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A PROJECT REPORT ON FUNCTION OF ICD PITHAMPUR OF

SUMMITED BY RAVEESH JAIN

Submitted To

SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION IN PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (Marketing)

2008-10 SINHGAD INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION NARHE, PUNE

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Introduction Background Organization Objective Quality Policy Terminal Network Western Region Management Structure Particular Of Organization Duties Of Concor Officer Terminal Faculties Container Specification Conventional Dry Cargo Containers Specialty Containers Technical Capability / Resources MIS Handling Equipment Wagons International Facilities & Services LCL Consolidation Air Cargo Services Road Feeder Services Bonded & Other Warehousing Services Reefer Services

14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.

Factory Stuffing / Destuffing Special Discount Schemes Cabot age Of ISO Container Concors Policy Waiver Of Terminal Services Charge Domestics Facilities & Service Door Delivery And Pickup Value Added Services Integrated Freight Terminal Total Logistics Solution Customer Satisfaction Claims Procedure Future Planes Summary Of Financial Performance Performance Figures Western Region

INTRODUCTION`
CONCOR's mission is to provide efficient and reliable multi-modal logistics support for the country's exim and domestic trade and commerce. To ensure enhanced customer satisfaction, growing shareholder value, high growth and consolidation of status as market leader.

BACKGROUND
CONCOR - THE MULTIMODAL LOGISTICS PROFESSIONALS

Ever since globalization transformed the transport sector, national boundaries have become permeable to penetration by trade, creating the need for flexible transport solutions. Intermodalism and containerization were the by-products of this era and were poised to metamorphosize transport of "general cargo", moving it 'seamlessly' through sea and land arteries. Forty years ago, the physical process of exporting or importing goods was arduous. Goods needed to be transported by lorry to the port, unloaded into a warehouse and then reloaded into the ship 'piece by piece'. Malcolm McLean's idea of containerization changed the basics of cargo transport by standardizing the dimensions of the container and simultaneously improving the productivity of ports by mechanizing handling of container-carrying 'cellular' ships and reducing their handling to a few hours only. Unitization helped elimination of multiple handling of cargo and made transfers quick, cheap and easy. As containerization came to stand for 'cargo care', it grew by leaps and bounds the world over. Indian Railway's strategic initiative to containerize cargo transport put India on the multi-modal map for the first time in 1966. Given the continental distances in India (almost 3000 km from North to South and East to West), rail transport could be the cheaper option for all cargo over medium and long distances, especially if the cost of inter-modal transfers could be reduced. Containerized multi-modal door-to-door transport provided the ideal solution to this problem. 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. Though the first ISO marine container had been handled in India at Cochin as early as 1973, 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, also managed by the Indian Railways. Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers, and along the way, 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.

THE COMPANY
Container Corporation of India Ltd. (CONCOR) was incorporated in March 1988 under the Companies Act, and commenced operation from November 1989 taking over the existing network of 59 ICDs from the Indian Railways. From its humble beginning, it is now an undisputed market leader having the largest network of 59 ICDs/CFSs in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of Ports, air cargo complexes and establishing cold-chain. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for Indias International and Domestic containerization and trade. Though rail is the main stay of our transportation plan, road services and also provided to cater to the need of door-to-door services, whether in the International or Domestic business. CONCOR is committed to providing responsive, cost effective, efficient and reliable logistics solution to its customers. It strives to be the first choice for its customers. CONCOR is a customer focused, performance driven, result oriented organization, focused on providing value for money to its customers.

Objectives
How to use documentation in export & import.

CORPORATE OBJECTIVES
CONCOR MANAGEMENTs STATEMENT OF MISSION AND OBJECTIVES. We will be a customer focused, performance driven, result oriented organization, focused on providing value for money to our customers... We will strive to maximize productive utilization of resources, deliver high quality of services, and be recognized as setting the standards for excellence.

We will constantly look for new and better ways to provide innovative services. We will aim for customer convenience and satisfaction, learn from our competitors and always strive for excellence. We will set measurable performance goals to support the objectives and mission of our organization and work as a professional, competent and dedicated team for the organization to achieve excellence in all areas of our business and operations by benchmarking ourselves with our competitors. We will follow highest standards of business ethics and add social value for the community at large by discharging social obligations as a responsible corporate entity. We will maintain absolute integrity, honesty, transparency and fair-play in all our official dealings and strive to maintain high standards of morality in our personal life.

QUALITY POLICY
We are committed to provide reliable, responsive, safe and value Added logistic services in a cost effective & consistent manner using latest innovations to ensure complete customer convenience & satisfaction and value for money through continual improvement of our quality management systems and processes

CORE BUSINESS
CONCOR's core business is characterised by three distinct activities, that of a carrier, a terminal operator, and a warehouse operator. Carrier Rail is the mainstay of CONCOR's transportation plans & strategy. Majority of CONCOR terminals are rail-linked, with rail as the main carrier for haulage. Facilities

are, however, provided for first and last mile transportation by road also. CONCOR benefits from a close relationship with the Indian Railways. Several of its terminals are situated on leased Railway-land. Many of its key operating personnel are on secondment from Indian Railways or have previously been employed by the Indian Railways. Wagons and operational support from Indian Railways have always been available to the company. As rail is price-competitive over long distances, the price advantage can be passed on to clients, thus allowing for flexible and competitive pricing. The rail link also plays a major role in decongesting our ports and the road corridors that lead to these ports. Though rail is the mainstay of CONCOR's Transportation plan, some CONCOR terminals are exclusively road-fed as well. We provide 94% of our inland transport through the Indian Railways network. Road services are mostly in the form of supplementary services to provide the door to door linkages having carried the bulk of long lead by rail. However, where ever it is operationally or economically a superior option, road is used as an alternative to rail as well. Terminal and CFS Operator CONCOR started operations in November 1989 with 7 Inland Container Depots (ICDs). We have since extended the network to a total of 59 terminals, of which 49 are exportimport container depots, and 10 exclusive domestic container depots. As many as 31 terminals perform the combined role of domestic as well as international terminals. The company expects the number of terminals to increase to 60 in the next few years. CONCOR's customs bonded Inland Container depots are dry ports in the hinterland, and serve the purpose of bringing all port facilities including Customs clearance to the customer's doorstep. The terminals are almost always linked by rail to the Indian Railway network, unless their size or location dictates that they be linked by road. The rail links enable us to facilitate the moving of large volumes over long distances in the most cost effective manner. CONCOR's terminals provide a spectrum of facilities in terms of warehousing, container parking, repair facilities, and even office complexes. As CFS operator, CONCOR adds value to the logistics chain by offering value added services such as

Transit warehousing for import and export cargo. Bonded warehousing, enabling importers to store cargo and take partial deliveries, thereby deferring duty payment. Less than Container Load (LCL) consolidation, and reworking of LCL cargo at nominated hubs. Air cargo clearance using bonded trucking.

In the area of domestic business door pick up and door delivery services are the most popular. We also use our terminal network to plan hub and spoke movements that allow single customers to move cargo to multiple locations at a single time, with CONCOR taking care of the distribution and re distribution requirements.

