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A Study Report On KOTTAYAM PORT AND CONTAINER TERMINAL

Submitted
In partial fulfillment of the requirements for
The Examination
Of
MASTER OF BUSINESS ADMINISTRATION
IN
SHIPPING AND LOGISTICS MANAGEMENT
BY
JIBIN T BABU
Roll No: MBA/679/13

DEPARTMENT OF MANAGEMENT STUDIES


AMET UNIVERSITY
KANATHUR, CHENNAI 603112

DECLARATION
I hereby declare that the internship report entitled Kottayam Port and Container
Terminal submitted to Amet University, Chennai in partial fulfilment of the requirement for
the award of the degree Master of Business Administration as a record of original Internship
report done by JIBIN T BABU (Roll no: MBA/679/13) during the period of study in AMET
UNIVERSITY (2013-2015), Chennai.

Place: CHENNAI

Date:

Signature:

Name:

ACKNOWLEDGEMENT
I take this opportunity to express my sincere gratitude and respect to all those who
encouraged and inspired me through their help, advice cooperation and guidance. I would like
to thank Mr ROOPESH C.K, operations Manager, KOTTAYAM PORT & CONTAINER
TERMINAL, for permitting me to carry out my internship study & for providing guidance
during the course of the study under taken in the concern.
I am also grateful to all the Employees of KOTTAYAM PORT & CONTAINER
TERMINAL who have readily Co-operated with much patience in giving necessary and true
information needed for the study
I

express

my

sincere

thanks

to

Dean, Amet University, H.O.D

Mr S

RAMACHANDRAN and Mentor Mrs. Divya Ranjani for their constant encouragement and
guidance. I have indeed no words to express my gratitude to all the faculty of Amet University,
Chennai.
And above all, I remember with reverence my parents & Almighty God who inspired my mind
& strengthen my hands to make this study a successful one

CONTENTS

CHP. NO.

CONTENTS

1.

INTRODUCTION

2.

COMPANY PROFILE

3.

SECTOR SPECIFIC DETAILS

4.

LEARNING FROM THE

5.

ORGANISATION
SUGGESTIONS TO THE

6.

ORGANISATION
REFRENCES
ANNEXURES

PAGE NO.

CHAPTER -1
INTRODUCTION

INTRODUCTION
Introduction
Organization study refers to the understanding of various functions that are being carried
out in the organization. It is directly linked with the four aspects such as knowledge
acquisition, information distribution, information interpretation and organizational memory.
For this purpose, the study has been carried out in a service industry, KOTTAYAM PORT &
CONTAINER TERMINAL . This is one of the major PRIVATE PUBLIC PATNERSHIP
organizations which helps in carrying out export and import trade functions.
Objectives of the study
To have general awareness of the functioning and management of the organization
To understand the organizational structure and working of the various functional
departments.
To make an analysis of the organizations performance.
To develop an understanding of the management practices followed in various
functional areas.
To understand the extent to which management theory with actual practices seen.

Significance of the study


The ports are an inevitable part of the shipping industry. They play a major role in the trade
transactions of the country. The study was carried out at the various departments of the
organization. These departments include the Documentation, Operations, Import, Export
departments. A complete study of the functioning of the various departments was made.

Methodology
The methodology used for collecting the required data is as follows. The data handled in this
study consists of 2 types:
a) Primary Data
b) Secondary Data
Primary Data
Primary data has been collected through the lively interaction with the department heads and
through various employees.
Secondary Data
Secondary data was collected by browsing through the company profile, annual reports, and
websites and from published reports of different publications of the organization
Limitation of study
Since my study was conducted during the office hours, it may have the following limitations.
Busy schedules of department heads restricted the collection of detailed information.
Time to time meetings also restricted the collection of data.
Many areas were restricted due to customs security problems.
Though all the findings are made to the best of my knowledge, there is possibility
for errors due to the subjectivity and prejudice of people contacted for information.

CHAPTER 2
COMPANY PROFILE

ABOUT KOTTAYAM PORT


Kottayam Port
A multi-modal Inland Container Depot (ICD) & Port utilizing Inland waterway catering to
Central Travancore.
Connected to the Cochin Port by road and by an inland waterway through NW III at a distance
of 85 Kilometres.
Estimated 6000 containers/ year will be diverted from road to waterway.

Public Private Partnership (PPP) Company named KottayamPort & Container Terminal ( A
Project under ASIDE Scheme of Ministry of Commerce)Initiated by South Indian
Chamber of Commerce & Industry (SICCI )And KINFRA ( A statutory body of Govt. of
Kerala) and Nodal Agency for Govt of India for Infrastructure Development
Project is at Nattakom, Just 3.5 KM away Kottayam town with both road and inland waterway
access(multi-modal) and is the first of its kind ICD in India.

OPERATIONS
The Kottayam Port will use the Inland water way, NW III and the road from Kottayam to
Cochin Port to ship its containers. The cost effective option is to transport containers in barges.
For those requiring quick deliveries containers are transported through road.
BARGE OPERATION
The entire operation would be based on Roll-on-Roll-off (Ro-Ro) & load in load out (lo lo)
concept.
The empty containers are lifted from the yard and placed on the trolleys & pulled to the
warehouse using prime movers.
The containers are stuffed at the warehouse, sealed by customs & then transported on to the
barge.
Barge carrying 10 trolley mounted containers will ply between Kottayam Port and Cochin port
on daily basis through NW111 will take 6-7 hours.
The containers will be transferred to and from stack points at Cochin port and then shipped.

Ro-Ro-cargo units
1. Containers
Freight containers are a reusable transport and storage unit for moving products and
raw materials between locations or countries. A typical container has doors
fitted at one end, and is constructed of corrugated weathering steel. At each of the
eight corners are castings with openings for twist lock fasteners.

