Profile Of CONCOR - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/85128/10/10_chapter-3.pdf · Profile Of CONCOR 1. ... custom clearance nearer to the door step of the importer/exporter

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Chapter – 3

Profile Of CONCOR

1. Introduction: In previous chapter scope, principal objective, research methodology and

chapter scheme of the study is discussed. This chapter is dedicated to the study

of CONCOR. In this chapter, Concord’s birth, its working and performance are

discussed. Number of TEUs handled by regions of CONCOR is also discussed

to focus its functioning and importance in country’s domestic and international

trade.

The globalization, competition and technological innovation has changed the

business scenario across the world. The packaging and transporting of cargo

have also changed more efficiently. Manufacturing industries have come to

realize that the capital tied up in logistics (sourcing of new materials,

packaging, warehousing, transportation and distribution cost of finished

products) often exceeds the investments made in production equipment. The

cost of handling, transportation and storage may also exceed the cost of

production.

In view to consolidate non bulky cargo and to minimize the cost of product,

containerization has been the successful option for transportation of cargo from

one place to another. Indian railways introduced a fleet of small 5 tonne

domestic containers in the 1960’s. They started door to door receipt and

delivery services in these containers in selected metropolitan cities. Indian

Railway’s main target was to attract low volume and high value cargo through

container services.

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India’s first1 ISO marine container had been handled at Cochin in 1973. It was

in 1981 that first ISO container was moved inland by the Indian Railways to

India’s first Inland Container Depot (ICD) at Bangalore, also managed by the

Indian Railways. Indian Railways were operating seven inland container

depots (ICDs) at Delhi, Ludhiana, Whitefield, Coimbatore, Amingaon, Guntur

and Anaparti.

2. Evolution of CONCOR: In view of growing country’s domestic & international trade, the Govt. of

India has decided to form independent organization to take care of logistics

services. Container Corporation of India Ltd; (CONCOR)2 was incorporated in

March’ 1998 under the Companies Act under the ministry of railways. The

company was set up under the direct administrative control of Ministry of

Railways, which has a share of 63.09% in the paid-up equity capital of the

company with the objective of developing the infrastructure to support &

managed multimodalism and infrastructure to support Country's growing

International trade as well as for transport of domestic containerized cargo and

trade. CONCOR has honored Mini Ratna Status. The memorandum and

articles of associations amended in 1999 in which special powers are given to

the directors of the company to make investment in joint ventures and

subsidiaries

CONCOR has commenced operations from November, 1989 taking over the

existing network of 7 ICDs from the Indian Railways. The mainstay of

CONCOR’s business is to provide containerized freight transportation by rail

in the country. Rail and Road transportation are being provided by CONCOR

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according to market demand and operational demands. CONCOR also

operates container terminals across the country to cater the needs of the trade,

whether in domestic or international trade.

The corporate mission of CONCOR is as follows: 3. CONCOR’S Mission: The mission of CONCOR is to provide efficient and reliable multimodal

logistics support for the Sub-continent’s domestic and international trade and

commerce, and to ensure growing shareholder value by

1) Providing Multimodal Logistics Support for the Country’s Domestic

and International Trade.

2) Maintaining a high growth rate.

3) Consolidating corporate status as market leader.

4) Enhancing the company’s committment to customer satisfaction.

5) Maximizing return on capital employed.

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Objectives of CONCOR are common for all regions which are as follows: 4. Objectives:

• To provide Rail and Road transport for International containerized cargo

at competitive prices between inland locations and gateway ports.

• To expand CONCOR’s network of container terminals in the country so

as to retain CONCOR’s pre-eminence in container handling and

transport business.

• To supplement Indian Railways efforts to meet their committed targets

for bulk cargo by transportation through container services wherever

needed and destinationwise nominated day fixed schedule container

services for piecemeal general goods cargo which has over the years

been diverted from Indian Railways to road.

• To be transport/logistics advisor to various bodies with a view to

developing containerized transport and multimodal infrastructure.

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Management of of CONCOR is as given below: 5. Management of CONCOR:

(Source : www.concorindia.com) Given below the functions of CONCOR: 6. Functions of CONCOR:

There are three functions of CONCOR as below:

1) Carrier: CONCOR acts as a carrier for the movement of containerized

cargo of domestic and international trade.

2) Custodian: CONCOR acts as a Custodian on behalf of Customs and

Shipping Lines.

3) Terminal & Warehouse operator: CONCOR operates from their

terminal meant for business operations and it has also developed

warehouses for storage of cargo.

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CONCOR is functioning as a carrier, custodian and terminal & warehouse

operator.

6.1 Carrier:

As the sole provider of containerized rail transport in India, 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

deputation 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 the 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. CONCOR provides

94% of inland transport through the Indian Railways network and road services

to provide the door delivery. However, where ever it is operationally or

economically a superior option, road is used as an alternative to rail as well for

direct delivery from & to Ports.

On behalf of Customs and shipping lines, CONCOR acts as a custodian for

cargo and containers respectively.

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6.2 Custodian:

As per Customs act 1952 Customs has notified CONCOR as a custodian of

cargo and though containers belong to shipping lines, it act as custodian of

containers.

CONCOR can not give delivery of cargo without submitting out of charge

from Customs by importer or his agent. Likewise, it can not deliver the cargo

or can not allot the containers without obtaining delivery order from shipping

line.

CONCOR is operating its business from terminals and provides various

facilities to the trade. It acts as terminal and warehouse operator.

6.3 Terminal and Warehouse Operator:

CONCOR started operations in November 1989 with 7 Inland Container

Depots (ICDs). Since then they have extended the network to a total of 55

terminals, of which 43 are export/import container depot, and 5 exclusive

domestic container depots. 7 of the terminals are exclusively road fed, all the

rest being connected by rail. As many as 22 terminals 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 year.

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The infrastructures created by CONCOR to facilitate the trade are as

given below:

7. Infrastructure Created By CONCOR:

Following infrastructure is created by CONCOR:

a) Terminal: CONCOR has developed terminals across the Country.

b) Equipment: CONCOR has been maintaining equipments for operations

activities at its terminals.

c) Information Technology: CONCOR has developed systems to ease the

documentations and management information systems. Information

Technology has linked CONCOR’s network across the Country.

Set up of terminals across the country is a major infrastructure created by

CONCOR for domestic and international trade:

a. Terminal:

CONCOR operates various terminal facilities at 55 locations in India. The

terminal handling EXIM (Export – Import) containers are Custom bonded.

These terminals are known as Inland Container Depot, which functions like

‘Dry ports’ in the hinterland bringing all the port facilities, including

custom clearance nearer to the door step of the importer/exporter. These

terminals are also handling domestics trade movement, some domestic

terminals are combined and some of them are exclusively operated as

domestic terminals.

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These terminals provide a gamut of facilities in terms of warehousing,

container parking, repair facilities, office space for the users etc. The

terminal network is linked by rail to the Indian Railways network, though

the smaller terminals are road fed as till volumes justify a rail link.

Modern equipments are being arranged by CONCOR to meet the

requirement of trade:

b. Equipments:

1. Wagons: Originally Indian Railways provided approximately 1300

dedicated container wagons for moving containers. These were

supplemented by certain over age rolling stock modified for container

carriage. Since this was inadequate to deal with the growth in business,

CONCOR initiated procurement action for state –of - the – art, high

speed container flat wagons in 1994-95. As many as 3200 wagons were

procured in three phases for which CONCOR entered into a loan

agreement with IBRD. Currently 1900 new wagons are deployed.