TERMINAL NATWORK
WESTERN REGION

The rail container terminals at Jawaharlal Nehru Port Trust, Nhava Sheva International Container Terminal and Mumbai Port account for more than 90% of the entire export import traffic that is handled by CONCOR's major hinterland terminals. These gateway ports of Mumbai are served by CONCOR's Western region, and this makes it the crucial link in the exim logistics chain for the company. By providing direct entry and exit via regular train services to JNPT/NSICT/GTIL, and Mumbai ports, the region performs the critical function of decongesting the ports and increasing their overall handling capacity. As many as 15 export trains are placed, and the same number withdrawn from JNPT/NSICT on a daily basis, providing high speed scheduled services to terminals at Delhi, Ludhiana, Mulund, Ahmedabad, Hyderabad, Nagpur,Jodhpur, Aurangabad, Vadodara, Moradabad etc. Serving the city of Mumbai, which is the commercial and industrial hub of the country,

also makes the region an important source and destination for a substantial volume of containerized cargo. The major terminals located in Mumbai are at Mulund (West) and Mulund (East) for exim traffic, and at Turbhe and Wadibunder for domestic traffic.

In addition to catering to the crucial Mumbai traffic, the region also covers parts of Southern Maharashtra, Southern Gujarat, Madhya Pradesh, and Goa under its jurisdiction. Facilities exist at Indore, Pune, and Miraj for catering to the traffic generated in these areas. The proximity to the gateway port makes transit and frequency of service considerations crucial for these terminals. One of the new facilities being offered by the region is the repositioning of LCL export containers moved by rail from hinterland terminals as piggy back on the scheduled services to JNPT/NSICT for hub-reworking at the ports CFS operated by CWC at Dronagiri Node. The region is also a major source for domestic traffic. Domestic traffic is handled at DCT Turbhe. This facility has increased the capacity for handling domestic cargo as it is located outside the congested Wadibunder area in Mumbai. ICD at Miraj is located in the sugar belt of Maharashtra, and will to facilitate the movement of export cargo on chassis basis from sugar factories to Gateway ports directly.

Western Region

ICD ( Inland Container Depot) PITHAMPUR (Indore) (code) ROAD LINKED ICD

Facts Commissioned 1994 Total Area 17 acres. Warehouse space 20,000 sq. mtrs. Equipment 1 heavy cranes, 2 fork lifts.

catchment Area Central India, including Nagda, Manideep, Gwalior, Dewas, Nepanagar, Ghatabilod, Indore, Pithampur Ind. Area. Main Services offered Import and Export Logistics Air Cargo Clearence LCL cargo Consolidation for reworking at Mumbai. Expansion plans for the terminal include extension of container yard, fresh paving, and induction of Volvo Trailers for port linkage.

Address Inland Container Depot Plot no. 113, MHOW-III Neemuch Road, Sector III, Pithampur 454774 Dist. DHAR (MP) Phones 07292-2503701-07 Fax 07292-2503717 Email indp@concorindia.com

MANAGEMENT STRUCTURE

Particulars of Organization
Container Corporation of India Ltd. (CONCOR), is a Central Public Sector Undertaking in which The President of India presently holds 63.08% of the total paid up share capital of Rs.64.99 crore. The share holding pattern of CONCOR as on 30-06-2008 is as under : Shareholding Pattern as on 30.06.2008 Organisational pattern of CONCOR

Duties of CONCOR Officer


Name Designation & Address Duties 1. Sh. Shri Prakash Chairman (Non- Executive), Member Traffic, Railway Board Non Executive Chairman (Govt. Nominee) Chairing the Board Meetings. 2. Sh. Rakesh Mehrotra Managing Director Functional Head of CONCOR and overall incharge of entire business of CONCOR. 3. Sh. Yash Vardhan Director (Intl. Marketing & Ops.) Incharge of International Business operations of CONCOR. 4. Vacant Director (Finance) In charge of all Financial/ Accounting matters.

5. Sh. Anil Gupta Director (Domestic) Incharge of Domestic marketing business. 6. Sh. Harpreet Singh Director (Projects & Services) Incharge of Projects, Planning & Development. 7. Sh. K B Agrawal Chief Vigilance Officer Corporate Office, New Delhi Incharge of all Vigilance related matters. 8. Ms. P Alli Rani Executive Director (Finance) & Chief Public Relations Officer/ Corporate Office/ New Delhi In charge of Finance & Accounts department And Public Relations including investor Relations 9.Capt. P.K. Kaul Executive Director (CR & BD) Corporate Office/ New Delhi In charge of all matters relating to customer relations & business development 10. Sh. Ravi Khandelwal

Executive Director (A/cs & CS)/ Corporate Office/ New Delhi Company Secretary. 11. Sh. Anurag Mathur Executive Director (MIS)/ Corporate Office/ New Delhi In charge of procurement & maintenance of IT Hardware & software. 12. Sh. P.K. Agrawal Chief General Manager/ Western Region, Mumbai Overall Incharge of all matters relating to the Western Region 13. Sh. D K Tripati Chief General Manager/ Central Region/ Nagpur Overall incharge of all matters relating to the Central Region. 14. Sh. Ajoy Kumar Behra Chief General Manager/ Eastern Region/ Kolkata Overall incharge of all matters relating to the

Eastern Region 15. Sh. Ajay Anand Chief General Manager/Northern Region/Tughlakabad Overall in charge of all matters relating to Northern Region 16. Sh. Sushil Kumar Chief General Manager/ North Central Region/ Noida Overall incharge of all matters relating to North Central Region 17. Sh. G John Prasad Chief General Manager/ Southern Region/ Chennai Overall incharge of all matters relating to the Southern Region 18. Sh. Shahnawaz Ali Chief General Manager/ South Central Region/ Hyderabad Overall incharge of all the matters relating to The South Central Region.

19. Sh. Amit Kumar Singh Chief General Manager/ North West Region/ Ahemdabad Overall incharge of all the matters relating to The North West Region. 20. Sh. Mukul Jain Group General Manager (Air Cargo)/ Corporate Office/ New Delhi Incharge of marketing & business in Air Cargo Segment. 21. Ms. Padmakshi Raheja Group General Manager (Business Research)/ Corporate Office/ New Delhi Incharge of Business Research specifically to Domestic market. 22. Sh. Satish Chandra Group General Manager (Domestic)/ Corporate Office/ New Delhi In charge of Domestic business Marketing.

23. Sh. Koushik Mukhopadhyaya

Group General Manager (Strategic Planning)/ Corporate Office/ New Delhi Incharge of Strategic planning in Corporate Office 24. Sh. M.K. Akhouri Group General Manager (International Marketing)/ Corporate Office/ New Delhi Incharge of marketing and business in the international segment 25. Sh. Rajiv Rajvanshi Group General Manager (Engg.)/ Corporate Office/ New Delhi In charge of Civil & Engg. Projects. 26.Sh. N.L. Mankoja Group General Manager (P&D)/ Corporate Office/ New Delhi In charge of Planning & Development 27. Sh. R.S. Meena Group General Manager (Comml.) Corporate Office/ New Delhi In charge of Commercial claims and other

Commercial matters. 28. Sh. Amit Chaudhri Group General Manager (Operations & Shipping)/ Corporate Office/ New Delhi Incharge of CONCOR Rail Operations & Shipping. 29. Sh. Rajeev Bhardwaj Sr. General Manager (HR)/ Corporate Office/ New Delhi In charge of HR Department CONCOR is a company managed by its Board of Directors, constituted under the Companies Act, consisting of Government of India nominees and independent Directors. The day-to-day activities of CONCOR are managed under the leadership of the Board of Directors assisted by the in-charge of the respective departments. Detailed execution of the job is being done under the leadership of the in-charge of the Respective departments.

