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Introduction
 Cargo carrying containers integral part of modern maritime
 Facilitates unitization of cargo and its carriage through different modes of transport
 Share of containerization is growing world wide
 Revolutionized transport industry – highways, sea ports, trains, ships, trucks plus
warehousing
 Intermodalism – containerization (exchange of modes)

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Containerization – Concept & Operation
 Shipping system based on large cargo carrying containers that can be easily interchanged
between trucks, trains and ships without re-handling content
 Is a single rigid sealed, reusable metal box in which merchandise is shipped – vessel, truck
or rail

Characteristics are:
 Strong, good for repeated use
 Specially designed to facilitate carriage of goods by one or more mode
 No intermediate reloading required, fitted with devices
 Designed for easy filling and emptying
 Rectangular shaped, weather proof

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Container material
 Steel, Aluminum, plywood, fibre glass, etc..
 Steel – Steel frame, steel cladding – rusted in 4 to 5 years
 Aluminum – Steel frame and aluminum cladding
◦ Light weight and rust free, short life – corrosion with salt water

 Non metallic containers – plywood and fibre glass – steel frame, walls, roof,
doors – plywood with fibre glass coating.
◦ Good insulation properties, but difficult to repair and expensive to manufacture

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History
 Unit load for cargo – improve efficiency of transport operations
 Cargo protection from nature, pilferage, damage, and easy of handling
 1956 – Malcolm Mclean – direct transfer of containerized cargo
 Multi modal co – Sea Land Corporation
 1961 – regular services between NY, LA and SF
 1966 – first Trans Atlantic Container Service – USA and European Ports
 Capacity of 1000 to 1500 TEUs. Speed of 20 to 30 knots
 1970 – Panamax Ships – 1500 – 3000 TEUs
 1980–Panamax Ships – 4000 TEUs: 1990 – 4400 TEUs; Today – 6000 TEUs

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History
 Ports modernized, depth of draft 52 feet – for 8000 or bigger TEUs ships
 Indian Ports handled approx 3 million TEUs out of which 50% by JNPT
 Developed countries improved infrastructure like roads, ports, material handling – USA,
UK Japan, Germany
 Singapore, Dubai, Hong Kong created highly efficient ports – hubs of regional traffic
 Containerization plus IT made JIT possible for Toyota and Honda
 Containerization most advanced form of unitization
 Container sizes – 20’, 40’, 45’ and 53’
 Ship capacity – TEU – Twenty Foot equivalent

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Types of Container
General Purpose Containers – Dry Container

Typical dimensions:
 20 foot and 40 foot
 Height 8’6” and 9’,6”
 Container weight:20’ – 1800 kgs approx; 40’ – 3500 kgs approx
 Max Loading weight: 20’ – 20 tons; 40’ – 28 tons
Characteristics:
 Suitable for general cargo
 Fork lift pockets provided on containers
 Lashing devices provided on top, bottom, longitudinal rails on corner post

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Types of Container
Open Top Containers
Typical dimensions:
 20 foot and 40 foot
 Height 8’6” and 9’,6”
 Container weight:20’ – 2200 kgs approx; 40’ – 3750 kgs approx
 Max Loading weight: 20’ – 20 tons; 40’ – 26 tons
Characteristics:
 Suitable for cargo with extra height, can be loaded topside with crane
 Top can be covered with tarpulin if required
 Suitable forklift pockets, lashing devices and corner posts are provided
 Agricultural and construction machinery, ingots, logs, scrap, project cargo, marble slabs,
castings, etc..

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Types of Container
Reefer Container
Typical dimensions:
 20 foot and 40 foot and Height 8’6” and 9’,6”
 Container weight:20’ – 3000 kgs approx; 40’ – 4500 kgs approx
 Max Loading weight: 20’ – 17 tons; 40’ – 25 tons
Characteristics:
 Suitable for cargo that need constant temperature above and below freezing point- fruits, vegetables
and other perishables
 Fresh air supply inside container possible in the quantity to keeps inside products safe
 Insulating material polyurethane foam sandwiched between two walls of container
 Temperature can be set from +25 degrees C to – 25 degree C

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Types of Container
Flat Rack Container
Typical dimensions:
 20 foot and 40 foot and Height 8’6” and 9’,6”
 Container weight:20’ – 2500 kgs approx; 40’ – 4500 kgs approx
 Max Loading weight: 20’ – 17 tons; 40’ – 25 tons
Characteristics:
 Suitable for heavy loads and extra wide cargo
 Bottom has strong construction
 Fixed end walls allow bracing, lashing and stacking
 Cargo – air conditioners, Boilers, Construction machinery, Electric generators, etc..

