function of icd pithampur” of concor

7/31/2019 FUNCTION OF ICD PITHAMPUR” OF CONCOR

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A PROJECT REPORT

ON

“FUNCTION OF ICD PITHAMPUR”

OF

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SUMMITED BY

““RAVEESH JAIN”

Submitted To

SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER

APPLICATION

IN PARTIAL FULFILLMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

(Marketing)

2008-10

SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER

APPLICATION

NARHE, PUNE

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1. Introduction

2. Background

3. Organization

4. Objective

5. Quality Policy

6. Terminal Network

• Western Region

7. Management Structure

8. Particular Of Organization

• Duties Of Concor Officer

9. Terminal Faculties

10. Container Specification

• Conventional Dry Cargo Containers

• Specialty Containers

11. Technical Capability / Resources

• MIS

• Handling Equipment

• Wagons

12. International Facilities & Services

13. LCL Consolidation

•

Air Cargo Services

• Road Feeder Services

• Bonded & Other Warehousing Services

• Reefer Services

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14. Factory Stuffing / Destuffing

15. Special Discount Schemes

16. Cabot age Of ISO Container

17. Concor’s Policy Waiver Of Terminal Services Charge

18. Domestics Facilities & Service

19. Door Delivery And Pickup

20. Value Added Services

21. Integrated Freight Terminal

22. Total Logistics Solution

23. Customer Satisfaction

24. Claims Procedure

25. Future Planes

26. Summary Of Financial Performance

27. Performance Figures

• Western Region

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INTRODUCTION ̀

CONCOR's mission is to provide efficient and reliable multi-modal logisticssupport for the country's exim and domestic trade and commerce. To ensure enhanced

customer satisfaction, growing shareholder value, high growth and consolidation of

status as market leader.

BACKGROUND

CONCOR - THE MULTIMODAL LOGISTICS PROFESSIONALS

Ever since globalization transformed the transport sector, national boundaries have

become permeable to penetration by trade, creating the need for flexible transport

solutions. Intermodalism and containerization were the by-products of this era and were

poised to metamorphosize transport of "general cargo", moving it 'seamlessly' through

sea and land arteries. Forty years ago, the physical process of exporting or importing

goods was arduous. Goods needed to be transported by lorry to the port, unloaded into a

warehouse and then reloaded into the ship 'piece by piece'.

Malcolm McLean's idea of containerization changed the basics of cargo transport by

standardizing the dimensions of the container and simultaneously improving the productivity of ports by mechanizing handling of container-carrying 'cellular' ships and

reducing their handling to a few hours only. Unitization helped elimination of multiple

handling of cargo and made transfers quick, cheap and easy. As containerization came

to stand for 'cargo care', it grew by leaps and bounds the world over.

Indian Railway's strategic initiative to containerize cargo transport put India on the

multi-modal map for the first time in 1966. Given the continental distances in India

(almost 3000 km from North to South and East to West), rail transport could be the

cheaper option for all cargo over medium and long distances, especially if the cost of inter-modal transfers could be reduced. Containerized multi-modal door-to-door

transport provided the ideal solution to this problem. It was this idea that saw the Indian

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Railways entering the market for moving door-to-door domestic cargo in special DSO

containers starting in 1966.

Though the first ISO marine container had been handled in India at Cochin as early as

1973, it was in 1981 that the first ISO container was moved inland by the Indian

Railways to India's first Inland Container Depot (ICD) at Bangalore, also managed by

the Indian Railways.

Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers,

and along the way, a strong view had emerged that there was a need to set up a separate

pro-active organization for promoting and managing the growth of containerization in

India.

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THE COMPANY Container Corporation of India Ltd. (CONCOR) was incorporated in March 1988 under

the Companies Act, and commenced operation from November 1989 taking over the

existing network of 59 ICDs from the Indian Railways.

From its humble beginning, it is now an undisputed market leader having the largest

network of 59 ICDs/CFSs in India. In addition to providing inland transport by rail for

containers, it has also expanded to cover management of Ports, air cargo complexes and

establishing cold-chain. It has and will continue to play the role of promoting

containerization of India by virtue of its modern rail wagon fleet, customer friendly

commercial practices and extensively used Information Technology. The company

developed multimodal logistics support for India’s International and Domestic

containerization and trade. Though rail is the main stay of our transportation plan, road

services and also provided to cater to the need of door-to-door services, whether in the

International or Domestic business.

CONCOR is committed to providing responsive, cost effective, efficient and reliable

logistics solution to its customers. It strives to be the first choice for its customers.

CONCOR is a customer focused, performance driven, result oriented organization,

focused on providing value for money to its customers.

Objectives

How to use documentation in export & import.

CORPORATE OBJECTIVESCONCOR MANAGEMENT’s STATEMENT OF MISSION AND OBJECTIVES. “

“We will be a customer focused, performance driven, result oriented organization,

focused on providing value for money to our customers...”

“We will strive to maximize productive utilization of resources, deliver high quality of

services, and be recognized as setting the standards for excellence.”

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“We will constantly look for new and better ways to provide innovative services. We

will aim for customer convenience and satisfaction, learn from our competitors and

always strive for excellence.”

“We will set measurable performance goals to support the objectives and mission of our

organization and work as a professional, competent and dedicated team for the

organization to achieve excellence in all areas of our business and operations by

benchmarking ourselves with our competitors.”

“We will follow highest standards of business ethics and add social value for the

community at large by discharging social obligations as a responsible corporate entity.”

“We will maintain absolute integrity, honesty, transparency and fair-play in all our

official dealings and strive to maintain high standards of morality in our personal life.”

QUALITY POLICY

• We are committed to provide reliable, responsive, safe and value

• Added logistic services in a cost effective & consistent manner

• using latest innovations to ensure complete customer

• convenience & satisfaction and value for money through

• continual improvement of our quality management systems and

• processes

CORE BUSINESS

CONCOR's core business is characterised by three distinct activities, that of a carrier, a

terminal operator, and a warehouse operator.

Carrier

Rail is the mainstay of CONCOR's transportation plans & strategy. Majority of

CONCOR terminals are rail-linked, with rail as the main carrier for haulage. Facilities

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are, however, provided for first and last mile transportation by road also. CONCOR

benefits from a 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 Indian Railways have always been available to

the company. As rail is price-competitive over long distances, the price advantage can

be passed on to clients, thus allowing for flexible and competitive pricing. The rail link

also plays a major role in decongesting our ports and the road corridors that lead to

these ports. Though rail is the mainstay of CONCOR's

Transportation plan, some CONCOR terminals are exclusively road-fed as well. We

provide 94% of our inland transport through the Indian Railways network. Road

services are mostly in the form of supplementary services to provide the door to door linkages having carried the bulk of long lead by rail. However, where ever it is

operationally or economically a superior option, road is used as an alternative to rail as

well.

Terminal and CFS Operator

CONCOR started operations in November 1989 with 7 Inland Container Depots (ICDs).

We have since extended the network to a total of 59 terminals, of which 49 are export-

import container depots, and 10 exclusive domestic container depots. As many as 31terminals perform the combined role of domestic as well as international terminals. The

company expects the number of terminals to increase to 60 in the next few years.

CONCOR's customs bonded Inland Container depots are dry ports in the hinterland, and

serve the purpose of bringing all port facilities including Customs clearance to the

customer's doorstep. The terminals are almost always linked by rail to the Indian

Railway network, unless their size or location dictates that they be linked by road. The

rail links enable us to facilitate the moving of large volumes over long distances in the

most cost effective manner.

CONCOR's terminals provide a spectrum of facilities in terms of warehousing,

container parking, repair facilities, and even office complexes. As CFS operator,

CONCOR adds value to the logistics chain by offering value added services such as

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Transit warehousing for import and export cargo.

Bonded warehousing, enabling importers to store cargo and take partial

deliveries, thereby deferring duty payment.