Various rules, regulations, instruction manuals and guidelines

corporate policy decision of running the businesses of CONCOR is being taken,

Depending upon the changing scenario of the Business by the Board of Directors. The day to day activities to be carried out are being decided by the respective Departments and are being executed in conformity with the corporate decision taken by CONCOR in the meeting of its Board of Directors.

Since CONCOR is formed under the Companies Act, accordingly company is working within the purview of regulations framed in this regard by way of Memorandum and Articles of Association.

TERMINAL FACILTIES
CONCOR started its operations by taking over 7 existing ICDs from the Indian Railways, and has now grown to a network of 57 terminals. Most of these terminals have been developed on land obtained on lease from the Indian Railways. Most of this land had been idling or identified as surplus land, and the inputs that have been put in by CONCOR have completely changed the face of these locations. Modern container handling terminals have been developed with state-of-the-art facilities for handling and amenities for the users. Container handling terminals have been designed and built by CONCOR's in house engineering department. The design is invariably modular in nature. This means that the terminals have been developed keeping in mind the minimum investment while seeking to provide the best facilities. As the terminals have grown in terms of business handled, the utilized space has also been expanded by both adding facilities such as warehouses and paving, and/or by upgrading existing facilities to allow for the handling of higher volumes. One of the major technological inputs put in by CONCOR in the area of terminal development has been the use of heavy duty paving using M-50 concrete blocks. This paving is not only easy to lay down, it also provides considerable long term savings due to minimum maintenance and upkeep requirements.

In the area of warehousing as well, use of the latest technology has resulted in the development of state of the art facilities. At Bangalore, use of pre-fabricated structures resulted in the commissioning of warehouses within 3 months of starting construction. Facilities such as refrigerated warehouses, multi-tier stacking facilities, special handling areas for heavy cargo, hazardous cargo etc., have also contributed to making CONCOR's terminals the most modern logistics hubs in the country.

CONTAINER SPECIFIATION
The following is a list along with photographs and specifications of various types of containers that are used in the containerized cargo movement business. The dimensions listed below are intended as a guide only. There are differences in the dimensions between containers produced by various manufacturers.

Conventional Dry Cargo Containers

20/40 ft. conventional end open containers These are usually built to ISO standards, and are used for the movement of conventional dry cargo. For domestic movement, CONCOR has inducted a fleet of approx. 12000 such 20 ft. containers either under direct ownership or on lease for internal movements within the country.
20/40 ft High Cube containers These containers offer the added advantage of

extra volumetric capacity due to their additional height, and are especially useful of movement of light but bulky cargo. 20 ft Side Access Containers These containers are used exclusively for domestic traffic movements within the country. They offer the advantage of having doors on the side panels, and this makes it convenient for use in locations where chassis stuffing operations have to be used. CONCOR has currently about 3300 such self owned domestic SA containers in its fleet. 22 ft/High Cube Domestic Containers These containers have also been exclusively introduced by CONCOR for the purpose of carrying cargo that requires greater volumetric capacity or container length. CONCOR has currently about 2000 such self owned domestic 22ft containers in its fleet.

Specialty Containers
20 ft/40 ft/ 40ft High Cube Refrigerated Containers These are containers that can be used for the movement of refrigerated/perishable cargo. Special facilities such as the availability of plug points, portable clip on generators for trailer movements, power packs for train movements etc. are required for moving cargo in these containers. It must therefore be ascertained whether such facilities are available at the handling terminals before planning such movements. 20 ft/ 40ft/ Collapsible Flat Rack and Platform Containers These containers are especially useful for carrying over dimensional cargo or fully packed machines, equipment etc. Since most of the movement of containers on CONCOR's network is through rail, special permission must be obtained for movement of over dimensional consignments to ensure that these do not infringe upon the standard moving dimensions of the Indian Rail network.

20 ft/ 40 ft Open Top Containers These containers are used mostly for cargo that needs to be handled with cranes and cannot be easily loaded from the front doors of the containers.

Open tops can also be used for carrying over dimensional cargo of certain types. Such containers have also been inducted for domestic service and can be supplied on demand if such cargo is offered. CONCOR has currently about 100 such self owned domestic open top containers in its fleet.
20 ft Tank Containers These containers are specially designed for the movement of liquid cargo of different types. Such containers have also been inducted for domestic service and can be supplied on demand if such cargo is offered. CONCOR has currently about 300 such self owned tank containers in its fleet.
CONCOR as a multi-modal logistics service provider is constantly seeking to

innovate on the uses and flexibility of container handling operations. We have introduced special containers with rolling floors to facilitate pallet handling, containers with in built collapsible shelves to increase loadability etc. We are also willing to examine the possibility of designing any specialty containers subject to suitable business prospects. Customers are encouraged to contact our field staff with their specific requirements.

TECHNICAL CAPABILITY/RESOURCES
MIS:-IT
forms the backbone of any service industry, where information correlates directly with improved levels of efficiency. In the transport sector, antiquated, cumbersome paper-based procedures cause an enormous waste of time and money. All too often, goods move through transport systems at a frustratingly slow speed, especially in developing countries. The physical side of trade transactions should aspire to become as efficient as the electronic transfer of money. This can be done through working partnerships among all those involved to improve logistics services through the use of information and network technology.

A primary component of CONCOR's overall business strategy has been the development of an advanced information system. A container and cargo logistics information system went online at Company's Inland Container Depot at Tughlakabad in 1994 and most other facilities have been equipped with computer systems to monitor traffic movement and maintain inventory records. CONCOR is using various online applications like Export/Import Terminal Management System (ETMS), Domestic Terminal Management System (DTMS), Oracle Financials-ERP, HR-Payroll system etc. which are based on Centralized architecture deployed through Citrix environment and running over VSAT based hybrid network. Facility for electronic filing (e-filing) of commercial documents of CCLS(Container and Cargo Logistic System) has been provided to customers. This facility enables customers like Shipping lines, Importers, Exporters and CHA's to file the required documents online for process and take necessary printouts of processed output through web from anywhere without physically coming to ICD at Tughlakabad. Digital Signatures have been integrated with e-filing on CCLS to make the system more secure. CONCOR has been certified to ISO/IEC 27001: 2005 standard for establishing and maintaining Information Security Management System (ISMS) for its IT functionality. RDTs are being used in the ICD/TKD yard and ICD/Dadri for online container tracking and entry of unloading / loading of containers on to wagons. Interface software was developed for automatic updation of entries through RDTs into CCLS and ETMS database for EXIM operations. RDTs are also interfaced with our Domestic Terminal Management System (DTMS) at DCT/Okhla, TNPM/Chennai and

WFD/Bangalore. This has enabled any user to query the system either through LAN or Web to get the latest status and location of a container in the yard. CONCOR has its own Web Server for providing web interface to the commercial applications i.e. ETMS, CCLS, DTMS etc. The web interface enables our customers to access information regarding their shipments by means of the website. An integrated track and trace system was also implemented on CONCOR website for providing Container Tracking Details, Train Summaries and current train running position. CONCOR has also introduced automated e-mails for PDA statement, Rail out and SMS for Rail out cases for EXIM system. For availing such facility the intending customers may contact ED (MIS) at email id anurag@concorindia.com Web interfaces to access ETMS have been developed for providing queries such as list of containers arrived/ departed, Container status, PDA balance etc.

Handling Equipment
CONCOR has generally followed a policy of organizing specialized cargo/container handling services by deployment of state-of-the-art equipment on contractual basis. In addition, at ICD Tughlakabad, in Delhi, which is the company's flagship terminal, we also own, operate and maintain the most modern and sophisticated handling equipments such as a Rail Mounted Gantry (RMG) , Rubber Tyre Gantries (RTGs), and Loaded and Empty handling Reach Stackers.