2. Gantry Cranes: Rail mount gantry cranes and rubber-tyred gantry

cranes are operated at largest ICD like Tughlakabad and Dadari, which

are owned and operated by CONCOR only.

3. Containers: CONCOR presently owns 3800 containers for domestic

traffic. About 4000 containers are on operational lease, bringing the

total about 7800.

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Information technology is a major area of concerned for the convenience of

trade and smoothens day to day working:

c. Information Technology:

The development of advanced information system is a primary component

of company’s overall business strategy. A Container and Cargo Logistics

Information system (CCLIS) went online at CONCOR’s ICD Tughlakabad

in 1994. The company has also set up their website to facilitate the users

and as a source of information for the people. CONCOR has implemented

Domestics Terminal Management System (DTMS) for domestic and Export

– Import Terminal Management System (ETMS) for Export & Import,

which is centralized and controlled from its Central site at New Delhi. The

company seeks to develop new services that take advantage of information

technology, for example, enabling an electronic data interchange (EDI)

system between itself, customs and major shipping lines and container

tracking system etc

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CONCOR has expanded its network to provide single window clearances for

domestic & international trade through multimodal logistics management:

8. CONCOR’s Network:

CONCOR’s network details are as given below:

8.1 Corporate Office:

CONCOR’s Corporate Office is located at New Delhi and it has eight regional

offices across the country. Given below the list of CONCOR’s regional offices:

8.2 Regional Offices:

1) Northern Region, Tughlakabad, New Delhi

2) Southern Region, Chennai, Tamilnadu

3) Eastern Region, Kolkata, West Bengal

4) South Central Region, Sanathnagar, Andhra Pradesh

5) Western Region, Mumbai, Maharashtra

6) North Western Region, Ahmedabad, Gujarat

7) Central Region, Nagpur, Maharashtra

8) North Central Region, Noida, Uttar Pradesh

Inland Container Depots are operating under different regional offices. These

inland container depots are categorized as follows:

1) International Container Terminal

2) Combined (Domestic & International) Container Terminal

3) Domestic Container Terminal.

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1) International Container Terminal:

International Container Terminals are operating only International i.e. Export

& import containers at their respective ICDs.

2) Combined (Domestic & International) Container Terminal:

Combined (domestic & international) Container Terminal is operating both

international & domestic containers at their respective ICDs.

3) Domestic Container Terminal:

Domestic Container Terminal is operating only domestic container at their

respective ICDs.

Details of regional offices are as given below:

Northern Region is the most oldest and major share holder in throughput

handling of CONCOR. It covers the major ICDs like Tughlakabad in New

Delhi which is known as one of the Asia’s major ICD.

1) Northern Region, Tughlakabad, New Delhi

a) International Container Terminals:

There are three International Container Terminal in Northern Region as

follows:

i) Tughlakabad (Delhi)

ii) Dhandharikalan (Ludhiana)

iii) Babarpur (Panipat)

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b) Combined (Domestic & International) Container Terminals:

There are five combined container terminals in Northern region as follows:

i) Moradabad

ii) Rewari

iii) Kanakpura (Jaipur)

iv) Ballabh Garh

v) Bhagat Ki Kothi (Jodhpur)

c) Domestic Container Terminals:

There are two domestic container terminal at Northern region as follows:

i) Okhla (Delhi)

ii) Phillaur (Ludhiana)

2) Southern Region, Chennai, Tamilnadu

Southern region consists of ten ICDs. Out of ten ICDs, five ICDs are

international container terminals, four ICDs are combined container terminals

and one ICD is domestic container terminal. Details of ICDs in southern region

as follows:


i) Pondichery

ii) Milavittan (Tuticorin)

iii) Irugur (Coimbatore)

iv) Harbour of Madras (Chennai)

v) Tiruppur

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i) Whitefield ( Banglore )

ii) Tondiapet (Chennai)

iii) Kudal Nagar (Madurai)

iv) Cochin


i) Salem Market

3) Eastern Region, Kolkata, West Bengal

Eastern Region is also one of the oldest regions of CONCOR. There are eight

ICDs in eastern region. Out of eight ICDs, one ICD is international container

terminal, five ICDs are combined container terminal and two ICDs are

domestic container terminal.

a) International Container Terminal:

i) Amingaon


i) Majerhat (Kolkata)

ii) Balasore

iii) Tata Nagar (Jamshedpur)

iv) Haldia

v) Kolkata Port


b) Fatuha (Patna)

ii) Shalimar (Kolkata)

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4) South Central Region, Secunderabad, Andhra Pradesh

South Central Region has four ICDs in the region and all five ICDs are

combined container terminals. Details are as given below:

a) Combined (Domestic & International) Container Terminals:

i) Sanatnagar (Hyderabad)

ii) Guntur

iii) Visakhapatnam

iv) Desur

5) Western Region, Mumbai, Maharashtra

Western region consists of eight ICDs and out of eight ICDs, five ICDs are

international container terminal, two ICDs are combined container terminal

and one ICD is domestic container terminal. Details are as given below:


i) New Mulund (Mumbai)

ii) Mulund (Mumbai)

iii) Pithampur (Indore)

iv) Dronagiri Node (Mumbai)

v) Ratlam


i) Miraj

ii) Chinchwad (Pune)

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i) Turbhe (Mumbai)

6) North Western Region, Ahmedabad, Gujarat

North Western Region is at Ahmedabad, Gujarat. It consists of five ICDs in the

region. Out of five ICDs one is international container terminal, three ICDs are

combined container terminal and one ICD is domestic container terminal.

Details of ICDs are as given below:


i) Sabarmati (Ahmedabad)


i) Vadodara

ii) Gandhidham

iii) Ankaleswar

c) Domestic Container Terminal:

i) Khodiyar (Ahmedabad)

7) Central Region, Nagpur, Maharashtra

Central Region has four ICDs and out of four ICDs three ICDs are combined

container terminal and one ICD is international container terminal.

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i) Daulatabad (Aurangabad)


i) Nagpur

ii) Bhusawal

iii) Raipur

8) North Central Region, Noida, Uttar Pradesh

North Central Region has five ICDs in the region. Out of five ICDs, two ICDs

are international container terminal and three ICDs are combined container

terminal.


i) Dadri (Greater Noida)

ii) Malanpur (Gwalior)


i) Agra East Bank (Agra)

ii) Kanpur

iii) Ravatha Road (Kota)

CONCOR is providing different services to its users and these services can

differ as per requirement of individual terminal. In some terminals there is

need to perform all defined activities but in some terminals selective activities

are performed.

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Networking of terminals across the country has strengthened the capacity of

overall working of CONCOR

9. Strengths:

CONCOR’s main strength can be characterized as,

a) It is sole provider of rail services.

c) It provides multiple modes of transports as per requirement of trade.

d) It works under Ministry of Railways coupled with a MoU providing for

guaranteed transits on ‘liner corridors’.

e) It is a right choice for long distance transportation by rail, where as road is

a supportive mode of transport for door delivery.

f) A dedicated network of state – of - the - art terminals across the country to

capture traffic at the production / consumption centres.

g) A distinct cost advantage offered by CONCOR CFSs to users by virtue of

their location in the ICD premises (which eliminates multiple handling and

transportation)

h) Excellence in manpower resource: Professional management team, experts

trained in multimodal logistics, lean manpower.