2. Trucks, trailers and semi trailers


A truck is a motor vehicle designed to transport cargo. A semi-trailer is a trailer without a front
axle. A large proportion of its weight is supported by a road tractor, by a detachable front axle
assembly known as a dolly, or by the tail of another trailer. A full-trailer is a trailer supported
by front and rear axles and a full trailer combination is comprised of road tractor and full trailer
.Depending on the country or continent the maximum dimensions and capacities of different
vehicles and combinations can vary a lot. The maximum total length of the European trucktrailer combination is 16.5 m and the maximum dimensions of the trailer are: length 13.6 m,
width 2.5 m and height 2.85 m. The maximum payload is 40 ton. In Finland and in Sweden a
special combination is allowed having the maximum values for length of 25.25 m and for
payload 60 ton.
3. Roll-trailers
Roll-trailers are specifically designed to transport 'loose' cargo, which is unsuitable for
Containerization. Originally created for the movement of products such as steel, paper
And cables, roll-trailers are also ideal for the transport of high-value cargo such as
yachts, vintage cars, etc. In addition, roll-trailers can be used to transportation of sea
containers. Dimensions and capacities of roll-trailers of different sizes are presented
in. For moving the roll-trailers a special terminal tractor equipped with a
goose neck is needed .
4. Cassettes
The cassettes are steel platforms, which products such as steel, paper and cables as
well as containers can be loaded on for transporting. The containers can also be
double-stacked. One of the advantages of using cassettes is that they act as a
floating buffer, since containers can be placed on the cassettes. The cassettes can
vary in size and capacity for example in the steel industry a 120-tonne version is used.
For moving the cassettes a terminal tractor with a steerable lifting trailer has to be used.

Cassette 40
Payload, tonne: 60
External dimensions:
Length, m: 12.250
Width, m: 2.600
Height, m: 0.850
5. Swap bodies
Swap body units use many of the same mounting fixings as sea-containers, but have
folding legs under their frame so that they can be moved between trucks without using
a crane . They are generally lighter in weight than sea-containers.
6. Specialities
One type of special intermodal container (shipping container) built to transport bulk
cargo like paper on railway and ship is Stora Enso Cargo Unit - SECU. This Unit is too big and
heavy to be transported on road (ISO-Containers are designed to fit roads), and instead they are
transported only by railway (special railway wagons) and ship (ship for paper reels). A SECU
looks like a standard 40 foot container (ISO container), but has special dimensions (13.8 x 3.6
x 3.6 m). The SECU can hold up to 80 tonnes of goods (reels paper, other goods), a special
vehicle or crane is used to load and unload them. Special railcars are also needed in the
terminal operations (they can be transported on truck ferries).

Lift-on/Lift-off (LO/LO)
Lift-on/Lift-off (lo/lo) cargo is containerized cargo that must be lifted on and off vessels and
other vehicles using handling equipment. A LOLO operation is when cargo is loaded and
discharged over the top of the vessel using cranes or derricks. Lolo vessels load and unload
cargo at Roll On-Roll Off (Ro-Ro) ports, Load On-Load Off (Lo-Lo) ports and at
subserviced jetties, using its own cranes. Self-geared Lift-on/Lift-off (Lo/Lo) type vessels
are loaded and unloaded by a crane, which lifts cargo to a specific location on the Lo/Lo

ship. The cargo is loaded pursuant to a specific plan that is necessary in order to balance the
Lo/Lo ships as they are not equipped with ballast-adjusting mechanisms.
Although roll on-roll off (ro-ro) vessels offer significant per container cost benefits in terms
of handling and types of labour used, the reduced carrying capacity of these vessels may
favour the use of lift on-lift off (lo-lo) container-on-barge for general cargo services
(containers can be stacked multiple containers high).
Port and terminal operations at deepwater seaports are also not amenable to short sea
shipping operations. Since ocean-going containerships are the primary customers of these
ports, they typically have preference when it comes to berth, labour, and equipment
availability. This is a particular concern for lift-on/lift-of (lo-lo) ships, which require a
significant amount of labour and equipment for loading and off-loading of cargo. In fact,
coastal lo-lo ships typically have to allocate 24 hours per port call, though only eight to 12
hours are required for on-load and offload of cargo.
Cargo vessels can be equipped with a variety of cargo handling systems, the most commonly
encountered systems being classified as either lo-lo or ro-ro (the vessels may sometimes be
referred to as lo-lo or ro-ro vessels even though it is possible to have both loading
capabilities on the same vessel). Each vessel type and cargo handling system has applications
that may be more appropriate for specific commodities. In addition, each has advantages and
disadvantages in terms of cost and service characteristics. Matching the technology to
available port infrastructure, commodity markets, and labour constraints will have a strong
influence on the economics of a particular operation.
In the 1960's and early 1970's, conventional vehicle carriers of the Lift On Lift Off (LOLO)
type were used extensively in connection with the transportation of factory new cars. The
vessels would rig hoist able car decks and load anything from 500 up to 3000 cars depending
on the size of the vessel. The LOLO was soon replaced by the Roll on Roll Off (RoRo) car
carrier. As the 70's developed, the Pure Car Carrier (PCC) started to replace the conventional
vessels. The PCC was then developed into the Pure Car Truck Carrier (PCTC) in order to
meet the demands for high and heavy cargo.

Lift-on/lift-off (lo-lo) cargo handling systems are often used on vessels or barges used to
transport containers in short sea operations. Some lo-lo vessels, referred to as "self-geared"
vessels, include deck-mounted handling cranes, which can reduce overall capacity. These
vessel-mounted cranes are sometimes required to facilitate loading and unloading of
containers at ports without adequate shore-side cranes.
The Landing Craft Air Cushion (LCAC) is able to carry LOLO cargo, such as twenty-foot
containers. Deck loading of LOLO cargo and containers is the least desirable method of
transportation due to support requirements. The preferred method is for cargo to be mobile
loaded on trailers or trucks for quick discharge using the RORO ramps. However, most
containers are not shipped on chassis and truck assets will be limited.
LOLO cargo may be loaded into the LCAC using cranes from a self-sustaining vessel or an
auxiliary crane ship. The LCAC must moor perpendicular to the ship, bow in to the ship, to
prevent damage to craft propeller ducts. LCAC engines must be secured during LOLO cargo
operations. This mooring procedure is possible only under Sea State 1, or ideal, conditions.
The perpendicular mooring position cannot be maintained with the engines secured in high
seas or winds. Relative motion between the craft and vessel combine with load pendulation
during LOLO operations to create hazardous conditions which can cause craft damage and
crew injuries. Cargo must be carefully lowered to avoid injuries to crew members or contact
with LCAC cabins and power train assemblies on either side of the cargo deck. LOLO
operations in conditions exceeding Sea State 1 are generally not considered practical.