Wagons
After starting operations with make-shift container wagons that were provided by the Indian Railways, CONCOR started acquiring state-of-the-art high speed container flats (BLC wagons), capable of running at 100 kmph. Since last 9 years. These have been progressively introduced on major container circuits in the last three years, as a result of which transit times have reduced and service quality has shown considerable improvement. 7200 such wagons are already deployed, and CONCOR plans to add to that fleet every year to cater to the growth in business as well as to replace outworn rolling stock. CONCOR has also purchased some 7200 container flat wagons from the Indian Railways, which have been since upgraded and retrofitted to also provide improved service quality and better transit times.

International Facilities & Services

CONCOR was incorporated in March 1988 as a Public Sector Enterprise under the Ministry of Railways with the prime objective of developing modern multimodal transport logistics and infrastructure to support the country's growing international trade. The company commenced operations on November 1, 1989, by taking over seven Inland Container Depots from the Indian Railways located at Delhi, Ludhiana, Bangalore, Coimbatore, Guwahati, Guntur and Anaparti. Since then, CONCOR has developed a vast network of container terminals at prime locations all over the country. At present, it has a total of 41 Exim Terminals (Rail / Road linked ICDs and Port Side Container Terminals (PSCTs), with another 13 in the pipeline. Containerization of exports and imports does not begin and end at the ports. CONCOR provides transport linkages between ports and the hinterland. Regular container trains are run to and from ports to CONCOR's terminals in the hinterland. Some of the terminals are also served by road. With liberalization and opening up

of the India economy, lowering of import tariffs and reduction in the number of commodities whose import/export was prohibited by the Government, there is an increasing trend of containerized imports/exports into/from India. Along with the growth of container business at Indian Ports, the level of containerization itself is increasing. The advantage of containerized movement into the hinterland are self evident, a major plus being the decongestion of ports which would lead to higher turnover and added growth. CONCOR'S existing presence at port-towns is sizeable. CONCOR's Terminals at Mumbai at Mulund, New-Mulund & Wadibundar cater to the Ports of Jawaharlal Nehru Port Trust and Mumbai Port Trust. Similarly, we have presence at Tondiarpet and the Harbour of Madras for Chennai Port, and Cossipore Road and Shalimar terminals at Kolkata cater to Kolkata & Haldia. There are terminals also at Cochin and Tuticorin and Vishakapatnam. Presence in the port towns, in addition to the hinterland, would help tie-up both end points of the shipment route facilitating control over the entire logistics chain. Carrying the strategy further, CONCOR may also consider operating container berths in Greenfield ports in order to provide integrated transportation logistics solutions to customers. Having already developed requisite expertise in operating hinterland terminals, port terminals should not pose any technical problems. As more port container terminal privatization takes place, it may be difficult for CONCOR to gain entry into quayside operations. Rail face operation at Port terminals still remains a strong possibility even at Private Ports.

CONCOR OFFER OF BLOCK BOOKING ON ROUND TRIP BASIS Scheduled Day Service on Round Trip Basis will be offered to shipping line / group of lines/ consolidators fro ICD Dadri from Mundra, Vizag and Pipavav. Similar Services will be considered from select CONCOR terminals to these gateway ports on request. Services to other ports like Chennai, Kolkata and Haldia ports can also be considered. The Line /Lines together will be required to pay a minimum amount for booking of a rake on round trip basis. For this, they will register with the respective terminals and open a pre-deposit account with CONCOR at the originating terminal. The necessary minimum amount may be deposited in the PDA before the start of the train.

Booking for laden and empty containers will be levied as per public tariff from the concerned shipping lines and all leviable surcharges would be added. For empty slots, CONCOR will levy the applicable empty container freight rates in the stream. The schedule of departure and the number of services may be decided by the shipping line/ lines, which CONCOR will agree to if there are no serious operational constraints. Occasional request for rescheduling of a particular service may be accommodated, provided such request is received at least one day prior to the scheduled departure of the train from ICD. The train will be run with onhand containers following FIFO.

The same rake as would carry export volumes to port will bring back import boxes for the same line/ consolidator. The necessary loading at port end has to be tied up with the port terminal operator by the consolidator/ Shipping line. Since the shipping line may also act as a consolidator by accepting volumes offered by other lines to top up their own volumes in order to fill up all the slots in a particular train, the forwarding note must have the endorsement of the consolidating line indicating that booking is against the block train scheme. However, IW Bills for loaded and empty containers will be raised as per normal procedure by debiting the concerned shipping lines PDA. CONCOR will have the right to fill up empty slots if wagons are running empty from ICD/ port. However, in such cases CONCOR will not charge for the empty slots, utilized by CONCOR provided at least 45 laden TEUs have been booked by line consolidator. At the pot end, the train will not be detained on account of nonavailability of containers. Discount admissible will be paid after monthly reconciliation of the figures, on the round trips completed. Discount will be payable on total amount realized against laden booking, provided at least 90 loaded TEUs have been booked on round trip basis. The discount may be paid in the form of a refund, through PDA. Non-dedicated common services to Mundra, Pipava and Vizag ports will continue to run regularly, the frequency of which will be intimated from time to time.

LCL CONSOLIDATION

The process of LCL consolidation involves the movement of less than container load cargo from an Inland Container Deport to a nominated 'hub' terminal under customs seal, usually in a domestic container of some sort. At the nominated hub terminal, the sealed containers are opened and the cargo re-worked on a destination wise basis without having to be subjected to re-examination by customs. Indian Customs permitted the reworking of LCL boxes in certain nominated 'hub terminals' mostly located at port cities in the year 2000. This has already led to a tremendous increase in the business of LCL consolidation in the country. Export LCL consolidation of different ICDs' custom cleared cargo, often along with locally cleared LCL cargo makes for must faster clearance of cargo, and reduces the end to end transit times between the originating points and destinations of the cargo being moved. Reduced transit times shippers to move their sea tariffs. Due to the India, direct destination of LCL hub movements have provided opportunity to LCL consignments faster, at extremely cost effective LCL reworking of such cargo at nominated hub points within sailings to USA, Europe, Africa, Gulf etc., become available

via the Mumbai/Chennai transshipment HUBs. This also reduces the sea transits for LCL movements, which otherwise have to face a more expensive transshipment at locations like Singapore or Colombo. CONCOR currently provides LCL consolidation services from various locations such as Agra, Moradabad, Kanpur, Dhandari Kalan (Ludhiana), Whitefield (Bangalore), Tondiarpet (Chennai), Sanathnagar (Secundrabad), Sabarmati (Ahmedabad), Nagpur, Aurangabad, Mulund (Mumbai) and Pithampur (Indore). CONCOR's ICDs at Tondiarpet (Chennai) and Mulund-East (Mumbai) have been nominated as 'Hub' points for transshipment. In addition, a substantial amount of traffic is also moved between hinterland terminals and the hub points at the Maersk's CWC's CFSs at Dronagiri Node in Mumbai. While most of the movements of LCL consolidation cargo are road based, in the case of very long lead, CONCOR has even made the arrangement of moving the containers by rail up to Mumbai, and re positioning them locally by road to Dronagiri for reconsolidation.

