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“Importance of ICDs and future of Freight Stations in

India”
A course report submitted in partial fulfilment of the requirement for

Master of Business Administration (Logistics and Supply Chain


Management) November 2022

Submitted To:

Mr. Pradeep Chauhan

Professor, LSCM, SoB

University of Petroleum and

Energy Studies, Dehradun

Submitted By:

Archit Dhasmana

Ashish Aima

Iti Gaur

Yashovardhan Singh

MBA Logistics and Supply Chain Management, 2021-20223 School of


Business, UPES, Dehradun

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Table of Contents

S. No. Title Page


No.
1 Chapter 1 - Introduction 3

2 Chapter 2- Literature Review 5

3 Chapter 3- Functions of ICDs 6

4 Chapter 4- Future Perspective of ICD 12

5 Chapter 5- Container Freight Station 13

6 Chapter 6- Research Methodology 19

7 Chapter 7- Data Analysis and Findings 22

8 Chapter 8- Challenges 24

9 Chapter 9- Conclusion 26

10 Chapter 10- Refrences 27

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Chapter-1 Introduction

An Inland Container Depot functions as stop-gap location in the hinterland for cargo to
either be stored in between transit or to get ready for transit. It is also used for loading
and unloading of goods.

Inland Container Depots (ICDs) and Container Freight Stations (CFSs) are also called
dry ports as they handle all customs formalities related to the import and export of
goods at these locations. In a multi-modal transport logistics system, ICDs and CFS act
as hubs in the logistics chain. According to Ministry of Commerce and Industry
(MoCI) guidelines, an Inland Container Depot (ICD)/Container Freight Station (CFS)
may be defined as a common user facility with public authority status equipped with
fixed installations and offering services for handling and temporary storage of
import/export laden and empty containers carried under Customs control and with
Customs and other agencies competent to clear goods for home use, warehousing,
temporary admissions, re-export, temporary storage for onward transit and outright
export. Transshipment of cargo can also take place from such stations.

An Inland Container Depot (ICD) is a container storage facility situated in the


hinterlands, away from any major port. Shipping companies use ICDs to store and
move shipping containers before and after transporting them to the seaport.

As they are located away from the sea or any major river routes, Inland Container
Depots are also sometimes referred to as ‘Dry Ports.’

1.1 Importance of ICD

At an ICD, the sea custodians, freight forwarders, customs brokers as well as officials


from the customs department provide their services to the importers and the exporters.
They process their shipment near their godowns and factories, away from the far-off
ports. ICDs help de-stressing and decongest the ports where the storage spaces are
limited due to the land’s judicial use.

According to the data maintained by the Department of Commerce (DoC), there were
129 ICDs in the country as of March 2017. According to the data provided by CBEC
(now CBIC), there were 80 active ICDs in the country. These include the ICDs set up

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before the DoC was made the Nodal agency for setting up of ICDs in 1992. As per the
CBEC data on active ICDs, the state-wise distribution indicates that Maharashtra
region has the maximum number of ICDs (13), followed by Uttar Pradesh (11), Tamil
Nadu (10), Haryana (9) and Gujarat (8).Delhi has the largest ICD in India, namely ICD
Tughlakabad. There are no ICDs in the northernmost state of Jammu &Kashmir and
there is only one ICD at Amingaon, Assam which caters to the entire northeast.

In terms of volume of transactions, (Bills of Entry for Imports and Shipping Bills for
Exports), the highest volume of trade through ICDs was generated in Delhi (22per
cent),Uttar Pradesh (16 per cent), Tamil Nadu (14 per cent), Karnataka (10 per cent),
Gujarat (8.5per cent) and Maharashtra (7per cent). These six states together accounted
for 78per cent of India’s total ICD transaction volumes.

Source: ICD transaction data from 2012-13 to 2016-17 for 80 functional ICDs received from DG
(Systems), CBEC.

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Chapter-2 LITERATURE REVIEW

S.No. Title & Author Year Description

1. Inland container Depot complete process, 2021


This Report concludes the role of
Avani Ghangurde
Inland container depot and its
fundamental process process.

2. How ICDs work and its need for functional 2021 This artcle tells us about the work
and efficient ICD, all cargo solutions of ICDS and its requirements and
advantages.

3. CFS and its purpose, benefits,Rick LaGore 2019 This paper tells us about the basics
of container freight stations and its
purpose and benefits in shipments.