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10. CONCOR’s Services:

CONCOR is offering following services for the trade:

1) Domestic Services: CONCOR provides domestic services to the trade.

2) International Services: CONCOR provides international services to the trade

CONCOR is offering following services for domestic trade:

10.1 Domestic Services:

• Rail Services

• Door Delivery / door Pick ups.

• Cabotage of ISO containers

10.2 International Services:

CONCOR is offering following services for international trade across the

country. These services may vary from region to region and terminal to

terminal as per requirement of trade and local conditions:

CONCOR is providing following major services to the international trade

across the country.

• Rail Services

• Road Services

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In addition to these services CONCOR is also providing following facilities to

the international trade.

a) Full Container Load (FCL) Facility:

FCL is when there is full container load in a single container as per capacity of

container. In case of FCL 20’ and 40’ containers are stuffed according to the

weight and volume of cargo respectively.

b) Less Than Container Load (LCL) Facility:

LCL is when many shippers send cargo in one container to a common

destination.

Every shipper files a separate Shipping Bill / Bill of Entry for his consignment.

It is the responsibility of the Shipping Line / Freight Forwarder / CHA to

consolidate that cargo, seek Customs clearance, and book the container.

c) LCL Consolidation Facility / Reworking Of LCL:

LCL of different parties for various destinations is accepted by CONCOR for

consolidation by Shipping Lines / Freight Forwarders / CHAs. The cargo is

customs examined, stuffed and sealed in a container, and transported by road /

rail under Customs Bond to the LCL Hub for reworking. Reworking means the

container is destuffed at the CFS / Gateway Port, all the packages are

segregated port-wise, and packages stuffed in a new container, Customs sealed

and shipped directly to the destination port.

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Earlier reworking of LCL cargo was done only at transshipment hubs like

Singapore, Dubai, and Colombo. This resulted in additional cost of freight and

cost of transshipment to the shipper, thereby making Indian exports costly and

uncompetitive.

Customs vide Circular No.55/2000-CUS dated 30 June 2000 permitted

reworking of LCL cargo. Customs has notified CWC’s facility at Dronagiri,

and CONCOR’s facilities at New Mulund and Tondiarpet for reworking of

LCL cargo.

Advantages of Reworking of LCL cargo at Hubs:

� Reductions in cost as transshipment charges are eliminated.

� Direct vessel connection thereby reducing transit time.

� Saving foreign exchange.

� Cost effective to small players engaged in foreign trade.

� Drawback is paid to the exporters at the ICD without waiting for actual

shipment from Gate Way Port.

d) Bonding Facility:

As per section 57 of the Customs Act 1962, the ICD is notified as a Public

Bonded Warehouse.

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Bonding is when importer keeps goods in the Bonded Warehouse due to:

� space constraint in the factory

� fluctuation of prices in the market

� financial constraint

Bonding facilitates the importer to take part delivery when required.

The main advantages of bonding are:

� Deferment of payment of Customs duty.

� Part delivery of cargo.

� Saving on payment of shipping line’s container detention charges.

Importer books space in the Bonded Warehouse and on confirmation of space

by the officer, Yellow Bill of Entry is filed for bonding and Ex Bond Bill of

Entry (Green) is filed for Debonding.

The goods have to be bonded for a minimum period of two weeks at least.

At the time of debonding, importer specifies the quantity of goods to be

debonded, files Bill of Entry for the quantity required and pays customs duty.

e) Bonded Trucking - Air Cargo Facility:

Bonded trucking – Air Cargo Facility is being rendered at CONCOR, the

details of this facility is as followed,

1. CONCOR has also started acceptance of air cargo in ICDs for which a

separate Notification is issued by Customs. The procedure for Customs

clearance for air cargo is similar to the sea cargo.

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2. The air cargo after Customs clearance is loaded in the CBT (Close Body

Trucks) or CMTs (Container Mounted Trucks) or any vehicle that can be

sealed by Customs and is transported to the Airport for further shipment by air.

The movement of such cargo in a sealed vehicle is commonly known as

“bonded trucking”.

3. The sensitive cargo mainly goes by air.

4. Cargo in the sealed vehicle is transported to the airport and the seal of the

bonded truck is removed in the presence of Customs. Customs cleared cargoes

handed over to the respective airlines at the airport. The charges applicable in

case of air cargo are:

� Freight per kilo is calculated on basis of volume or weight of cargo

whichever is higher.

� Since the airlines are charging freight on per kilo basis, CONCOR has

also adopted the same unit for charging their freight from ICD to

airport.

� In case shipper is offering frill CBT / CMT cargo, CONCOR levies

tariff on per TEU / CBT basis.

� TSP charges: are Terminal, Storage, and Processing charges. These are

fixed by CONCOR and collected from the shipper. The TSP charges are

paid by CONCOR to the Airport.

f) Book Delivery Facility:

Shipping Lines effects Book Delivery on payment of all outstanding dues to

CONCOR, freight in case of “To Pay” traffic, handling charges, TSC and other

dues if any.

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Original IWB is surrendered by the Shipping Line while effecting Book

Delivery. At some locations IWB is first released by Customs by making an

endorsement on the IWB. Book Delivery is made for both loaded as well as

empty containers.

Book Delivery can be made before container arrival / unloading at ICD.

Payment details are entered in the system.

At the time of Book Delivery, shipping line must indicate the handling code.

It is mandatory for shipping lines to effect book delivery within two working

days whereafter IWB is issued after collection of “Delayed Payment

Surcharge”

g) Rebooking Facility:

When a container is wrongly booked by the shipping line or party wants to take

delivery at some other location, the container needs to be rebooked for the new

destination by filling in the Forwarding Note again and a fresh IWB is issued.

For change in destination, Customs permission is essential.

h) Carriage Of Dangerous Goods Facility:

Carriage of dangerous goods facility is also provided at CONCOR. It is

explained below:

1. Dangerous / Hazardous goods permitted to be carried by rail are listed in the

IRCA Red Tariff. The dangerous goods are divided into 8 classes, a chapter is

devoted to each class of dangerous goods, and specific commodities pertaining

to that class are listed alphabetically. Rules for packing, handling, carriage,

storage and delivery are detailed in the IRCA Red Tariff.

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2. Under section 64 of the Railways Act, a ‘Pink’ Forwarding Note is to be

executed by the Shipping Line / consignors for booking dangerous goods for

carriage by CONCOR. It is ‘pink’ to alert the staff to first check whether it is

listed in the IRCA Red Tariff, levy additional surcharge on handling/freight,

take necessary precautions, inform the destination station.

3. A surcharge of 20 % on the sectoral freight and double THC. THC is levied

on every container accepted for carriage of dangerous cargo.

4. All containers / wagons carrying hazardous cargo must be labeled / marked

to warn the Railway officials / public / staff to take necessary precautions

while handling.

5. All dangerous goods should be stacked separately and a separate area should

be earmarked for stuffing / destuffing of hazardous cargo.

6. Commodities listed as dangerous in the IMDG Code are not necessarily

considered dangerous for carriage by rail.

7. If there is a doubt about the nature of the commodity, an undertaking to this

effect would be taken from the Shipping Line / Consignee.