Some of the special features of this service from different locations are: Most of the services move on fixed road schedules, to ensure connectivity with ship sailing from the gateway ports after reconsolidation at CFSs/terminals at Gateway Ports. The cargo is moved either in close body trucks or domestic containers. Some forwarders are also moving the cargo in their own containers. CONCOR has earmarked separate space for consolidation and de consolidation activities in its existing warehouses, and plans to continue doing so in the new warehouses being developed. CONCOR acts as Custodian of cargo up to the HUBs (Re-working Places) in India i.e., CFS, Mulund/ CFS, Dronagiri, CFS/Tondiarept. At the HUBs, the LCL consolidator presents both the copies of Shipping Bill to the proper officer of Customs who verifies the genuineness of documents and checks the marks and numbers of the seal on the trucks/containers as recorded on the documents. CONCOR has already executed bonds for the transport of goods from various ICDs to "HUBs" and vice versa.

For exports, all customs formalities relating to cargo examination etc. are completed prior to the movement of cargo. Shippers have to give a copy of the invoice and packing list of each shipping bill, to be checked at the consolidation terminal, and subsequently forwarded to the hub centre. CONCOR issues a delivery order to each of the parties to enable them to collect the cargo from hub centre. For import cargo, consolidators are required to hand over LCL consignments for a particular destination to CONCOR at the hub terminal after completing customs formalities relating to transhipment at the hub point. Thereafter, CONCOR carries the cargo to destination and arranges delivery of cargo after its customs examination etc. at the nominated ICD. Bills of entry are required to be filed only at the destination ICDs. Each party i.e. CHAs, consolidators, shipping lines has to issue a separate delivery order to their customers at the ICDs, which is required to be surrendered at the time of delivery of cargo. CONCOR accepts LCL cargoes from CHAs, Consolidators, shipping lines irrespective of the volume of the cargo available with each of them.

AIR CARGO SERVICES


AIR CARGO DIVISION In pursuance of its objective to provide improved Intermodal logistics solutions to Indias trade, CONCOR entered the field of air cargo in 1999. The Air Cargo business was formalized as a division at the Corporate Office in 2003 to provide a focused attention. CONCOR undertakes various Air Cargo activities as follows:
1. Road feeder services

a)Airports to airports b)Airports to Inland Container Depots/Container Freight Station 2. Air Freight Station in ICD/CFS.

3. Centers for Perishable Cargo.

4. Bonded warehousing for imports at its ICDs/CFSs.


5. Air Cargo Complex at Ozark Airport, Nasik and old Airport, Banglore.

Road Feeder Services CONCOR has obtained requisite permission from customs at major international airports as well as at 49 other ICDs spread across the country for movement of export/import cargo under bond. CONCOR currently provides road feeder services from Delhi, Mumbai, Agra, Kanpur, Ludhiana, Moradabad, Jaipur, Whitefield (Bangalore), Chennai, Sanathnagar (Secundrabad), Kolkata, Sabarmati (Ahmedabad), Nagpur, Aurangabad, Pithampur (Indore) etc. This service is proposed to be expanded to other places as well. Air cargo complexes and Centres for Perishable Cargo CONCOR has opened a greenfield Cargo Complex at Ozhar Airport, Nasik, jointly with Hindustan Aeronautics Limited (HAL). The complex has an air cargo facility, sea cargo facility & a Centre for Perishable Cargo (CPC) for direct international

airlifting from/to Nasik Airport. CONCOR is also constructing a Packhouse- centre for sorting, grading, packing and precooling of vegetables & fruits prior to export, at Nasik.CONCOR has constructed a another CPC at Goa Airport to promote the perishable cargo trade. Bonded & Other Warehousing Services Air Imports desiring deferred payment of duty are offered customs bonded warehousing facility at our ICDs. This is a thriving business at ICD/Whitefield at Bangalore. Bonded warehousing is available at other ICDs as well. (A list of CONCORs ICDs can be seen elsewhere for information). Warehouses can also be offered on leave and license basis, wherever available. Air cargo is growing the world over. CONCOR plans to move hand in hand with this growth by steadily increasing its facilitation to the air cargo trade by participating in other activities as well.

REEFER SERVICES
Reefers, or Refrigerated containers facilitate the movement of cargo that requires a strict temperature controlled environment. Running of Reefer services requires a certain degree of Infrastructure development at the handling terminals, and CONCOR has made such facilities available at its terminals, i.e. ICD Dadri and ICD Kanpur. The Reefer containers are moved from the terminal to the factories for stuffing on special trailers, on which a "clip on" generator can be attached to supply power to the Reefer units. On return to the ICD, they are stacked at a nominated location with special facilities for plugging in the containers to uninterrupted power sources, and regular temperature monitoring. The reefer containers are moved on High Speed "BLCA" wagons between ICD Dadri and JNPT/NSICT/GTIL ports in Mumbai. The power to the units while on run is provided from specially designed power packs which are fitted in modified 40 ft containers, and loaded on the trains. Each power pack serves upto 22 FEUs, and CONCOR is currently operating full rakes wih reefer containers.

CONCOR is also moving domestic reefer containers from ICD Dadri and Kanpur to domestic terminal at Turbhe. CONCOR has plans to offer these services from other terminals as well subject to materialization of adequate traffic levels.

FACTORY STUFFING / DESTUFFING


Keeping in time with the international trend, containers are now going to shipper's units more and more for cargo stuffing/ destuffing, as against the general trend a decade earlier, when most of the cargo was getting stuffed/destuffed at the ports/ ICDs. CONCOR's ICDs are now fully geared to provide the requisite "on-carriage" and "pre-carriage" facilities to shippers, hence fully eliminating any cargo handling enroute. While such facilities are often available through private channels, CONCOR also has arrangements for providing such services on-demand at competitive rates as part of its efforts to provide single-window services.

DISCOUNT SCHEMES
CONCOR has special incentive schemes operating at some of its terminals keeping in tune with the existing business trends. Special volume linked incentives are also on offer to shipping lines and exporters. Some of the schemes in vogue are as under: 1. Volume Discount Scheme in Imports to Shipping Lines based on the import containers booked by them from the gateway ports to CONCOR ICDs on CONCOR trains. 2. Volume Discount scheme for rice exporters booking containers from CONCORs terminals at ICD Tughlakabad, Dadri, Rewari, Sonepat and Ludhiana. Terminal Specific schemes are also on offer at various terminals like Jaipur, Jodhpur, Moradabad, Tondiarpet, Whitefield, Dronagiri Node, Pithampur etc.

CABOTAGE OF ISO CONTAINER

Extensive movement of shipping-line empty containers is undertaken by CONCOR to balance the differential levels of exports and imports in the country today. This movement of empty containers represents a wasted capacity, especially on routes where substantial domestic traffic is available for parallel movement by road or even on rail. In order to optimize the use of its resources, CONCOR offers the facility of "cabotage" to shipping lines who wish to move empty containers as balancing movements. A "cabotaged" container is effectively loaned by the shipping company to the carrier (in this case CONCOR) for a very short period (usually a single one way trip). During this trip, the carrier is permitted to use the container for movement of domestic cargo. By "cabotaging" these containers, CONCOR can therefore offer a substantial discount to both shipping lines and the potential domestic client. This is seen as an area of focus and strategy to boost volumes and profitability. CONCOR regularly offers Cabotage services on it's core exim route between Mumbai and Delhi. In addition, such services are also available on demand for other movements, subject to the availability of adequate domestic traffic volumes. Since CONCOR does not posses any 40 ft. Containers in its domestic fleet, all domestic movements in 40 ft. containers is done by cabotaging international 40 ft. containers.

