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

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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.

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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

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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.

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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.

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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

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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.

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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.

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Components of Logistics Chain

Figure: Components of a logistic chain

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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.

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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.

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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

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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.

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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

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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

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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

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GDL – Three ICD’s and Four CFS facilities operational across India

EXPORT PROCEDURE OF ICD

Process chart showing export procedure

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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

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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)

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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

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- 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

liv

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

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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