8. If the commodity is not listed in IRCA Red Tariff / IMDG Code / IRCA

General Tariff then that commodity will be booked only with the prior

approval of the Railways.

i) Claims Settlement Facility:

All claims arising out of traffic booked by CONCOR are settled by CONCOR.

If the loss / damage to cargo / container occurs while in transit, CONCOR

settles the claim of the party and submits reimbursement claim to the Zonal

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Railways, provided CONCOR can prove that the loss / damage occurred while

the container was in Railways custody.

Parties must file their claims within the time limit of six months from the date

of booking. If not received within six months it should be treated as time

barred and repudiated under section 106 of Railway Act, 1989.

Claims cases are settled by the destination station of the region.

As per the Delegation of Power (DoP) issued on 1 February, 2002 Functional

Directors are empowered to settle claims for compensation for loss, damage,

etc.

While processing claims cases, documents in original, required to be submitted

by the Region are:

� Forwarding Note (FN)

� Inland Way Bill

� Invoice

� Joint Surveyor’s Report

� Copy of claim for duty drawback

� Copy of shipping bill / Bill of Entry / Import General Manifest (IGM)

covering consignment

If Railways delivers container with lock and seal intact, no liability accrues to

the Railways.

Indian Railway Act applies even if a container is moved by road.

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j) Joint Survey/ Open Delivery Facility:

When a container is received with seal broken / tampered en route, the Party

has a right to demand for a Joint Survey.

On receipt of written request of the consignee, permission for grant of open

delivery is given only by the officer in charge.

The joint survey takes place in the presence of Customs, shipper, security, and

CONCOR officer of the level of Supervisor / Asstt. Manager. CONCOR

officer must ascertain the extent and cause of damage.

CONCOR is not liable for the loss / damage caused on account of:

� Natural deterioration or wastage in bulk or weight due to inherent

defect, quality or vice of the goods.

� Act of omission or negligence of the consignor / consignee / endorsee.

� Latent defects.

� Explosion or any unforeseen risk.

� Defective condition of the goods at the time of booking.

Cargo should be weighed to determine the extent of shortage. The Joint Survey

Report forms the basis of claims and should be submitted without prejudice.

After preparing report it is signed by all the representatives and copy given to

shipper to forward his request for claims and one copy is kept for CONCOR’s

record.

It should be noted that packing rules had been followed to restrict movement of

cargo from getting-damaged. Position of damaged / deficient cargo is also

required to be mentioned.

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k) Movement Of Over Dimentional Consignment Facility (ODC):

Railways have standard moving dimensions as follows:

Height from centre of wagon : 13’6”

Height from side of wagon : 11’6’’

Width : 10’

Any consignment infringing these standard dimensions is classified as an Over

Dimensional Cargo (ODC).

Railway has classified ODC into three categories, namely A, B and C. If the

gross clearance between fixed structure is:

� More than 9” A class ODC

� Less than 9” up to 6” B class ODC

� Less than 6” - C class ODC: is escorted by TXR and moves at a speed

of 15 kmph.

� Less than 3” is not accepted by Railways.

Party sending an ODC submits a request to CONCOR along with a sketch of

the ODC. This is forwarded to Railways Zonal Office. Then CONCOR’S

Terminal Operator writes to the nearest TXR / Railway Yard to examine the

ODC.

CONCOR loads the ODC on the wagon. TXR inspects the ODC and submits

report. On the basis of TXR’s report, Railways classified it as A, B, C c1ass.

Railways instructions regarding the ODC are passed on to all the stations en

route giving details of train, time, date, etc.

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ODC is also carried by road. In such cases CONCOR decide rates for

transportation on case to case basis reference to enquiry and nature of ODC

consignment. CGM is empowered to sanction the rates for the movement of

ODC in special cases by road. The TSCs for ODC containers is three times the

normal rate.

l) Payment Facility:

Payment facilities are honored by cheques and to pay basis at CONCOR to its

esteemed customers as follows:

i) Cheque Facility:

Details of cheque facility are explained as under:

1. Cheque facility is provided only to regular users of the ICD offering

adequate traffic. It is offered for a period of one year, extended thereafter on

review.

2. RGM / CGM is empowered to decide the eligibility criteria including the

value and form of security whether Bank Guarantee (BG). However, no

Security/Bank Guarantee is required from Government / State Government /

Public Sector Undertakings.

3. Cheques should be drawn locally. No outstation cheques are accepted.

The cheque should be drawn in favor of CONCOR and should bear special

crossing “A/c Payee only Not Negotiable”.

The facilities can be withdrawn temporarily if bouncing / dishonoring of

cheque occur frequently or twice in six months.

4. A clerkage of Rs.200/- per cheque is collected and in addition, a penalty is

also levied:

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� 1 % of the cheque amount if payments are cleared on the next bank

working day after the cheque is dishonored.

� 3% of the cheque amount if payments are cleared within 5 bank

working days excluding the day of dishonoring.

� 10% of the cheque amount if payments are cleared after 5 bank working

days excluding the day of dishonoring.

5. Waiver / Refund: RGMs / CGMs are empowered to waive / refund the

penalty on commercial considerations. The maximum amount of waiver/refund

is Rs.5000/- per cheque subject to minimum recovery of 1 % of the cheque

amount plus Rs.200/- per dishonored cheque.

Waivers / Refunds beyond regions powers are forwarded to Corporate Office.

ii) “TO PAY” Facility:

“To pay” facility at CONCOR is detailed below:

1. “To Pay” facility means consignee shipping line will pay all outstanding

dues (freight, THC) at destination terminal, at the time of book delivery.

2. On “To Pay” payments there is a surcharge of 3 % provided payment is

made within 7 working days (excluding date of unloading). For payments

received after 7 working days 10 % surcharge is levied.

For payments received after 30 calendar days (excluding date of unloading)

invites imposition of interest 1.5 % of freight per month or part thereof beyond

30 days, in addition to freight plus 10 % surcharge.

3. All export bookings are accepted on “Paid” basis only.

63

4. “To Pay” facility is available on booking of imports on an exceptional basis

where consignor / consignee shipping line is same. Permission of RGM/CGM

is required for availing the facility.

5. This facility is not available in case of containers carrying:

� Low value cargos (woolen rags, scrap, carbon block, waste oil. zinc

waste paper).

� Dangerous cargo.

� Reefer cargo.

� Perishable cargo.

6. For all “To Pay” bookings, primary responsibility of clearance of dues is of

destination region.

There are some special services provided by CONCOR which may be provided

on case to case basis or as per specific requirement:

10.3 Special Services:

There are some specific requirements where special services play a vital role

and their requirements are essential for the trade. The special services provided

by CONCOR are as given below:

• Cold Chain

• Hub & Spoke arrangements

• Total Logistics Solution

• Refrigerated Warehousing

• Reefer (Refrigerated) Container Services

• Project export (Plants / Machineries Exports)

• Project import (Plants / Machineries Imports)

64

11. Documentation at CONCOR:

Following documentation is performed at CONCOR.

11.1 Forwarding Note (FN):

Under section 64 of the Indian Railways Act 1989, the consignor executes a

Forwarding Note for booking a consignment. The Forwarding Note is of three

types:

a) for General Merchandise

b) for Animals & Special Value Articles

c) for Explosives & Dangerous Goods.