4. Role of CFS in International 2016 This paper concludes the idea of


Business,B.Abirami,B. Gayathri international business regarding
CFS, the impact.

5. Impact DPD and its challenges,Dr.S.Vasantha 2016 This paper tells us about the After
, Dr.M.Bhuvana implementing direct port delivery
system importers are benefited in
turn it also reduces the import
operations as container freight
station operations are eliminated.

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Chapter-3 Functions of ICD (Inland Container Depot)

As Inland Container Depots act as makeshift warehousing storage for twenty-feet-

 ICDs are physical facilities that store the containers temporarily before they are
moved to the port and loaded on the ships. Exporters can also place their cargo
inside the containers at an ICD.

 Along with being a storage facility, ICDs can also provide export and import
customs clearances. All the services that are provided at a port, can also be
availed at the ICD situated far away from the port.

 ICDs also act as servicing and repair facilities for containers and other moving
equipment.

Functions of ICDs and CFSs The primary functions of ICDs or CFS may be summed
up as under:

 Receipt and dispatch/delivery of cargo.


 Stuffing and stripping of containers.
 Transit operations by rail/road to and from serving ports.
 Customs clearance.
 Consolidation and desegregation of LCL cargo.
 Temporary storage of cargo and containers
 Maintenance and repair of container units.

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Difference between Container Freight Station (CFS) and Inland Container Depot
(ICD)

Although ICD and CFS fulfil many of the same functions, they are two distinct entities.
A shipping container freight station is located near a seaport and primarily consolidates
and segregates goods. CFS mostly handles LCL shipments, which need consolidation
services. CFS was established to decongest ports and free up the precious physical area
near the sea.

ICDs are positioned distant from ports and connect them to the hinterlands. All
customs-related services offered at ports, as well as cargo consolidation and storage,
are also available at ICDs.

3.1 How does an Inland Container Depot (ICD) work?


While shipping services play an important role in driving the logistics industry and
facilitating global trade, ancillary infrastructure such as Inland Container Depots have
an important role to play in facilitating the entire shipping process.

An Inland Container Depot is a physical location near the ports. It might also be in the
countryside. Customers may temporarily store containers, freight, empty or full until

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they are ready for transfer. Typically, such facilities have all of the necessary
documentation and approval to store goods. Apart from this, they also perform
functions such as:

 Receiving and dispatching cargo

 Customs And document clearance

 Temporary storage of cargo

 Servicing and Repair facilities of containers         

Need for functional and efficient Inland Container Depots

An Inland Container Depot functions as stop-gap location in the hinterland for cargo to


either be stored in between transit or to get ready for transit. It is also used for loading
and unloading of goods.

The COVID-19 pandemic has certainly impacted trade, along with export and import.
But as the world slowly limps back to normalcy and learns to cope with the new
normal, trade activities are slowly improving. In turn, this requires Inland Container
Depots that run smoothly and efficiently. Some of the advantages that this offers
include:

  Destressing the Ports

Inland Container Depots are beneficial because they relieve tension and pressure on
ports by decongesting them. Imports and exports are increasing as global markets
gradually recover from the epidemic. This is projected to raise the demand on ports
across the world. Having access to high-quality facilities for global economic activities
would assist relieve port tension.

 Add-on Services

Apart from being a storage container, the additional services that an inland container
depot provides are many. They are helpful for businesses since they do not have to

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worry about warehouses, transit, and repair services for containers. The biggest boon
they offer is safety and security of the cargo.

 Along with this, they also provide trans-shipment services. The Inland Container
Depot also helps clear customs and the related documentation.

 Infrastructure Support

One of the most significant benefits of having a strong network of Inland Container
Depots is that they not only assist the country's rising import and export operations, but
also serve as an accessible resource that helps to the country's economic growth. They
serve as port feeder infrastructure. They allow for more efficient and smooth flow of
products.

 Lower Costs

As Inland Container Depots serve as hinterland facilities, and they are also equipped to
provide a whole range of other services. This allows for competitive rates since these
Inland Container Depots allow for overheads to be reduced for businesses, by
providing warehousing and transit services.

Apart from this, Inland Container Depots also provide export and import clearance, and
temporary warehousing facilities, and can also help reduce the movement of empty
storage containers, leading to better demurrage charges.

