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the supply chain. Logistics management is increasingly becoming a topic of interest among academicians and practitioners since it may lead to reduced operational costs, improved delivery performance and increased customer satisfaction levels. The global logistics industry is estimated to be worth USD 300 billion. Though most of the large service providers are headquartered in Europe, the biggest market is the US, which captures about one-third of the world market. The global logistics industry is characterized by high costs of operations, low margins, shortage of talent, infrastructural bottlenecks, demand from clients for investing in technology and providing one-stop solutions to all their needs, and consolidation through acquisitions, mergers and alliances. Though, in India, the industry is still in its infancy, there is immense potential for growth. The Indian logistics industry is currently plagued with low demand, poor infrastructure, high costs, government regulations etc. However, it is going to turn around on the back of robust GDP growth, globalization, FDI in logistics and increasing government support. This paper highlights the current state of the industry, including the dynamics and opportunities for growth, globally, in general, and in India, in particular, based on findings from surveys of logistics service providers, and users, of India and other countries.
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Global Logistics Industry This section gives an overview of the size of the global logistics industry and its current status and prevailing dynamics.
Size of the global logistics industry Currently the annual logistics cost of the world is about USD 3.5 trillion. For any country, the annual logistics cost varies between 9% and 20% of the GDP, the figure for the US being about 9%. US-based Armstrong & Associates, Inc. tracks the issues and trends in the world logistics market and in the US logistics market, in particular, in their annual surveys of top 25 global LSPs. According to the firm, the global logistics market sizes in 1992, 1996 and 2000 were USD 10 billion, USD 25 billion and USD 56 billion, respectively. In 2003 and 2004, the corresponding figures were USD270 billion and USD 333 billion, registering high growth rates. Though most of the large LSPs are headquartered in Europe, the US logistics market is the largest in the world capturing one-third of the world logistics market. In 2006, it was about USD 80 billion. In 2006, it grew to USD 89 billion, and in 2008, it registered an impressive growth rate of 16% to cross the USD 100 billion mark for the first time and reach USD 103.7 billion (Foster and Armstrong, 2006, 2007, 2008). However, considering the fact that the logistics market in the US is about 10% of its annual logistics cost (Foster and Armstrong, 2006), there is still immense potential for growth of 3PL in the US in particular, and in the world in general.
Current status and dynamics of the industry The extant literature on the logistics industry points to a number of issues that service providers have to address, such as pricing pressures, high costs of operations and low returns on investments, hiring and retaining talent, pressure from clients to broaden the range of service offerings and internationalize operations, demand for customized solutions and more value-added services, besides infrastructural bottlenecks and government regulations. Service providers complain that clients expect them to have the latest software, databases and ERP (Enterprise Resource Planning) packages, and invest in new technologies such as RFID and satellite-based real-time tracking systems. Clients perceive that these investments are part of the basic service package, and often do not want to match the same with increased payments for these additional services. Pressure from clients to broaden the range of service offerings and internationalize operations, has forced service providers to look for suitable alliances, mergers and acquisitions that help fill the gaps in service offerings, and industry verticals and geographic areas served, achieve economies of scale and enhance service providers‟ capability to support international operations.
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Currently, the world logistics market is going through a consolidation phase. Tibbett & Britten Group of North America was acquired by Exel Logistics in August, 2004, and Deutsche Post World Net, parent company of DHL, took over Exel in December, 2005. Bax Global was taken over by Deutsche Bahn, parent company of Schenker, in November, 2005 while A. P. Möller acquired P&O Nedlloyd in February, 2006, and TNT Logistics was sold to Apollo Management L. P. in November, 2006. However, mergers and acquisitions have their own set of problems in terms of integration of two diverse business units. Carbone and Stone (2005) tracked the evolution of 20 leading European LSPs between 1998 and 2004 in terms of their approach to mergers, acquisitions and alliances, and found that although growth led to more coverage, integration of two different cultures was one of the most difficult challenges faced by these firms in the consolidation process. Recent trends in the logistics industry indicate that to be successful, service providers have to differentiate themselves from their competitors in terms of offering valueadded services, focus on key customer accounts that have the potential to generate high profitability for a long term, enter into suitable alliances to complement the range of services offered and geographic areas served, and sell logistics services to clients‟ suppliers and customers, thus leading to complete supply chain integration.
Summer Internship Report
which translates into USD 140 billion assuming the GDP of India to be slightly over USD 1 trillion. approximately USD 1. etc. Fuel worth USD 2. High costs of operation and delays involved in compliance with varying documentation requirements of different states make the business unattractive. freight forwarders. Indian LSPs have to pay numerous other taxes. is highly fragmented. Moreover. volume and weight restrictions. Economies of scale are absent in the Indian logistics industry. However. making Indian goods more competitive in the global market. is contributed by the organized sector. who can get away without paying taxes and following operating norms stipulated in the Motor Vehicles Act such as quality of drivers and vehicles. a vehicle on Indian roads loses 24-48 hours in complying with paperwork and formalities at different check posts en route to a destination. growth in the logistics sector would imply improved service delivery and customer satisfaction leading to growth of export of Indian goods and potential for creation of job opportunities.5 Summer Internship Report Page 4 . octrois. Apart from the non-uniform tax structure. the industry is growing at a fast pace and if India can bring down its logistics cost from 14% to 9% of the GDP (level in the US). Competitive dynamics and other issues The following problems existing in the Indian logistics industry make it unattractive for investments and also create entry barriers. savings to the tune of USD 50 billion will be realized at the current GDP level. one can see that the logistics industry in India is in a nascent stage. etc. Though VAT (Value Added Tax) has been implemented since April 1. almost 99% is accounted for by the unorganized sector (such as owners of less than 5 trucks. affiliated to a broker or a transport company. small warehouse operators.5 billion.e. On an average. So. low-margin business. 2005. customs brokers. Out of this USD 140 billion logistics cost. and slightly more than 1%.Indian Logistics Industry This section gives an overview of the size of the Indian logistics industry. Existence of the differential sales tax structure also brought in diseconomies of scale. Size of the Indian logistics industry The annual logistics cost in India is estimated to be 14% of the GDP. and face multiple check posts and police harassment.). i. The problem of organized players is compounded by unfair competition with unorganized players. failure in implementation of a uniform VAT structure across different states has let the problem persist even today. Even the organized sector that contributes slightly more than 1% of the logistics cost. Logistics is a high-cost. its competitive dynamics and future prospects.