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

nominated hubs.

Air cargo clearance using bonded trucking.

In the area of domestic business door pick up and door delivery services are the most

popular. We also use our terminal network to plan hub and spoke movements that allow

single customers to move cargo to multiple locations at a single time, with CONCOR

taking care of the distribution and re distribution requirements.

TERMINAL NATWORK

WESTERN REGION

The rail container terminals at Jawaharlal Nehru Port Trust, Nhava Sheva International

Container Terminal and Mumbai Port account for more than 90% of the entire export

import traffic that is handled by CONCOR's major hinterland terminals. These gateway

ports of Mumbai are served by CONCOR's Western region, and this makes it the crucial

link in the exim logistics chain for the company.

By providing direct entry and exit via regular train services to JNPT/NSICT/GTIL, and

Mumbai ports, the region performs the critical function of decongesting the ports and

increasing their overall handling capacity.

As many as 15 export trains are placed, and the same number withdrawn from

JNPT/NSICT on a daily basis, providing high speed scheduled services to terminals at

Delhi, Ludhiana, Mulund, Ahmedabad, Hyderabad, Nagpur,Jodhpur, Aurangabad,

Vadodara, Moradabad etc.

Serving the city of Mumbai, which is the commercial and industrial hub of the country,

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also makes the region an important source and destination for a substantial volume of

containerized cargo. The major terminals located in Mumbai are at Mulund (West) and

Mulund (East) for exim traffic, and at Turbhe and Wadibunder for domestic traffic.

In addition to catering to the crucial Mumbai traffic, the region also covers parts of

Southern Maharashtra, Southern Gujarat, Madhya Pradesh, and Goa under its

jurisdiction.

Facilities exist at Indore, Pune, and Miraj for catering to the traffic generated in these

areas. The proximity to the gateway port makes transit and frequency of service

considerations crucial for these terminals.

One of the new facilities being offered by the region is the repositioning of LCL export

containers moved by rail from hinterland terminals as piggy back on the scheduled

services to JNPT/NSICT for hub-reworking at the port’s CFS operated by CWC at

Dronagiri Node.

The region is also a major source for domestic traffic. Domestic traffic is handled at

DCT Turbhe. This facility has increased the capacity for handling domestic cargo as it is

located outside the congested Wadibunder area in Mumbai.

ICD at Miraj is located in the sugar belt of Maharashtra, and will to facilitate the

movement of export cargo on chassis basis from sugar factories to Gateway ports

directly.

Western Region

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ICD ( Inland Container Depot) PITHAMPUR (Indore) (code) ROAD LINKED

ICD

Facts

Commissioned 1994

Total Area– 17 acres.

Warehouse space – 20,000 sq. mtrs.

Equipment –1 heavy cranes, 2 fork lifts.

catchment Area

Central India, including Nagda, Manideep, Gwalior, Dewas, Nepanagar, Ghatabilod,

Indore, Pithampur Ind. Area.

Main Services offered

Import and Export Logistics

Air Cargo ClearenceLCL cargo Consolidation for reworking at Mumbai.

Expansion plans for the terminal include extension of container yard, fresh paving, and

induction of Volvo Trailers for port linkage.

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Address

Inland Container Depot

Plot no. 113, MHOW-III

Neemuch Road,Sector III, Pithampur 454774

Dist. DHAR (MP)

Phones

07292-2503701-07

Fax

07292-2503717

Email

[email protected]

MANAGEMENT STRUCTURE

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Particulars of Organization

Container Corporation of India Ltd. (CONCOR), is a Central Public Sector Undertaking

in which

The President of India presently holds 63.08% of the total paid up share capital of

Rs.64.99

crore. The share holding pattern of CONCOR as on 30-06-2008 is as under :

Shareholding Pattern as on 30.06.2008

Organisational pattern of CONCOR

Duties of CONCOR Officer

Name Designation & Address Duties

1. Sh. Shri Prakash

Chairman (Non- Executive), Member

Traffic, Railway Board

Non Executive Chairman (Govt. Nominee)

Chairing the Board Meetings.

2. Sh. Rakesh Mehrotra

Managing Director Functional Head of CONCOR and overall incharge of entire

business of CONCOR.

3. Sh. Yash Vardhan Director (Intl. Marketing & Ops.) Incharge of International

Business operations of CONCOR.

4. Vacant Director (Finance) In charge of all Financial/ Accounting matters.

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5. Sh. Anil Gupta

Director (Domestic) Incharge of Domestic marketing business.

6. Sh. Harpreet Singh

Director (Projects & Services) Incharge of Projects, Planning & Development.

7. Sh. K B Agrawal

Chief Vigilance Officer Corporate

Office, New Delhi

Incharge of all Vigilance related matters.

8. Ms. P Alli Rani

Executive Director (Finance) & Chief

Public Relations Officer/ Corporate

Office/ New Delhi

In charge of Finance & Accounts department

And Public Relations including investor

Relations

9.Capt. P.K. Kaul

Executive Director (CR & BD)

Corporate Office/ New Delhi

In charge of all matters relating to customer

relations & business development

10. Sh. Ravi Khandelwal

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Executive Director (A/cs & CS)/


Company Secretary.

11. Sh. Anurag Mathur

Executive Director (MIS)/ Corporate

Office/ New Delhi

In charge of procurement & maintenance of IT Hardware & software.

12. Sh. P.K. Agrawal

Chief General Manager/ Western

Region, Mumbai

Overall Incharge of all matters relating to the

Western Region

13. Sh. D K Tripati

Chief General Manager/ Central

Region/ Nagpur

Overall incharge of all matters relating to the

Central Region.

14. Sh. Ajoy Kumar Behra

Chief General Manager/ Eastern

Region/ Kolkata


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Eastern Region

15. Sh. Ajay Anand

Chief General Manager/Northern

Region/Tughlakabad

Overall in charge of all matters relating to

Northern Region

16. Sh. Sushil Kumar

Chief General Manager/ North Central

Region/ Noida

Overall incharge of all matters relating to North

Central Region

17. Sh. G John Prasad

Chief General Manager/ Southern

Region/ Chennai


Southern Region

18. Sh. Shahnawaz Ali

Chief General Manager/ South Central

Region/ Hyderabad

Overall incharge of all the matters relating to

The South Central Region.

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19. Sh. Amit Kumar Singh

Chief General Manager/ North West

Region/ Ahemdabad

Overall incharge of all the matters relating to

The North West Region.

20. Sh. Mukul Jain

Group General Manager (Air Cargo)/


Incharge of marketing & business in Air Cargo

Segment.

21. Ms. Padmakshi Raheja

Group General Manager (Business

Research)/ Corporate Office/ New Delhi

Incharge of Business Research specifically to

Domestic market.

22. Sh. Satish Chandra

Group General Manager (Domestic)/


In charge of Domestic business Marketing.

23. Sh. Koushik Mukhopadhyaya

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Group General Manager (Strategic

Planning)/ Corporate Office/ New Delhi

Incharge of Strategic planning in Corporate

Office

24. Sh. M.K. Akhouri

Group General Manager (International

Marketing)/ Corporate Office/ New Delhi

Incharge of marketing and business in the

international segment

25. Sh. Rajiv Rajvanshi

Group General Manager (Engg.)/


In charge of Civil & Engg. Projects.

26.Sh. N.L. Mankoja

Group General Manager (P&D)/


In charge of Planning & Development

27. Sh. R.S. Meena

Group General Manager (Comml.)


In charge of Commercial claims and other

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Commercial matters.

28. Sh. Amit Chaudhri

Group General Manager (Operations &

Shipping)/ Corporate Office/ New Delhi

Incharge of CONCOR Rail Operations &

Shipping.

