LESSON 21

Inland Container Depot

1.ICD Roles and functions

2.Export Clearance at ICD.

3.Clearance Procedure for Imports

4.CONCOR

5.CONCOR and ICD

The concept of ocean going containers was introduced in India for the first time in
1968 in a seminar held jointly by the Indian National Shipowners' Association (INS A),
Directorate General of Shipping, the Shipping Corporation of India Ltd. (SCI) and the All
India shippers Council (AISC) at Bombay.

In early 1970s, SCI acquired the first semi-container ship with three holds
designed to carry containers alongwith two holds fuf general cargo. Other shipping
companies like Scindia Steam Navigation Co. Ltd. and India Steam Navigation Co. Ltd.
followed on the steps of SCL India Steamship Company went ahead to acquire a small
cellular container ship.

In 1971 Cochin port received containers for the first time from a conventional
general cargo vessel of the American President Lines. They were handled by the Ship's
derricks.

In 1973, the American President Lines began scheduling their cellular feeder.
container ships to Mumbai and brought the necessary handling equipment with them. The
action was repeated by the lines of European and other countries who also thereafter
started scheduling their cellular ships to Indian ports

However, India started seriously to adopt containerisation only in 1978. Major

ports like Mumbai, Cochin, Chennai, Haldia/Calcutta commenced to equip themselves
for handling container ships and containers in the appropriate way.

Shippers and consignees also responded to the opportunities and benefits in

cbntainerisation. The buyers of Indian goods abroad stipulated in their letters of credit
that the goods should be containerised. Hence, despite the need for heavy investments
and numerous problems in smooth flow of goods, India was forced into containerisation
to stay with the dominant trend in the world economy

INLAND CONTAINER DEPOT (ICD) – ROLES AND FUNCTIONS

The full benefits of containerisation can be obtained only if the containers are
permitted to move to the locations of the original cargo generation points. The
Government of India decided to set up Inland Container Depots (ICDs) which are also
called dry ports. Shipping formalities can be completed in ICDs for containerised cargoes
instead of at the exit gateway port.

Inland Container Depots are interfaces between connecting modes of

transportation.

An Inland Container Depot is an organisation offering a total package of activities

to handle and control container and general cargo flows between road, rail and
waterways, and vice versa, resulting in maximum service for inland transportation at
minimum costs.

Normally ICDs provide the following services:

(a) Handling of containers from road, rail and barges to a temporary storage area
container yard.

b) Intermediate storage between the various transportation modes. Special containers

and or cargo may require additional provisions, such as refrigeration services and
special areas for dangerous cargo.

(c) Receipt and delivery of containers and general cargo. This may include activities
such as weighing, inspection of seals and damages, sticker and safety plate control
and container information control. Stuffed containers may be received from the
satellite Container Freight Stations (CFS) in ready condition to be transported to the
exit port. Shippers may also directly bring Less than Container Load (LCL) cargoes
for the purpose of consolidation an.d despatch.,

(d) Cargo consolidation and distribution if the container cannot be received or delivered
directly at the final consignee's door. In this case, containers are stuffed with or
destuffed for LCL, depending upon the direction of the cargo movement prior to
despatch.

(e) Depot functions, for the storage of empty containers. Space may also be required for
temporary storage of loaded containers awaiting movement out of ICD.
(f) Other facilities include container cleaning services, pretrip trials of reefer containers to
check the function of refrigeration equipment, maintenance and repair services for
containers, container handling equipment, refrigeration equipment, road chassis, etc.
In this respect, ICD should make itself a self-sufficient unit.

(g) Custom's clearance activities at Inland terminals could help to decrease the dwell-
time of containers in deep-sea ports. These activities include checking of LCL cargo
prior to stuffing or after stripping, checking container seals, assessment and valuation
of cargoes, perusal of container manifests, and so on. The transport of containers
under bond to ICDs from deep sea ports is a necessary feature of well-developed
multi modal transport systems because this has proved to be a time and cost saving
function.

(h) Physical distribution services can be provided economically at or close to the ICDs.
Garments can be ironed and packed, prices tagged onconsumer goods, liquids in bulk
can be bottled - in short, a variety of cargo-related services to finished goods can be
placed near the ICD itself. For agricultural products, ICDs may provide refrigeration
plants and warehousing facilities to prepare meat, fish and vegetables for export.