In CONCOR only two types of Forwarding Notes are used:

• Forwarding Note for General Merchandise (White)

• Forwarding Note for Dangerous Goods (Pink)

The Forwarding Note should be filled with details regarding cargo description

and weight of cargo.

The Forwarding Note is tendered by the Shipping Line or their agent.

The Forwarding Note is a legal document and forms the basis of claims &

court cases.

For booking of Dangerous Goods, a ‘Pink” Forwarding Note is executed. It is

to alert the staff, levy extra handling charges and freight.

65

11.2 Inland Way Bill (IWB):

Railway Board has authorized CONCOR to issue IWBs in lieu of Railway

Receipt and to quote and collect all charges directly from the shipper/shipping

lines. IWB is a money receipt issued by CONCOR for carriage of goods. Once

container is booked, Shipping Line approaches CONCOR terminal for

payment of freight, empty container ground rent, and handling charges. On

receipt of payment, details of payment are entered in system and IWB is

generated. It is a combined Transport Document (CTD). (Introduced w.e.f.

1.2.1991, it is issued in continuous numbering.)

IWBs are issued for:

• EXIM / Domestic traffic.

• Loaded / empty containers.

• Full Container Loads (FCLs) / Less than Container Loads (LCLs).

• Carriage by road / rail.

IWBs issued for international traffic are NON NEGOTIABLE.

For all EXIM traffic the consignor / consignee in IWBs is Asst. Commissioner

(AC) / Dy. Commisioner (DC) Customs of originating station, A/c name of

shipping line, because the movement is from one Customs bonded area to

another and the ISO containers belong to the shipping line.

The IWB is issued in quadruplicate, of different colors,

• 1st Copy i.e. Original Copy (Blue)

• 2nd copy (Pink) called ‘Invoice’

• 3rd copy (Green)

• 4th copy (Brown)

66

Original is handed over to the shipping line to take deliver at the Gateway Port.

Second copy is sent to CONCOR’s office at destination Delivery is effected

only when original IWB is surrendered. CONCOR office at destination

matches details of original IWB with the invoice (pink copy) and then only

book delivery of container is permitted. Third Green IWB is for Railway

Accounts and sent to Railways. Forth Brown copy is kept for CONCOR office

records.

Railway treats all IWBs as paid.

All IWBs are generally issued on “Paid” basis. “To Pay” IWBs are accepted in

exceptional cases only, on payment of surcharge.

One IWB can contain booking of six containers, this is done when entire

consignment is of one party through the same shipping line.

A ‘Local’ IWB is issued when the booking/destination station is within the

same Railway; whereas a ‘Foreign’ IWB is issued if container is booked from

one railway to another railway.

For example, if a container is booked from Tughlakabad to Ludhiana, it is

under Northern Railway, therefore a ‘Local IWB’ is issued. When container is

booked from TKD to JNPT, then movement is from Northern Railway to

Western Railway, therefore a ‘Foreign IWB’ is issued.

IWBs are issued on “Said to contain” basis.

The distance in kilometers from origin to destination station should be vetted

by the Railways because freight is computed on the basis of Distance x Rate

per TEU km.

After booking of container, Forwarding Note, CONCOR CONSIGNMENT

NOTE (CCN) slip and IWB (4th copy) are filed together.

67

Since the IWB is a money receipt, all IWBs that are cancelled, also must be

sent to the Railways for accountal.

11.3 Indemnity Bond:

Indemnity Bond is an undertaking on stamp paper given by the consigner to

take delivery of goods in the absence of original IWB. The Indemnity Bond is

of two kinds:

a) Indemnity Bond: In case IWB is misplaced / lost the consignee line can

take delivery of container on executing an Indemnity Bond covering value of

cargo as well as containers for a particular consignment in the absence of IWB,

along with a surety in each case.

b) General Indemnity Bond: Introduction of BLCAs resulted in reduced

transit time causing the container to reach before the arrival of IWBs Therefore

the General Indemnity Bond was introduced, which allows the consignee to

take delivery of container provided original IWB submitted within 10 days.

This facility is extended to regular customers only offering substantial traffic.

General Indemnity Bond is to be renewed every year.

11.4 Delivery Order:

CHA / importer submits the original Bill of Lading to the Shipping Line, the

container owning Shipping Line collects its container detention charges &

inland haulage charges from importer and issues the Delivery Order.

Delivery Order has a validity date.

If physical delivery is not effected within the validity period in such case

delivery order has to be revalidated.

68

11.5 Customs Out Of Charge:

On payment of Customs Duty, Customs issues Customs out of charge (COOC)

in duplicate to the importer.

11.6 Gate Pass:

To issue Gate Pass CHA must present:

� Customs processed Bill of Entry

� Customs Out of Charge

� Valid Delivery Order

On collection of all payments due to CONCOR, Gate Pass is issued in

duplicate permitting physical removal of cargo/container from the ICD.

Gate Pass is an authority for taking delivery / removal of cargo / container.

Gate Pass has a validity date, if cargo / container is not removed physically

within the validity period, then Gate Pass must be renewed.

At the time of delivery of cargo/container acknowledgement is taken from the

party, on one copy of the Gate Pass, of having received complete cargo /

container in sound condition. This is an important document and must be kept

in safe custody because whenever there is a dispute regarding delivery, the

Gate Pass is produced as evidence in court of law.

Only one Gate Pass is issued per container.

69

12. Performance in Container Handling: Previously Indian Railways handling the containerized cargo in our country

with the help of 5 MT containers. The performance of containers handling at a

glance is given here under.

Table No. 3.1

Throughput handled at ICDs of Indian Railways (IR)

Throughput handled by ICDs of Indian Railways (IR)

Sr. No. YEAR

Domestic (nos of 5MT containers handled by IR)

International (nos. of International TEUs)

1 1984-85 36779 10129 2 1985-86 36390 21634 3 1986-87 38433 32422 4 1987-88 36113 37835 5 1988-89 27900 43065

6 1989-90 29281 52087*

7 1990-91 26649 66222*

(Source: Multimodal Transportation, Institute of Rail Transport. Year 1999-2000 and CONCOR’s annual Reports, 1995-2005) * CONCOR has taken over containerized business for imports & exports from IR in 1989-90.

The table no. 3.1 reveals that 5 MT Indian Railways containers were used for

carrying of domestic cargo within India. In 1984-85, 36779 containers of 5 MT

have been handled by Indian Railways which has seen in decreased to 26649.

As the time passes, containers with international standard have taken the place

of traditional 5MT Indian Railways containers. Thereafter CONCOR has taken

over containerized cargo business from Indian Railways and since then

70

substantial growth has been found in the domestic containers handling at

CONCOR.

Indian Railways has handled 10129 international TEUs in1984-85 with

continuous increased in TEUs handling which has been recorded to 43065

TEUs in 1988-89. CONCOR has taken over from Indian Railways and its first

year of inception and handled 52087 TEUs of International trade.

It is observed that Indian Railways has handled substantial containers for

domestic purpose of 5 MT capacities which could not be continued due to

introduction of unitized boxes in the form of TEUs. It is also observed that the

international throughput handled by Indian Railways in their ICDs was

remarkable and hence it is concluded that unitized boxes are more convenient

in the movement of cargo in right time at right place.

As CONCOR has started containerized business from 1989 – 90 with seven

ICDs of Railways, they have started facilities and services for both domestics

& international trade.