29. Sh. Rajeev Bhardwaj

Sr. General Manager (HR)/ Corporate

Office/ New Delhi

In charge of HR Department

CONCOR is a company managed by its Board of Directors, constituted under the

Companies Act, consisting of Government of India nominees and independent

Directors.

The day-to-day activities of CONCOR are managed under the leadership of the Board of

Directors assisted by the in-charge of the respective departments.

Detailed execution of the job is being done under the leadership of the in-charge of

the

Respective departments.

Various rules, regulations, instruction manuals and guidelines

• corporate policy decision of running the businesses of CONCOR is being taken,

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Depending upon the changing scenario of the Business by the Board of Directors.

• The day to day activities to be carried out are being decided by the respective

Departments and are being executed in conformity with the corporate decisiontaken by CONCOR in the meeting of its Board of Directors.

• Since CONCOR is formed under the Companies Act, accordingly company is

working within the purview of regulations framed in this regard by way of

Memorandum and Articles of Association.

TERMINAL FACILTIESCONCOR started its operations by taking over 7 existing ICDs from the Indian

Railways, and has now grown to a network of 57 terminals. Most of these terminals

have been developed on land obtained on lease from the Indian Railways. Most of this

land had been idling or identified as surplus land, and the inputs that have been put in by

CONCOR have completely changed the face of these locations. Modern container

handling terminals have been developed with state-of-the-art facilities for handling and

amenities for the users.

Container handling terminals have been designed and built by CONCOR's in house

engineering department. The design is invariably modular in nature. This means that the

terminals have been developed keeping in mind the minimum investment while seeking

to provide the best facilities. As the terminals have grown in terms of business handled,

the utilized space has also been expanded by both adding facilities such as warehouses

and paving, and/or by upgrading existing facilities to allow for the handling of higher

volumes.

One of the major technological inputs put in by CONCOR in the area of terminaldevelopment has been the use of heavy duty paving using M-50 concrete blocks. This

paving is not only easy to lay down, it also provides considerable long term savings due

to minimum maintenance and upkeep requirements.

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In the area of warehousing as well, use of the latest technology has resulted in the

development of state of the art facilities. At Bangalore, use of pre-fabricated structures

resulted in the commissioning of warehouses within 3 months of starting construction.

Facilities such as refrigerated warehouses, multi-tier stacking facilities, special handlingareas for heavy cargo, hazardous cargo etc., have also contributed to making

CONCOR's terminals the most modern logistics hubs in the country.

CONTAINER SPECIFIATION

The following is a list along with photographs and specifications of various types of

containers that are used in the containerized cargo movement business. The dimensions

listed below are intended as a guide only. There are differences in the dimensions

between containers produced by various manufacturers.

Conventional Dry Cargo Containers

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20/40 ft. conventional end open containers These are usually built to ISO

standards, and are used for the movement of conventional dry cargo. For domestic

movement, CONCOR has inducted a fleet of approx. 12000 such 20 ft. containerseither under direct ownership or on lease for internal movements within the

country.

20/40 ft High Cube containers These containers offer the added advantage of

extra volumetric capacity due to their additional height, and are especially useful of

movement of light but bulky cargo.

20 ft Side Access Containers These containers are used exclusively for domestictraffic movements within the country. They offer the advantage of having doors on

the side panels, and this makes it convenient for use in locations where chassisstuffing operations have to be used. CONCOR has currently about 3300 such self

owned domestic SA containers in its fleet.

22 ft/High Cube Domestic Containers These containers have also beenexclusively introduced by CONCOR for the purpose of carrying cargo that requires

greater volumetric capacity or container length. CONCOR has currently about2000 such self owned domestic 22ft containers in its fleet.

Specialty Containers

20 ft/40 ft/ 40ft High Cube Refrigerated Containers These are containers

that can be used for the movement of refrigerated/perishable cargo. Specialfacilities such as the availability of plug points, portable clip on generators for

trailer movements, power packs for train movements etc. are required for movingcargo in these containers. It must therefore be ascertained whether such facilities

are available at the handling terminals before planning such movements.

20 ft/ 40ft/ Collapsible Flat Rack and Platform Containers These containersare especially useful for carrying over dimensional cargo or fully packed machines,

equipment etc. Since most of the movement of containers on CONCOR's network is

through rail, special permission must be obtained for movement of overdimensional consignments to ensure that these do not infringe upon the standard

moving dimensions of the Indian Rail network.

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20 ft/ 40 ft Open Top Containers These containers are used mostly for cargo

that needs to be handled with cranes and cannot be easily loaded from the front

doors of the containers.

Open tops can also be used for carrying over dimensional cargo of certain types. Suchcontainers have also been inducted for domestic service and can be supplied on demand

if such cargo is offered. CONCOR has currently about 100 such self owned domestic

open top containers in its fleet.

20 ft Tank Containers These containers are specially designed for the movementof liquid cargo of different types. Such containers have also been inducted for

domestic service and can be supplied on demand if such cargo is offered. CONCOR

has currently about 300 such self owned tank containers in its fleet.

CONCOR as a multi-modal logistics service provider is constantly seeking to

innovate on the uses and flexibility of container handling operations. We have

introduced special containers with rolling floors to facilitate pallet handling,

containers with in built collapsible shelves to increase loadability etc. We are also

willing to examine the possibility of designing any specialty containers subject to

suitable business prospects. Customers are encouraged to contact our field staff

with their specific requirements.

TECHNICAL CAPABILITY/RESOURCES

MIS:-IT forms the backbone of any service industry, where information

correlates directly with improved levels of efficiency. In the transport sector,antiquated, cumbersome paper-based procedures cause an enormous waste of

time and money. All too often, goods move through transport systems at afrustratingly slow speed, especially in developing countries. The physical side of

trade transactions should aspire to become as efficient as the electronic transfer of money. This can be done through working partnerships among all those involved to

improve logistics services through the use of information and network technology.

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A primary component of CONCOR's overall business strategy has been the

development of an advanced information system. A container and cargo logistics

information system went online at Company's Inland Container Depot at

Tughlakabad in 1994 and most other facilities have been equipped with computer

systems to monitor traffic movement and maintain inventory records.

CONCOR is using various online applications like Export/Import Terminal

Management System (ETMS), Domestic Terminal Management System (DTMS),

Oracle Financials-ERP, HR-Payroll system etc. which are based on Centralized

architecture deployed through Citrix environment and running over VSAT based

hybrid network.

Facility for electronic filing (e-filing) of commercial documents of CCLS(Container

and Cargo Logistic System) has been provided to customers. This facility enables

customers like Shipping lines, Importers, Exporters and CHA's to file the required

documents online for process and take necessary printouts of processed output

through web from anywhere without physically coming to ICD at Tughlakabad.

Digital Signatures have been integrated with e-filing on CCLS to make the system

more secure.

CONCOR has been certified to ISO/IEC 27001: 2005 standard for establishing and

maintaining Information Security Management System (ISMS) for its IT

functionality.

RDT’s are being used in the ICD/TKD yard and ICD/Dadri for online containertracking and entry of unloading / loading of containers on to wagons. Interface

software was developed for automatic updation of entries through RDT’s into CCLS

and ETMS database for EXIM operations. RDT’s are also interfaced with our

Domestic Terminal Management System (DTMS) at DCT/Okhla, TNPM/Chennai and

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WFD/Bangalore. This has enabled any user to query the system either through LAN

or Web to get the latest status and location of a container in the yard.

CONCOR has its own Web Server for providing web interface to the commercial

applications i.e. ETMS, CCLS, DTMS etc. The web interface enables our customersto access information regarding their shipments by means of the website.

An integrated track and trace system was also implemented on CONCOR website

for providing Container Tracking Details, Train Summaries and current train

running position.

CONCOR has also introduced automated e-mails for PDA statement, Rail out and

SMS for Rail out cases for EXIM system. For availing such facility the intending

customers may contact ED (MIS) at email id [email protected]

Web interfaces to access ETMS have been developed for providing queries such as

list of containers arrived/ departed, Container status, PDA balance etc.