Guided by economic and strategic considerations, each ICD may decide what
functions it should have.

Indian ICDs perform many of the , possible, functions outlined above. These
include stuffing, destuffing, locking, sealing; providing trailers chassis, railway flats,
repairs, handling equipment, storage, 'facilities for reefer, customs examination and
processing of customs documents, issuance of combined transport documents by
carriers.

ICD is a declared Customs Area for the purpose of import and export but only
limited facilities of noting of shipping bills, valuation and examination of export cargo
are afforded at ICD. Exports however are deemed to be effected from the Gateway Port
only.

ICDs are connected with gateway ports. Following are examples of some of the
ports and the ICDs connected to them.

Ports ICDs
1.Mumbai,Jawaharlal Nehru Port Trust Delhi, Ludhiana, Ahemdabad, Pune, Wadi
Bander, Banglore, Hyderabad, Tondiarpet,
Amingaon
2.Calcutta Haldia Delhi, Guwahati, Wadi Border
3.Chennai Tondairpet,Banglore,Hyderabad,
Coimbatore, Guntur, Anaparti
4. Cochin Banglore,Coimbatore
 Within 24 hours of landing, the containers consigned to the ICDs are dispatched
by rail. At the ports, ICD containers and transshipment containers are moved on priority
basis. Similarly, stuffed containers, on completion of customs formalities at the lCD, are
dispatched to the terminal port within 24 hours.

The railways provide the transport link between the ICDs and the gateway ports.

CONTAINER FREIGHT STATIONS (CFS )

CFS have been established to speed up export cargo and to specially help small
exporters whose consignments are less than container (LCL) loads.

The CFS has facilities of modem godown accommodation under export

supervision. Facilities of banking, custom examination, clearance, safe handling, stuffing,
sealing and transportation of containers are available. Both import and export
consignments are handled here.

Location of ICDs and CFSs is regulated by the Ministry of Commerce of the

Government of India, While this ministry is encouraging liberalisation and
competitiveness with a view to making transport more attractive and customer friendly, it
must maintain the inter regional balance. CFSs and ICDs should not be concentrated only
in a particular region; they must be spread throughout the country depending upon
present and future potentiality of cargo traffic.

The supportive network of surface transport with the location of Container Freight
Stations and Inland Container Depots has to be in the hinterland. The location depends
upon the potentiality of generating volume of export cargo or where distribution of
import-cargoes can be easily facilitated.

Further, CFSs and ICDs should be complementary to each other. CFSs are cargo
aggregating points, which should conveniently feed the ICDs for carriage to gateway
ports in sizable quantities and over long distances. Conversely for imports, the goods may
be brought over the same route to an ICD for distributing to the various users.

MARITIME CONTAINER RATES (FREIGHTS )

General practice is to formulate individual rates by container type capacity, actual
origin and destination of the merchandise.
 Though rate will embrace the inland transportation cost known at the time of
despatch, embracing collection and teminal handling expenses, it will usually exclude
customs clearance charges, demurrage, etc. This practice applies to FCL traffic.

Some large multi-national companies own/lease ISO containers. They are usually
of a specialised type offering a two way traffic flow. The tariff for such traffic is usually
specially negotiated contract rate.

LCL traffic - rates are calculated on weight or cubic measurement basis

whichever produces greater revenue. They naturally reflect the origin and destination of
such merchandise together with collection and terminal handling charges.

For consignment such as livestock or indivisible loads requiring heavy lifts,

additional charges are raised.

Maritime container rates are very competitive and this mode of transport. now
constitutes a substantial volume of deep sea world general merchandise cargo.

EXPORT CLEARANCE AT ICDs

1) Presentation of shipping bills:

The exporter is required to file shipping bill in seven copies:

Original
Duplicate
Quick drawback payment scheme
Exchange control Copy Exporters
Copy
Transference copy
The exporter should mention name of 'Port of Exit' and serial numbers of
container. The exporter should obtain in advance, space availability certificate
from the Railway/Combined Terminal Operator.
Shipping bill should mention details of goods, their classification, name of the
port of exit, identification mark, No.of containers, weight and value of goods.
Contents of cargo should be declared and proper statistical code number must be
given. GR forms should accompany, without fail, the shipping bills.