 Transit Points

Another significant benefit of having a well-managed Inland Container Depot is that it


serves as a transit point for shipments. They can serve as key hubs not just for cargo
consolidation, but also for rail and road shipping, particularly for long-distance
commodities. This also results in lower shipping costs for enterprises.

Exim trading activities frequently necessitate the storage and distribution of goods
from sites closer to their destination but not necessarily near a port. In such cases, a
reputable Inland Container Depot can provide world-class facilities, the necessary
equipment, skilled employees with vast expertise in managing various types of cargo,
and the chance to investigate first and last-mile logistics.

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The right technology and systems such as RFID technology, and online processes can
ensure the safety and security of cargo. It can also enable businesses to save time and
optimize their operations with convenient transportation and transfers from rail to road
and vice versa.

In effect, reliable ICD services offer businesses the peace of mind to focus on their
core business without worrying about logistics. `

3.2 Problems of ICDs

1. The lack of understanding of the container inspection and quarantine and


not enough attention: Over the last many years, most of our products have
been applied for assessment and passed traditions in imported ports. Traveling
merchandise is very little, so holder business is negligible. In this manner, the
Central area assessment and quarantine offices in the holder business couldn't
complete well overall and had no useful collected insight.
Particularly street transport, the distinction in time and dispersed areas, and
transportation organizations getting units to the compartment dealing with time
is restricted, further expansion in extra time costs, albeit the volume isn't
enormous, labourer on the assessment and quarantine to 24 hours Unattended,
depleted. In this large number of conditions, the Central area specialists to
expand the trouble of observing, tedious exertion, combined with lacking data,
accordingly unwinding the lead of the business and the executives.

2. The lack of coordination mechanism between border crossings and the


inland: There are various methods between inland ports and border ports, and
the absence of common trade of data and criticism bring about the inland
container ports cannot decide if the wellbeing managed the truth that the
circumstance was there, and caused rehashing reviews and missed
investigations. Numerous inland compartment ports from the port and a few
holders are qualified by ports examination, and void compartments towed
inland port stacking freight the boat got back to the port to send out.

3. Challenges in the scene functional of container inspection: Dealing with


areas of holder freight is scattered broadly, and compartment stacking and

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dumping times cannot be distinguished. The transporter, cargo sending
organization dealing with time, and customs leeway time are exceptionally
apprehensive. When the holders are moved to inland ports, representatives, and
transporter, cargo-sending organizations coordinate working right away, and,
surprisingly, the manufacturing plant side in the pressing of merchandise, while
still shy of inland vehicles. Have no extra time for compartment investigation.

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Chapter-4 Future Prospectus of ICD

As blockage increments, inland stations will be much more significant in keeping up


with productive stockpile chains. It can likewise be anticipated that assets will assume
a larger part inside containerized exchange, with inland stations going about as stages
to trade containerized assets.

1. Dry ports assume a rising part as a repositioning procedure for void


compartments to further develop this repositioning proficiency by giving better
freight pivot potential open doors or going about as stages that can assist with
advancing containerized trades.

2. Inland ports are partaking in the continuous multi-purpose coordination among


ports and their hinterland through significant distance rail and barge passages.

3. They are turning out to be more significant components inside supply chains,
especially through their job as a cushion where containerized transfers can be
inexpensively put away, ready to be sent to their last objections.

The improvement of dry ports overall has underlined an arising utilitarian connection
between port terminals and their hinterland. On account of China, such drives can be
sweeping since the objective is to advance exchange and monetary reconciliation
across focal Asia, the entire way to Europe. Dry ports expect different capabilities with
co-area with calculated zones, a predominant improvement worldview in view of their
provincial setting. While the interest in dry ports has expanded, each dry port is faced
with a remarkable territorial, financial, and administrative setting that characterizes its
capabilities and its relations with seaports. Best practices must be applied effectively
assuming that the overall uniqueness of each dry port setting is thought of.

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Chapter-5 Container freight station

5.1 What exactly is a CFS?

A CFS is a huge warehouse space that specialises in the consolidation and de-
consolidation of LCL cargo. Consolidation is the process of merging numerous LCL
shipments to make a full container load (FCL), whereas de-consolidation is the
opposite of consolidation. This does not imply that a CFS solely handles LCL freight.
It also handles CFS-stuffed FCL cargo (FCL being the mode of shipping one large
consignment that takes up an entire container and belongs to a single shipper). A CFS
is also a location where items for import and export are temporarily held. It is a port or
terminal extension that was designed to relieve congestion at India's ports and
terminals. While CFS began as an Indian notion, it is now part of the worldwide
maritime lexicon.