EQUIPMENTS USED IN KOTTAYAM PORT

Reach stacker C4230 TL - C4535 CH Mk5

Reach stacker
>>42000Kg & 45000Kg
The development of the latest generation Reach stacker combined top/bottom lift models is
based on a thorough analysis of the handling requirements of container handling terminals
throughout the world. A high safety standard comes with every Reach stacker.
The fully integrated load sending system with IQAN display provides the operator with a
constant truck status display. This enables the driver to operate the machine up to its optional
performance characteristics thereby increasing operational performance.
GENERAL SPECIFICATION
The pioneering Reach stacker from Linde delivers the ultimate in refined power for greater
reliability and handling performance. First-rate agility and superb precision and smooth
control, each truck is engineered for your performance.

4 / 5 high stacking 9' 6" containers


5 / 6 high stacking 8' 6" containers
Toplift and intermodal versions
Standard load centre ratings at 1800, 3860, and 6400mm
6400mm wheelbase and 7000mm wheelbase
Front stabilisers for increased load performance at 3860mm and 6400mm
Linde load sensing hydraulic system
11 Lts high performance Cummins Engine
4 speed Dana Electonic transmission
- Automatic shift - fully protected
Kessler wet disc axle
CanBus contol of all power and truck hydraulic systems
Low stress, spacious cab - Excellent visibility

Container Forklift Truck

Truck Model: FD210


Equipment Code: F-AK5
Rated capacity(Kg): 4-HIGH 6500
5-HIGH 6500
Maximum lift height(mm): 13000
Spreader type: SPREADER
Load centre distance(mm): 1220
Maximum lift speed(mm/s): RATED LOAD 310
NO LOAD 510
Lowering speed with load(mm/s):
Tilting angle forward/backward (deg): 3/3
Forward(Km/h): 1st 9
2nd 19
3rd 32
Reverse(Km/h): 1st 9
2nd 19
3rd 32
Minimum turning radius(mm): 5730
Gradeability (%):
Shift side(Every side)(mm): 300
Overall length(mm): 6420
Overall width(mm): CHASSIS/ SPREADER 3180/6055
Overall height(mm): TO TOP OF MAST LOWERED 9420
TO TOP OF OVERHEAD GUARD 5295
Wheel base(mm): 4000
Tread(mm): FRONT 2350
REVERSE 2480
Stack: 5-HIGH
Under clearance(mm): 370
Engine: MODEL MITSUBISHI 6D24-E1
RATED POWER/SPEED 143.4 Kw /2000 rpm
MAX.TORQUE/ SPEED 745.3/1600 rpm
Fork length(mm):
Service weight(Kg): 40130
Tyre: FRONT 14.00-24-24PR
REAR 14.00-24-24PR

Transmission form: HYDRAULIC


Oil: DIESEL
Forklift truck stability: CONFORM TO Q/DC.J.028-1996 STANDARD
Instruction:
Specifically made Inland container barge which can carry 10 containers at a time
Length 210 feet
Width 10 feet

CONTAINER TRAFFIC
For 100% utilization of NW111, Terminals are to be built as close as possible to important
trade Centres and connected to NW111 by well maintained feeder canals to avoid secondary
transportation and handling from NW111 terminals to trade Centres. Separate berths shall be
built at ICTT, Vallarpadam for barges. Direct transhipment of containers to barges from
Vallarpadam itself. South bound import containers may be transshipped from Vallarpaddam
ICTT directly to Kottayam ICD and other water bridged locations along NW-3.So that, to a
certain extent, It is not necessary that containers be brought from Vallarpadam barge terminal
to Rajiv Gandhi Container Terminal to disperse the cargo by road. The proposal for moving
containers from I.G.T by Airport Seaport road to other highways can be avoided.

1. Savings by way of reduced documentation as well as delays in transshipment at multiple


locations.
2. Reduction in the wear and tear of highways and reduced maintenance cost.
3. Facilities available at Kottayam port can absorb the traffic of entire south bound
containers.
4. Export cargo from the south may be delivered at Kottayam ICD to double the benefits.
5. Avoid environmental pollution and other hazards in thickly populated areas.
6. Cost reduction by way of avoiding lift on, lift off and other incidental charges at
multiple locations.
7. To prevent siltation in NW III.
8. To save by transportation through waterways using barges.

The Thanneermukkom Bund

The Thanneermukkom Bund (Thannermukkom Salt Water Barrier) was constructed as a part
of the Kuttanad Development Scheme to prevent tidal action and intrusion of salt water into
the Kuttanad low-lands across Vembanad Lake between Thannermukkom on south and Vechur
on north. Thanneermukkom Bund was constructed in 1974 and is functional since 1976. It is
the largest mud regulator in India. This barrier essentially divides the lake into two parts - one
with brackish water perennially and the other half with fresh water fed by the rivers draining
into the lake .The bund is located at 94021N 762349E.

LOCATION

It has been built across Lake Vembanad. It connects Vechoor of Kottayam district
and Thanneermukkom of Alappuzha district. It can be reached by road, from Kottayam town,
Alappuzha or Cherthala. Frequent bus services are available from all the places mentioned.
ENVIRONMENTAL IMPACT
This barrier has helped the farmers in Kuttanad - where farming is done below sea level. It has
however also created ecological problems, primarily, the rampant propagation of the Water
Hyacinth in fresh water. The backwaters which were abundant with fish and part of the staple
food of the people of the region require a small amount of salt water for their breeding. The
salt water barrier has caused deterioration of the catch of fish in the region and the fishermen
are opposed to the bund as of 2005.[2]
The salt water barrier has also disrupted the harmony of the sea with the backwaters and has
caused problems not foreseen before the salt water barrier like the omni prescence of the water
weeds. Earlier the salt water tends to cleanse the backwaters but this does not happen any more
leading to the pollution of the backwaters and the entire land nearby.
The shutters are opened during monsoon and are closed after approximately six months.
BRIEF INFORMATION OF THE KOTTAYAM PORT LOCATION