2) Scrutiny of shipping bills:

Duly completed shipping bills are put in Noting Box provided at the ICD.The
receiving clerk after noting them scrutinises them and accompanying documents. The
receiving clerk will give a running serial number on shipping bill if no discrepancy is
found. Otherwise these may be returned for resubmission after correction.
3) Classification and assessment:

The Central Registration Unit of the ICD completes the classification and
assessment. Rate of duty is filled by appraisement department. Original shipping bill is
retained and balance six copies are handed over to exporter for completion of
examination.

4) G.R.Formalities:

Full set of GR forms has to be submitted alongwith the shipping bills. The full
value of export will be verified on the GR form.

The assessing officer will retain the original GR form for release to RBI.
Duplicate copies are retained at ICD. Shipment certificate on the GR form shall be
furnished after custom examination of the export cargo and sealing of container by proper
officer at ICD. Duplicate copies are then released to the exporter for his use.

5) Examination of Goods:

Custom Inspector/examiner conducts the examination of goods, keeping in view

the restrictions in force under Acts/Rates and Regulations. After examination, goods are
shifted into the container and same are sealed by the custom seal. The customs officer
records on the shipping bill

(a) Quality of goods loaded

(b) Number of packages shut out.

The exporter at this stage is to prepare and present an invoice and containerwise
packing list (both in four copies) indicating

(a) Number of packages with marks and numbers

(b) Description and total quantity net weight packed in each container. The
Appraiser/Superintendent/Inspector/Examiner with the details presents these two
documents for certification.
(c) Duplicate copy of the shipping bill is retained at the ICD and exchange control
copy is returned to exporter.

6) Transit to Gateway Port/Port of Exit:

The two transferee copies are sealed in an envelope for custody of the Railways
who are responsible for subsequent presentation to the customs officer at the Gateway
Port Exit Port.
7) Procedure to be followed at Exit Port:
The sealed containers are allowed to be exported in preventive supervision on
verifications with the seal being intact, without any further examination. However if seal
is found tampered with, examination may be done at port also.

The customs officer at port will be entitled to open and examine the contents of
any container, if otherwise warranted.

The preventive officer at port will endorse the two transference copies of the
shipping bills regarding the containers being intact and custom seal being intact, and adds
his dated signature.

The steamer agent shall be required to file the Export Manifest in duplicate
regarding cargo containers with the container unit of export department of the customs
house.

After that shipment transference copies of the shipping bills shall be sent to ICD
within 48 hours of shipment.

8) Endorsement of shipment from Gateway port on quick drawback payment

section copy of shipping bills:

Exporter after enquiring from the export unit of ICD regarding receipt of
transference copies shall obtain certificate to this effect on the quick drawback copy of
the shipping bill and can claim drawback from Quick Drawback Payment Section.

The quick drawback copy of the shipping bill is valid for a period of 90 days from
the date of shipment i.e., loading of goods in container. In case shipping bills are not
submitted within stipulated period, they shall have to be followed up with Residency
Drawback Section.

CLEARANCE PROCEDURE FOR IMPORTS:

In addition to the vessel's Import General Manifest, the Shipping Agent should
submit a sub-manifest in duplicate exclusively for the containerised cargo.

The Shipping Lines or the shipping Agent should file the transhipment application
(in triplicate) for transhipping the containers by rail/road and file the required
bond for transhipment.

After unloading of the container at the port of entry, the particulars of the
containers should be checked with the manifest filed and container secured with
customs seal. For this purpose, Import Noting Department should se,1d two
copies of the submanifest to the docks soon after receipt.
 The fact of loading of containers should be endorsed by the Preventive Officer on
all the three copies of the transhipment permit.

The Railway/Road Carriers authorities are responsible for the carriage of

transhipment permit copy and the two copies of the manifest with the container.

They must hand over these documents to the Customs authorities at the ICD.

AT THE ICD

On arrival of the containers at the lCD, the RailwaylRoad Carriers will present the
sealed cover to the custom Officer. The particulars of the containers, seals etc.
shall be checked with reference to the transhipment permit received followed by
the endorsement of the transhipment permit.