A CFS is positioned near a port, terminal, or inland container depot. It is also


sometimes located near a large railway hub. Container freight stations are either owned
by shipping lines and terminals or by individuals. A CFS works in the import-export
sector at both the origin and destination ports. Thus, container freight terminals are
classified as "origin CFS" or "destination CFS."

Container freight stations have been a sought-after facility in import-export in recent


years, owing in part to an increase in demand for LCL shipments. This is due to the
fact that they provide a centralized place where exporters and importers can have their
LCL shipments delivered, certain that their goods will be properly held, processed, and
dispatched on the next leg of their journey.

According to the most recent official statistics, India had 168 container freight stations
as of March 2017. According to a research by the Comptroller and Auditor General of
India, container freight terminals were the preferred destination for Indian exports,
handling more value than their attached ports between 2012-2013 and 2016-2017.

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5.2 Why is CFS important?

It relieves congestion at ports and terminals. They are relieved of various customs
clearance processes. A unique identifying number is assigned to each vessel, allowing
for simple tracking of cargo and containers.

Maintains shipment records, including names of exporter, importer, and customs agent,
cargo details, origin and destination ports, carrier name, truck number, and so on.
Provides all of the benefits of containerised shipping, including increased cargo
security, timely and efficient loading, unloading, stuffing and de-stuffing, and a variety
of containers to suit your need.

(Source: Flexport)

After arriving at the target port, the container will be transferred to another CFS for
deconsolidation. LCL shipments will then be picked up from the CFS and delivered

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(Source: Flexport)

Both the origin and destination CFS will charge a container freight station fee.

5.3 Difference between Container Freight Station (CFS) and Inland Container
Depot (ICD)

Although ICD and CFS fulfil many of the same functions, they are two distinct entities.
A shipping container freight station is located near a seaport and primarily consolidates
and segregates goods. CFS mostly handles LCL shipments, which need consolidation
services. CFS was established to decongest ports and free up the precious physical area
near the sea.

ICDs are positioned distant from ports and connect them to the hinterlands. All
customs-related services offered at ports, as well as cargo consolidation and storage,
are also available at ICDs.

5.4 Best Practices for Further developing CFS Station Use as a Forwarder:
Working on the utilization of a CFS Station and keeping a proficient administrative
centre will change the stream and speed of your cargo-sending business. A few inner
and outer elements play into the proficiency of your activity, yet utilizing these
prescribed procedures can assist with defeating the issues.
1. Know the weather patterns for each station - Wellbeing and functional
circumstances will be impacted when there are severe weather conditions at the
holder cargo station. The tide at port arrivals ought to stay under persistent
checking to guarantee boats can dock.

2. Think about the general volume of imports/trades per port - Each port can
deal with a doled out by and large volume. Knowing the volume of imports and
commodities at each port considers greater consistency and solidness in
deliverability and take-off.

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3. Acquire clear perceivability into compartment ETAs - Knowing the
appearance and take-off seasons of holders forestall congestion and blockage at
mooring stations.

4. Share continuous notices with your clients - A productive administrative


centre guarantees that you can impart constant updates to your clients. This
innovation gathers information and considers the mechanization of ongoing
data.

5. Keep away from impromptu deferrals with pre-customs clearance - Pre-


customs leeway decreases time and cash. Keep away from pointless deferrals
by staying proactive. Missing desk work and documentation can make your
freight become involved with customs which will definitely postpone the
shipment of merchandise.

6. Digitize all reports to diminish risk - Utilizing computerized cargo stage


innovation makes less space for human blunder. Digitalizing archives permits
you to utilize an application as opposed to conveying receipts, orders, and other
business records. It assembles total permeability for yourself as well as your
clients, considering an effective, smooth-streaming cycle.
Why Issues with the CFS Station Decrease Throughput
There are many complex components associated with combining freight. At the point
when any of these difficulties of cargo dealing emerge at the CFS Station, it makes a
stream-down impact. It defers reaction to clients and can reduce deals, which is
normally the first concern for cargo-sending organizations. CFS Stations give clog help
at docks. Accordingly, when issues happen inside the station, they can cause blockage
at the stacking and dumping docks. These defer leading to a less effective exchange of
freight.