The Maritime State of Kerala has a coastline of around 590 Km. There are 17 Intermediate &
Minor Ports in Kerala. The Minor and Intermediate Ports are under the Administration of
Government of Kerala. The Ports are administered directly by the Director of Ports who is
headquartered at Thiruvananthapuram. There are three regional officers at Neendakara,
Alappuzha and Kozhikkode.
Kerala, with a coastline of 590 kilometers, is situated on the South West Coast of India. Besides
the Port of Kochi (a Major Port governed by Major Port Trusts Act, 1963), there are 3
Intermediate and 14 Minor Ports in Kerala. They are Neendakara, Alappuzha, Kozhikkode
(Intermediate Ports) and Vizhinjam, Valiyathura, Thankasserry, Kayamkulam, Manakkodam,
Munambam, Ponnani, Beypore, Vadakara, Thalasserry, Manjeswaram, Neeleswaram, Kannur,
Azhikkal and Kasaragode (Minor Ports). The Major Port of Kochi is under the Ministry of
Shipping, Government of India while the intermediate and minor ports are under the
administration of the Government of Kerala. Most of the minor and intermediate ports in the
State are seasonal in nature with insufficient infrastructure to handle even medium and small
sized vessels throughout the year.Government Of Kerala allowed private investment in
Intermediate and Minor Ports from 1994.
Connecting & Support Facilities
The State has 8 National Highways and 58 State Highways. Roads connecting many of the Minor
and Intermediate Ports with the hinterland are not equipped for heavy vehicles. The Government
will therefore co-ordinate with the investor and other relevant agencies to achieve necessary rail
and road linkages and will facilitate the process by acquisition of land etc. for this purpose.
Government would also facilitate availability of electricity, water and other utilities.
Promote Port based and marine Industries Government of Kerala, besides acting as a catalyst for
establishment of ship repair and ship building industries would also encourage other port based
industries contributing to the development of ports. This would include Warehouses, Container
Freight Stations, Tourism Complex, and Captive Power Plants etc.
Coastal Shipping
The Government of Kerala intends to provide a boost to coastal shipping with the development

of Ports along the coast, which would ease the burden on the heavily congested highways in the
State, apart from savings in transportation cost. Towards above Government of Kerala would
facilitate development of necessary infrastructure facilities & linkages to the identified
Intermediate & Minor Ports.
Establish Pillars of Learning in the sector
In view of the development connected with shipping, considerable interest would be generated
for ship and marine related employment opportunities. The Government therefore proposes to
establish a Maritime Training Institute in the State, which would cater to the training and
certification needs of the industry. The Government would encourage the private sector for the
above and would extend necessary assistance including access to waterfront.
Captive jetties
In order to promote setting up of new industries as well as support to existing units the
Government of Kerala will permit users to construct jetties in order to operate captive facilities.
Provision of Dredging services
Since it is essential to maintain adequate depths for the smooth operations of a port the
Government of Kerala maintains dredgers in some of the ports. These dredgers are capable of
attaining minimum required dept.

Kottayam which is popularly called as The land of letters, legends, latex and lakes is a district
in Kerala. The name Kottayam is derived from 2 words Kotta and Akam which together mean
the inside of a fort. It is bordered by the Western Ghats and the Vembanad Lake. There are

many unique characteristics for this place which includes long backwaters, highlands, hills and
mountains, rubber plantations etc. The paddy fields here are very famous. Kottayam district is
surrounded by Idukki district in the East, Pathanamthitta district in the South, Alappuzha district
in the West and Ernakulam district in the North. Kottayam is said to be the first district in India to
be tobacco free.
Kottayam has significance in history because it was here that the famous Vaikom Satyagraha
was held which was a struggle for eradicating untouchability. The climate in Kottayam is same as
that in the rest of Kerala. In 2001, Kottayam received the red rainfall in which the color of the
rain was yellow, red, green and black. Kottayam is a landlocked district but there are

numerous lakes, rivers and backwaters. These are attracted by the tourists and some of the
famous

tourist

destinations

include

Vembanad

Lake,

Kumarakom

etc.

The main religions found here are Hinduism, Islam and Christianity. There are many pilgrim
Centres for the people of each community. Some of the famous pilgrim Centres include
Thirunakkara Siva Temple, Ettumanoor Mahadeva Temple, Pallipurathukavu Devi Temple,
Thekkumtala

Devi

Temple,

Cheriya

Palli,

St.

George

Church,

Puthupally.

Kottayam is a main Centre of education and Kottayam is the first district in India to attain the
highest literacy rate. It was here that the first college in Kerala was established. There are many
educational institutions which includes schools, colleges, Engineering colleges, Medical colleges
etc. There is also a university in Kottayam called the Mahatma Gandhi University. Kottayam is
well connected to other places by roadways and railways. It is in Kottayam that the first Printing

According to estimates, the world container throughput will reach 1 billion TEUs by 2020, which
is almost double of the current container traffic. The emerging Asian & African Countries are
expected to be the prime movers in achieving this growth. Most of the shipyards are filled with
orders for container ships of over 10,000 TEUs capacity. These container ships will form the
major part of the world maritime fleet in the coming years.
India is going to be the preferred destination for a global manufacturing hub. This fact presents
many opportunities for the ports to change their current operation style and be ready for the
foreseen surge in demand of handling and faster evacuation of containers. Many investments
have been proposed and steps have been taken by various port authorities for attracting the
container traffic.
Containerized Cargo Commodities
The major cargo commodities that get containerized are garments, electronic goods, agro
products, cotton yarn, machinery/parts, granite products, coir products, leather products and
jute products. Indian ports have also been seeing many hitherto break bulk cargoes like rice,
maize, glass, granite, garnet sand, sugar, soya, cement and flowers now moving in containers.
Some break-bulk cargo such as banana, cotton and green coffee beans have become
permanent container fixtures, while others such as pulp, lumber, cocoa and onions migrate
from container to ship holds and back to containers, according to the rise and fall of box rates.
Even iron ore has been successfully exported from Chennai in containers. All this points to a
steady move towards containerization for value added benefits. The main beneficiary would be
the container shipping industry and container terminals. In addition, with regards to the cost
economics, the handling cost is lower for containerized cargo as opposed to break bulk leading to
containerization of minerals exported. With 40 per cent more imports than exports, incoming
containers wait for repositioning to other locations.

Agriculture is carried out on a large scale and the major food crop produced here is rice. Rubber
plantations are seen in plenty in Kottayam and are the main source of income of the farmers.
Some of the other crops grown here include tapioca, coconut, pepper etc.