This is why freight cost is a major component of the cost of a product in India. Indian shippers expect LSPs to own quality assets. they have to book as airfreight. clients of MNCs often want to deal with a single service provider and especially for FOB (Free on Board) shipments specify the freight forwarders. Poor physical and communications infrastructure is another deterrent to attracting investments in the logistics sector. To expedite shipments. MNCs. perceived risk. which adds to the costs of shipments making them uncompetitive in international markets. because of their size and operations in many countries.500 per annum in the form of various taxes. carry 40% of the freight movement by roadways. There is lack of trust and awareness among Indian shippers with regard to outsourcing logistics. multiple check posts and documentation requirements. even pay little attention to timely payments that leave LSPs short of adequate working capital. This is sort of a non-tariff barrier imposed on Indian freight forwarders. which include the excise duty on fuel. The unwillingness to outsource logistics on part of Indian shippers may be attributed to skepticism about the possible benefits. coupled with unreliable power supply and slow banking transactions. they are unwilling to match the same with increased billings. are not able to match the same.billion is spent on waiting at check posts annually. red-tapeism and delay in government clearances. Slow movement of cargo due to bad road conditions. which adds to the costs of shipments and also delays delivery. are able to offer low freight rates and extend credit for long periods. provide more value-added services and act as an integrated service provider. Road transportation accounts for more than 60% of inland transportation of goods. and vested interests in keeping logistics activities in-house. sometimes as high as 80%). many large shipping liners avoid Indian ports for long turnaround times due to delays in loading/unloading and hence Indian exporters have to resort to transshipments at ports such as Singapore. because of their smaller size and lack of access to cheap capital. The volume of outsourcing by Indian shippers is presently very low (~ 10%) compared to the same for the developed countries (> 50%.000 pays USD 7. and institute world-class information systems for more visibility and real-time tracking of shipments. Moreover. bureaucracy. of sensitive organizational information. which most of the time happen to be the multi-national freight forwarders. A vehicle that costs USD 30. make it difficult for exporters to meet the deadlines for their international customers. and highways that constitute 1. However. congestion at seaports due to inadequate infrastructure. on the other hand.4% of the total road network. Dubai and Colombo. rather than sea freight. Indian freight forwarders face stiff competition from multi-national freight forwarders for international freight movement. Moreover. Summer Internship Report Page 5 . and losing control. Indian freight forwarders.
Service tax levied on logistics service fees (currently 12.36% with educational cess) may make outsourcing costly and outweigh the possible benefits. The major opportunities are highlighted below. packaging/labeling. it has to pay more. Summer Internship Report Page 6 . So. Unavailability and absence of a seamless flow of information among the constituents of LSPs creates a lot of uncertainty. the service provider‟s cost structure would have been transparent to the shipper and it would have ended paying the actual market rate. The inability of service providers to go beyond basic services and provide value-added services such as small repair work. there is no real time process by which a shipper may know about the availability of trucks and going rates at the destination market. To improve the status of the industry. Had the market information been available to both the shipper and the service provider. when a shipper books a LTL shipment. service providers have to move beyond the level of brokers and truckers to attract and retain talent.Low penetration of IT and lack of proper communications infrastructure also result in delays. For example. Future prospects Despite problems. Another example would be that LTL (Less than Truckload) shipments cost more than FTL (Full Truckload) shipments. shippers would like service providers to offer more valueadded services and a single-stop solution to all their logistical problems. unnecessary paperwork and delays. etc. has not been able to motivate shippers to go for outsourcing in a big way. The service provider may still convert this LTL shipment into a FTL shipment at its own warehouse before delivering at the destination. Since most of the LSPs are of relatively small size. There is lack of skilled and knowledgeable manpower in the logistics sector. and lack of visibility and real-time tracking ability. it has no idea about the status of its shipment after it leaves the warehouse at the origin and before it reaches the warehouse at the destination. Had there been visibility during delivery. Now. Therefore. this problem would not have occurred. Since the organized sector accounts for merely 1% of the annual logistics cost. they cannot provide the entire range of services. However. the shipper ends up paying LTL rates for a FTL shipment. Management graduates do not consider logistics as a prime job. customer support. At present. The Indian logistics industry is growing at 20% vis-à-vis the average world logistics industry growth of 10%. kitting/dekitting. and lack of transparency in terms of cost structures and service delivery. a shipper has to pay a higher freight rate if it cannot ensure return load. order processing. there is immense potential for growth of the sector. distribution.
It is expected that infrastructure development would boost investments in the logistics sector. mainly involved in freight forwarding. the biggest logistics company in the world. As an example. They started providing in-house logistics services. As the Indian logistics scenario looks promising. They are now realizing that customer service and delivery performance are equally important as cost to remain competitive in this global economy. These companies enjoy the advantage of already having a large asset base and an all-India distribution network. DHL Danzas. until recently. have started providing services to other corporates as well. Summer Internship Report Page 7 . probably forming wholly-owned subsidiaries or taking the acquisition route.Many large Indian corporates such as Tata and Reliance Industries have been attracted by the potential of this sector and have established logistics divisions. Examples include the golden quadrilateral project. and soon sensing the growth of the market. The Indian economy is growing at over 9% for the last couple of years (compared to the world GDP growth rate of 3%). Some large distributors have also forayed into the logistics business for their clients. Since logistics service can be provided without assets. they have tie-ups with Indian companies. For domestic transportation and warehousing. Large express cargo and courier companies such as Transport Corporation of India (TCI) and Blue Dart have also started logistics operations. and the need for building everything from scratch can thus be avoided. 100% FDI is allowed in logistics whereas in China. The benefits for the acquired company include the patronage of an MNC and access to the MNC‟s global network. east-west and north-south corridors (connecting four major metros). Indian shippers are gradually becoming more aware of the benefits of logistics outsourcing. has taken over Blue Dart. Free Trade and Warehousing Zones (FTWZ) in line with Special Economic Zones (SEZ) with 100% Foreign Direct Investment (FDI) limit and publicprivate partnerships (PPP) in infrastructure development. foreign investment was not allowed in domestic logistics. The Indian government has focused on infrastructure development. In India. these MNCs are expected to play a bigger role. Almost all large global logistics companies have their presence in India. which implies more outputs and more demand for specialized logistics services. there is growing interest among entrepreneurs to venture into this business. The latter may be the preferred route of investment since the target company is readily acquired with its asset base and distribution network.
CWC. well equipped with modern sophisticated Communication Systems. Classifications and ITC Policy matters. our founder Partner having experience in the field of Clearing and Forwarding business for around 31 Years and is assisted by retired Government officials with 30 years experience in the field of Valuation. Hence. Surveyors & other Trade Custodians and hence we would be in better position to accomplish tasks undertaken by us as well as by our network associates overseas. For almost two decades in Clearing and Forwarding business we have Established excellent rapport with officers of Customs. It is known fact that many projects have run into rough weather due to the improper handling of Technical issue at the customs level. Background SSS Sai Shipping Services Private Limited was established in May 1988 at Mumbai as a Custom House Agent [CHA] with assurance of patronage from 2-3 importers of their co-operation and a small workforce.. We have now become one of the reputed Licensed CHA‟s having more than Nineteen Branch offices at key Cities and ICDs in India and global tie-ups. The Director General – Shipping.. We offer Ocean Freight. As you may be aware that clearance through customs itself is a very specialized field. economical. excess levies by customs and save avoidable exorbitant port charges. of India has licensed us for operating as a registered MTO. Ports. Govt. Warehousing facilities with Insurance coverage at all locations. ICDs.Our Company: SSS Sai Shipping Services Pvt. can save substantially the Cost of projects by cutting down in clearance. Summer Internship Report Page 8 . STPI. Handling over 50000 TEU Import/ Export by Sea and 500 tons by Air per annum. These issues if proper handled and taken care of. CONCOR. Mr. Insurance Co‟s. realistic. our foremost focus is on what matters most to the customer – effective Custom clearance & Transportation for reliable. Ltd. specialized Customs Clearance Services for Exports and Imports to our valuable customers. Transportation. Shipping Co‟s. end to end result. Haresh A Dhakan. in addition to speedy. We have adequate work force of over 250 skilled professionals chosen from various disciplines.