On de-stuffing of the containers at the ICD which is carried out in the presence of
the custom Officer, a representative of the Railways or Road Carriers, the
packages should be tallied with the documents and marks and numbers compared
with reference to the manifest.

The clearance of the goods for home consumption from ICD will be on the basis
of Bills of Entry (BIE) to be filed by the Importer at the ICD.

The B/E's details is noted against the copy of the submanifest followed by the
duty assessment procedure involving classification, assessment, payment of duty
and examination.

CONTAINER CORPORATION OF INDIA

With the increase in containerisation, a separate undertaking under the Indian
Railways to manage the ICDs and CFSs became necessary. While ICDs provide all
facilities for effecting containerised shipments, CFSs are limited only for stuffing into
and destuffing of cargoes from the containers.

Container Corporation of India Ltd. (CONCOR) was constituted as an

autonomous public sector undertaking under the Ministry of Railways in March 1988.
The basic objective of CONCOR is to organise multimodal transport logistics with prime
task of facilitating the nation's foreign trade. Its operations are directed towards efficient,
economical and expeditious handling and transit of containerised goods, relating to both
international and domestic trade traffic.

It works with various agencies and offers services including warehousing, road
and rail transport, palletisation and packing, simplification of documentation and custom
formalities. CONCOR accepts containerised cargoes, issues waybill and co-ordinates
with railways to carry containers to gateway ports and vice versa. They are the prime
coordinating agencies to container traffic.

Setup with an authorised capital of 100 crores and a paid up capital of 65 crores,
CONCOR started functioning from March 1988.

CONCOR now functions as a PUBLIC COMPANY under the Ministry of Railways.

It is dedicated to:

Spearhead the Container Revolution in India.

Build and Operate Infrastructure and organise Rail and Road linkages for
accelerated inland. penetration of International containers in the country .

Set up and manage Inland Container Depots (ICDs) and Container Freight
Stations (CFSs) all over the country.

Act as an effective liasion with all the agencies involved with containerisable
trade in India so as to provide comprehensive services for door-to-door
movement of international cargo.

CONCOR operates on the following objectives:

to develop inter-modal logistics, infrastructure for the fast, efficient

andeconomical transportation.

to establish a Network of ICDs/CFsIPSCTs to facilitate National and International

trade.

to offer a single window service, co-ordinating all connected departments/sections

to function as a multi modal transport operator (MTO).

Performance of CONCOR:

CONCOR took over seven ICDs on 1st November 1989 from Indian Railways.
Within a short span of time, it made. substantial progress. The company has, for
the first time, started business of bonded warehousing at Whitefield in Bangalore
from February 1996.

The 1400 sq. m. area bonded warehouse capacity is utilised 100 per cent.
CONCOR has also pioneered the transport of POL traffic in Tank containers.

CONCOR's business continues to maintain its high growth pattern in terms of

both throughput and income. From a level of 109,000 TEUs in 1991-92, the
 traffic throughput has reached 703,452 TEUs in 1996-97 - more than a six-fold
increase in five years. International traffic it carried was 424,741 TEUs in 1996-
97.

Apart from serving international traffic, CONCOR has pioneered and is

developing containerisation in domestic trade.

CONCOR has made small beginnings as Multimodal Transport Operator(MTO)

and also as a consultancy organisation for multi-modalism.

December 28, 1994 CONCOR registered as Multimodal Transport Operator under

the Multimodal Transportation of Goods Act, 1993.

Central Warehousing Corporation (CWC) is playing a vital role in operating

some CFSs. There is proper co-ordination between CONCOR and CWC for smooth flow
of cargo between CFSs managed by different agencies. The largest CFS at Kalamboli on
Mumbai-Pune Highway and import warehouse near Jawaharlal Nehru port are both
managed by CWC. There is also a CFS for export and import at Dronagiri Node, in Navi
Mumbai. In addition to the public sector CFSs, there are private CFSs at Chembur, Taloja
and Mulund in the Mumbai area. CONCOR coordinates with some of the state
warehousing corporations, for example, the Punjab State Warehousing Corporation
(PSWC). CWC and PSWC have jointly set up a CFS linked to the ICD at Ludhiana.