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Types of Container
Platform
Typical dimensions:
 20 foot x 8 foot and height 1’ 1 ¼” and 40 foot by 8 foot height 2’
 Platform weight:20’ – 2000 kgs approx; 40’ – 4200 kgs approx
 Max Loading weight: 20’ – 22 tons; 40’ – 40 tons
Characteristics:
 Most suitable for heavy loads and oversized cargo
 Bottom has strong construction
 Cargo – over length, over height items, pipes, rods, plywood sheets, large
irregular shape items, steel beams, etc..

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Types of Container
Half Height Containers
Characteristics:
 Similar to open top but are only half height i.e 4’3” instead of 8’6”
 Used for extremely heavy and dense cargo as steel beams, coils of tinplate

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Types of Container
Side door Containers
Characteristics:
 Have side doors.
 Cargo that fir inside dimensions of container, but still wide to fit through the end
door.
 In all other respects, it is a general purpose container type

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Types of Container
Ventilated Containers
Characteristics:
 Suitable for cargo that need ventilation like coffee or cocoa
 Small opening at each corner to let fresh air into/ out
 Does not allow rainwater or sea water to enter

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Types of Container
Bulk Containers
Characteristics:
 Suitable for carriage of dry bulk cargo
 Three equivalent manholes provided for top loading
 Forklift pockets and lashing devices provided
 Cargo – grains, granules, sand nuts, beans, malt, sugar, dry chemicals, etc..

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Types of Container
Insulated Container
Characteristics:
 Normal box containers with insulating material - walls, top, bottom
 Minimum temperature fluctuation inside
 Insulated containers attached to separate temperature control device (Temperature
Control Containers)

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Types of Container
Collapsible Container
Characteristics:
 Normal box container, but box can be collapsed completely
 Used on routes which have very little return cargo, container return empty
 4 x 20’ collapsible containers in their collapsed form have exactly same dimensions
as 1 x 20’ regular box
 There is a substantial space savings on returning empties

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Types of Container
Tank Container
Characteristics:
For CHEMICAL PRODUCTS, as
 Flammables
 Oxidizing agents
 Toxic substances
 Corrosives

For FOOD PRODUCTS, as

 Alcohols
 Fruit juices
 Edible oils
 Food additives

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Benefits of Containerization
 Benefits to Shippers
 Reduction in transportation cost
 Saving in Port Charges
 Reduction in warehousing and inventory costs
 Reduction in Packaging cost
 Reduction in Insurance Premium
 More convenience
 Better acceptance in developed countries
 Emergence of new markets

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Benefits of Containerization
 Benefits to Ship owners
 Reduction in “turn around time”
 More cargo carrying capacity
 Higher return on investment
 Global contracts
 Higher Profitability
 Inland Operations

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Benefits of Containerization
 Benefits to Port Authorities
 Less Port congestion
 Time saving
 Fast and convenient loading and unloading
 Less marketing effort
 Rationalization of cargo handling charges

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Benefits of Containerization
 Benefits to Freight Forwarder
 Helped to consolidate cargo and operate as NVOCC

 Benefits for the Railways

 Revenues gone up for cargo and ICD operations

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Container Leasing Practices
 Largely owned by shipping lines, leading freight forwarding organizations
 Leasing practice important – constant fluctuations
 Containers – expensive hence not owned beyond certain no.
 Leased to meet temporary demand
 Trans Atlantic route – 3 set for each vessel – one in Europe, one in US and
one in high seas

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Container Leasing Practices – Types of Lease
One – Way Lease
 Container leased only for outward journey

 Ex: Leased from Chennai to Dubai, returned empty and clean to leaser’s

depot at Dubai

Round Trip
 Container leased for both outward as well inward journeys

 Used when shipper has both ways movement of cargo, or no return depot at

port of destination

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Container Leasing Practices – Types of Lease
Short Lease
• Container leased for 60 or 90 days