Objectives & Services Provide by us to our Valuable customer:1. Procurement of Import License such as DEPB. Impeccable track record of over 20 years with Port & Customs 12. 6. Servicing honored members over 15 years consistently 15. Shipping Co‟s. Insurance Co‟s. 3. Arranging Road / Rail Transportation within India. Ports. International Trade bodies like FIATA. 7. GFN have granted their prestigious membership in recognition to our Services. 11. or United India Insurance Co. Facilities for Door-to-Door deliveries around the Globe. STPI. CWC. Major Industries & Star Export Houses Summer Internship Report Page 9 .. co.) 4. Providing best competitive Ocean / Air freight. 2. They have their own registered License: MTO/DGS/474/2005 10.e. Clientele includes various MNC. New India Ins. Surveyors & other Trade Custodians 13. 8. Customs Clearance of Import/Export cargos at all branches in India. 9. Assistance in Import / Export Procedures and guidance on Import or Export policy matter. ICDs.. 5.. 14. CONCOR. Insurance formalities with Insurance companies (i. There also around 15 “G Card holders” working for Exclusive client handling. Packing & Crafting and Warehousing facility. Excellent Rapport and Recognition with officers of Customs. SIL & Specific License.
flexible and predictable. and having rich experience of a decade in the field of EOU & STPI. Pharmaceutical products. practical and top quality logistic services that improve business solutions. which reflect on their recurring confidence to route their cargo through us. GFN have granted us their prestigious membership in recognisation to our Customer Services. Plastic. and Transportation is the right choice for a market place. Food Grain. Warehousing. With the introduction of SEZ Act 2006. Mission Statement “To provide innovative. Paper and Steel Industries.” Vision Statement “To provide all the logistic services under one roof and become the leading firm in the country with cutting edge technology so that our esteemed members feel a complete satisfaction. Import/Export clearance. vendors. Handicrafts Guar Gum. Hospitality Services. in an environment of fairness. Machineries.. Consolidation. Food subsidiary etc. Your decision to use SSS Sai Shipping Service private Limited is supported by the Technology to track your goods on a global basis and the Expertise to assure time definite delivery. SSS has expended its scope of work to providing consultancy services exclusively for SEZ Developers and Unit inside. International Trade bodies like FIATA.” Summer Internship Report Page 10 . SSS Sai Shipping Service Private Limited with local expertise and facilities including Pick Up. Chemical Industries. IT Parks. Textile and Jewellery. demanding service that is integrated. honesty and courtesy towards our clients. New & used Cars.Presently we are handling Cargos & providing our services to the Various Industries & projects viz. employees and society at large.
Preparation of Annual Returns Checking of all pre & post Documentation Staff Training in operational matters. These aspects are taken care of through close liaison with the Shipper. ensuring trouble free and quick documentation. with an assurance of a guaranteed outcome. SSS Sai Shipping Services Pvt. Preparation of Bond-cum-Legal Undertaking. to major clients in India. Apart from regular clearance work SSS provides services relating to: SEZ Notifications. Consignee. We at SSS Sai Shipping Services Pvt. Various Customs formalities. Ltd. Transport Contractors and others involved in the clearance of the consignments in the best possible manner for faster execution & total commitments. and having rich experience of a decade in the field of EOU & STPI. Custom House Agent We are one such applaud able Custom House Agents with awards & testimonials . Operating in more than 15 cities with the SOLE objective of reducing your overheads & providing expert advisory consultation on Customs procedures. Our CHA team includes trained and experienced personnel having good working relations with customs officials and well versed with the rules and regulations governing imports and exports into and out of India. duty structures and duty benefits. The clearing agency is manned by highly trained professionals who are fully conversant with latest rules and procedures of DGFT and Customs to get the maximum advantage to its customers in terms of duty benefit and faster clearance. Summer Internship Report Page 11 . are aware of the logistic requirements of clients especially. With the introduction of SEZ Act 2006. Custom & Port authorities. project and containerized cargoes etc. towards eliminating hurdles and timely delivery of the consignments. offers Custom Clearance of cargoes at all branches in India. SSS has expanded its scope of work to providing consultancy services exclusively for SEZ Developers and Unit inside. The services include taking care of all statutory and legal requirements and ensuring timely dispatch of cargoes ranging from bulk. Ltd. Shipping Agent.due to our wide experience in handling different kinds of cargoes.Clearing and Forwarding Licensed by the Government of India we are authorized Custom House Agents/ Custom Brokers. We are the best possible solution you can ask for. harmonized tariffs.
door to airport and door-to-door deliveries. staff's have an in-depth and thorough knowledge of initial project registration and customs clearance of capital goods imported for Mega Infrastructural projects.benefits the client of safe custody for his goods. Ltd. Ltd. The expertise covers wide range of cargo. Just as with ocean freight. by using a corporate method of freight consolidation to many major airports or cities worldwide. Services are customized to focus on speed and trouble free shipments to different global locations. offers most competitive rates to its Customers. Freight Forwarding SSS Sai Shipping Services Pvt. we are able to provide exceptionally low rates for airport-to-airport. Ltd. We provide a comprehensive service whether the requirement is a single parcel or a full container load for our exporters and importers. thus achieving a regular customer base. Ltd. with its wide Network in India and abroad acts as an intermediary between cargo carriers and suppliers/buyers. Our Services include: Planning Requirements Inventory management Order processing Warehouse management systems Cargo Warehousing: Adequate insured private warehousing space Warehouse space for storage of goods carted direct at these centers Safe storage of goods Control checks on entry & exit of goods Page 12 Summer Internship Report . with all latest technologies and equipments. As we handle all types of cargoes.SSS Sai Shipping Services Pvt. Warehousing facility SSS Sai Shipping Services Pvt. provides warehousing facilities at Ports. our insistence of maximum care . Since rates are negotiated for bulk cargo and retailed to individual shippers -SSS Sai Shipping Services Pvt.