5.5 Direct Port Delivery: India’s move to cut import delivery time

Direct Port Delivery (DPD) was launched in India in 2016, allowing a small subset of
importers to clear cargo straight from the port within 48 hours of arrival. It is a viable
alternative to the CFS (container freight station) approach, in which import cargo is
channelled to an off-site CFS and delivery takes around three times as long. The goal
of DPD is to save importers time and money by decongesting ports, facilitating
commerce and improving India's Ease of Doing Business ranking. The DPD model
was first introduced at the Jawaharlal Nehru Port Trust (JNPT) – India’s busiest
container gateway – and has since been extended to ports across India.

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Importers can complete customs clearance and receive delivery of their shipment at the
port within a certain time limit (typically 48 hours) of the shipment being offloaded
under the DPD model. If the importer does not accept delivery within this time frame,
the consignment is transferred en-bloc (in its whole) to a pre-designated CFS. The
importer must next follow the CFS model, which calls for cargo delivery to take
between seven and nine days.

The following flowchart depicts the steps in both models, as well as how DPD
eliminates three stages in the CFS model:

Source: https://www.cogoport.com/blogs/direct-port-delivery

Benefits of DPD

 It reduces import cargo delivery time by five to seven days.


 Importers save money on storage, ground rent, CFS handling, terminal-to-CFS
transfer, and carrier detention costs. JNPT predicts a Rs 10,000-20,000 savings
per container.
 The DPD clearance and delivery service is available 24 hours a day, seven days
a week.
 Faster delivery implies faster container turnaround for shipping lines.

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5.6 Who is eligible for DPD?

Only importers who fulfil these government-prescribed guidelines can avail of this
facility:

1. Importers who have been granted Authorised Economic Operator (AEO) status.
An AEO is defined by the World Customs Organization as "a party
participating in the international movement of goods in whatever role that has
been authorised by or on behalf of a national customs administration as
conforming with WCO or equivalent supply chain security requirements."
Manufacturers, importers, exporters, brokers, carriers, consolidators,
intermediates, ports, airports, terminal operators, integrated operators,
warehouses, and distributors are among those who fall under this category. The
Central Board of Indirect Taxes and Customs runs India's AEO programme
(CBIC).
2. Importers having a proven track record of compliance and an annual import
volume of 25 Full Container Load (FCL) TEUs through a specific port or
otherwise.
3. Importers that do not meet the first two requirements can still qualify for DPD
if their "imports have enjoyed a continuous pattern of customs risk facilitation"
and/or if they "offer evidence that they would be able to pick up containers
directly from the terminal." This relief is intended for micro, small, and
medium-sized businesses (MSMEs). The chief customs commissioner has the
authority to accept such an application.

Additionally, DPD is open to shipments only if they fulfil these conditions:

1. If the consignment is FCL.


2. If it is covered by an RMS-facilitated Bill of Entry on a "no assessment no
examination" or "assessment but no examination" basis (RMS is the Risk
Management System used by Indian Customs).
3. If the importer has a terminal pre-deposit account (PDA). The account should
have enough money in it to cover terminal handling fees.
4. If the importer has arranged their own transportation arrangements to receive
cargo.

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5. If the importer has completed any additional formalities required by the
relevant customs zone.

Who isn’t eligible?

1. Importers who have been charged with misdeclaration of goods,


concealment/diversion of imported items, or duty evasion in the previous five
years.
2. Importers risking prosecution under the Customs Act of 1962
3. Those importing products are subjected to a thorough scrutiny.
4. Those who import Less-than-Container-Load (LCL) cargo.
Chapter 6 - Research Methodology

This chapter discusses the research paradigms and techniques adopted for collection
and analysis of both primary and secondary data. One of the sections argues why
qualitative as a paradigm is more appropriate than quantitative in this research. And
another section introduces the techniques adopted for data collection and analysis. also
outlines the ethical and moral disciplines that researcher needs to bear in mind during
the interaction with informants.  

6.1 Methods of Data Collection

PRIMARY DATA

Primary data is a type of data which is collected from direct sources such as interviews,
survey, call recording etc. Primary Data are those which are collected afresh & for the
first time, and thus happen to be original in character.