CONCORs POLICYCON WAIVER OF TERMINAL SERVICE CHARGE


An Advice on CONCORs Policy on Waiver of Terminal Service Charges The following position of CONCORs may please be kept in view by the Trade (Exim and Domestic), while making requests for waiver of Terminal Service Charge(TSC) in any CONCOR-run container terminal. 1. Grant of waiver on TSC cannot be claimed as a matter of right by the customer, as it falls within the discretionary powers to be exercised by the competent authority. 2. Every request for waiver of TSC will be dealt with appropriately, depending on the merit of the case. Ordinarily, no waiver on Terminal Services Charges

will

be

granted.

3. Request for waiver of TSC should be made only after the Shipper has

obtained from Customs the Out of Charge Certificate(COOC). In case the customer is not satisfied with the waiver granted at terminal/regional level, he may make an appeal to a higher authority at Corporate Office level; such a request will be entertained only if the customer has taken delivery of the consignment after paying all necessary dues. 4. Applications for waiver of TSC must be submitted not later than three months from date of delivery. Any delay in this regard, can be condoned only by the Functional Director. 5. An appeal against the decision of rejection of an application for waiver can be made to the next higher authority than the deciding authority. Such appeal should be filed within one month of communication of the decision. 6. CONCOR is not under any obligation to grant waiver, even if Detention Certificate issued by customs authorities, is submitted, in cases, where accrual of ground rent is due to excessive time taken by customs authorities in examining and clearing the cargo. In case cargo is sent for laboratory testing, no waiver will be granted if the results of the test are not in favour of the importer. 7. No request for waiver will be entertained in cases where any fine/penalty/personal penalty/warning has been imposed by Customs authorities or delay arose by reason of dispute in the assessable value. In cases where TSC is waived in full or in part, no TSC will be charged for the processing period(provided, COOC has been obtained before making the request). Further, in case where request for a waiver is turned down, the processing period beyond ten(10) working days will be treated as free period for which no TSC will be charged.

A reasonable free time for taking delivery of the consignment will be allowed, in case waiver has been granted in part or in full.

Domestic Facilities & Service


Railway's strategic initiative to containerize cargo transport put Indian India on the multi-modal map for the first time when the Indian Railways entered the market for moving door-to-door domestic cargo in special Indian Railway Specification (IRS) containers starting in 1966. Though CONCOR, was incorporated in March 1988, it embarked on the transportation of domestic cargo only in 1991, using ISO standard containers for the job. Between 1993 and 1996, there was a major thrust in the domestic business, so much so that domestic business represented almost half of CONCOR's total business in 1995-96. This business, however was dependent on large scale chassis-to-chassis movement of cement, which had come CONCOR's way due to shortage of conventional rail wagons By 1997, it became clear that while there was a vast potential of domestic traffic to be tapped, this could only be done by focussing the strategy on the movement of goods that were erstwhile moving on road, and not on bulk, rail based traffic. A separate Domestic Division was therefore created in December 1997. The objective of the division is to bring back to rail, goods which are now being transported by road. The division aims to do this by containerizing piecemeal cargo and offering a comprehensive door to door intermodal service. The domestic division functions through a network of terminal/hubs. There are at present 5 exclusively domestic terminals, but as many as 20 of the other terminals on the CONCOR terminal map also offer domestic services. As a matter of policy, most of the new terminals being introduced are now being planned as combined domestic/international terminals. The main asset in which domestic cargo is carried is the standard 20ft container. CONCOR's fleet of TEUs in domestic service is currently at approximately 8500 TEUS. Of these, some are owned and some are brought in on short or long term lease depending on the demand requirements. Besides leasing, CONCOR also uses conventional ISO (international) containers by offering special Cabotage rates for empty movements. In this practice, containers that would otherwise move as

empty are 'borrowed'/leased on an extreme short term basis (usually for a single trip) for domestic cargo movement, thereby increasing the carrying capacity for domestic cargo as a whole. There are also different types of specialty containers such as Open Top, Side Doors, Tanks, and 22ft/high cube containers to cater to special types of cargo. The thrust of domestic operations is to run a series of point to point scheduled trains. These 'CONTRACK' services form the spokes in a wider hub-spoke strategy whereby cargo is consolidated through road or even rail, at major hub terminals from where such CONTRACK services operate.

DOOR DELIVERY AND PICKUPS


One of the prime objectives of the domestic division is to bring back to rail, goods which are now being transported by road. A key business thrust that has been made by the company in the area of domestic business has been in seeking to pick up such traffic that is moving by road by offering door-to-door pick up and delivery services. The concept of door pick ups and delivery takes us one step closer to achieving the primary objective of becoming a truly multi-modal logistics service provider. We are also seeking to make the process of delivery and pick up as simple as possible so that all the necessary paper work can be completed at the customer's door, and the customer need not visit the terminal at all. In certain cases, we have even made arrangements for the unloading of cargo from containers, and the delivery of loose cargo if this the customer's requirements. We are also in close touch with our customers to ensure that deliveries are made as far as possible according to their convenience and requirements.

CABOTAGE OF ISO CONTAINER


Extensive movement of shipping-line empty containers is undertaken by CONCOR to balance the differential levels of exports and imports in the country today. This movement of empty containers represents a wasted capacity, especially on routes

where substantial domestic traffic is available for parallel movement by road or even on rail. In order to optimize the use of its resources, CONCOR offers the facility of "cabotage" to shipping lines who wish to move empty containers as balancing movements. A "cabotaged" container is effectively loaned by the shipping company to the carrier (in this case CONCOR) for a very short period (usually a single one way trip). During this trip, the carrier is permitted to use the container for movement of domestic cargo. By "cabotaging" these containers, CONCOR can therefore offer a substantial discount to both shipping lines and the potential domestic client. This is seen as an area of focus and strategy to boost volumes and profitability. CONCOR regularly offers Cabotage services on it's core exim route between Mumbai and Delhi. In addition, such services are also available on demand for other movements, subject to the availability of adequate domestic traffic volumes. Since CONCOR does not posses any 40 ft. Containers in its domestic fleet, all domestic movements in 40 ft. containers is done by cabotaging international 40 ft. containers.

HAZARDOUS COMMODITIES
LIST OF HAZARDOUS COMMODITIES FOR TRANSPORTATION IN CONTAINERS BY RAIL Transportation of hazardous cargo on containers by rail are subject to the statutory provisions of the IRCA Red Tariff. Railways have also accorded provisional permission for carriage of dangerous / hazardous / offensive goods which fall under the International Maritime Dangerous Goods (IMDG) Code in containers, subject to their packing and stuffing being as per specifications of the IMDG Code. The following is the procedure that shall be followed by CONCOR in booking of hazardous cargo in containers : 1. When a container is laden with a commodity classified as hazardous in IRCA Red Tariff or IMDG Code, CONCOR shall accept it for rail booking only on a pink forwarding note , and collect the prescribed additional surcharges. 2. There should be no restriction in acceptance of containers laden with commodities not classified as hazardous both as per IMDG Code as well as in IRCA Red Tariff.

3. In case, lines offer containers , containing some commodities with apparent dangerous / hazardous characteristics and if such commodities do not find any reference in either IRCA Red Tariff or IRCA Goods Tariff or IMDG Code, then such containers will be accepted for booking by rail after taking a specific undertaking from the shipping line that the cargo loaded in the containers is not hazardous.