Domestic & international trade performance of containers handled at

CONCOR has been given below:

71

12.1 Performance of CONCOR in Domestic Trade:

Domestic containers handled at CONCOR are as given below, an analysis is

done on the basis of fixed base basis:

Table No. 3.2

CONTAINERS HANDLED BY CONCOR, DOMESTIC (TEUs) (AS PER FIXED BASE METHOD)

Sr. No YEAR TEUs FIXED BASE GROWTH %

1 1991-92 12495 100 ----- 2 1992-93 32940 263.63 163.63

3 1993-94 48824 390.75 290.75

4 1994-95 127017 1016.54 916.54

5 1995-96 244977 1960.60 1860.60

6 1996-97 278801 2231.30 2131.30

7 1997-98 230238 1842.64 1742.64

8 1998-99 225156 1801.97 1701.97

9 1999-2000 238661 1910.05 1810.05

10 2000-01 291360 2331.81 2231.81

11 2001-02 326775 2615.25 2515.25

12 2002-03 351238 2811.03 2711.03

13 2003-04 350501 2805.13 2705.13

14 2004-05 351460 2812.81 2712.81

TOTAL: 3110443 TEUs

MEAN: 222175 TEUs PER YEAR

(Source: Record of CONCOR)

It is revealed from table no. 3.2 that the highest growth was witnessed to

351460 TEUs (by an increase of 2712.81%) during the year 2004-05 and the

lowest growth was witnessed from 20445 TEUs (i.e. by 163.63%) during

1992-93 over the base year of 1991-92 i.e. 12495 TEUs.

72

The throughput during the first 4 years over the base year was found to be less

than the annual average of 222175 TEUs handled. While the latter 10 years

from 1994-95 to 2004-05 the TEUs were more than the average throughput.

It is understood from the said table that the domestic business of CONCOR has

made successive growth but the growth rate was not stable during the reference

period. This was caused due to inadequate availability of rakes. To maintain

the stable growth rate, it is recommended that there is a need to expand

domestic market across the Country and maximum number of rakes should be

made available for domestic business.

73

Domestic containers handled at CONCOR, an analysis as per changed base

method is as given below:

Table No. 3.3

CONTAINERS HANDLED BY CONCOR, DOMESTIC (TEUs) (AS PER CHANGED BASE METHOD)

Sr. No

YEAR TEUs CHANGED BASE

CHANGED RATE IN %

1 1991-92 12495 100 ----- 2 1992-93 32940 263.63 163.63 3 1993-94 48824 148.22 - 116.00 4 1994-95 127017 260.15 111.93 5 1995-96 244977 192.87 - 67.28 6 1996-97 278801 113.81 - 79.06 7 1997-98 230238 82.58 - 31.23 8 1998-99 225156 97.79 15.21 9 1999-2000 238661 106.00 8.21 10 2000-01 291360 122.08 16.08 11 2001-02 326775 112.16 - 9.93 12 2002-03 351238 107.49 - 4.67 13 2003-04 350501 99.79 - 7.70 14 2004-05 351460 100.27 0.48

TOTAL: 3110443 TEUs



In order to project the business growth in every successive year over the

previous year, table no. 3.3 shows the data by way of changed base method. It

may be noticed that there was a decline ( - ) during 7 years of the reference

74

period of 14 years over the respective base years although for the remaining 7

years there was growth in handling the TEUs.

The maximum rate of decline recorded was 116% in 1993-94 against the

lowest decline of 4.67% in 2002-03 (which is paradoxical result) This was

caused on account of inadequate availability of wagons for the domestic

business of which care to be taken in future.

The lesson drew from the data in the said table is that the growth in TEUs has

not been increasing with the equal rate causing instability in the business.

75

12.2 Performance of CONCOR in International Trade: International containers handled at CONCOR, an analysis as per fixed based is

as given below:

Table No. 3.4

CONTAINERS HANDLED BY CONCOR, INTERNATIONAL (TEUs) (AS PER FIXED BASE METHOD)

Sr. No YEAR TEUs FIXED BASE GROWTH %

1 1989-90 52087 100 -----

2 1990-91 66222 127.14 27.14

3 1991-92 95782 183.89 83.89

4 1992-93 122645 235.46 135.46

5 1993-94 188347 361.60 261.60

6 1994-95 275615 529.14 429.14

7 1995-96 349141 670.30 570.30

8 1996-97 424741 815.45 715.45

9 1997-98 491481 943.58 843.58

10 1998-99 576790 1107.36 1007.36

11 1999-2000 664490 1275.73 1175.73

12 2000-01 753368 1446.36 1346.36

13 2001-02 905058 1737.59 1637.59

14 2002-03 1031925 1981.16 1881.16

15 2003-04 1251618 2402.94 2302.94

16 2004-05 1376516 2642.72 2542.72

TOTAL: 8625826 TEUs

MEAN: 539114 TEUs PER YEAR (Source: Record of CONCOR) From table no. 3.4, the highest growth witnessed was 1376516 TEUs (by an

increase of 2542.72%) during year 2004-05 and the lowest growth witnessed

76

from 14135 TEUs (i.e. 27.14%) during 1990-91 over the base year of 1989-90

i.e. 52087 TEUs.

It is observed that there was a significant growth trend in the business of

CONCOR during the reference period of 16 years of the study. The throughput

during the first 9 years over the base year was found to be less than the annual

average of 539114 TEUs handled. While the latter 7 years from 1998-99 to

2004-05, the TEUs were more than the average TEUs.

This is clear indication that the progress during the first half of the reference

period was quite slow. With a view to get stable at the first instance and growth

oriented progress in handling the containers, it is recommended to speed up the

throughput in the near future. For this purpose, there is a need to upgrade the

existing infrastructure and arrange for more number of wagons.

77

International containers handled at CONCOR, an analysis as per changed based is as given below: Table No.3.5

CONTAINERS HANDLED BY CONCOR, INTERNATIONAL (TEUs) (AS PER CHANGED BASE METHOD)

Sr. No YEAR TEUs

CHANGED BASE

CHANGED RATE IN %

1 1989-90 52087 100 -----

2 1990-91 66222 127.14 27.14 3 1991-92 95782 144.64 17.50 4 1992-93 122645 128.05 - 16.59 5 1993-94 188347 153.57 25.52 6 1994-95 275615 146.33 - 7.24 7 1995-96 349141 126.68 - 19.66 8 1996-97 424741 121.65 - 5.02 9 1997-98 491481 115.71 - 5.94 10 1998-99 576790 117.36 1.64 11 1999-2000 664490 115.20 - 2.15 12 2000-01 753368 113.38 - 1.83 13 2001-02 905058 120.13 6.76 14 2002-03 1031925 114.02 - 6.12 15 2003-04 1251618 121.29 7.27 16 2004-05 1376516 109.98 - 11.31

TOTAL: 8625826 TEUs



In order to project the business growth in every successive year over the

previous year, table no 3.5 details the data by way of changed base method. It

78

may be noticed that there was a decline ( - ) during each of 9 years of the

reference period of 15 years over the respective base years, although for the

remaining 7 years there was growth in handling the TEUs.

The maximum rate of decline recorded was 19.66% (Which is a paradoxical

result) as against the lowest percentage of 1.83% decline in 2000-01. This was

caused on account of inadequate availability of wagons on time that needs to

be prevented in the near future. The conclusion we would draw from the data

in the said table is that the growth in TEUs has not been increasing with the

equal rate leading to instability in the business.