The Shipping Corporation of India Ltd. has set up CFSs at Jaipur and Varanasi
(Babatpur), exclusive ventures serving the exporters at their doorstep. Export cargo is
collected at shipper's godown for containerisation at CFS. Consolidation facility is also
available.
 CONCOR TERMINAL NETWORK
(Existing and Future Terminal)

INLAND CONTAINER DEPOT CITY

1. Tughlakabad Delhi (Estd.March 1985)

2. Dhandari Kalan Ludhiana (Estd.Aug. 1986)
3. Belanganj Agra (Estd.Dec.1996)
4. Sabarmati Ahemdabad
5. Nagpur Nagpur
6. Pithampur Indore
7.Wedi Bundur Mumbai
8. White field Banglore (Estd.1981)
9. Coimbatore Coimbatore (Estd.Dec.1993)
10. Sanat nagar Hyderabad (Estd.Dec.1990)
11. Guntur Guntur (EstdApril 1983)
12.Amingson Guwahati
13. Chinchwad Pune (Estd.1990)
14. Anarpati Anarpati,Hyderabad (Estd.April 1982)
15. Kakinada Kakinada

CONTAINER FREIGHT STATION CITY

17.Tondairpet Chennai (Estd.March 1991)

18. Babarpur Panipat
19. Moradabad Moradabad
20.Mulund Mumbai
21. New Mulund Mumbai
22. Milavittan Tuticoron
PORT SIDE CONTAINER TERMINAL CITY
23. Shalimar Howrah
24. Cossipore Calcutta
25. Harbour of Madras Chennai
26. Kandla Kandla
27. Cochin Cochin
FUTURE TERMINALS STATE
1. Dadri Uttar Pradesh
2. Rewari Haryana
3.Ballabhgarh Haryana
4. Auragabad Maharashtra
5. Balasore Orissa
6. Gwalior Madhya Pradesh
ESTABLISHMENT AND OPERATION OF ICDs UNDER CONCOR
As the country heads towards achieving containerisation in greater proportions,
the development of inland container depots (ICDs) and container freight stations (CFSs)
becomes crucial. Contrary to its dubious status as being a laggard in containerisation, the
country is making serious efforts to boost the intermodal network and Container
Corporation of India (CONCOR) which has taken up the formidable task of setting up
ICDs and CFSs spanning the length and breadth of India.

The Indian Railways set up seven ICDs, the first being at Guntur in December
1980, followed by Bangalore in 1981. The need was, however, felt to set up a separate
undertaking under the Railways to manage the ICDs and CFSs. Hence CON COR was
established in 1988 to provide for an integrated development of ICDs and CFSs to meet
future growth requirements.

Indian Railways had set up and operating ICDs at

-December 1980
Bangalore -October 1981
Anaparti -April 1983
Coimbatore - December 1983
New Delhi -March 1984
Amingaon -November 1985
Ludhiana -August 1986

CONCOR assumed operations of the seven ICDs on November 1st, 1989.

CONCOR's operations are directed towards efficient, economical and expeditious

handling and transit of goods, both of international as well as domestic trade traffic,
involving different agencies and services including warehousing, road and rail transport,
pelletisation and packaging, simplification of documentation and customs formalities.

ICDs in the Northern Sector

In the North, ICDs commissioned by the Indian Railways include Delhi ICD at
Pragati Maidan and Ludhiana ICD. CONCOR added two more CFSs on the
intermodal map covering this sector, viz. Moradabad and Panipat.

The Delhi ICD was opened in 1984 as an extension of Bombay Port to serve the
exporters and importers of North India. This ICD is located at Pragati Maidan and
spans a total area of 9 acres. Adjacent to this is the 'Y' yard, which is the stacking
area for import and empty units. Destuffing of import containers takes place here.
The stuffing of export cargo is carried out in the ICD. A warehouse is utilised for
the storing of export cargo. All operations at Delhi ICD have now been
 computerised keeping procedural wrangles to the barest'. minimum. The ICD
takes the credit for being the first one to go on-line.

Delhi ICD despite increasing throughput, is facing physical constraints such as

fully utilised space. As the volume of cargo is anticipated to be much higher in the
coming years, a new site for the ICD was developed at Tuglakabad. The new
terminal is about 20 km on the outskirts of Delhi and is on the main Bombay
Delhi railway line. The ICD is equipped with all modem facilities using state of
the art technology.