Value Added Services


HUB AND SPOKE SERVICES

One of the areas in which CONCOR faces competition in the transportation of goods is from truck operators offering transportation by road. Competition with such operators is primarily on the basis of price and dependability. The Company believes that it competes favorably with road transportation on the basis of price on movement of heavier cargoes over longer distances, although the truck operators may offer, among other things, greater flexibility with respect to the timing of shipments. Volvo trucks, with vastly reduced transit times as compared to conventional trucks, are challenging the rail transit times of CONCOR and are set to heighten competition.

In order to take full advantage of the rail linkages offered, while at the same time offering the reach and dependability of road services, the concept of "hub and spoke" operations are likely to become crucial in the company's long term development. Hub and Spoke operations are feasible for both the international and domestic business segments. Such operations involve the linking of road or short lead rail shuttle services within defined catchment areas, to long lead point to point train services In the domestic arena as well, hub and spoke movements allow for a better utilization of transport potential and allow for long lead services to be generated on the basis of short lead traffic collections using road and rail shuttle services. This service can be especially useful for big corporates for whom production centers are concentrated in a single location, but distribution needs are national in scale. CONCOR has already successfully moved white cement as a commodity using this experiment, whereby the product has been distributed over various locations after being picked up from a single production center.
Transportation to become seamless and "door-to-door"

INTEGRATED FREIGHT TERMINALS


As part of the overall strategy for expansion of business and movement toward the provision of complete logistics services, the company is considering the option of moving into operating large railway goods-shed hubs.

This will mean managing integrated freight terminals. To achieve this, CONCOR in the long term plans to set up Distriparks/ Freight Centres/ Trade Development Centres etc. at some of its terminals. The focus of providing such services will be on the backward and forward integration of various value added services with the core business of transport logistics, in which the company already has an established foothold.

COASTAL SHIPPING
As part of its overall strategy of expansion and entry into areas of business that would compliment its position as a multi-model logistics service provider, Coastal Shipping is an area of business the company is examining for making an entry. CONCOR's interface with coastal shipping can be easily established by undertaking all port operations for coastal vessels or only taking up the rail interface for such vessels at port terminals and providing hinterland connectivity. For getting into Coastal shipping per se, we can pick up equity stake in sea-going vessels and identify a strategic partner with adequate experience and resources.

COLD CHAIN / REEFERS


A key business area with high potential for growth is the provision of Cold Chains. This involves providing transportation to perishable products from source to enduser, while maintaining a certain temperature along the route. Today 85% of the cold storages are in the private sector and not a single complete cold chain solution provider is available in the market. Absence of Reefer container linkages and high and increasing power costs are proving to be major impediments. CONCOR is already providing basic rail based reefer services between Delhi and Mumbai, and could get into providing cold chains by making a few arrangements that would expand its market presence. These would mainly include: Tie up with an international major, preferably with developing country experience with both technology and equity commitment for bringing in the basic equipment.

Organize terminal to factory transport, refrigerated warehouses-where needed, and delivery, while maintaining both temperature controlled environments, as well as transit commitments. Identify viable corridors for specific products. This will require tying up with producers and consumers independently or tie up with a food processing major to distribute its products. Return trips wherever possible make cold chain operations more profitable, and sometimes represent the difference between break even and loss

TOTAL LOGISTICS SOLUTIONS


The concept of total logistics, like that of marketing, has been somewhat alien to traditional Indian business ethos. Logistics signifies the integration of two or more activities for the purpose of planning, implementing and controlling efficient flow of raw materials, in-process inventory and finished goods from point of origin to point of consumption. Transportation is often the single largest cost in the logistics process. Logistics is a source of value addition. By streamlining transport, storage and handling operations, by reducing inventories (and the corresponding financial and storage costs) and by making the most cost-efficient use of available assets, logistics reduces the overall cost of the delivered goods while increasing their time and space utilities (right time, right place). According to a study commissioned by CONCOR, presently in India there are about 15 players as logistics service providers out of which only 5 to 6 have turnover of Rs. 50 crores plus. Though there are over 1500 transportation companies in India, only about 25 offer third party logistics services. Others offering similar services are courier companies, freight forwarders, brokers and booking agents. In the market, about 75% of the revenue being generated by this segment is on account of transportation and balance 25% is on account of services. The study further showed that in-house logistics service arrangement is still predominant (80-90%). Major users of 3PL spend about 0.5% to 8% of their turnover on getting these services. Within the realm of logistics, transportation, customs brokerage, freight consolidation and freight forwarding as services are almost always outsourced, whereas Inventory management is the only key element of the logistics chain that is seldom outsourced.

Advantages offered by CONCOR as Logistics Service Provider Efficient rail transportation of containers Massive warehousing capacity Country-wide network Large fleet of containers Relationship with top-end customers Relationship with various intermediaries in logistics Intellectual capital. For the growth of business, CONCOR plans to carve a niche for itself as provider of third party logistics services. This could involve the setting up of Distriparks, Freight Centers, and Trade Development Centers etc. IT could be achieved through Alliance, associations, Joint Ventures or just on its own, and the services offered could be total logistics solutions to select customers or, if required, as a common user service.

CUSTOMER SATISFACTION
We are regularly making efforts to improve our business processed to provide for improved quality of customer satisfaction. Some of the practices adopted by the organization for achieving these goals are listed below: On line Information & Container Tracking Container Repair & Cleaning Facilities Cargo Palletisation, Strapping etc. Cargo Lashing/Choking Facility Fumigation of Cargo/Containers Supply Chain Management Door Delivery/Pick Up of Containerised cargo Container/Cargo Survey Pre Deposit Accounts Round the Clock Security at Terminals Facilitation of Customs Clearance Flexible Payment Arrangements We conduct Customer Satisfaction Survey regularly to get a feedback from the customers and also take action to rectify/improve our services.

CONCOR had also introduced on Companys website Feedback. Com wherein Customers can obtain information and seek remedies on our services in the format available under menu Customer Feedback Facility. Prompt action on these observations/suggestions is taken to improve the quality of our services to the customer.

CLAIMS PROCEDURE
Compensation claims for loss, damage, etc. to consignments in transit are dealt with by CONCOR in accordance with the provision of the Indian railways Act 1989. CONCOR assumes responsibility for the loss, destruction, damage or deterioration, or non-delivery of any consignment in transit, arising from any cause except the following, namely:A) Act of god; B) Act of war; C) Act of public enemys; D) Arrest, restraint or seizure under legal process; E) Orders or restrictions imposed by the Central Government or a State Government or by an officer or authority subordinate to the Central Government or a State Government authorized by it in this behalf;

F) Act or omission or negligence of the consignor or the consignee or the endorsee or the agent or servant of the consignor or the consignee or the endorsee; G) Natural deterioration or wastage in bulk or weight due to inherent defect, quality or vice of the goods; H) Latent defects; I) Fire, explosion or any unforeseen risk: According to the rules notified under the said Act, every person entrusting any cargo to CONCOR for carriage by rail or road shall execute a Forwarding note in such form as may be specified and the consignor shall be responsible for the correctness of the particulars furnished by him in the forwarding note. The consignor shall indemnify the CONCOR administration against any damage suffered by it by reason of the incorrectness or incompleteness of the particulars in the forwarding note. Further, the liability of CONCOR for general goods shall not exceed an amount calculated on the basis of invoice value subject to a maximum rate of Rs 50/- per kg unless the consignor had declared the value of the consignment at the time of booking, and paid in addition to freight charges, a percentage charge which varies from 0.25% to 1% of the value depending on the distance for which the consignment is booked.] In order to avoid a time bar on settlement of claims the claims should be preferred within six months of the date of booking. All claims should be addressed to the Head of the Region (CGM/RGM) where the destination station/depot lies. To assist us in dealing with claim case promptly, claimants are requested to furnish the following details in their claim letter in the format which can be downloaded:

FORMAT FOR CLAIM LETTER.