Handling Equipment

CONCOR has generally followed a policy of organizing specialized cargo/containerhandling services by deployment of state-of-the-art equipment on contractual

basis. In addition, at ICD Tughlakabad, in Delhi, which is the company's flagship

terminal, we also own, operate and maintain the most modern and sophisticated

handling equipments such as a Rail Mounted Gantry (RMG) , Rubber Tyre Gantries(RTGs), and Loaded and Empty handling Reach Stackers.

Wagons

After starting operations with make-shift container wagons that were provided bythe Indian Railways, CONCOR started acquiring state-of-the-art high speed

container flats (BLC wagons), capable of running at 100 kmph. Since last 9 years.These have been progressively introduced on major container circuits in the last

three years, as a result of which transit times have reduced and service quality has

shown considerable improvement. 7200 such wagons are already deployed, andCONCOR plans to add to that fleet every year to cater to the growth in business as

well as to replace outworn rolling stock. CONCOR has also purchased some 7200container flat wagons from the Indian Railways, which have been since upgraded

and retrofitted to also provide improved service quality and better transit times.

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mailto:[email protected]

mailto:[email protected]



International Facilities & Services

CONCOR was incorporated in March 1988 as a Public Sector Enterprise under theMinistry of Railways with the prime objective of developing modern multimodal

transport logistics and infrastructure to support the country's growing internationaltrade.

The company commenced operations on November 1, 1989, by taking over seven

Inland Container Depots from the Indian Railways located at Delhi, Ludhiana,Bangalore, Coimbatore, Guwahati, Guntur and Anaparti. Since then, CONCOR has

developed a vast network of container terminals at prime locations all over the

country. At present, it has a total of 41 Exim Terminals (Rail / Road linked ICDs

and Port Side Container Terminals (PSCTs), with another 13 in the pipeline.

Containerization of exports and imports does not begin and end at the ports.

CONCOR provides transport linkages between ports and the hinterland. Regularcontainer trains are run to and from ports to CONCOR's terminals in the hinterland.

Some of the terminals are also served by road. With liberalization and opening up

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of the India economy, lowering of import tariffs and reduction in the number of

commodities whose import/export was prohibited by the Government, there is an

increasing trend of containerized imports/exports into/from India. Along with thegrowth of container business at Indian Ports, the level of containerization itself is

increasing.

The advantage of containerized movement into the hinterland are self evident, a

major plus being the decongestion of ports which would lead to higher turnover

and added growth. CONCOR'S existing presence at port-towns is sizeable.CONCOR's Terminals at Mumbai at Mulund, New-Mulund & Wadibundar cater to the

Ports of Jawaharlal Nehru Port Trust and Mumbai Port Trust. Similarly, we havepresence at Tondiarpet and the Harbour of Madras for Chennai Port, and Cossipore

Road and Shalimar terminals at Kolkata cater to Kolkata & Haldia. There are

terminals also at Cochin and Tuticorin and Vishakapatnam.

Presence in the port towns, in addition to the hinterland, would help tie-up both

end points of the shipment route facilitating control over the entire logistics chain.

Carrying the strategy further, CONCOR may also consider operating containerberths in Greenfield ports in order to provide integrated transportation logistics

solutions to customers. Having already developed requisite expertise in operatinghinterland terminals, port terminals should not pose any technical problems. As

more port container terminal privatization takes place, it may be difficult for

CONCOR to gain entry into quayside operations. Rail face operation at Portterminals still remains a strong possibility even at Private Ports.

CONCOR OFFER OF BLOCK BOOKING ON ROUND TRIP BASIS

“Scheduled Day Service on Round Trip Basis” will be offered to shipping line /

group of lines/ consolidators fro ICD Dadri from Mundra, Vizag and Pipavav. Similar

Services will be considered from select CONCOR terminals to these gateway ports

on request. Services to other ports like Chennai, Kolkata and Haldia ports can also

be considered.

The Line /Lines together will be required to pay a minimum amount for bookingof a rake on round trip basis. For this, they will register with the respective

terminals and open a pre-deposit account with CONCOR at the originating terminal.

The necessary minimum amount may be deposited in the PDA before the start of

the train.

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Booking for laden and empty containers will be levied as per public tariff from the

concerned shipping lines and all leviable surcharges would be added. For empty

slots, CONCOR will levy the applicable empty container freight rates in the stream.

• The schedule of departure and the number of services may be decided by theshipping line/ lines, which CONCOR will agree to if there are no serious

operational constraints. Occasional request for rescheduling of a particular

service may be accommodated, provided such request is received at least

one day prior to the scheduled departure of the train from ICD. The train will

be run with onhand containers following FIFO.

The same rake as would carry export volumes to port will bring back import

boxes for the same line/ consolidator. The necessary loading at port end has to be

tied up with the port terminal operator by the consolidator/ Shipping line.

Since the shipping line may also act as a consolidator by accepting volumes

offered by other lines to top up their own volumes in order to fill up all the slots in

a particular train, the forwarding note must have the endorsement of the

consolidating line indicating that booking is against the block train scheme.

However, IW Bills for loaded and empty containers will be raised as per normal

procedure by debiting the concerned shipping line’s PDA.

CONCOR will have the right to fill up empty slots if wagons are running empty

from ICD/ port. However, in such cases CONCOR will not charge for the empty

slots, utilized by CONCOR provided at least 45 laden TEUs have been booked by

line consolidator. At the pot end, the train will not be detained on account of non-

availability of containers.

Discount admissible will be paid after monthly reconciliation of the figures, on

the round trips completed. Discount will be payable on total amount realized

against laden booking, provided at least 90 loaded TEUs have been booked on

round trip basis. The discount may be paid in the form of a refund, through PDA.

• Non-dedicated ‘common services’ to Mundra, Pipava and Vizag ports will

continue to run regularly, the frequency of which will be intimated from time

to time.

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LCL CONSOLIDATION

The process

of LCL consolidation involves the movement of less than container load cargo from

an Inland Container Deport to a nominated 'hub' terminal under customs seal,

usually in a domestic container of some sort. At the nominated hub terminal, the

sealed containers are opened and the cargo re-worked on a destination wise basis

without having to be subjected to re-examination by customs. Indian Customs

permitted the reworking of LCL boxes in certain nominated 'hub terminals' mostly

located at port cities in the year 2000.

This has already led to a tremendous increase in the business of LCL consolidation

in the country. Export LCL consolidation of different ICDs' custom cleared cargo,

often along with locally cleared LCL cargo makes for must faster clearance of

cargo, and reduces the end to end transit times between the originating points and

destinations of the cargo being moved.

Reduced transit times of LCL hub movements have provided opportunity to

shippers to move their LCL consignments faster, at extremely cost effective LCL

sea tariffs. Due to the reworking of such cargo at nominated hub points within

India, direct destination sailings to USA, Europe, Africa, Gulf etc., become available

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via the Mumbai/Chennai transshipment HUBs. This also reduces the sea transits for

LCL movements, which otherwise have to face a more expensive transshipment at

locations like Singapore or Colombo.

CONCOR currently provides LCL consolidation services from various locations suchas Agra, Moradabad, Kanpur, Dhandari Kalan (Ludhiana), Whitefield (Bangalore),

Tondiarpet (Chennai), Sanathnagar (Secundrabad), Sabarmati (Ahmedabad),

Nagpur, Aurangabad, Mulund (Mumbai) and Pithampur (Indore).

CONCOR's ICDs at Tondiarpet (Chennai) and Mulund-East (Mumbai) have been

nominated as 'Hub' points for transshipment. In addition, a substantial amount of

traffic is also moved between hinterland terminals and the hub points at the

Maersk's CWC's CFSs at Dronagiri Node in Mumbai. While most of the movements

of LCL consolidation cargo are road based, in the case of very long lead, CONCOR

has even made the arrangement of moving the containers by rail up to Mumbai,

and re positioning them locally by road to Dronagiri for reconsolidation.