CHAPTER-3
SECTOR SPECIFIC DETAILS

Role of inland port

The term inland port is also used in a narrow sense in the field of transportation systems to
mean a rather more specialized facility that has come about with the advent of the intermodal
container (standardized shipping container) in international transport. Rather than goods being
loaded and unloaded in such ports, shipping containers can just be transferred between ship
and road vehicle or ship and train. The container may be transferred again between road and
rail elsewhere and the goods are only loaded or unloaded at their point of origin or final
destination
.
Shipping containers allow some functions traditionally carried out at a seaport to be moved
elsewhere. Examples are the functions of receiving, processing through customs, inspecting,
sorting, and consolidating containers going to the same overseas port. Container transfer at the
seaport can be sped up and container handling space can be reduced by transferring functions
to an inland site away from the port and coast.

Distribution may also be made more efficient by setting up the link between inland site and
seaport as, say, a high-capacity rail link with a lower unit cost than sending containers
individually by road. The containers are still collected from their origins or distributed to their
ultimate destinations by road with the transfer happening at the inland site.

An Inland Port is just such an inland site linked to a seaport. This kind of inland port does not
require a waterway. Key features of an Inland Port are the transfer of containers between
different modes of transportation (intermodal transfer) and the processing of international
trade. This differentiates an inland port from a container depot or transport hub.[2]
The term inland port may also be used for a similar model of a site linked to an airport or
land border crossing rather than a seaport.

The definition of inland port in the jargon of the transportation and logistics industries is:

"An Inland Port is a physical site located away from traditional land, air and coastal borders
with the vision to facilitate and process international trade through strategic investment in
multi-modal transportation assets and by promoting value-added services as goods move
through the supply chain". Centre for Transportation Research, University of Texas.[3]

Inland Ports may also be referred to as dry ports or intermodal hubs. Montreal has the largest
inland port in the world.

Advantages of an inland port


An inland port can speed the flow of cargo between ships and major land transportation
networks, creating a more central distribution point. Inland ports can improve the movement of
imports and exports, moving the time-consuming sorting and processing of containers inland,
away from congested seaports.

DEFINITION
CFS:

Abbreviation for Container Freight Station. A shipping dock where cargo is loaded
(stuffed) into or unloaded (stripped) from containers. Generally, this involves less than
container load shipments, although small shipments destined to same consignee are often
consolidated.
Container reloading from/to rail or motor carrier equipment is a typical activity. These facilities
can be located in container yards, or off dock.
Cold move
The vessel's engine and steering gear should be available for use at all times during the
maneuver. If a vessels engine or steering fails during berthing / un berthing/shifting process, it
will be treated as cold move and charged as per tariff.
Container terminal
A container terminal is a facility where : containers are transshipped between
different transport vehicles, for onward transportation. The transshipment may be
between container ships and land vehicles, for example trains or trucks, in which case
the terminal is described as a maritime container terminal. Alternatively the
transshipment may be between land vehicles, typically between train and truck, in
which case the terminal is described as an inland container terminal.
Maritime container terminals tend to be part of a larger port, and the biggest maritime
container terminals can be found situated around major harbours. Inland container
terminals tend to be located in or near major cities, with good rail connections to
maritime container terminals.
Both maritime and inland container terminals usually provide storage facilities for both
loaded and empty containers. Loaded containers are stored for relatively short
periods, whilst waiting for onward transportation, whilst unloaded containers may be
stored for longer periods awaiting their next use. Containers are normally stacked for
storage, and the resulting stores are known as container stacks.
In recent years methodological advances regarding container terminal operations
have considerably improved. For a detailed description and a comprehensive list of
references see, e.g., the operations research literature.[1][2]

Deadweight Tonnage (DWT): Appropriate seasonal deadweight.


Detention for cargo on equipment:
A penalty charge against shippers or consignees for delaying carriers equipment beyond

allowed time. Demurrage


applies to cargo; detention applies to equipment.
Draft Vertical distance between the vessels water line and the lowest part of its hull.
Dunnage: Any material or objects utilized to protect cargo. Examples of dunnage are
blocks, boards, burlap and paper.
ETA Expected Time of arrival
Export: Shipment of goods to a foreign country.
FCFS First Come First Served.
Freight Forwarder: A person whose business is to act as an agent on behalf of the shipper.
A freight forwarder frequently makes the booking reservation. In the United States, freight
forwarders are now licensed by the FMC as Ocean Intermediaries.
FRT-Freight Tones: CBM or MT whichever is higher individually calculated for the
packing list
GMB Gujarat Maritime Board
GT Gross Tonnage
International Ship and Port Facility
Security Code (ISPS):
It is an amendment to the Safety of Life at Sea (SOLAS) Convention (1974/1988) on
minimum security arrangements for ships, ports and government agencies. Having come into
force in 2004, it prescribes responsibilities to governments, shipping companies, shipboard
personnel, and port/facility personnel to detect security threats and take preventative measures
against security incidents affecting ships or port facilities used in international trade.
IWPM Inward Pilot Memo.
Kg Kilogram
LOA Length Overall
MICT Mundra International Container Terminal Monsoon Period Monsoon period in
APSEZ will be from 15th May to 30th of September each year.

Guidelines for setting up Inland Container Depot (ICD) and Container Freight
Station(CFS) in India

1.

DEFINITION OF ICD/CFS
An Inland Container Depot / Container Freight Station may be defined as A common user

facility with public authority status equipped with fixed installations and offering services for
handling and temporary storage of import/export laden and empty containers carried under
customs control and with Customs and other agencies competent to clear goods for home use,
warehousing, temporary admissions, re-export, temporary storage for onward transit and
outright export. Transhipment of cargo can also take place from such stations.
2.

DISTINCTION BETWEEN AN ICD & A CFS


Functionally there is no distinction between an ICD/CFS as both are transit facilities,

which offer services for containerization of break bulk cargo and vice-versa. These could be
served by rail and/ or road transport. An ICD is generally located in the interiors (outside the
port towns) of the country away from the servicing ports. CFS, on the other hand, is an off
dock facility located near the servicing ports which helps in decongesting the port by shifting
cargo and Customs related activities outside the port area. CFSs are largely expected to deal
with break-bulk cargo originating/terminating in the immediate hinterland of a port any may
also deal with rail borne traffic to and from inland locations.
Keeping in view the requirements of Customs Act, and need to introduce clarity in
nomenclature, all containers terminal facilities in the hinterland would be designated as "
ICDs".