79

CONCOR’s region wise performance is as given below:

80

The table no. 3.6 represents the region wise performance of CONCOR for

domestic and international trade.

The highest growth in handling domestic throughput at northern region was

witnessed to 144697 TEUs (i.e. by an increase of 66.09%) during year 2004-05

and the lowest growth was witnessed from (-) 11170 TEUs (i.e. (-) 12.82%)

during 1997-98 over the base year of 1996-97. The throughput during the first

5 years over the base year was found to be less than the annual average of

111770 TEUs handled. While the latter 4 years from 2001-02 to 2004-05, the

TEUs were more than the average TEUs.

The highest growth in handling international throughput at northern region was

witnessed to 722288 TEUs (i.e. by an increase of 292.16%) during year 2004-

05 and the lowest growth was witnessed from 24976 TEUs (i.e. 13.56%)

during 1997-98 over the base year of 1996-97. The throughput during the first

5 years over the base year was found to be less than the annual average of

395096 TEUs handled. While the latter 4 years from 2001-02 to 2004-05, the

TEUs were more than the average TEUs.

It is observed that there is significant growth trend in the throughput handled at

northern region. However, it is a clear indication that the progress during the

first half of the reference period was quite slow. With a view to get growth

oriented progress in handling the containers, it is recommended that CONCOR

should take corrective measure to increase the business at northern region. It is

also recommended that more number of wagons should be deployed to meet

the requirement of growing business.

81

The highest growth in handling domestic throughput at southern region was


and the lowest growth was witnessed from 3182 TEUs (i.e. 20.97%) during

1997-98 over the base year of 1996-97. The throughput during the first 4 years

over the base year was found to be less than the annual average of 48502 TEUs

handled. While the latter 5 years from 2000-01 to 2004-05, the TEUs were

more than the average TEUs.

The highest growth in handling international throughput at southern region was


and the lowest growth was witnessed from (-) 4373 TEUs (i.e. (-) 4.1%) during


over the base year was found to be less than the annual average of 132775

TEUs handled. While the latter 3 years from 2002-03 to 2004-05, the TEUs

were more than the average TEUs.

It is observed that southern region has handled the substantial number of

containers in domestic trade but the growth of international throughput handled

is very slow, which is to be speed up immediately. To get growth oriented

result it is necessary to market the services of CONCOR and value added

services should be offered to the trade in southern region.

The highest growth in handling domestic throughput at eastern region was


and the lowest growth was (-) 32194 TEUs (i.e. (-) 47.14%) during 1998-99

over the base year of 1996-97. The throughput during the first 5 years over the

base year was found to be less than the annual average of 57733 TEUs

82



The highest growth in handling international throughput at eastern region was


and the lowest growth was 3206 TEUs (i.e. 36.64%) during 1998-99 over the

base year of 1996-97. The throughput during the first 6 years over the base

year was found to be less than the annual average of 16382 TEUs handled.

While the latter 3 years from 2002-03 to 2004-05, the TEUs were more than

the average TEUs.

It is observed that the domestic throughput handled by eastern region is not

satisfactory which is happened due to restriction in movement of bulk cargo in

containers. In view to get stable growth it is recommended that CONCOR

should start more number of streams and should also allow carriage of bulk

cargo in containers at eastern region for domestic trade. It is also recommended

that Cabotage movement should be promoted at eastern region to cope up

decaying in domestic and international trade.

It is also observed that there is substantial growth in international throughput

handled at eastern region but it is slow. To get growth oriented progress at

eastern region it is recommended to offer volume based discount scheme or

business promotional scheme at eastern region to attract container business.

The highest growth in handling domestic throughput at south central was

25939 TEUs (i.e. by an increase of 192.40%) during year 2004-05 and the

lowest growth was witnessed from (-) 2633 TEUs (i.e. (-) 29.68%) during

83


over the base year was found to be less than the annual average of 16041 TEUs



The highest growth in handling international throughput at south central region

was 42662 TEUs (i.e. by an increase of 202.67%) during year 2004-05 and the

lowest growth was (-) 2643 TEUs (i.e. (-) 18.75%) during 1998-99 over the



While the latter 3 years from 2002-03 to 2004-05, the TEUs were more than

the average TEUs.

It is observed that overall throughput handled at south central region is

growing but not stable, which has happened due to decline in cement traffic of

domestic trade. It is recommended that number of wagons should be deployed

at south central region to meet the potential of domestic trade.

It is also observed that the growth in international throughput handling at

western region was growing but not upto the mark. To get speedy growth at

south central region, there is need to promote the movement by both mode of

transport i.e. road and rail. There is need of extensive marketing at south

central region.

The highest domestic throughput handled by western region was 99334 TEUs

in 1996-97 and lowest domestic throughput handled at western region was

9236 TEUs in 2004-05. This is the paradoxical result of domestic throughput

84

handled at Western region. The throughput during first five year was more than

the average throughput i.e. 37818 TEUs and later four year less than the

average TEUs handled.

The highest growth in handling international throughput at western region was

246367 TEUs (i.e. by an increase of 121.85%) during year 2003-04 and the

lowest growth was 15885 TEUs (i.e. 14.30%) during 1997-98 over the base

year of 1996-97. The throughput during the 5 years over the base year was

found to be less than the annual average of 191436 TEUs handled. While the 4

years from 2000-01 & 2002-03 to 2004-05, the TEUs were more than the

average TEUs.

It is observed that the impact of restriction in movement of bulk cargo in

containers has shown in the throughput handled at western region of domestic

trade. The throughput is deteriorated and there is need to rectify this pathetic

situation of domestic business. The container terminals of western region are

operational and can be developed by extensive marketing. It is recommended

that container terminals of western region should open different operational

activity and its role should be made like hub.

It is also observed that the international throughput has a growth but not stable

which is to be speed up in near future. To get speedy and stable growth it is

recommended that CONCOR should allow movement of mix load from these

ICDs. The movement of empty as well as loaded containers should be carried

through the ICDs, which are near to Ports at western region so that the business

of western region will be increased.

85

The highest growth in handling domestic throughput at north western region

was 67152 TEUs (i.e. by an increase of 53.15%) during year 2002-03 and the

lowest growth was (-) 31152 TEUs (i.e. (-) 71.05%) during 2004-05 over the


year was found to be more than the annual average of 42653 TEUs handled.

While the later 2 years from 2003-04 to 2004-05, the TEUs were less than the

average TEUs.

The highest growth in handling international throughput at north western

region was 114027 TEUs (i.e. by an increase of 781.88%) during year 2004-05

and the lowest growth was 1779 TEUs (i.e. 13.76%) during 2000-01 over the



While the later 2 years from 2003-04 to 2004-05, the TEUs were more than the

average TEUs.

It is observed that there is sudden fall in the domestic throughput of north

stern region, which is happened due to decline in cement traffic from this

region. It is also observed that international trade has fulfilled the gap of

decline in domestic throughput and in a result, overall throughput performance

has found satisfactory. It is recommended that marketing for domestic trade is

important and customer feedback is necessary to increase the business at North

Western region. It is also recommended that extensive marketing is required to

divert trucking traffic to ICDs, which can help to increase containerized

throughput at North Western region.