SECONDARY DATA

Secondary data is a type of data that not collected from direct sources. The data has
been collected on the basis of business periodical, journals, brochures etc. Secondary
Data is that data which has already been collected by someone else such as journal,
brochures, magazines etc. and which has already been passed through the statistical
process. i.e. Data provided by Dealers

Secondary sources used in this study:

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(a) Various publications of Organizations

(b) Technical & trade Journals

(c) Books, magazines & newspapers

(d) Reports & publications of various associations connected with business & industry,
government, logistics, etc.

(e) Reports prepared by research scholars, universities, etc. in different fields,

Interviews 
(Saunders, Lewis & Thornhill, 2009) indicated that interview is a
purposeful conversation between researcher and the informants, through which
researcher is likely to gain better understanding on the targeted event. (Yin, 1994)
stated “one of the most important sources of case study information is the interview”,
this is because most case studies are about human activities, these activities should
be reported and interpreted through the eyes of specific interviewees. Interviewees can
also provide shortcuts to the prior history of the situation, helping researcher to identify
other valuable information that wasn’t thought before this interview.  Focused
interview is chosen since it combined the advantages of within short period of time and
conversational manner, right into the targeted areas. More importantly, all the
interviewees are busy logistics managers, so a compact process is indeed
more appropriate, therefore 30 minutes to 1 hour of time length is designated for
each interview in this research. (Collis et al., 2003) also said interview may be
conducted face-to-face, vice-to-vice or screen-to-screen and so on, so with the
feasibility the voice-to-voice interview and virtual interview was conducted.  

Secondary data is mainly collected from those fourth party logistics providers official
websites, annual reports, and other accessible materials such as new papers, academic
journals and the like.  

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6.2 Research Design

A research design is basically a framework of research methods used by researcher. It


allows researchers to fully hone a research method that is suitable for the area in which
they want to do research. It determines what tools to use and how they should be used.
It is a conceptual structure within which research is conducted. It constitutes the blue
print for the collection, measurement & analysis of data.

Both quantitative and qualitative approaches were followed.

Quantitative: A quantitative research design is used to examine the relationship


between variable by using numbers and statistics to explain and analyze its findings

Qualitative: This kind of research is exploratory in nature as it tries to explore, not


predict the outcome. It seeks to answer the questions “what”, “why” and “how”. It is
used to explore the meaning and understanding of complex social environments, like
the nature of people’s experience, using case studies.

Exploratory Research

Exploratory Research is described as study conducted to learn about a topic that isn’t
well defined. For such a study, a researcher starts with basic notion and utilises this
study as a medium to discover concerns that can be the topic of future study.

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Chapter-7 Data analysis and findings

Table 1: Direct Costs incurred for Clearing import Consignments under CFS
Model

The following table contains the data from E.I. Dupont India Pvt. Ltd. Making
comparison between the years of cost incurred on using the CFS modal for their import
consignments.

Table 2: Total Estimated Savings to DuPont India Pvt. Ltd. And Group
Companies for the Year 2017 under Direct Port Delivery

The use of DPD in the tenure for 2017 led to a savings from 377 containers for about
113.14 Lakhs and reduction of about a 70% decrease in the Turnaround time.

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The following table describes the total percentages of shipments done using the DPD
model with the total of 65.31% of total shipments. NSIGT being the biggest
contributor to the whole Port.

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Chapter-8 Challenges

 Lack of space/infrastructure: According to industry insiders, ports like JNPT


were developed on the CFS model in constrained areas. In addition, Adani
Hazira Port ceased DPD operations in April owing to a pile-up of DPD cargo
during the Covid-19 shutdown period, demonstrating the absence of
infrastructure. According to the study, this is because Hazira is not connected
by train. As a result, the containers could not be relocated en masse by rail to
CFSs, as had been done to relieve congestion at JNPT and the Chennai port.
 Lack of uniformity: Traders have frequently complained about a lack of
consistency in rates and free hours throughout Indian ports. Importers, for
example, have 48 hours at JNPT and 72 hours at the Chennai port to receive
delivery. In addition, the private terminals at JNPT tax a moving charge on
DND cargo, which varies per terminal. There is no similar fee at the Chennai
and Haldia ports.
 Lack of choices: Voltas wanted to be removed from the DPD list in 2017,
claiming that its Uttarakhand facility could only handle 15 containers per day,
although the model required it to take possession of all 50 containers arriving
by ship. Similarly, luggage manufacturer VIP Industries stated that if it did not
accept prompt possession of its shipment, it would be transported to a CFS
chosen by the port rather than one of its choosing.

