Professional Documents
Culture Documents
India”
A course report submitted in partial fulfilment of the requirement for
Submitted To:
Submitted By:
Archit Dhasmana
Ashish Aima
Iti Gaur
Yashovardhan Singh
1
Table of Contents
8 Chapter 8- Challenges 24
9 Chapter 9- Conclusion 26
2
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.
As they are located away from the sea or any major river routes, Inland Container
Depots are also sometimes referred to as ‘Dry Ports.’
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
3
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.
4
Chapter-2 LITERATURE REVIEW
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.
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.
5
Chapter-3 Functions of ICD (Inland Container Depot)
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:
6
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.
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
7
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:
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:
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
8
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
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.
9
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. `
10
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.
11
Chapter-4 Future Prospectus of ICD
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.
12
Chapter-5 Container freight station
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.
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.
13
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
14
(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.
15
3. Acquire clear perceivability into compartment ETAs - Knowing the
appearance and take-off seasons of holders forestall congestion and blockage at
mooring stations.
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.
16
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
17
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.
18
5. If the importer has completed any additional formalities required by the
relevant customs zone.
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.
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
19
(a) Various publications of Organizations
(d) Reports & publications of various associations connected with business & industry,
government, logistics, etc.
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.
20
6.2 Research Design
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.
21
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.
22
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.
23
Chapter-8 Challenges
24
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.
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.
26
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/
27