Some of the special features of this service from different locations are:

Most of the services move on fixed road schedules, to ensure connectivity with

ship sailing from the gateway ports after reconsolidation at CFSs/terminals at

Gateway Ports.

The cargo is moved either in close body trucks or domestic containers. Some

forwarders are also moving the cargo in their own containers.

CONCOR has earmarked separate space for consolidation and de consolidation

activities in its existing warehouses, and plans to continue doing so in the new

warehouses being developed.

CONCOR acts as Custodian of cargo up to the HUBs (Re-working Places) in

India i.e., CFS, Mulund/ CFS, Dronagiri, CFS/Tondiarept. At the HUBs, the LCL

consolidator presents both the copies of Shipping Bill to the proper officer of Customs who verifies the genuineness of documents and checks the marks and

numbers of the seal on the trucks/containers as recorded on the documents.

CONCOR has already executed bonds for the transport of goods from various ICDs

to "HUBs" and vice versa.

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For exports, all customs formalities relating to cargo examination etc. are

completed prior to the movement of cargo. Shippers have to give a copy of the

invoice and packing list of each shipping bill, to be checked at the consolidation

terminal, and subsequently forwarded to the hub centre. CONCOR issues a

delivery order to each of the parties to enable them to collect the cargo from hub

centre.

For import cargo, consolidators are required to hand over LCL consignments for

a particular destination to CONCOR at the hub terminal after completing customs

formalities relating to transhipment at the hub point. Thereafter, CONCOR carries

the cargo to destination and arranges delivery of cargo after its customs

examination etc. at the nominated ICD. Bills of entry are required to be filed only

at the destination ICDs. Each party i.e. CHAs, consolidators, shipping lines has to

issue a separate delivery order to their customers at the ICDs, which is required tobe surrendered at the time of delivery of cargo.

CONCOR accepts LCL cargoes from CHAs, Consolidators, shipping lines

irrespective of the volume of the cargo available with each of them.

AIR CARGO SERVICESAIR CARGO DIVISION

In pursuance of its objective to provide improved Intermodal logistics solutions to

India’s trade, CONCOR entered the field of air cargo in 1999. The Air Cargo

business was formalized as a division at the Corporate Office in 2003 to provide

a focused attention.

CONCOR undertakes various Air Cargo activities as follows:

1. Road feeder services

a)Airports to airports

b)Airports to Inland Container Depots/Container Freight Station

2. Air Freight Station in ICD/CFS.

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3. Centers for Perishable Cargo.

4. Bonded warehousing for imports at its ICDs/CFSs.

5. Air Cargo Complex at Ozark Airport, Nasik and old Airport, Banglore.

Road Feeder Services

CONCOR has obtained requisite permission from customs at major international

airports as well as at 49 other ICDs spread across the country for movement of

export/import cargo under bond. CONCOR currently provides road feeder services

from Delhi, Mumbai, Agra, Kanpur, Ludhiana, Moradabad, Jaipur, Whitefield

(Bangalore), Chennai, Sanathnagar (Secundrabad), Kolkata, Sabarmati

(Ahmedabad), Nagpur, Aurangabad, Pithampur (Indore) etc. This service is

proposed to be expanded to other places as well.

Air cargo complexes and Centres for Perishable Cargo

CONCOR has opened a greenfield Cargo Complex at Ozhar Airport, Nasik, jointly

with Hindustan Aeronautics Limited (HAL). The complex has an air cargo facility,

sea cargo facility & a Centre for Perishable Cargo (CPC) for direct international

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airlifting from/to Nasik Airport. CONCOR is also constructing a “Packhouse”- centre

for sorting, grading, packing and precooling of vegetables & fruits prior to export,

at Nasik.CONCOR has constructed a another CPC at Goa Airport to promote the

perishable cargo trade.

Bonded & Other Warehousing Services Air Imports desiring deferred payment

of duty are offered customs bonded warehousing facility at our ICDs. This is a

thriving business at ICD/Whitefield at Bangalore. Bonded warehousing is available

at other ICDs as well. (A list of CONCOR ’s ICDs can be seen elsewhere for

information). Warehouses can also be offered on leave and license basis, wherever

available.

Air cargo is growing the world over. CONCOR plans to move hand in hand with this

growth by steadily increasing its facilitation to the air cargo trade by participating

in other activities as well.

REEFER SERVICES

Reefers, or Refrigerated containers facilitate the movement of cargo that requires a

strict temperature controlled environment. Running of Reefer services requires a

certain degree of Infrastructure development at the handling terminals, and

CONCOR has made such facilities available at its terminals, i.e. ICD Dadri and ICD

Kanpur.

The Reefer containers are moved from the terminal to the factories for stuffing on

special trailers, on which a "clip on" generator can be attached to supply power to

the Reefer units. On return to the ICD, they are stacked at a nominated location

with special facilities for plugging in the containers to uninterrupted power sources,

and regular temperature monitoring.

The reefer containers are moved on High Speed "BLCA" wagons between ICD Dadri

and JNPT/NSICT/GTIL ports in Mumbai. The power to the units while on run is

provided from specially designed power packs which are fitted in modified 40 ft

containers, and loaded on the trains. Each power pack serves upto 22 FEUs, andCONCOR is currently operating full rakes wih reefer containers.

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CONCOR is also moving domestic reefer containers from ICD Dadri and Kanpur to

domestic terminal at Turbhe. CONCOR has plans to offer these services from other

terminals as well subject to materialization of adequate traffic levels.

FACTORY STUFFING / DESTUFFING

Keeping in time with the international trend, containers are now going to shipper's

units more and more for cargo stuffing/ destuffing, as against the general trend a

decade earlier, when most of the cargo was getting stuffed/destuffed at the ports/

ICDs. CONCOR's ICDs are now fully geared to provide the requisite "on-carriage"

and "pre-carriage" facilities to shippers, hence fully eliminating any cargo handling

enroute. While such facilities are often available through private channels,

CONCOR also has arrangements for providing such services on-demand at

competitive rates as part of its efforts to provide single-window services.

DISCOUNT SCHEMES

CONCOR has special incentive schemes operating at some of its terminals keeping

in tune with the existing business trends. Special volume linked incentives are also

on offer to shipping lines and exporters. Some of the schemes in vogue are as

under:

1. Volume Discount Scheme in Imports to Shipping Lines based on the import

containers booked by them from the gateway ports to CONCOR ICDs on

CONCOR trains.

2. Volume Discount scheme for rice exporters booking containers from

CONCOR’s terminals at ICD Tughlakabad, Dadri, Rewari, Sonepat and

Ludhiana.

Terminal – Specific schemes are also on offer at various terminals like Jaipur,

Jodhpur, Moradabad, Tondiarpet, Whitefield, Dronagiri Node, Pithampur etc.

CABOTAGE OF ISO CONTAINER

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Extensive movement of shipping-line empty containers is undertaken by CONCOR

to balance the differential levels of exports and imports in the country today. This

movement of empty containers represents a wasted capacity, especially on routes

where substantial domestic traffic is available for parallel movement by road or

even on rail. In order to optimize the use of its resources, CONCOR offers the

facility of "cabotage" to shipping lines who wish to move empty containers as

balancing movements. A "cabotaged" container is effectively loaned by the

shipping company to the carrier (in this case CONCOR ) for a very short period

(usually a single one way trip). During this trip, the carrier is permitted to use the

container for movement of domestic cargo. By "cabotaging" these containers,

CONCOR can therefore offer a substantial discount to both shipping lines and the

potential domestic client. This is seen as an area of focus and strategy to boost

volumes and profitability.