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 Threat to CFS: When DPD was implemented in 2016, the 33 CFSs at JNPT
were concerned about losing business and jobs. Some reduced the size of their
employees. However, this issue appears to have been resolved, and CFSs
continue to be an important component of India's worldwide commerce.
According to JNPT, boosting cargo volumes at ports will ensure that CFSs get a
fair share of business. In addition, because to a lack of warehouse space near
the cargo owners' industries, a significant amount of DPD freight is still moved
to CFSs for storage after delivery.
 The lack of understanding of the container inspection and quarantine and
not enough attention:

Over the last many years, most of our products have been applied for assessment
and passed traditions in imported ports. Traveling merchandise is very little, so
holder business is negligible. In this manner, the Central area assessment and
quarantine offices in the holder business couldn't complete well overall and had no
useful collected insight.

Particularly street transport, the distinction in time and dispersed areas, and
transportation organizations getting units to the compartment dealing with time is
restricted, further expansion in extra time costs, albeit the volume isn't enormous,
labourer on the assessment and quarantine to 24 hours Unattended, depleted. In this
large number of conditions, the Central area specialists to expand the trouble of
observing, tedious exertion, combined with lacking data, accordingly unwinding
the lead of the business and the executives.

 The lack of coordination mechanism between border crossings and the


inland: There are various methods between inland ports and border ports, and
the absence of common trade of data and criticism bring about the inland
container ports cannot decide if the wellbeing managed the truth that the
circumstance was there, and caused rehashing reviews and missed
investigations. Numerous inland compartment ports from the port and a few
holders are qualified by ports examination, and void compartments towed
inland port stacking freight the boat got back to the port to send out.

25
 Challenges in the scene functional of container inspection: Dealing with
areas of holder freight is scattered broadly, and compartment stacking and
dumping times cannot be distinguished. The transporter, cargo sending
organization dealing with time, and customs leeway time are exceptionally
apprehensive. When the holders are moved to inland ports, representatives, and
transporter, cargo-sending organizations coordinate working right away, and,
surprisingly, the manufacturing plant side in the pressing of merchandise, while
still shy of inland vehicles. Have no extra time for compartment investigation.

Chapter-9 Conclusion

ICDs are an integral part of the transportation system because they function as stop-gap
location in the hinterland for cargo to either be stored in between transit or to get ready
for transit. In a multi-modal transport logistics system. May be defined as a common
user facility with public authority status equipped with fixed installations and offering
services for handling and temporary storage of import/export laden and empty
containers carried under Customs control and with Customs and other agencies
competent to clear goods for home use, warehousing, temporary admissions, re-export,
temporary storage for onward transit and outright export. Transhipment of cargo can
also take place from such stations. As blockage increments, inland terminals will be
much more significant in keeping up with productive stockpile chains.

The improvement of dry ports overall has underlined an arising utilitarian connection
between port terminals and their hinterland. On account of China, such drives can be
sweeping since the objective is to advance exchange and monetary reconciliation
across focal Asia, the entire way to Europe. Dry ports expect different capabilities with
co-area with calculated zones, a predominant improvement worldview in view of their
provincial setting. While the interest in dry ports has expanded, each dry port is faced
with a remarkable territorial, financial, and administrative setting that characterizes its
capabilities and its relations with seaports. Best practices must be applied effectively
assuming that the overall uniqueness of each dry port setting is thought of.

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Since DPD has been acting as a substitute for CFS model It can be anticipated that CFS
model may lead to extension as it costs more and requires much more time than the
DPD model. However, some flaws or misconduct of the DPD process might create
issues in the system and the employment opportunities for many will be affected,
therefore, CFS involvement will be required so, these problems could be taken care.

Chapter 10 – References

 https://www.flexport.com/glossary/container-freight-station/
 https://www.cogoport.com/blogs/direct-port-delivery
 https://journalsofindia.com/direct-port-delivery-and-direct-port-entry/
 https://agriexchange.apeda.gov.in/logistic/inland_container.aspx
 https://www.allcargologistics.com/inland-container-depot
 https://classictransportation.com/2016/06/13/purpose-container-freight-
station-cfs/

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