3.

FUNCTIONs OF ICDs/CFSs
The primary functions of ICD/CFS may be summed up as under:

a. Receipt and dispatch/delivery of cargo.


b. Stuffing and stripping of containers.
c. Transit operations by rail/road to and from serving ports.
d. Customs clearance.
e. Consolidation and desegregation of LCL cargo.
f. Temporary storage of cargo and containers.
g. Reworking of containers.
h. Maintenance and repair of container units.
4. The operations of the ICDs/CFSs revolve around the following centres of activity:I.) Rail Siding (in case of a rail based terminal)
The place where container trains are received dispatched and handled in a terminal.
Similarly, the containers are loaded on and unloaded from rail wagons at the siding through
overhead cranes and / or other lifting equipments.
ii)

Container Yard

Container yard occupies the largest area in the ICD.CFS. It is stacking area were the export
containers are aggregated prior to dispatch to port; import containers are stored till Customs
clearance and where empties await onward movement. Likewise, some stacking areas are
earmarked for keeping special containers such as refrigerated, hazardous, overweight/overlength, etc.
iii)

Warehouse

A covered space/shed where export cargo is received and import cargo stored/delivered;
containers are stuffed/stripped or reworked; LCL exports are consolidated and import LCLs are
unpacked; and cargo is physically examined by Customs. Export and import consignments are
generally handled either at separate areas in a warehouse or in different nominated
warehouses/sheds.

iv)

Gate Complex

The gate complex regulates the entry and exists of road vehicles carrying cargo and containers
through the terminal. It is place where documentation, security and container inspection
procedures are undertaken.

5.

BENEFITS OF ICDs/CFSs
The benefits as envisaged from an ICD/CFS are as follows:The main benefits from ICDs/CFSs
i)

Concentration points for long distance cargoes and its unitisation.

ii)

Service as a transit facility.

iii)

Customs clearance facility available near the centres of production and consumption

iv)

Reduced level of demurrage and pilferage.

v)

No Customs required at gateway ports.

vi)

Issuance of through bill of lading by shipping lines, hereby resuming full liability of
shipments.

vii)

Reduced overall level of empty container movement.

viii)

Competitive transport cost.

ix)

Reduced inventory cost.

x)

Increased trade flows

Difference between ICD & CFS


For most exporters, importers, Customs house and shipping line agents, and even Customs
officers, there is no difference between Container Freight Stations (CFS) and Inland Container
Depots (ICD). In both the places, the imported goods or export goods are ordinarily kept
before clearance by the Customs and where filing of Customs manifests, bills of entry,
shipping bills and other declarations, assessment and all the activities related to clearance of
goods for home consumption, warehousing, temporary admissions, re-export, temporary
storage for onward transit and outright export, transhipment, etc, take place. So, CFS and ICD
mean the same thing for many. However, they do not mean the same facility, says the Central
Board of Excise and Customs (CBEC).
A recent CBEC circular clarifies that CFS is merely an appendage to a parent Customs station
at a port, airport, land Customs station (LCS) or ICD whereas an ICD is a Customs station in
its own right having independent existence on a par with any Customs station at a port, airport
or LCS. A CFS is an extension of a port/airport/LCS/ICD customs station, set up with the main
objective of decongesting the ports, where only a part of the customs process mainly the
examination of goods is normally carried out by Customs.
At CFS, goods are stuffed into containers or de-stuffed there from and aggregation/segregation
also takes place at such places. Customs function relating to processing of manifest,
import/export declarations that are filed by the carrier/importer or exporter and assessment of
bill of entry/shipping bill are performed in the Custom House/Custom Office that exercises
jurisdiction over the parent port/airport/ICD/LCS to which the said CFS is attached. In the case
of customs stations where automated processing of documents has been introduced, terminals
have been provided at such CFSs for recording the result of examination, etc. In some CFSs,

extension of service Centres have also been made available for filing documents, amendments
etc. However, the assessment of the documents is carried out centrally.
On the other hand, an ICD would have an automated system of its own with a separate station
code [such as INTKD 6, INSNF6, etc] allotted by the Directorate General of Systems and with
the inbuilt capacity to not only enter examination reports but also to enable assessment of
documents, processing of manifest, amendments, etc, says the CBEC. So, a Commissioner can
approve a standalone ICD but not approve a standalone CFS.

So, for an importer, exporter, CHA or shipping line, how does it matter whether a place is
designated as a CFS or ICD?
Essentially, movement of goods from a port, airport or LCS to an ICD shall be in the nature of
movement from one custom station to another custom station and will be covered by Goods
Imported (Condition of Transhipment) Regulations, 1995. In contrast, movement of goods
from a customs station at port/airport/ LCS/ICD to a CFS would be akin to local movement
from a custom area of a customs station to another custom area of the same station and such
movement is covered by local procedure evolved by the Commissioner of Customs and
covered by bonds, bank guarantee, etc.
With this clarification, there ought to be no confusion in compliance with procedures
prescribed for import/export of goods or compliance with the provisions of the Customs Act,
Rules or Regulations, hopes the CBEC.

INDUSTRY PROFILE
Container shipping was first introduced in the 1950s and since the late 1960s has become the
most common method for transporting many industrial and consumer products by sea.
Container shipping is performed by container shipping companies that operate frequent
scheduled or liner services, similar to a passenger airline, with pre-determined port calls, using
a number of owned or chartered vessels of a particular size in each service to achieve an
appropriate frequency and utilisation level.
Container shipping has a number of advantages compared with other shipping methods,
including:
Less cargo handling. Containers provide a secure environment for cargo. The contents of a
container, once loaded into the container, are not directly handled until they reach their final
destination.
Efficient port turnaround. With specialised cranes and other terminal equipment, container
ships can be loaded and unloaded in significantly less time and at lower cost than other cargo
vessels.
Highly developed intermodal network. Onshore movement of containerised cargo, from points
of origin, around container terminals, staging or storage areas and to final destinations, benefits
from the physical integration of the container with other transportation equipment such as road
chassis, railcars and other means of hauling the standard sized containers. A sophisticated port
and intermodal industry has developed to support container transportation.
Reduced shipping time. Container ships can travel at speeds of up to 25 knots, even in rough
seas, thereby transporting cargo over long distances in relatively short periods of time.
Growth in global containerisation
In 2010, world container traffic comprised 541,784 thousand TEUs, according to Drewry. The
compound average growth rate (CAGR) of world container traffic from 2000 to 2010 is
estimated at 8.6% compared with a global real GDP CAGR of 2.6% for the same period,
according to Drewry. Key drivers that contributed to the growth in global container throughput
over this period were sustained growth in global trade, increased global sourcing and
manufacturing, a shift from transporting cargo in bulk to transporting cargo in containers and