CONCOR regularly offers Cabotage services on it's core exim route between

Mumbai and Delhi. In addition, such services are also available on demand for

other movements, subject to the availability of adequate domestic traffic volumes.

Since CONCOR does not posses any 40 ft. Containers in its domestic fleet, all

domestic movements in 40 ft. containers is done by cabotaging international 40 ft.

containers.

CONCOR’s POLICYCON WAIVER OF TERMINAL SERVICE CHARGE

An Advice on CONCOR’s Policy on Waiver of Terminal Service Charges

The following position of CONCOR’s may please be kept in view by the Trade (Exim

and Domestic), while making requests for waiver of Terminal Service Charge(TSC)

in any CONCOR-run container terminal.

1. Grant of waiver on TSC cannot be claimed as a matter of right by the

customer, as it falls within the discretionary powers to be exercised by the

competent authority.

2. Every request for waiver of TSC will be dealt with appropriately, depending

on the merit of the case. Ordinarily, no waiver on Terminal Services Charges

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will be granted.

3. Request for waiver of TSC should be made only after the Shipper has

obtained from Customs the ‘Out of Charge’ Certificate(COOC). In case thecustomer is not satisfied with the waiver granted at terminal/regional level,

he may make an appeal to a higher authority at Corporate Office level; such

a request will be entertained only if the customer has taken delivery of the

consignment after paying all necessary dues.

4. Applications for waiver of TSC must be submitted not later than three

months from date of delivery. Any delay in this regard, can be condoned only

by the Functional Director.

5. An appeal against the decision of rejection of an application for waiver can be

made to the next higher authority than the deciding authority. Such appeal

should be filed within one month of communication of the decision.

6. CONCOR is not under any obligation to grant waiver, even if “Detention

Certificate” issued by customs authorities, is submitted, in cases, where

accrual of ground rent is due to excessive time taken by customs authoritiesin examining and clearing the cargo. In case cargo is sent for laboratory

testing, no waiver will be granted if the results of the test are not in favour of

the importer.

7. No request for waiver will be entertained in cases where any

fine/penalty/personal penalty/warning has been imposed by Customs

authorities or delay arose by reason of dispute in the assessable value.

In cases where TSC is waived in full or in part, no TSC will be charged for

the processing period(provided, COOC has been obtained before making therequest). Further, in case where request for a waiver is turned down, the

processing period beyond ten(10) working days will be treated as free period

for which no TSC will be charged.

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A reasonable free time for taking delivery of the consignment will be allowed, in

case waiver has been granted in part or in full.

Domestic Facilities & Service

Railway's strategic initiative to containerize cargo transport put Indian India on themulti-modal map for the first time when the Indian Railways entered the market

for moving door-to-door domestic cargo in special Indian Railway Specification

(IRS) containers starting in 1966.

Though CONCOR, was incorporated in March 1988, it embarked on the

transportation of domestic cargo only in 1991, using ISO standard containers for

the job. Between 1993 and 1996, there was a major thrust in the domesticbusiness, so much so that domestic business represented almost half of CONCOR's

total business in 1995-96. This business, however was dependent on large scalechassis-to-chassis movement of cement, which had come CONCOR's way due to

shortage of conventional rail wagons

By 1997, it became clear that while there was a vast potential of domestic traffic to

be tapped, this could only be done by focussing the strategy on the movement of

goods that were erstwhile moving on road, and not on bulk, rail based traffic. A

separate Domestic Division was therefore created in December 1997.

The objective of the division is to bring back to rail, goods which are now being

transported by road. The division aims to do this by containerizing piecemeal cargoand offering a comprehensive door to door intermodal service.

The domestic division functions through a network of terminal/hubs. There are at

present 5 exclusively domestic terminals, but as many as 20 of the other terminals

on the CONCOR terminal map also offer domestic services. As a matter of policy,

most of the new terminals being introduced are now being planned as combined

domestic/international terminals.

The main asset in which domestic cargo is carried is the standard 20ft container.

CONCOR's fleet of TEUs in domestic service is currently at approximately 8500

TEUS. Of these, some are owned and some are brought in on short or long term

lease depending on the demand requirements. Besides leasing, CONCOR also uses

conventional ISO (international) containers by offering special Cabotage rates for

empty movements. In this practice, containers that would otherwise move as

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empty are 'borrowed'/leased on an extreme short term basis (usually for a single

trip) for domestic cargo movement, thereby increasing the carrying capacity for

domestic cargo as a whole. There are also different types of specialty containers

such as Open Top, Side Doors, Tanks, and 22ft/high cube containers to cater to

special types of cargo.

The thrust of domestic operations is to run a series of point to point scheduled

trains. These 'CONTRACK' services form the spokes in a wider hub-spoke strategy

whereby cargo is consolidated through road or even rail, at major hub terminals

from where such CONTRACK services operate.

DOOR DELIVERY AND PICKUPS

One of the prime objectives of the domestic division is to bring back to rail, goods

which are now being transported by road. A key business thrust that has been

made by the company in the area of domestic business has been in seeking to pick

up such traffic that is moving by road by offering door-to-door pick up and delivery

services.

The concept of door pick ups and delivery takes us one step closer to achieving the

primary objective of becoming a truly multi-modal logistics service provider. We

are also seeking to make the process of delivery and pick up as simple as possible

so that all the necessary paper work can be completed at the customer's door, and

the customer need not visit the terminal at all.

In certain cases, we have even made arrangements for the unloading of cargo

from containers, and the delivery of loose cargo if this the customer's

requirements. We are also in close touch with our customers to ensure that

deliveries are made as far as possible according to their convenience and

requirements.

CABOTAGE OF ISO CONTAINERExtensive movement of shipping-line empty containers is undertaken by CONCOR

to balance the differential levels of exports and imports in the country today. This

movement of empty containers represents a wasted capacity, especially on routes

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where substantial domestic traffic is available for parallel movement by road or

even on rail. In order to optimize the use of its resources, CONCOR offers the

facility of "cabotage" to shipping lines who wish to move empty containers as

balancing movements. A "cabotaged" container is effectively loaned by the

shipping company to the carrier (in this case CONCOR ) for a very short period

(usually a single one way trip). During this trip, the carrier is permitted to use the

container for movement of domestic cargo. By "cabotaging" these containers,

CONCOR can therefore offer a substantial discount to both shipping lines and the

potential domestic client. This is seen as an area of focus and strategy to boost

volumes and profitability.

CONCOR regularly offers Cabotage services on it's core exim route between

Mumbai and Delhi. In addition, such services are also available on demand for

other movements, subject to the availability of adequate domestic traffic volumes.Since CONCOR does not posses any 40 ft. Containers in its domestic fleet, all

domestic movements in 40 ft. containers is done by cabotaging international 40 ft.

containers.

HAZARDOUS COMMODITIES

LIST OF HAZARDOUS COMMODITIES FOR TRANSPORTATION IN CONTAINERS BY

RAIL Transportation of hazardous cargo on containers by rail are subject to the

statutory provisions of the IRCA Red Tariff. Railways have also accorded

provisional permission for carriage of dangerous / hazardous / offensive goods

which fall under the International Maritime Dangerous Goods (IMDG) Code in

containers, subject to their packing and stuffing being as per specifications of the

IMDG Code.

The following is the procedure that shall be followed by CONCOR in booking of

hazardous cargo in containers :

1. When a container is laden with a commodity classified as hazardous in IRCA

Red Tariff or IMDG Code, CONCOR shall accept it for rail booking only on a

pink forwarding note , and collect the prescribed additional surcharges.

2. There should be no restriction in acceptance of containers laden with

commodities not classified as hazardous both as per IMDG Code as well as in

IRCA Red Tariff.

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3. In case, lines offer containers , containing some commodities with apparent

dangerous / hazardous characteristics and if such commodities do not find

any reference in either IRCA Red Tariff or IRCA Goods Tariff or IMDG Code,

then such containers will be accepted for booking by rail after taking a

specific undertaking from the shipping line that the cargo loaded in the

containers is not hazardous.