in giving a total solution to the trade. Ltd. has carved out a distinct niche for itself. As you are aware. custom cleared in hinterlands to international airport. And in this highly competitive transportation industry SSS Sai Shipping Services Pvt. the need of industry today is point-to-point delivery. endorse to its fullest by : Cargo Pick up facility round the clock by own fleets of close bodied trucks. cut down valuable management time and offer great efficiency Transportation The transport sector is one of the core sectors . Transport of goods from port of discharge to hinterland destinations. Upon this sector. Ltd.Helps our clients to reduce fixed overheads. in conjunction with our overseas partners & associates. provides a full range of logistics consulting services within the logistics chain. trailers and trained personnel besides excellent warehousing facilities at various stations. We open. It is supported by a fleet of trucks. The Company is well equipped to handle all kinds of cargos booking through its network of branches spread throughout the country and enjoys a reputation for secured delivery and strict adherence to the time schedules. economy & safety counts maximum . which are based on proven methodologies that take into account the process of the business and their impact on logistical issues and profitability in the short. Sea & Air Logistics SSS Sai Shipping Services Pvt. Transportation of air cargo. literally. increase efficiency. Offer "door to door" delivery of consignments.keeping the country on the move.which SSS Sai Shipping Services Pvt. Ltd. especially road transportation plays the most demanding role on the entire growth of a nation. Summer Internship Report Page 13 . medium and longer terms.
Our organization provides project shippers with a frequency and reliability of the entire scope of services on sea and air. Ltd. Slovakia. Nagpur. Ltd. Kolkata. Delhi. SSS Sai Shipping Services Pvt. Project Cargo SSS Sai Shipping Services specializes in Project cargo. Handicrafts. Food subsidiaries. Greece. U A E. Baroda. Hospitality Services. Denmark. Spain. etc. Our integrated services include: • • • Inland haulage Honoring project time schedule Contingency planning and reporting Branches Ahmedabad. Glassware. Our logistic management services consultants have undertaken numerous projects across all types of industry and were entrusted with various major projects of diverse interest. Plastics. Sports requisites. Norway. Pipavav. Mundra. is a dynamic and successful Air & Sea Logistics company. Hospitality Services. Italy. Hyderabad. Pharmaceutical Products. New and Used Cars. Commodities Handled STPI. Jewellery and textile. Kandla. Tanzania. France. break bulk and heavy lift movements out of all major gateway ports in India. Bhopal. Paper and Steel Industries. Udaipur. Machineries. Indore. Uruguay Summer Internship Report Page 14 . Chennai. Holland. Visakhapatnam Our worldwide networks Bulgaria. Finland. which allows projects to move on formulated & contrived manner anywhere in the world. We specialize in managing the transport of major infrastructure and industrial projects to and from India. Food Grain. South Africa. Ltd. Jaipur Jodhpur. provides great flexibility and efficiency in providing services to its customers. Germany. Pune . Chemical Industries. Guar Gum. Sweden. has a Sea of experience in logistics management. Bangalore. Kota. SSS Sai Shipping Services Pvt. Poland. Saudi Arabia.SSS Sai Shipping Services Pvt. providing a high quality of service through a team of dedicated professionals. Djibouti. Medical Equipments.
We had to look after the documentation part of the exports. Nava Sheva. Our work at the company was not restricted to one department. We took part in the various other general activities of the company. we had joined as trainees in the company. Summer Internship Report Page 15 . but also worked in the finance department when it was needed. Also sometimes complete the formalities of releasing the B/L. Jodhpur and Jaipur gave us wide-ranging information about this field. CFS‟s and CONCOR‟s gave us in depth knowledge of the real working of the logistic industry.. after learning the basic procedures of import and export. We have not only worked in export. import and administrative department. Also visiting different ICD‟s. Visiting different offices at Mumbai. We have also prepared the Quality Policy as well as the Company Clients‟ presentation.Our work profile: At SSS Sai Shipping Services Pvt. But. Airoli. Ltd. we took interest in the export department.
IMPORTS India’s Scenario for Import India‟s Imports during December.9% higher than non-oil imports of US$ 11786 million in December. Non-oil imports during December. Summer Internship Report Page 16 . The trade deficit for April. Non-oil imports during April. 2008 were estimated at US $ 15544 million which was 31. 2008 was estimated at US $ 93819 million which was higher than the deficit at US $ 58981 million during April.December. 2008 were valued at US $ 4712 million which was 30.8% over the level of imports valued at US $ 18610 million in December. 2007.December. Oil imports during December.9% lower than oil imports valued at US $ 6824 million in the corresponding period last year.8% higher than the oil imports of US$ 54421 million in the corresponding period last year. 2008 were valued at US$ 78827 million which was 44.December.3% higher than the level of such imports valued at US$ 117297 million in April. 2008 were valued at US$ 146982 million which was 25.December. In Rupee terms.5% in Dollar terms and 44. 1003947 crore) as against US$ 171718 million (Rs. 2007. Oil imports during April. imports increased by 34. 2008 was US$ 225809 million (Rs. 2008 were valued at US $ 20256 million representing an increase of 8. 2007. 2007.December.8% in Rupee terms over the same period last year. Cumulative value of imports for the period April. 693445 crore) registering a growth of 31.December.2%.
Person in charge: (a) In case of vessel its master (b) in case of aircraft its commander or pilot-in – charge (c ) in case of train its conductor or guard (d) in case of vehicle or other conveyance its driver or other person in charge.The procedures for imports in India 1. 4. Bill of entry can be for home consumption or warehousing. product literature. The person in Charge is required to Submit Import General Manifest (IGM). packing list. 7. if clearance for home consumption and to execute bond if clearance for warehousing. He is responsible for submitting IGM 13. 14. 10. Import general manifest (IGM): The person in charge have to submit IGM. 6.charge: 12. grant entry inward after entry inward is granted goods can be unloaded from the cargo. 5. He has to ensure the goods are unloaded after entry inward is granted. Examination of goods and assessment by custom officer (first appraisement) or assessment of goods on the basis of documents (second appraisement). 8. Summer Internship Report Page 17 . import license. He is responsible for ensure that good comes through approved route and land at approved places only. Custom authorities check the documents. Importer has to submit bill of entry giving details of goods to be declared to customs. Significance of person in person –in. Customer officer to approve assessment (valuation of goods) on the bill of entry and return to importer. Noting of bill entry by custom officer. Importer ha to pay duty. 11. 3. Importer to submit other documents like Invoices. In case of vessel or air craft it has to submit before arrival and in case of vehicle it has to submit within 12 hours of arrival. 15. contracts. 2. 9.
the date on which bill is presented. Importer may like to store the goods in a warehouse without payment of duty under bond and then clear the goods from the warehouse on payment of duty. 17. In case of warehouse goods. In case of bill of entry is entered for home consumption. Noting of bill of entry: Bill of entry submitted by importer is cross checked with import manifest submitted by person-in-charge. Bill of entry ex-bond clearance: This is used for clearance from the warehouse on payment of dut0y. Bill of Entry for warehousing: If the Imported goods are not required immediately. Bill of entry can be of three types: Bill of entry for Home Consumption: is used when the goods are cleared on payment of full duty for use within India. the same is noted by custom duty.16. Summer Internship Report Page 18 . Relevant Date for rate and valuation of Import duty. Bill of entry contains details of goods exported. when the bill of entry for consumption is presented for clearance from warehouse Bill of Entry: Bill of entry is very vital and important document which every importer has to submit to custom officer in respect of imported goods. if the description tallies.