growth in transhipment volumes. In 2013, world container traffic growth amounted to 3.0%,
flat with global GDP growth of 3.0%, according to IMF.
Container terminal operations are pure play infrastructure business and have some of the
following key characteristics:
High barriers to entry due to the high capital requirements, regulatory requirements and limited
land availability
Coordinated hinterland transportation connections requiring local governments receptive to
development
New terminal development often constrained by local planning procedures and regulations
Long lead times for project execution due to the involvement of many stakeholders in the
process
Limited competition partially due to geographical constraints

The competitiveness of container terminal's operations is determined not only by the terminals'
facilities but also its the external infrastructure. A container terminal is a crucial link in the
wider logistics chain. The water, rail and road hinterland connections and logistical services
provided in the port, including warehousing and customs processing, make up the logistics
chain in which the ports operate. Additionally, high quality inland transport links is a key
element in the success of a container terminal.
Container terminal operators have long-term relationships with their customers. While
contracts between shipping lines and container terminals typically have a duration of one year,
in practice these relationships generally last much longer, even decades.
The two main categories of container throughput are Origin & Destination (O&D) and Trans
shipment. O&D traffic consists of containers moving to and from the hinterland served by the
terminal. Every container shipped by sea is an export container at the origination terminal and
an import container at the destination terminal. A container that is transferred from one ship to
another at some point during the journey is said to be transshipped, which gives rise to
transshipment throughput at an intermediate terminal somewhere between the load terminal
and the discharge terminal.

O&D throughput is often preferred by container terminal operators for the following reasons:
Terminal operators typically earn more revenue per quay crane lift from O&D throughput than
from trans shipment
Terminal operators also have the opportunity to generate additional revenue from ancillary
services, such as storage, stuffing and unstuffing, etc.
Shipping lines can transfer transshipment throughput to other ports in the same region
relatively easily, O&D throughput is usually most cost-effectively handled by one terminal,
preferably close to the point of consumption

LOGISTICS:
Logistics is defined as the process of planning, implementing and controlling the efficient
and effective flow, and storage of goods, services and related information from the point of
origin to the point of consumption for the purpose of conforming to customer requirements.
The primary objective of logistics management is to effectively and efficiently move the
supply chain so as to extend the desired level of customer service at the least cost. Thus,
logistics management starts with ascertaining customers needs till their fulfilment through
product supplies.

Prospects of Growth in the Logistics Industry:


In years gone by, the traditional warehousing and logistics facility was located by railroad
tracks, a water port, and/or freeways, usually in the least desirable parts of cities or large
towns. This stereotype then faded as gigantic, state-of-the-art facilities began to sprout in more
rural areas on the outskirts of transportation and population hubs. The World started beginning
to see such facilities showing up in even less "traditional" areas. Modern warehouses now are
being located in carefully manicured industrial parks that are sprouting as fast as the corn and
wheat once did in these open spaces-often in out-of-the-way places. Why the emphasis on such
locations for logistics companies?

Much of it is due to the great flux that the logistics industry has been undergoing in the first
three years of the 21st century. Most of these changes are being driven by a growing trend in
the manufacturing and retail sectors to form partnerships with companies to which they can
outsource non-core logistics competencies-3PL providers.
In turn, 3PL providers are continually looking to provide innovative supply chain solutions to
customers by focusing on value-added capabilities, differentiating themselves from the
competition. They focus on key objectives, such as implementing information technologies,
instituting effective management processes, integrating services and technologies globally, and
delivering comprehensive solutions that create value for 3PL users and their supply chains.
This need to partner with customers and become more integrated into their supply chain
processes has created the ancillary need to locate close to these customers.
That isn't to say the need For easy access to transportation hubs and different modes of
transportation won't continue to be important. But the above shift in business strategy, along
with the advances in technology and enhanced communication, has opened the door for
logistics facilities to operate effortlessly in a myriad of locations.
Profit warnings, share price pressures, mergers, reorganizations, relocations, disposals, painful
layoffs and great geopolitical uncertainties can sweep away even the most comprehensive
logistics strategies and thats despite outstanding management over many years. These are
exceptionally difficult times and it has never been more important to connect logistics and
freight planning to executive board thinking than now. Its easy to lose sight of the bigger
picture in the rush to cut infrastructure cost and conserve cash. Hopefully organization succeed
in protecting the business, satisfying shareholders and analysts, but what about capacity and
flexibility, morale and momentum?
To be a logistics winner in the coming years organizations need to use the downturn to reshape
for growth, propelled by an unshakeable conviction that the mission is still important, that
more prosperous times lie ahead, and that in some way the company infrastructure is helping to
build a better kind of world. Own passion for running the race matters most of all in a

downturn, when people are insecure, see only savage cost savings, and loyalty is tested. The
corporations future will be dominated by six factors, or faces of a cube, spelling F U T U R E.

CHAPTER -3
LEARNING FROM THE ORGANISATION

ROLE OF SHIPPER
Shipper is one who generally exports the cargo but in shipping this term varies at different
perspectives. Shipper is one who holds the cargo with him. He may either manufacture the
cargo according to the consignees needs, or he may also acquire goods locally from different
manufacture and export those products.

ROLE OF CHA
A Custom House Agent is somebody entitled to act upon a companys behalf on actions
involving the import and export of goods. The phrase is most commonly used in India. There
such agents must be licensed under section 146 of the Customs Act.
The purpose of a custom house agent is to tackle the problem that management of many
businesses simply does not have the resources to personally deal with import and export
issues. This is a particular concern given that India is traditionally a trading nation. There is
also a high degree of bureaucracy in Indian business.
The laws governing a custom house agent specifically state that any action they take is treated
legally as if it was made by the company itself. In legal terms, the agent is treated as if they
were the legal owner of the goods they deal with. One exception to this is that a
custom house agent cannot normally be held personally responsible for any duty that is not
paid by the company.
A custom house agent must be licensed by the local Commissioner of Customs. This is a two
stage process, involving an initial temporary license. Application is only open to university
graduates with legal employment status and sound finances.