86

Table also shows that the highest growth of domestic throughput handled at

central region was 31434 TEUs (by an increase of 777.55%) during 2004-05

and the lowest growth was 4202 TEUs (i.e. by 117.31%) during 2000-01 over

the base year of 1999-2000 i.e. 3582 TEUs. The throughput during the first 5

years over the base year was found to be less than the annual average of 13510

TEUs handled. While in only one year i.e. 2004-05 the TEUs were more than

the average TEUs.

It means that the progress of domestic business in handling the throughput in

terms of TEUs during the reference period was not stable and satisfactory. This

was caused on account of unavailability of adequate inventory and required

number of wagons/rakes in central region. It is also observed that the

marketing for domestic business was not upto the mark at Central Region.

It also appears from the above table that the highest growth in handling

international throughput at central region was 55944 TEUs (by an increase of

12471.69%) during the year 2004-05 and the lowest growth was recorded from

14116 TEUs (i.e. by 3172.13%) during 1997-98 over the base year of 1996-97

i.e. 445 TEUs.

It is observed that there was a significant growth trend in the business of

CONCOR during the reference period of 9 years of the study. The throughput

during the first 5 years over the base year was found to be less than the annual

average of 30569 TEUs handled. While the latter 4 years from 2001-02 to

2004-05, the throughput was more than the average TEUs.

It is observed that there was a significant growth trend in the throughput

handled by CONCOR during the reference period of 9 years of the study. The

87

throughput during the first 5 years over the base year was found to be less than

the annual average of 46141 TEUs handled. While the latter 4 years from

2001-02 to 2004-05, the throughput was more than the average TEUs.

With a view to get the stability in the business and growth oriented result, it is

recommended that there is a need to increase the inventory of containers and to

induct the adequate number of wagons/rakes to justify the domestic business. It

is also recommended that need of domestic customers has to understand and

accordingly proper implementation of available resources should be done at

central region. It is also recommended that CONCOR should run regular,

scheduled trains with dedicated rakes in the circuit of central region.

88

Important observations & recommendations:

Important observations & recommendations regarding this chapter may be

summarized as follow:

1. It is observed that India’s first ISO marine container was handled at

Cochin in 1973. It was in 1981 that first ISO container was moved

inland by the Indian Railways to India’s first Inland Container Depot

(ICD) at Bangalore.

2. It is observed that Govt. of India has decided to form independent

organization to take care of India’s growing logistics services. In a

result, Container Corporation of India Ltd; (CONCOR) was

incorporated in March’ 1998 under the Companies Act under the

ministry of railways.

3. It is observed that CONCOR acts as Carrier, custodian, terminal &

warehouse operator & it has eight regional offices across the

country.

4. It is observed that CONCOR supports to multimodal logistics and

manages rail, road and combination of rail/road modes for

transportation of cargo/containers and operations in addition to

warehousing facility including custom clearance under single roof. It

is also observed that CONCOR has developed infrastructure from 7

ICDs to 55 ICDs across the country.

89

5. Rail is the mainstay of CONCOR’s transportation system and door

delivery of containers/cargo is being done by road. So delivery of

container/cargo is made easy with help of multiple mode of transport

without multiple handling.

6. It is observed that CONCOR is providing different services and

facilities at their ICDs.

7. It is observed that the domestic business of CONCOR has made the

successive growth but the growth rate was not stable during the

reference period. This was caused due to inadequate availability of

rakes.

8. It is observed that CONCOR’s progress is quite slow. With a view to

get stable at the first instance and growth oriented progress in

handling the containers, it is recommended to speed up the

throughput and for that there is a need to upgrade the existing

infrastructure and arrange for more number of wagons

9. It is observed that insufficient & inadequate services have resulted

into loss of business which is the matter of concern for CONCOR

and to cope up with such inefficiencies that there is need to perform

and coordinate the business very closely.

10. It is observed that the throughput handled in northern region is not

stable. It is recommended that CONCOR should maintain the

minimum transit time to deliver the containers at northern region. It

90

is also recommended that more number of wagons should be

deployed to meet the requirement of growing business.

11. It is observed that southern region has handled the substantial

number of containers in domestic trade but the growth of

international throughput handled is very slow, which is to be

improved immediately. To get growth oriented result it is necessary

to market the services of CONCOR at southern region.

12. It is observed that the domestic throughput handled by eastern

region is not satisfactory which has happened due to restriction in

movement of bulk cargo in containers. In view to get stable

growth it is recommended that CONCOR should start more

number of streams and should allow carriage of bulk cargo in

containers at eastern region for domestic trade. It is also

recommended that Cabotage movement should be promoted at

eastern region to cope up decaying in domestic and international

trade.

13. It is observed that overall throughput handled at south central region

is growing but not stable, which is happened due to decline cement

traffic of domestic trade. It is recommended that number of

wagons should be deployed at south central region to meet the

potential of domestic trade. It is also observed that the growth in

international throughput handling is growing but not upto the mark.

To get speedy growth at south central region, there is need to

91

promote the movement by both mode of transport i.e. road and rail.

There is need of extensive marketing at south central region.

14. It is observed that there is sudden fall in the domestic throughput

north western region, which has happened due to decline in cement

traffic from this region. It is also observed that international trade

has fulfilled the gap of decline in domestic throughput and in a

result, overall throughput performance has found satisfactory. It is

recommended that marketing for domestic trade is important and

customer feedback is necessary to increase the business at north

western region.

15. It is observed that the progress of domestic throughput in terms of

TEUs handling during the reference period was not stable and

satisfactory. This was because of inadequate inventory and required

number of wagons/rakes in Central Region. It is also observed that

marketing for domestic business is not up to the mark at Central

Region.

With a view to get the stability in the business and growth oriented

result, it is recommended that there is a need to increase the

inventory of containers and to induct the adequate number of

wagons/rakes to justify the domestic business. It is also important to

understand the need of domestic customers and also there is need to

study the specific requirement of domestic customers.

92

16. Significant growth trend has been observed in the business of

CONCOR at Central Region and to keep this trend growing there is

need of consistent performance in international throughput handling.

To maintain the growth in throughput, it is recommended that

CONCOR should run regular, scheduled trains with dedicated rakes

in the circuit of central region.

SELECT REFERENCES:

1) Dr. Hariharan K. V. - Containerization and Multimodal

Transport in India, Edition: 4th

revised & enlarged edition

May’2003, Shroff Publishers &

Distributors Pvt. Ltd. Mumbai, Pp. 3

2) Daily Shipping Times – Dated 25.04.2003 Pp. 14 & 15

3) Op-cited Dr. Hariharan K. V. - Pp. 58

4) CONCOR’s Website ‘www.concorindia.com

93

5) Daily Shipping Times (West Zone) – Volume – XLVI No. 82, dated

04.04.2005, Pp. 1

6) Exim India Newsletter - Volume – XLIV No. 250 dated

30.10.2003, Pp. 40

7) Daily Shipping Times (West Zone) – Volume – XLV No.291, dated

30.12.2004 Pp. 32

8) Exim India Newsletter - Volume – XIV No. 81 dated

12.04.2004, Pp. 1

9) Daily Shipping Times (West Zone) – Volume – XLIV No. 264, dated

27.11.2003, Pp. 27

10) Daily Shipping Times (Journal) – Multimodal Logistics 2003 learning

from global Experience Pp.88, 89.

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