The Panipat ICD is located 100 km from Delhi and includes the CFS at
Moradabad. The Panipat ICD will function as a Satellite depot for the main
container depot in Delhi.

CONCOR's has also established a full-fledged ICD at Dandhari Kalan in

Ludhiana to replace the existing one. This ICD serves as a cargo aggregation and
consolidation centre.
ICDs in the Eastern Sector

The ICD at Amingaon in Guwahati was completed in October 1985 to serve tea
exporters in the region. It has a total covered area of 20,000 sq. feet for
warehousing of tea. The full capacity of the ICDs is not being utilised.

As there is no import traffic to ICD Guwahati the shipping lines have to send
empty containers there from Haldia. The Assam government is planning to set up
a tea township approximately 13 km away from the ICD inclusive of warehousing
facilities for tea shippers.

CONCOR has set up two CFSs, one each at Cassipore and Shalimar, in addition
to a full-fledged ICD at Sankrad in Howrah, to facilitate movement of exports as
well as domestic cargo. Apart from these, the West Bengal Government has been
offered the choice of selecting a suitable location for setting up another CFS for
promoting exports

ICDs in the Southern Sector

The inland container depots at Coimbatore, Bangalore, Guntur and Anaparti were
set up as pilot projects by the Indian Railways. ICDs at Coimbatore and
Bangalore handle all kinds of cargo, while those at Guntur and Anaparti
predominantly handle tobacco.

The ICD at Guntur, the first pilot project of the Indian Railways, picked up
initially on a low key. Barring the years, from 1983-86 for which results have
been poor, the years which followed have recorded impressive growth.
 The Bangalore ICD at the Cantonment Goods shed complex was commissioned in
August 1981 but its growth was phenomenal after 1983-84.

Traffic however could not improve much in the following years as the ICD was
beset by a few problems, mainly lack of space for bonded warehouse at the depot.
To overcome this problem of lack of space CONCOR moved in to set up a full
fledged ICD on a 200-acre site at Whitefield 15 km from Bangalore. The ICD is
equipped with all sophisticated infrastructural facilities to handle ISO containers
to and from the warehouses of customers.

With the experience gained at Guntur and Bangalore ICDs another one was set up
at Anaparti in April 1983.

The ICD at Coimbatore was opened in December 1983 connecting the gateway
ports of Cochin, Madras and Tuticorin. Traffic handled at the depot has made a
steady progress and its overall growth has been quite commendable.

As at Bangalore, CON COR has planned to set up a few more full fledged ICDs at
lrugudy near Coimbatore, Quilon in Kerala and Tirupur in Tamil Nadu. The
Tirupur ICD would be used mainly for export of garments, while the Quilon ICD
would concentrate on cashew exports.

In December 1990, CON COR commissioned the long-awaited ICD at

Hyderabad. This ICD located at Sanatnagar has adequate facilities for stuffing and
handling containerised cargo. It is linked to Bombay and Madras ports.

In March this year, CONCOR commenced operations at its port side container
depot outside of Madras Port. This exclusive import container facility has been set
up inside the Tondiarpet CFS.

ICDs in the Western Sector

A major development in the western sector has been the setting up of the port side
container depot at Wadi Bunder in South Bombay, on the lines of a similar one
operated at Tondiarpet in Madras.

CONCOR has linked Wadi Bunder to ICDs at Pune, Bangalore, Ahmedabad,

Madras and Coimbatore. By doing so, CONCOR has succeeded in the unique
achievement of giving a tremendous boost to intermodalism in general and to the
landbridge system in particular.

Bombay's first CFS with CONCOR's assistance is at Mulund in the city's northern
suburb. The most recently commissioned CFSs in the western region include the
 ones at Ahmedabad at Pune. The CFS at Adalaj near Ahmedabad (managed by
CWC) is linked to Sabarmati ICD and is also connected to Kandla Port.

The CFS at Pune (also managed by CWC) is linked to the gateway ports by road
as well as by rail.

The ICDs in the northern sector are predominantly linked to Bombay and Nehru
ports, those in the eastern sector are linked to Calcutta and Haldia ports; the
southern ICDs are connected mainly to Madras, Cochin and Tuticorin ports; and
the ICDs in the western region are linked to Bombay and Nehru ports and in some
cases to Kandla Port as well.