A similar contraction was seen for six months at a go between July and December 2001.8 billion a year ago.7 billion last year.7 billion or by 33.9 billion.7 billion in April 2009 from $ 24. exports slipped by over 33 per cent. In March too.1 billion in the same month last year due to the global economic downturn. making performances in these two months the worst in 14 years. trade deficit declined to $ 5 billion from $ 8. The period of unprecedented export dip since October 2008 is one of the longest in India‟s trade history. While Commerce Ministry expects flat growth in exports during 2009- Summer Internship Report Page 19 . The government‟s target is to make sure that at least we have flat growth in exports in 2009-10. Exports for May 2009 dip by 30 % According to the initial estimates available with the Ministry of commerce. which is an annual dip of 30 per cent. According to the Union Commerce Ministry.7 billion.3 per cent expansion seen in May 2008. In 2008-09 exports expanded by 3.6 per cent to $ 12 billion. As inventories with foreign buyers get exhausted. the lowest since 2000-01 and stood at $ 168. As the export figures started declining after September 2008.2 per cent contraction seen in the previous month. overseas sales of Indian goods (exports) have contracted for the eighth month running during May 2009 and stood at nearly $ 10. the decline in exports would continue till September. The steep fall in import was on account of over 50 per cent drop in oil import bill during the month under review.6 per cent to $ 15.4 per cent. but far worse than the 27. the year-onyear growth figure from September 2009 could show some upward movement because of the low base. Slowdown has depressed India‟s appetite for imports.EXPORTS India’s Scenario for Export The country‟s exports fell to $ 10. exports dipped for the seventh month in a row. The latest numbers are a notch better than the 33.2 per cent in April 2009 from $ 16. Oil imported contracted by 59 per cent to $ 3.6 billion while non-oil inbound shipments dropped by 24. As imports too fell steeply by 36. exporters have begun getting orders. In April 2009.
7 33.9 99. does not have a „tantalization‟ agreement.4 153.4 35.8 billion in 2003-04 to US $ 162. The BPO industry will see sustainable growth over the next two years.3 %Growth -30. but do not they get benefits since India and the U.) Exports 63. Exports likely to reach $60-62 billion by 2010-11.4% during the last four years.8 24. Growth in the Merchandise Export Though India‟s export have gone down but the India‟s merchandise exports increased from US $ 63. next month to hold talks with the new administration there.3 162.1 111. Handloom.S.6 251. Nasscom will also raise the „tantalization‟ issue to avoid double taxation on income in the U.8 23.5 103. Sectors with significant export prospects coupled with potential for employment generation in semi-urban and rural areas have been identified as thrust sectors and specific sectoral strategies have been prepared. (Values in US $ billions) Year 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2007-08(AprNov. Gems and Jewellery and Leather and Footwear sectors. Summer Internship Report Page 20 . think-tanks and corporates to convince them of the benefits of outsourcing and immigration issues.10. top politicians.0 Imports 78.5 29. Mittal added.1 203.1 126.8 83. Mr. the industry will continue to grow despite global slowdown. Meanwhile.4 22.S.6 %Growth -42.3 lakh direct and 80 lakh indirect jobs.S. Special Focus initiatives have been prepared for Agriculture.5 19.2 185. Handicrafts.) 2008-09(AprNov.9 billion in 2007-08 recording average annual growth rate of 26. a high-level Nasscom team will be on a five-day visit to the U. giving 22. The IT and BPO industry would generate new jobs.5 149. “Due to strong fundamentals and other derivatives of value to customers.4 33 A number of initiatives were taken to meet the objectives as well as the strategies that had been announced in the 5 year Foreign Trade Policy. Indians with H1B or L1 visas contribute significantly to the US social security schemes every year. exporters claim that they can manage $ 200 billion worth of exports if the government supports them with incentives in the Budget and foreign trade policy.9 119.
(9) Import duty on naphtha for power sector eliminated. (4) All items of handicrafts included in Vishesh Krishi and Gram Udyog Yojana. to the following labor intensive sectors for exports: Textiles (including Handlooms).Some of the major initiatives are shown below: (1) Excise duty reduced across the board by 4% for all products except petroleum products and those products where current rate was less than 4%. Services Export Promotion Council and Telecom Equipment Manufacturers Association of India EPC. Indian Oil Seeds and Produce Exporters Association. handicrafts. (6) Rs1.2009. Summer Internship Report Page 21 . Electronics and Computer Software EPC. (8) Export duty on iron ore fines eliminated. Leather. (7) Additional funds of Rs. . etc. (10) Some pending issues relating to Service Tax refund on exports – resolved. (2) Interest subvention of 2% has been provided till 31.350 crore provided for export incentive Schemes. (3) Additional funds of Rs. Gems & Jewellery.100 crore provided to ensure full refund of claims of CST/Terminal Excise duty/ Duty drawback on deemed exports. (15) Reduction in customs duty under EPCG scheme from 5% to 3%.3. handloom. 2000 Crores. leather and footwear. (12) Introduction of Focus Product and Focus Market Schemes with a total incentive package exceeding Rs. (16)Extension of Export Obligation period under EPCG scheme for cottage and tiny sector from 8 years to 12 years. (14) Giving Export Promotion Council status to Khadi & Village Industries Commission as well as setting up of new Export Promotion Councils namely. reduced to 5%. (13) Duty free import upto 5% for sectors like gems and jewellery. (5) Back-up guarantee to ECGC for up to Rs. (11) Introduction of a scheme for incentivising agro processing units. Marine Products and SMEs.350 crore.1400 crore provided for textile sector to clear the backlog claims of TUF. Handicrafts. and for lumps.
It gets empty at the yard. You‟ll get the BL from the shipping line. Custom will give shipping bill no. 3rd (in case of DEPB or Drawback) will be given to the government for the exemption government. (20)Allowing payment of interest on delayed payments of Terminal Excise Duty and Central Sales Tax. under DEPB 6 copies. (19)Introduction of a single set of common forms called „Aayaat Niryaat‟ Forms. Assessment of invoice n shipping bill by the custom superintendent. CHA will make shipping bill [For goods under free goods 5 copies. Container booking either through CHA or direct shipping company. Inspection of the goods. Payment of the transport charges. Goods leave the country. 4th copy will be with the CHA. 5th/6th TR (transfer copy with the driver who‟s carrying the goods). Packing of the cover to be sent with the driver.LET EXPORT. We‟ll receive the TR copy + EGM (export general manifesto) by the shipping sail. Summer Internship Report Page 22 . The procedure for Export in India Preparation of Invoice by the Exporter. The Invoice & the Packing List to the CHA. Custom will give custom security no.(17)Extension of DEPB scheme till 31st December 2009 (18)Extension of IT exemption for 100% EOUs till 31st March. 2nd copy will be given to custom for export proof. Preparing the Packing list. Seal (both the seals). Reach the port. under ex-bond-(Export oriended units) 5 copies] (1st original copy will be given to the custom after CS No. 2010. Signature of the superintendent . under Draw back 6 copies.
