Ministry is encouraging liberalization and competitiveness with a view to making transport more attractive and customer friendly maintaining the inter-regional balance
Making ICD & CFS complementary to each other . CFS (cargo aggregating points) should feed the ICDs for carriage to gateway port in sizable quantity and over long distances
CONCORCONCOR Incorporated in Mar, 1988 under Ministry of Railways with
the prime objective of developing modern multimodal transport logistics and infrastructure for supporting international trade
At present it has total 41 EXIM terminals (Rail / Road linked ICDs and Port Side Container Terminals (PSCTs) , with another 13 in pipeline
CONCOR provides linkage between ports and hinterlandsOne of the major thrust in improving the quality of services
in area of EXIM business has come up with introduction of Stae-of-the-art Rolling Stock by CONCOR for running long lead export and import special trains to and from the gateway ports
CONCOR – Value Added CONCOR – Value Added ServicesServicesAs a CFS operator , CONCOR provides a number of value
added services;
◦ Transit warehousing for EXIM cargo
◦ Bonded warehousing, which helps importers to store import cargo and
take partial deliveries as and when required , thereby deferring duty
payment
◦ Provision of air cargo complexes in some terminals
◦ Consolidation of LCL cargoes
◦ Reefer movements
◦ Private Container Train operators --- CTO’s
◦ Rail operated by GOI
CTOsCTOs Jan 2006 private and public were allowed to operate container trains on
IR net work through Competitive bidding licenses given. Till then monopoly of CONCOR put condition that CTOs should not do
business with existing CONCOR customers. 15 licenses issued for running TEU trains. Initial good response. Operators were skeptical about viability due to lack of clarity about
haulage charges, wagon maintenance, transit guarantee, terminal charges etc.
Licenses given from / to JNPT , Mundra , chennai, Ennore, Vizag, Kochi,Kandla, Manglore, Goaetc.
Gateway rail Freight pvt ltd first to run Container train in May 2006. 16 container operators like Gateway, Adani, freight star, Reliance,
Transrail , SICAL, CWC, Concor, Boxtrans etc.
Central Warehousing Central Warehousing CorporationCorporation
A premier Warehousing Agency in India, established during 1957 providing logistics support to the agricultural sector, is one of the biggest public warehouse operators in the country offering logistics services to a diverse group of clients
CWC is operating 464 Warehouses across the country with a storage capacity of 10.8 million tonnes providing warehousing services for a wide range of products ranging from agricultural produce to sophisticated industrial products
Central Warehousing Central Warehousing CorporationCorporationCWC also offers services in the area of clearing & forwarding,
handling & transportation, procurement & distribution, disinfestations services, fumigation services and other ancillary activities
CWC is playing vital role in operating CFSs, there is a proper coordination between CONCOR and CWC for smooth flow of cargo between CFS managed by different agencies
CWC at glance ;◦ Warehouses: 464◦ Storage Capacity: 10.81MT
Containerisation – ISSUES Containerisation – ISSUES &Challenges&Challenges
Slow Progress◦ Despite all measures which are intended to facilitate multimodal
transport, the progress of multimodal transport in India has been slow◦ Container traffic handled by the ICDs constitutes only about 15% of
the total traffic handled by the ports◦ Containerisation in India continues to be essentially a port to port
movement and economic benefits of multimodal transport have been realized only to limited extent by the Indian trade and transport industry
INFRASTRUCTURAL PROBLEMS◦ Reasons for slow progress are ;
Container handling facilities are not adequate to attract mainline containers vessels who continue to rely on feeder services entailing additional cost
Cost of moving the container through Indian port is comparatively higher than the cost ion other South East Asian ports
Both rail and road transport have not been adequately developed as yet for the inland cargo movement
Containerisation – Issues Containerisation – Issues &Challenges&Challenges
Lack of coordination◦ Apart from the listed factors, trade appears to be facing a number of
problems relating to documentation , handling and lack of coordination among the agencies involved such as ports , customs , railway, carriers agents etc
◦ Hence most shippers , consignees and shipping lines are wary of patronising ICDs to the maximum extent
Solutions◦ Many inter – related and complimentary element – procedures and
formalities – at different points in the multimodal transport chain which needs to be coordinated under the overall control of a single authority in order to ensure smooth and efficient operations
◦ CONCON needs to be developed further and empowered.
Suggested ReadingSuggested Reading
Containerisation, Multimodal Transport and Infrastructure Development in India – Dr. K. V Hariharan , 5th Revised Ed., 2007
E class Container vessel E class Container vessel Builders:Daewoo ShipbuildingOperators:MaerskPreceded by:Mærsk E class container shipPlanned:20 ships orderedGeneral characteristicsType:Container shipTonnage:165,000 DWTDisplacement:55,000 tonnes (empty)[1]
Length:400 m (1,312 ft)Beam:59 m (194 ft)Draft:16 m (52 ft)Propulsion:Twin MAN engines, 32 MW eachCapacity:18,340 TEUNotes:Cost $185 million[1]