Value Added Services

HUB AND SPOKE SERVICES

One of the areas in which CONCOR faces competition in the transportation of goods is

from truck operators offering transportation by road. Competition with such operators is

primarily on the basis of price and dependability. The Company believes that it competes

favorably with road transportation on the basis of price on movement of heavier cargoes

over longer distances, although the truck operators may offer, among other things,

greater flexibility with respect to the timing of shipments. Volvo trucks, with vastlyreduced transit times as compared to conventional trucks, are challenging the rail transit

times of CONCOR and are set to heighten competition.

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In order to take full advantage of the rail linkages offered, while at the same time

offering the reach and dependability of road services, the concept of "hub and

spoke" operations are likely to become crucial in the company's long term

development. Hub and Spoke operations are feasible for both the international and

domestic business segments. Such operations involve the linking of road or short

lead rail shuttle services within defined catchment areas, to long lead point to point

train services

In the domestic arena as well, hub and spoke movements allow for a better

utilization of transport potential and allow for long lead services to be generated on

the basis of short lead traffic collections using road and rail shuttle services. This

service can be especially useful for big corporates for whom production centers are

concentrated in a single location, but distribution needs are national in scale.CONCOR has already successfully moved white cement as a commodity using this

experiment, whereby the product has been distributed over various locations after

being picked up from a single production center.

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

INTEGRATED FREIGHT TERMINALS

As part of the overall strategy for expansion of business and movement toward the

provision of complete logistics services, the company is considering the option of

moving into operating large railway goods-shed hubs.

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This will mean managing integrated freight terminals. To achieve this, CONCOR in

the long term plans to set up Distriparks/ Freight Centres/ Trade Development

Centres etc. at some of its terminals. The focus of providing such services will beon the backward and forward integration of various value added services with thecore business of transport logistics, in which the company already has an

established foothold.

COASTAL SHIPPING

As part of its overall strategy of expansion and entry into areas of business that

would compliment its position as a multi-model logistics service provider, CoastalShipping is an area of business the company is examining for making an entry.

CONCOR's interface with coastal shipping can be easily established by undertakingall port operations for coastal vessels or only taking up the rail interface for such

vessels at port terminals and providing hinterland connectivity. For getting intoCoastal shipping per se, we can pick up equity stake in sea-going vessels and

identify a strategic partner with adequate experience and resources.

COLD CHAIN / REEFERS

A key business area with high potential for growth is the provision of Cold Chains.

This involves providing transportation to perishable products from source to end-

user, while maintaining a certain temperature along the route. Today 85% of thecold storages are in the private sector and not a single complete cold chain solution

provider is available in the market. Absence of Reefer container linkages and highand increasing power costs are proving to be major impediments.

CONCOR is already providing basic rail based reefer services between Delhi and

Mumbai, and could get into providing cold chains by making a few arrangementsthat would expand its market presence. These would mainly include:

Tie up with an international major, preferably with developing country experience

with both technology and equity commitment for bringing in the basic equipment.

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Organize terminal to factory transport, refrigerated warehouses-where needed,

and delivery, while maintaining both temperature controlled environments, as well

as transit commitments.

Identify viable corridors for specific products. This will require tying up withproducers and consumers independently or tie up with a food processing major todistribute its products. Return trips wherever possible make cold chain operations

more profitable, and sometimes represent the difference between break even and

loss

TOTAL LOGISTICS SOLUTIONS

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 logisticsprocess.

Logistics is a source of value addition. By streamlining transport, storage and

handling operations, by reducing inventories (and the corresponding financial andstorage costs) and by making the most cost-efficient use of available assets,

logistics reduces the overall cost of the delivered goods while increasing their time

and space utilities (right time, right place).

According to a study commissioned by CONCOR, presently in India there are about

15 players as logistics service providers out of which only 5 to 6 have turnover of Rs. 50 crores plus. Though there are over 1500 transportation companies in India,

only about 25 offer third party logistics services. Others offering similar services

are courier companies, freight forwarders, brokers and booking agents.

In the market, about 75% of the revenue being generated by this segment is on

account of transportation and balance 25% is on account of services. The study

further showed that in-house logistics service arrangement is still predominant(80-90%). Major users of 3PL spend about 0.5% to 8% of their turnover on getting

these services.

Within the realm of logistics, transportation, customs brokerage, freightconsolidation and freight forwarding as services are almost always outsourced,

whereas Inventory management is the only key element of the logistics chain thatis seldom outsourced.

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Advantages offered by CONCOR as Logistics Service Provider

Efficient rail transportation of containers

Massive warehousing capacity

Country-wide network Large fleet of containers

Relationship with top-end customers

Relationship with various intermediaries in logistics

Intellectual capital.

For the growth of business, CONCOR plans to carve a niche for itself as provider of

third party logistics services. This could involve the setting up of Distriparks,

Freight Centers, and Trade Development Centers etc. IT could be achieved through

Alliance, associations, Joint Ventures or just on its own, and the services offeredcould be total logistics solutions to select customers or, if required, as a common

user service.

CUSTOMER SATISFACTION

We are regularly making efforts to improve our business processed to provide for

improved quality of customer satisfaction. Some of the practices adopted by the

organization for achieving these goals are listed below:

On line Information & Container Tracking

Container Repair & Cleaning Facilities

Cargo Palletisation, Strapping etc.

Cargo Lashing/Choking Facility

Fumigation of Cargo/Containers

Supply Chain Management

Door Delivery/Pick Up of Containerised cargo

Container/Cargo Survey

Pre Deposit Accounts

Round the Clock Security at Terminals Facilitation of Customs Clearance

Flexible Payment Arrangements

We conduct Customer Satisfaction Survey regularly to get a feedback from

the customers and also take action to rectify/improve our services.

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CONCOR had also introduced on Company’s website “Feedback. Com” wherein Customers can obtain information and seek remedies on our

services in the format available under menu “Customer Feedback Facility”.Prompt action on these observations/suggestions is taken to improve the

quality of our services to the customer.

CLAIMS PROCEDURE

Compensation claims for loss, damage, etc. to consignments in transit are dealt

with by CONCOR in accordance with the provision of the Indian railways Act 1989.

CONCOR assumes responsibility for the loss, destruction, damage or deterioration,or non-delivery of any consignment in transit, arising from any cause except the

following, namely:-

A) Act of god;

B) Act of war;

C) Act of public enemy’s;

D) Arrest, restraint or seizure under legal process;

E) Orders or restrictions imposed by the Central Government or a State

Government or by an officer or authority subordinate to the Central Government or

a State Government authorized by it in this behalf;

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F) Act or omission or negligence of the consignor or the consignee or the endorsee

or the agent or servant of the consignor or the consignee or the endorsee;

G) Natural deterioration or wastage in bulk or weight due to inherent defect,

quality or vice of the goods;

H) Latent defects;

I) Fire, explosion or any unforeseen risk:

According to the rules notified under the said Act, every person entrusting

any cargo to CONCOR for carriage by rail or road shall execute a Forwardingnote in such form as may be specified and the consignor shall be responsible

for the correctness of the particulars furnished by him in the forwardingnote. The consignor shall indemnify the CONCOR administration against any

damage suffered by it by reason of the incorrectness or incompleteness of the particulars in the forwarding note. Further, the liability of CONCOR for

general goods shall not exceed an amount calculated on the basis of invoice

value subject to a maximum rate of Rs 50/- per kg unless the consignor haddeclared the value of the consignment at the time of booking, and paid in

addition to freight charges, a percentage charge which varies from 0.25% to1% of the value depending on the distance for which the consignment is

booked.]

In order to avoid a time bar on settlement of claims the claims should bepreferred within six months of the date of booking.