The cover sent with the driver can only be opened by the consignee. Bangladesh) Summer Internship Report Page 23 . (To Nepal.Note: There are 2 seals on the container 1st of the ICD or the Exporter(if he has the authority) 2nd of the Shipping Line The 1st seal will be cut at the docks before putting the container in the ship. IGM (import general manifest) Bill of Export will be filed instead of Shipping bill when we are exporting by the road.
IE code. Summer Internship Report Page 24 .The details in the documents given by the Exporter i. Invoice & Packing List are as follows:- INVOICE Invoice no. Port and Shipment) Description of goods. Payment.. total gross and net weight. Port of Lading & Discharge &Destination Terms of delivery n Payment (Price Type. Exporter‟s detail. amt. Vessel / Flight No. RBI Code. PAN no. Buyer (if any). Port and Shipment) Description of goods. Payment. quantity. Port of Lading & Discharge &Destination. RBI Code. packing & forwarding charges n total invoice amt. Terms of delivery n Payment (Price Type. quantity. Consignee (Importer). size. PAN no. rate. weight.e. IE code. Exporter‟ detail Consignee (Importer) Buyer (if any) Vessel / Flight No. PACKING LIST Invoice no.
Special Economic Zones Act. Direct taxes 100% income-tax deduction allowed to the Developer under section 80-IAB of the Income-tax Act. 1961 for any consecutive 10-years out of first 15-years from the date of notification of the SEZ. The objective of the SEZ Policy included making available goods and services free of taxes and duties supported by integrated infrastructure for export production. Government of India announced the SEZ policy in April 2000. (c) Promotion of investment from domestic and foreign sources. the Government had experienced various shortcomings on account of the multiplicity of controls and clearances. absence of world class infrastructure.Special Economic Zone (SEZ) Special Economic Zones Special Economic Zone is a Zone which is physically delineated from domestic tariff area and considered as foreign territory for the purpose of duties and taxes India was the first in Asia region to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports. expeditious and single window approval mechanism and a package of incentive to attract foreign and domestic investment for promoting export-led growth. Over the period of time. Effective from 10th February. (b) Promotion of exports of goods and services. 2005 and Special Economic Zones Rules. (d) Creation of employment opportunities. with Asia‟s first EPZ set up in Kandla. With a view to provide an internationally competitive environment for exports. 2006 have put in place a dynamic piece of legislation with multifold objectives of – (a) Generation of additional economic activity. Exemption from minimum alternate tax under section 115JB of the Income-tax Act. 1961. and unstable fiscal regime. 2006. and (e) Development of infrastructure facilities Major incentives to SEZ Developers A. Summer Internship Report Page 25 .
Authorized to provide and maintain services. Transmission and Distribution of power in SEZ allowed. 1961 for the first 5-years.. 100% income tax exemption under section 10AA of the Income-tax Act. C. Exemption from Central Sales Tax (CST). D. 50% for the next 5-years and thereafter 50% of the ploughed back export profits for next 5-years. Exemption from Service Tax. being a domestic company. FEMA/FDI 100% Foreign Direct Investment permitted for setting up of Special Economic Zone with the approval of Board. B. Miscellaneous Generation. Direct taxes 15-years tax holiday in a phased manner subject to certain conditions. Indirect Taxes Duty free import/domestic procurement of goods for development. restaurants and recreation centers on commercial basis. Incentive to the SEZ Units A. Summer Internship Report Page 26 . The dividend referred to in section 115-O shall not be included in the total income of the assessee. electricity. security. being a Developer or an Entrepreneur. Exemption from dividend distribution tax under section 115-O of the Income-tax Act to the Developer. distributed or paid by an enterprise by way of dividend (interim or otherwise) on or after 1-4-2005 and out of its current income. operation and maintenance of SEZs. No tax on any amount declared. water. Full freedom in allocation of space and built-up area to approved SEZ Units on commercial basis. viz.
for implementation of their project in the SEZ without any license. DG sets. explosive and allied items of defense equipment. External Commercial Borrowing (ECB) by SEZ units up to US $ 500 million in a year under Automatic Route without any maturity restriction through recognized banking channels. Freedom to make overseas investment from such foreign currency account. office equipment. Automatic substances. Free to bring in export proceeds without any time limit. Sectoral norms as notified by the Government shall apply to the foreign investment in services. and Cigarettes/cigars and manufactured tobacco substitutes. B. Exemption from Service Tax C. defense aircraft and warship. raw materials. Indirect taxes Duty free import/procurement from domestic sources all their requirement of capital goods. Exemption from interest rate surcharge on import finance. Distillation and brewing of alcoholic drinks. except for the following activities. FEMA/FDI 100% FDI allowed through automatic route for all manufacturing activities in the Special Economic Zone. Units allowed to write-off unrealized export bills Summer Internship Report Page 27 . 1961. Exemption from minimum alternate tax under section 115JB of the Income-tax Act. The cases not covered by automatic route shall be considered and approved by the Board. Arms and ammunition. Flexibility to keep 100% of export proceeds in foreign currency account. Exemption from Central Sales Tax (CST). Narcotics and psychotropic substances and hazardous chemicals.
both at the Central and the State level. with the minimum possible regulation.2006 under the provision of the Foreign Trade Policy and fiscal incentives were made effective through the provision of relative statutes.2000 to 09. Summer Internship Report Page 28 . With the view to overcome the shortcomings experienced on account of the multiplicity of control and clearances. It is. Exports from SEZs during the year 2007-08 was to the tune of Rs. Engineering etc.India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone(EPZ) model in promoting exports. Out of the 531 formal approvals given till date.11.93507. which would involve labour intensive manufacturing. Trade & Service.66.638 Crores in 2007 – 08.SEZs have created employment for large number of unemployed rural youth. 174 approvals are for sector specific and multi product SEZs for manufacture of Textiles & Apparels. Exports from SEZ had registered an extraordinary growth rate of 92% in 2007 – 08 while it was 52% in the previous year 2006 – 07. 638 crore with a growth of 92% over 2006-07 (overall growth of exports of 381% over past four years. This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package.23 crore and the total employment generated so far to 3. were Rs. expected that establishment of SEZs would lead to fast growth of labour intensive manufacturing and services in the country. The major share of SEZs exports are Gems & Jewellery.615 Crores to Rs 66. Automobile components.02. absence of world class infrastructure. therefore. Even in the services sector. the SEZ policy was announced in 2000. and an unstable fiscal regime and with a view to attract larger foreign investments in India.5 million sq meters space is expected in the IT/ITES SEZs which as per the NASSCOM standards translates into 12. with Asia‟s first EPZ set up in Kandla in 1965. The total investment in the SEZs. SEZs in India functioned from 1. The exports has grown from Rs 34. 12.62. Computer/Electronic Software and Hardware sector.5 lakh jobs.650 persons. Leather Footwear. as on 30th September 2008.