Long Lease
• Container leased for 2,3 or more years

Master Lease
• Shipping lines enter into master lease contract with leasing companies
• Leased Container returned, owner makes receipt of EIR (Equipment
Interchange Receipt) with following info:
• Date/ place of pick-up; name and other detail of lessee; full identification of
container; condition when leased and when returned
Most leased containers covered by DPP - Damage Protection Plan
However cost of normal wear and tear; i.e. Rust holes etc.. Need to be
borne by lessee
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Advantages of Leasing
 Possible to lease container for short notice, for sudden surge in demand
 Containers can be returned by shipping lines when need over – storage
issues
 Avoid blocking of capital in owning containers. Policy of % containers
owned
 New shipping line – zero capital investment into containers, quick start
 Waiver of pick-up and drop-off charges – during slump in demand
 Entire business of NVOCC’s built on leased equipments

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Inland Container Depot (ICD)
 Import container – sea port to importer factory/ warehouse – de-stuffing –
empty return to sea port
 For export – container from sea port – factory/ ware house – stuffing – move
to sea port – wasteful duplication
 Provide transportation logistics services for export – import as well as
domestic cargo in containers
 Facilitate trade – industries based in hinterland
 Reduce bottlenecks at sea ports – free storage space
 Development of rural areas
 Performs all functions of port – except stevedoring operations
 Bypass of port Container Depot – processed near consignee
 ICD – also known as Dry port

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Inland Container Depot (ICD)
 Large enclosed/ secure area – containers stored– customs bond
 Sea port by rail/road (or both)–movement customs bond
 Also store empty containers before sent for stuffing
 Excise and customs clearance at shipper’s premises or ICD
 Freight forwarders help in handling ICD related work

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Duties of ICD
 Gate check –in
 Gate check-out – damaged not sent for stuffing
 Documentation
◦ Issue of EIR
 Reporting
◦ Movement of containers from ICD informed to container owners
◦ Communication through email, fax, EDI etc.. IT connectivity
 Repair and maintenance
◦ Maintenance as per customs approval standards (IICL, USA)
◦ Reefer containers – routine maintenance essential (thermostat calibration)
 Storage
◦ Safe storage of containers
◦ Suitable material handling equipment
◦ Arrange rail, road dispatch to port
◦ De-stuffing and stuffing operation undertaken, if required
◦ Sealing, lashing, securing, bracing, container survey, etc..

 Large enclosed/ secure area – containers stored– customs bond

 Sea port by rail/road (or both)–movement customs bond
 Also store empty containers before sent for stuffing
 Excise and customs clearance at shipper’s premises or ICD
 Freight forwarders help in handling ICD related work

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CONCOR
 Estd in 1988 – Ministry of Railways –
 Objective
◦ catalyst for promoting containerization, and
◦ Boost to Indian – international and internal trade with multi modal logistics
 CONCOR provides logistics services and support – shippers may obtain
containerized freight transportation by rail (only)

CONCOR’s core Business operations

 As a Carrier

 As Terminal and Warehouse operator

 As CFS Operator

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CONCOR’s core Business operations
 As a Carrier

 Provides Rail or road link between ports and terminals

 Sole provider for containerized rail transport in India
 Majority of ICDs and CFSs linked by rail
 Rail freight cheaper by 20% than road
 Railways provides leased land for container operations

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CONCOR’s core Business operations
 As Terminal and Warehouse operator

 Nov 1989 with 7 ICDs - today 51 (7 exclusive for domestic)

 All facilities of dry port with customs clearance
 Other facilities – warehousing, container storage and repairs
 Categorized- Deep, medium hinterland, portside & within port

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CONCOR’s core Business operations
 As CFS Operator

 Value added service offering transit warehousing facility

 Transit warehousing for import and export cargo

 Bonded warehouse - partial release of cargo – defer duty payment

 Consolidation of Less then Container Load (LCL) cargo

 Clearance of air cargo using bonded trucking

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CONCOR’s Terminal Networks
 Provide single window facility for shipper – coordination with customs,

ports, shipping lines, road carriers, water ways, airways, warehousing

operations and C&F agent

 Creating infrastructure for easy movement of cargo – surveys for future

logistics needs, feasibility studies for setting up ICDs

 Developing indigenous technology for movement of perish able cargo –

reefer service on railways – fruits and vegetables movement

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End of Topic

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