Copy of Inland Way Bill which shall be prime facie evidence of weight and no. of packages. Booking station Destination station Factory stuffing/Terminal stuffing

Terminal destuffing/factory destuffing. Commodity-description & weight Details of loss/shortage/ damage Shortage certificate/open delivery/ assessment delivery certificate issued by CONCOR at the time of delivery. Amount claimed (indicating the basis on which this has been arrived at, such as original trade invoice, beejuk, bill,etc. Exoneration from responsibility under section 102 of IR Act 1989: CONCOR administration shall not be responsible for the loss, destruction, damage, deterioration or non-delivery of any consignment in following circumstances: When such loss, destruction, damage, deterioration or non-delivery is due to false declaration Where fraud is practiced by consignor/consignee/agent In case of improper loading/unloading by consignor/consignee/agent Riot, civil commotion, strike, lock-out, stoppage or restraint of labour from whatever cause arising whether partial or general Any direct/indirect or consequential loss or damage or for loss of particular market

FUTURE PLANS
The container traffic in India has grown at a CAGR of 15% since 1991, 2.5 times the average GDP in the same period. With the growth of external trade being faster than GDP, the similar trends are expected to continue in future as well. Similarly the possibilities of growth in container traffic in the Domestic sector are immense with continued strong trends in growth of GDP and the need of the industry for value added services. Logistics ports, large cargo hubs will be the requirement of the industry in very near future, as large retail chains generate the demand for professional managed cargo delivery systems.

There will be a need for CONCOR to adopt different strategies for growth in the changed external business environment due to opening up of Rail sector for container train operation for 15 other players. More emphasis will be required on providing total logistics and transport solutions to its customers by seeing the possibilities of expanding the presence of the company in all the segments of the transport value chain in the Exim as well as Domestic segment. Possibilities are to be explored for strategic alliances, both for optimal utilization of infrastructure as well as expansion into other segments of the value chain. The emergence of number of new ports viz. Mundra, Pipavav, Vizag, Tuticorin, Vallarpadam , Ennore& some minor ports in Gujrat like Porbandar, Okha, Maroli etc. will have a large effect on the hinterland movement of containers in the country. Further, the hinterland penetration levels of the container traffic, which are very low at present, are also bound to see a many fold increase. This change in the environment offers immense potential for CONCOR to identify new business opportunities and remain the market leader by expanding into new corridors.

Rail remains the main stay of CONCOR's transportation plans, currently. Business trends are now changing towards more and more door-to-door clearances. This needs to provide single window clearance facilities to its customers. This will require close co-ordination and/or alliances with other relevant agencies and transport intermediaries for door-to-door movement of cargo in containers. In order to compete with road sector that provides door-to-door movement of containers on the basis of single price, single window service through a single document, will be a key USP for the future. The company will continue to adopt cost effective key processes across various terminals and areas of business associated with key critical success factors, the factors which are important to its customers, through the process of Benchmarking. CONCOR has introduced movement of Double Stack Container Trains between Kanakpura (Jaipur) & Pipavav and Kankakpura & Mundra. These trains will provide cost-effective transportation between these ports and ICDs in Northern India. Due to the presence of OHE wires and other fixed structures on P-way, double stack trains cannot be run elsewhere. CONCOR has also drawn MOUs with some of the leading players in the container transport field for transporting their containers between ports and ICDs. CONCOR has created a special division to look after the Air Cargo business which has two components 1) Bonded Trucking Services and 2) Air Cargo Complexes. Company arranges bonded trucking services between its ICDs and major international airports like Mumbai, Bangalore, Hyderabad, Amritsar, Chennai and Delhi. Company is expanding these services to/from other locations. Air Cargo Complex at HAL, Bangalore Airport offers all cargo related services. The other Air Cargo Complexes at Ozar airport, Nasik has commenced operations. Plans are also being worked out for other airports. CONCOR has joint venture with MSIL and HAL in Air Cargo Complexes. The Joint Venture with M/s. MAERSK A/S Copenhagen for third birth at JN Port has placed CONCOR in the category of Port terminals operators. CONCOR has also entered in a JV with Dubai Port World for setting up & managing container terminal at Cochin Port. This has opened new possibilities for further expansion in this field.

CONCORs wholly owned subsidiary Fresh & Healthy Enterprises has established its presence in the Apple trade in North India & its first Controlled Atmosphere Store (CAS) at Rail near Sonepat (Harayana) started its operations. For domestic business, CONCOR is committed to bring back to rail a significant share of containerisable general goods cargo through aggressive marketing efforts. The main competition in this area comes from road transportation of goods by trucks. However, since we provide better risk coverage, in addition to controlled transit times and overall reliability, we feel we geared to woo traffic that presently uses road. Domestic business has a very large potential for growth today. Given that consumption centres are vast distances away from production points, there will always be a big demand for transport. The setting up of high capacity consumer goods industries also indicates that the growth of non-bulk traffic is expected to be faster then that of bulk traffic, with the shares of both becoming decidedly better than the current 35-65 ratio. Significantly most of this non-bulk traffic is containerisable, and represents a huge market potential for CONCOR in the domestic sector. The main strategy to capture domestic traffic so far has been to run regular scheduled point-to-point services by rail. These CONTRACK services will be expanded to several more origin-destination (O-D) points. Greater efficiency will be introduced through the use of newly acquired rolling stock. Special cargo and corporate will get particular focus by customization of services, and a wider terminal network will be put in place. A major aspect of the growth strategy for both international and domestic business will involve the employment of the hub and spoke system to serve the customer completely at his doorstep, while optimizing the internal logistics chains within the organization. In the effort to move from being a service integrator, CONCOR will move towards becoming a Third Party Logistics(3PL) service provider by expanding the core business into areas such as warehousing, refrigerated cargo storage and movement, and the provision of a large number of other value added services. As part of the overall strategy to increase market share, CONCOR will also look to provide multi-modal, transportation and logistics consultancy services to its potential users. These could be shippers directly, or intermediate agencies such as shipping lines, forwarding agents, terminals operators etc. Even government

bodies and private trade associations chamber of commerce etc. may be targeted as potential clients.

Financial and Physical Performance

PERFORMANCEFIGURES

S. No. 1

Year ( From )

Year ( To )

International

Domestic

Total

1996

1997

424741

278801

703542

1997

1998

491481

230238

721719

1998

1999

576790

225156

801946

1999

2000

664490

238661

903151

2000

2001

753368

291360

1044728

2001

2002

905058

326775

1231833

2002

2003

1031925

351238

1383163

2003

2004

1251618

350501

1602119

2004

2005

1376516

351460

1727976

10

2005

2006

1556714

373848

1930562

11

2006

2007

1715661

389605

2105266

WESTERN REGION
Serial No. 1 2 3 4 5 6 7 8 Year ( From ) 1996 1997 1998 1999 2000 2001 2002 2003 Year ( To ) 1997 1998 1999 2000 2001 2002 2003 2004 International 111052 126937 188038 199241 222395 186646 216808 246367 Domestic 99334 40385 47454 46685 45658 17515 18865 15226 Total 210386 167322 235492 245926 268053 204161 235673 261593

9 10 11

2004 2005 2006

2005 2006 2007

225442 272508 268743

9236 10345 21882

234678 282853 290625

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009

Bibliography
www.concorindia.com www.reuters.com www.google.com