Container Corporation of India Limited (CONCOR), is meant to deal with

multimodal logistics infrastructure for India's international trade traffic as well as for
domestic cargo transport and distribution. For this purpose, CONCOR will coordinate
with gateway ports, Customs, Railways, shipping lines, road transport operators,
warehousing undertakings and other related agencies.

CONCOR will be directly involved in establishing a network of inland container

depots (ICDs) and trade development centres (TDCs)/container freight stations (CFSs).
Containerisation and multimodal transport are relatively new concepts in India.
New technologies in respect of material handling equipment, establishment of facilities as
well as ancillary documentation and procedures, involving banking and insurance, market
research and methodologies, forecasting, management information system etc. have all to
be properly imbibed. CON COR shall play an important part and a catalytic role in this
process.

CONSTRAINT IN GROWTH OF ICDs

The slow growth of ICDs and CFSs was due to the combined effect of high
capital costs involved, the resource constraints and lack of attention.

A few anachronistic procedures as far as containerised cargo is concerned are as follows:

(a) Inland containers cannot move directly to the ICDs unless special permission is
obtained from the Collector of Customs for which the shipping agent has to
file an application.
(b) Movement of containers between the quay, container yard, rail terminal and
shed requires specific permissions from port and Customs authorities, which
delays the movements. .
(c) Movement of containers outside the port requires a bond for the container to be
furnished by the shipping line even though it moves by rail and remains all along
in the custody of a Central government agency.
 (d) In the case of ICDs, three bonds are required - one for the container, other for the
cargo in case it moves by road and third for the movement of container outside
the ICD to the shipper's premises.
(e) All the import containers are opened and examined by the Customs, requiring
double handling of all the containers. Normally, 10 per cent of the cargo is
examined unless there are special reasons to do a more thorough examination.

However, instead of examining 10 per cent of the number of containers, 10 per cent
of the cargo in each container is examined.

Port Infrastructure for Containerised Cargo:

Out of the 11 major ports in the country, only Madras, Haldia and Nehru Ports
have full-fledged container terminals. Bombay, despite provision of container handling
facilities, cannot be stated to have a container terminal as connected operations are
widely dispersed in the dock area. Cochin and Calcutta have only basic facilities and due
to draft and crane limitations can handle only small feedering vessels. Other ports do not
have specific container handling facilities but the Indian government is making
provisions in its Eighth Five-Year Plan for setting up container handling facilities at all
the major ports. Despite lack of container handling facilities, the container traffic has
been increasing at Indian ports due to the pressures of international traffic.

International Scenario:

The earlier limited and experimental efforts apart, regular containerised shipping
of cargo in international trade commenced with the institution of container service
between the US and Europe in 1966 across the Atlantic. This was followed by container
service between Japan and the US across the Pacific in 1967, between Australia and
Europe in 1969, between Japan and Europe in 1971, culminating in the coverage of
nearly all major routes by 1973. The containerised shipping of cargo has seen tremendous
growth thereafter. To meet the increasing demand for containerised services and to cut
costs, ship sizes have also increased from under 500 TEU capacity to over 3000 TEU
capacity. Intermediate ports at major routes have developed into important centres of
aggregation and dispersal of cargo where larger vessels discharge and pick up containers,
smaller vessels providing the feedering services to and from other ports served by the
transhipment port.

Further penetration of containers from the ports to inland destinations was a

logical extension of this massive growth in the containerised movement of international
cargo resulting in the setting up of Inland Container Depots (ICDs) and Container Freight
Stations (CFSs). Operational versatility of containers has brought into effect the concept
of land bridging, that is, substitution of the part of the ocean route by shorter land route.
With mini land bridges providing coast to coast overland bridges and micro land bridges
linking ports with inland locations, a costeffective multi modal system has evolved.
 With the setting up of ICDs/CFSs, the shipping services are now closer to
business/commercial centres, giving the added advantage of issuing through bills of
lading and discounting by the banks providing for easy cash liquidily.

Questions for Self – Analyzationion:

Q1. What do understand by ICD? Describe the roles and the functions of ICD in detail.

Q2. Explain the procedure for export clearance at ICD.

Q3 What do you understand by CONCOR. What are its major functions/