All claims should be addressed to the Head of the Region (CGM/RGM) wherethe destination station/depot lies.

To assist us in dealing with claim case promptly, claimants are requested tofurnish the following details in their claim letter in the format which can be

downloaded:

FORMAT FOR CLAIM LETTER.

Copy of Inland Way Bill which shall be prime facie evidence of weight and no.of packages.

Booking station

Destination station

Factory stuffing/Terminal stuffing

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Terminal destuffing/factory destuffing.

Commodity-description & weight

Details of loss/shortage/ damage

Shortage certificate/open delivery/ assessment delivery certificate issued by

CONCOR at the time of delivery.

Amount claimed (indicating the basis on which this has been arrived at, such as

original trade invoice, beejuk, bill,etc.

Exoneration from responsibility under section 102 of IR Act 1989:

CONCOR administration shall not be responsible for the loss, destruction, damage,

deterioration or non-delivery of any consignment in following circumstances:

When such loss, destruction, damage, deterioration or non-delivery is dueto false declaration

Where fraud is practiced by consignor/consignee/agent

In case of improper loading/unloading by consignor/consignee/agent

Riot, civil commotion, strike, lock-out, stoppage or restraint of labour fromwhatever cause arising whether partial or general

Any direct/indirect or consequential loss or damage or for loss of particular

market

FUTURE PLANS

The container traffic in India has grown at a CAGR of 15% since 1991, 2.5 timesthe average GDP in the same period. With the growth of external trade being faster

than GDP, the similar trends are expected to continue in future as well. Similarly

the possibilities of growth in container traffic in the Domestic sector are immensewith continued strong trends in growth of GDP and the need of the industry for

value added services. Logistics ports, large cargo hubs will be the requirement of the industry in very near future, as large retail chains generate the demand for

professional managed cargo delivery systems.

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There will be a need for CONCOR to adopt different strategies for growth in thechanged external business environment due to opening up of Rail sector for

container train operation for 15 other players. More emphasis will be required onproviding total logistics and transport solutions to its customers by seeing the

possibilities of expanding the presence of the company in all the segments of the

transport value chain in the Exim as well as Domestic segment. Possibilities are tobe explored for strategic alliances, both for optimal utilization of infrastructure as

well as expansion into other segments of the value chain.

The emergence of number of new ports viz. Mundra, Pipavav, Vizag, Tuticorin,

Vallarpadam , Ennore& some minor ports in Gujrat like Porbandar, Okha, Maroli

etc. will have a large effect on the hinterland movement of containers in thecountry. Further, the hinterland penetration levels of the container traffic, which

are very low at present, are also bound to see a many fold increase. This change inthe environment offers immense potential for CONCOR to identify new business

opportunities and remain the market leader by expanding into new corridors.

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Rail remains the main stay of CONCOR's transportation plans, currently. Business

trends are now changing towards more and more door-to-door clearances. This

needs to provide single window clearance facilities to its customers. This willrequire close co-ordination and/or alliances with other relevant agencies and

transport intermediaries for door-to-door movement of cargo in containers. Inorder to compete with road sector that provides door-to-door movement of

containers on the basis of single price, single window service through a singledocument, 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 itscustomers, through the process of Benchmarking. CONCOR has introduced

movement of Double Stack Container Trains between Kanakpura (Jaipur) & Pipavav and Kankakpura & Mundra. These trains will provide cost-effective

transportation between these ports and ICDs in Northern India.

Due to the presence of OHE wires and other fixed structures on P-way, doublestack trains cannot be run elsewhere. CONCOR has also drawn MOUs with some of

the leading players in the container transport field for transporting their containers

between ports and ICDs.

CONCOR has created a special division to look after the Air Cargo business which

has two components 1) Bonded Trucking Services and 2) Air Cargo Complexes.

Company arranges bonded trucking services between its ICD’s and major

international airports like Mumbai, Bangalore, Hyderabad, Amritsar, Chennai and

Delhi. Company is expanding these services to/from other locations. Air Cargo

Complex at HAL, Bangalore Airport offers all cargo related services. The other Air

Cargo Complexes at Ozar airport, Nasik has commenced operations. Plans are also

being worked out for other airports. CONCOR has joint venture with MSIL and HAL

in Air Cargo Complexes.

The Joint Venture with M/s. MAERSK A/S Copenhagen for third birth at JN Port has

placed CONCOR in the category of Port terminals operators. CONCOR has also

entered in a JV with Dubai Port World for setting up & managing container terminal

at Cochin Port. This has opened new possibilities for further expansion in this field.

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CONCOR’s wholly owned subsidiary Fresh & Healthy Enterprises has established its

presence in the Apple trade in North India & its first Controlled Atmosphere Store

(CAS) at Rail near Sonepat (Harayana) started its operations.

For domestic business, CONCOR is committed to bring back to rail a significantshare of containerisable general goods cargo through aggressive marketing efforts.

The main competition in this area comes from road transportation of goods by

trucks. However, since we provide better risk coverage, in addition to controlled

transit times and overall reliability, we feel we geared to woo traffic that presently

uses road. Domestic business has a very large potential for growth today. Given

that consumption centres are vast distances away from production points, there

will always be a big demand for transport. The setting up of high capacity

consumer goods industries also indicates that the growth of non-bulk traffic is

expected to be faster then that of bulk traffic, with the shares of both becomingdecidedly better than the current 35-65 ratio. Significantly most of this non-bulk

traffic is containerisable, and represents a huge market potential for CONCOR in

the domestic sector.

The main strategy to capture domestic traffic so far has been to run regular

scheduled point-to-point services by rail. These CONTRACK services will be

expanded to several more origin-destination (O-D) points. Greater efficiency will be

introduced through the use of newly acquired rolling stock. Special cargo and

corporate will get particular focus by customization of services, and a wider

terminal network will be put in place.

A major aspect of the growth strategy for both international and domestic business

will involve the employment of the ‘hub and spoke’ system to serve the customer

completely at his doorstep, while optimizing the internal logistics chains within the

organization. In the effort to move from being a service integrator, CONCOR will

move towards becoming a Third Party Logistics(3PL) service provider by expanding

the core business into areas such as warehousing, refrigerated cargo storage and

movement, and the provision of a large number of other value added services.

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

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bodies and private trade associations chamber of commerce etc. may be targeted

as potential clients.

Financial and Physical Performance

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PERFORMANCEFIGURES

S. No.Year ( From ) Year ( To ) International Domestic Total

1 1996 1997 424741 278801 703542

2 1997 1998 491481 230238 721719

3 1998 1999 576790 225156 801946

4 1999 2000 664490 238661 903151

5 2000 2001 753368 291360 1044728

6 2001 2002 905058 326775 1231833

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7 2002 2003 1031925 351238 1383163

8 2003 2004 1251618 350501 1602119

9 2004 2005 1376516 351460 1727976

10 2005 2006 1556714 373848 1930562

11 2006 2007 1715661 389605 2105266

WESTERN REGION

Serial No. Year ( From ) Year ( To ) International Domestic Total

1 1996 1997 111052 99334 210386

2 1997 1998 126937 40385 167322

3 1998 1999 188038 47454 235492

4 1999 2000 199241 46685 245926

5 2000 2001 222395 45658 268053

6 2001 2002 186646 17515 204161

7 2002 2003 216808 18865 235673

8 2003 2004 246367 15226 261593

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9 2004 2005 225442 9236 234678

10 2005 2006 272508 10345 282853

11 2006 2007 268743 21882 290625

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http://slidepdf.com/reader/full/function-of-icd-pithampur-of-concor 56/59`



PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST

MARCH, 2009

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Bibliography

www.concorindia.com

www.reuters.com

www.google.com

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http://www.concorindia.com/

http://www.reuters.com/

http://www.google.com/

http://www.concorindia.com/

http://www.reuters.com/

http://www.google.com/

function of icd pithampur” of concor

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