71 886. tobacco had minimal share in the total exports.79 46. footwear and sports goods Summer Internship Report State Govt/Pvt SEZs 2663.32 518.45 3985.98 1069.38 1408.615 66.33 302. Trade & Service.05 30.15 333.45 275.64 3399.87 7025.23 Page 29 .02 354. etc.24 6313.34 421.26 11121.66 237.71 1651. Engineering. SEZs Biotech Computer/ Electronic software Electronics hardware Electronics Engineering Gems and Jewellery Chemicals & Pharmaceuticals Handicrafts Plastic and rubber Leather.23 Total 159. Chemicals.854 18. Some of the like Ceramics.49 1046. and these sectors share was 17. Sector wise breakup of Physical Exports from SEZ Govt.Growth of SEZ over the years Year Value (Rs.5% out of the total exports.638 Growth Rate ( over previous year ) 39% 32% 25% 52% 92% 2003-2004 2004-2005 2005-2006 2006-07 2007-08 SECTOR GROWTH: Gem & Jewellery. 159.5%.33 657.33 30. Crore) 13. Its share was 82.68 23006. The other is Textile.53 518.81 15979.69 SEZs notified under SEZ Act.314 22 840 34.45 343 0.93 20.06 1423.97 190. Computer/Electronic Software & Hardware are the major share of the SEZs.
58 126. MAW(Master Airway Copy) or MBL(Master Bill of Lading). etc 2.48 849.59 5194. Making the Bill Of Entry and registering it 3. 01. for passing purpose from Custom Officers 4. Escorting and Examination report is taken on the site.22 1135.58 126.16 8.Ceramics Food and Agro Industry Non-conventional Energy Trading and service Textiles and garments Tobacco related products Misc Total 24 645.31 6793.69 9. at the time of delivery Various Schemes under SEZ are: ARE Bill of Export o DEPB(Duty Entitlement Pass Book) o AAS(Advance Authorization Scheme) o EPCG(Export Promoting Capital Goods) Imports DTA(Domestic Tariff Area) Sale Zone to Zone Summer Internship Report Page 30 .51 24 645. Inform the concerned party for delivery into SEZ 5.531 persons Total investment in SEZs as of 31.97 1316.23 22167.98 103.235 persons Total incremental employment generated in SEZs since Feb 2006: 2.5 314.76 Total employment in SEZs: 3. 77210 Crores The procedure for Procedure in India 1.75 101.12. 36. Collecting documents such as Invoice.48 66637.68 79. Packing List.01 14073. Forward all the collected documents with the Bill of entry and send it to the concerned SEZ.01 20866.2008: Rs.85 431.66 39275.61 18.
It has access to neighboring Mumbai and to the hinterland of Madhya Pradesh. Currently it is managed under a Build-Operate-Transfer agreement set up with the Jawaharlal Nehru Port Trust (JNPT) of the Government of India. the need for expeditious clearance of goods at the port within the minimum possible time has been gaining importance. It is located south east of Mumbai The role of Container Freight Stations (CFS):CFS is a place where containers are stuffed. This is more so when the ports are facing congestion at their premises. plastics. The main goods exported are cotton shirts. vegetable oils and aluminum and other non-ferrous metals. reexport. A CFS is an extended arm of Port/ ICD/ Air cargo Complex. where import/ export goods are kept till completion of their examination and clearance. sporting goods. machinery. With the growing volume of international trade. for optimal utilization of existing infrastructure. Nava Sheva Nhava Sheva (also called Jawaharlal Nehru Port) is the largest port in India. other textile articles like embroidery machines and etc.. handling close to 50% of the country's port traffic. The port was developed to relieve pressure of the port of Bombay (Mumbai) in Bombay proper and has three terminals: JNPCT. Karnataka and most of North India. The main imports are chemicals. Further. Accordingly the concept of Container Freight Stations (CFS) has grown in importance along with the development and growth of ports. The imported goods can be immediately shifted from the port to CFS which also helps in the reduction of port congestion. Gujarat. de-stuffed and aggregation/ segregation of export/import cargo take place. Summer Internship Report Page 31 . NSICT is India‟s first privately managed container terminal. temporary admissions. temporary storage for onward transit and outright export and transhipments take place from such stations. goods that are landed at ports need to be evacuated straight away without any loss of time. warehousing. knitted t-shirts. electrical machinery. and medicaments. Therefore.Our Visits: Mumbai o JNPT. carpets. equipment. All the activities related to clearance of goods for home consumption. NSICT and GTI (Gateway Terminal of India). boneless meat. space. It is run by Dubai Ports World. Maharashtra. clearance of goods from CFS is an important point of consideration for trade in respect of export/ import Cargo as it is the final Customs contact point.
he was the person incharge of the Customs of the Serene Properties Pvt Ltd. We have been to the following CFS‟s: Dronagiri. and was the employee of SSS Sai Shipping Services Pvt Ltd. and we are the Custom House Agent of the Raheja Builders who is the developer so it was decided that it the time the Custom Office is not properly build the custom work will be done by our company. In Serene Properties Pvt Ltd. SEEPZ and Hirananadani SEZ. ULA and TransIndia. there is only one full fledged working unit i. the SEZ is very strategically located as it is near to the highway and opposite to the railway station. GDL. ITES SEZ i. Even talks are going on with Wipro who are interested in taking two building. Serene Properties Pvt Ltd and Hirananadani SEZ are specialized IT. Summer Internship Report Page 32 . from him we understood the working of the Customs and the documentation for the Exports and the Imports and the working of the SEZs in India.e Cap Gemini. Serene Properties Pvt Ltd is developed in 50 acres of land in Airoli. There are many other companies who have booked their units. This SEZ is under development from last one and a half year.e for Computer/Electronic Software and Hardware sector and SEEPZ is a multipurpose SEZ. Serene Properties Pvt Ltd is very well developed SEZ with all the required facilities for the units starting from 24hrs electricity to parking and club house. Serene Properties Pvt Ltd: Serene Properties Pvt Ltd or Airoli Special Economic Zone (SEZ) is Constructed or developed by the Raheja Builders.e SSS Sai Shipping Services Pvt Ltd. Serene Properties Pvt Ltd is not completely developed so there is no proper custom house in the SEZ. The required Custom assessment is done by the Custom Officers of SEEPZ SEZ. It is the 3rd working SEZ other than. MAERKS. we met Mr Anil. all the custom work is taken care by our company i.
Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers. rail transport could be the cheaper option for all cargo over medium and long distances. We had a chat with one of the officers in charge over there. From its humble beginning. Given the continental distances in India (almost 3000 km from North to South and East to West). Also we learnt that since the Laloo Prasad government has allowed around 12 private players in this line. especially if the cost of inter-modal transfers could be reduced. It has currently started double stack container (DSC) train which can carry 180 TEU (20-foot equivalent unit) From the Jodhpur CONCOR. also managed by the Indian Railways. before this. it was in 1981 that the first ISO container was moved inland by the Indian Railways to India's first Inland Container Depot (ICD) at Bangalore. Though the first ISO marine container had been handled in India at Cochin as early as 1973. most of the export goods are sent either to Mundra or to Nava Sheva. Visiting the CONCOR was a different experience on the whole. it is now an undisputed market leader having the largest network of 59 ICDs/CFSs in India. Summer Internship Report Page 33 . It had its monopoly in this field. It was this idea that saw the Indian Railways entering the market for moving door-to-door domestic cargo in special DSO containers starting in 1966. We got to know the basic working of CONCOR.Jodhpur Concor (The multimodal logistics professionals) Container Corporation of India Limited was incorporated in March 1988 under the Companies Act. Containerized multi-modal door-to-door transport provided the ideal solution to this problem. Most of the goods include heavy materials like wooden handicrafts and guar gum. and commenced operation from November 1989 taking over the existing network of 59 ICDs from the Indian Railways Indian Railway's strategic initiative to containerize cargo transport put India on the multi-modal map for the first time in 1966. a strong view had emerged that there was a need to set up a separate pro-active organization for promoting and managing the growth of containerization in India. and along the way. CONCOR faces competition from them.
Such ICD‟s are maintained by the central or the state government. Over here the work procedure also is slower than the private one. Then the container (in case of FCL) or the truck (in case of LCL) is allowed inside the ICD. ICD) The Thar Dry Port is owned by Hasti Petro Chemical and Shipping Limited (HPCSL). How first we have to complete all the document work at the custom office (located inside the ICD itself). It is yet to have the IDE system. Pioneering to be 1st privatized ICD. Govt. Thar Dry port is one of its kinds in offering the ICD servicing.Inland Container Depots (ICD) Inland Container Depots (ICDs) are facilities located inland or remote from port(s) which offer services for handling. Summer Internship Report Page 34 . Then it‟s checked and the goods are stored inside the container for further transport. it plans to expand its service stream from single operational location at Jodhpur to multiple strategic locations through global network. catering to the movement of the EXIM and domestic containerized cargo across the country Thar dry port (Pvt. It will have one in the next 5-6 months. shipping lines). This one in comparison to the private ICD at THAR was a small one. ICD We also visited one government ICD at Jodhpur. Over here we saw the complete procedure from the start to the end. This ICD is the first fully computerized one. temporary storage and customs clearance of containers and general cargo that enters or leaves the ICD in containers Their primary purpose is to allow the benefits of containerization to be realized on the inland transport leg of international cargo movements The company is planning to add more rail linked ICDs at various strategic locations. then complete the formalities at the entry gate. apart from developing a national network of CFSs and ICDs. for providing on-hand information generated from the software to our clients (exporters/importers. the company which is recognized through its well established chain of ICDs.
china wood. Summer Internship Report Page 35 . While Jodhpur CONCOR concentrates mainly on exports. etc. the Jaipur CONCOR handles both the imports and the exports.Jaipur Concor The Jaipur CONCOR is a much bigger in size and operation than its Jodhpur counterpart. Imports here include scrap. Exports here include handicrafts. guar gum. etc.
skilled logistics professionals and integration of supply chains. we need to broaden the range of their service offerings. The survey also established relationships among a set of performance metrics and key success factors to identify significant predictor and criterion variables. We may focus on key customer accounts gradually moving away from accounts generating low. They also need to make their cost structures transparent. north-south corridors connecting all four metros Summer Internship Report Page 36 . streamline supply chains. the survey identified significant gaps between expectations and actual achievements of LSPs with respect to internationalization of operations. recruiting. and differentiated. Attracting. logistics managers of user firms need to realize that. The findings of the survey may provide a useful guideline to logistics managers for allocation of scarce resources. The organizational interests should be put above vested interests. motivating and retaining management talent are also a great challenge that logistics managers need to take on. One of the most important observations was that collaborative relationships with clients and investments in assets are necessary but not sufficient conditions for success in logistics. and convince clients to foot the bill towards investments in quality assets and new technologies such as RFID and GPS (Global Positioning System) leading to improved. availability of skilled logistics professionals. As far as the Indian logistics industry is concerned. customer focus and breadth of service offerings as the most important factors for success as a LSP. who will maintain confidentiality of sensitive client information. However. training. low-margin business. pose the challenge of integration of diverse cultures. integration of supply chains. Highway projects such as golden quadrilateral and east-west. profitability. internationalize operations and cover as many industry verticals as possible. In order to become a single point of contact for clients. which. however.CONCLUSION Logistics business indicate that in this highly competitive and high-cost. industry focus or specialization. reduce costs and improve service delivery. outsourcing part or all of their logistical activities to experienced LSPs will help reduce their overheads. but market the differentiating factors of their services appropriately to the clients. investment in information systems. if any. The Indian government should also focus on developing infrastructure and encourage public-private partnerships in investments in infrastructure. which should be seriously looked into by managers. delivery of service. They need to realize that organized LSPs are professionals. small-to-mediumsized companies that seem to have high growth potential should not be ignored in the process. I found out that we have to not only focus on differentiating the services rendered by their companies. even negative. Since clients usually prefer a singlepoint solution to all their logistical problems. logistics companies may pursue acquisitions or alliances. However. We found that logistics managers perceived internationalization of operations. with supply chains getting more and more complex.
workshops. The government may create logistics SEZs (Special Economic Zones) or logistics hubs with concessions in land and tax rates. Growth of the logistics industry in India will not only contribute to the GDP. which was a monopoly of Container Corporation of India Limited (CONCOR). until recently. Incentive schemes may also be extended for construction of modern automated warehouses and cold chains. Private investments in inland containerized transportation by railroad. 100% FDI is also allowed in Free Trade and Warehousing Zones (FTWZ) to create necessary trade-related infrastructure to facilitate import and export of goods and services. a subsidiary of Indian Railways. which would lead to speedier delivery of cargo. have been allowed. service providers and government under one roof. and also sponsor courses in leading Indian institutes to attract talent.are already underway. but also generate employment Summer Internship Report Page 37 . exhibitions and meetings to bring in representatives of logistics users. The government may create a uniform tax structure and do away with multiple check points and documentation requirements. enabling them to extend longer credit periods to their clients and supplementing their working capital. To generate awareness. Access to cheap capital should be made available to LSPs for investments in infrastructure. the government may organize seminars.
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