To be eligible to become a custom house agent, a candidate must have experience working
in customs-related issues. This experience must be at least a set amount of time. In most cases
this is three years, but a commissioner may reduce this to one year if the candidate makes an
acceptable case to do so, in writing.
Once somebody has a temporary license, they have one year to become a
regular license holder. This is done by passing an examination, which is
held twice a year. If a candidate has not passed the examination by the end
of their first year, they may be granted a six-month or one-year extension
to allow further attempts. Such extensions are only granted to candidates
who can show they have carried out a set level of work during their time as
a temporary license holder. Candidates are allowed a maximum of three
attempts at passing the examination

Accelerated Clearance of Imports and Exports Scheme (ACS):


Finance Minister, in his budget speech on 28-2-2003, had announced a self assessment
scheme for importers and exporters. As per the scheme, importer will himself determine
classification of goods including claim for exemption benefits. Computer System will
calculate the duty based on his declaration. Physical inspection of imported goods will be done
by risk-assessment and management techniques on a computer based system and not on the
orders of customs examining staff. Audit of import documents will not be by existing system
of concurrent audit but will be done by post-clearance audit, as prevalent in developed
countries.
The scheme is announced through administrative instructions, without making any change in
statutory provisions. Hence, the scheme is not same as self removal under Central Excise.
Presently, the scheme is introduced on trial basis at Air Customs, Sahar (Mumbai), ICD, New
Delhi and Chennai Sea Customs.
In case of imports, the scheme will be open to all status holders under EXIM policy, Central
and State Government PSUs and other importers who have been importing for at least two

years and have filed at least 25 Bills of Entry in preceding year. In case of exports, the scheme
will be open to all status holders under EXIM policy, EOU/STP/EHTP units whose goods have
been sealed in presence of customs/excise officers, Central and State Government PSUs,
manufacturer-exporters who have been exporting for at least two years and have filed at least
25 Shipping Bills in preceding year and bulk exporters. - - Certain sensitive items have been
excluded from the provisions. Importer/exporter intending to avail this facility has to make
application to Commissioner. The clearances will be subject to post clearance audit.

Provisional Assessment:
Section 18 of Customs Act, 1962 provide that provisional assessment can be done in following
cases
When Customs Officer is satisfied that importer or exporter is unable to produce
document or furnish information required for assessment
It is deemed necessary to carry out chemical or other tests of goods
When importer/exporter has produced all documents, but Customs Officer still deems it
necessary to make further enquiry.
In such cases, assessment is done on provisional basis. The importer/exporter has to furnish
guarantee/security as required by Customs Officer for payment of difference if any. Goods can
be cleared after payment of duty provisionally assessed and after providing the security. After
final assessment, difference is paid by importer or refunded to him as the case may be. If the
imported goods were warehoused after provisional assessment, the Customs Officer may
require importer to execute a bond for twice the difference in duty, if duty finally assessed is
higher [section 18(2) (a)]. The bond is called as 'P D Bond' (Provisional Duty Bond). The bond
is with security or surety. Bank guarantee can also be given as a security.

Checking of duty drawback / license documents:


Documents in respect of Duty Entitlement Pass Book (DEPB), advance license, duty
drawback etc. will be checked.

Execution of bond and payment of duty:


Once the duty is assessed, the bill of entry is returned to importer. The Bill of Entry should be
presented to competent for calculation and pinpointing of the duty. If bond has to be executed,
it will be taken in bond section.

Payment of duty:
If goods are to be removed to a warehouse, duty payment is not required. The goods can be
taken to a warehouse under bond, without payment of duty. However, if goods are to be
removed for home consumption, payment of customs duty is required. CHA or the importer
can take it for payment of customs duty. Large importers and CHA have P.D. accounts with
customs. Duty can be paid either in cash or through P.D. account. P. D. account means
provisional duty account. This is a current account, similar to PLA in central excise. The
importer or CHA pays lump sum amount in the account and gets credit on the amount paid. He
can pay customs duty by debiting the amount in P.D. (Provisional Duty) account. If the
importer does not have an account, he can pay duty by cash using TR-6 challan. Of course,
payment through PD account is very convenient and quick.
The duty should be paid within five working days (i.e. within five days excluding holidays)
after the Bill of Entry is returned to the importer for payment of duty [Section 47(2)].

Interest for late payment:


If duty is not paid within 5 working days as aforesaid, interest is payable. Such interest can be
between 10% to 36% as may be notified by Central Government. [Section 47(2) of Customs
Act, 1962.]. Interest rate is 15% w.e.f. 13-5-2002. [Notification No. 28/2002-Cus(NT) dated
13-5-2002] Earlier, interest rate was 24% p.a, w.e.f. 1-3-2000, as per notification No. 34/2000Cus (NT)].

Disposal if goods are not cleared within 30 days:


- As per section 48 of Customs Act, goods must be cleared within 30 days after unloading.
Customs Officer can grant extension. Otherwise, goods can be sold after giving notice to

importer. However, animals, perishable goods and hazardous goods can be sold any time even before 30 days. Arms & ammunition can be sold only with permission of Central
Government.

Out of Customs Charge Order:


After goods are examined, it is verified that import is not prohibited and after customs duty is
paid, Customs Officer will issue Out of Customs Charge order under section 47. Goods can
be cleared from customs area only on receipt of such order. This is an adjudicating order
within the meaning of Customs Act, even if it is passed by Appraiser and not by Assistant
Commissioner.

Demurrage if goods not cleared:


Heavy demurrage is payable if goods are not cleared from port within free days.

Relevant Date for Rate and Valuation of Customs Duty:


Section 15 of Customs Act prescribes that rate of duty and tariff valuation applicable to
imported goods shall be the rate and valuation in force at one of the following dates.
a. If the goods are entered for home consumption, the date on which bill of entry is
presented
b. In case of warehoused goods, when Bill of Entry for home consumption is presented u/s
68 for clearance from warehouse and
c. In other cases, date of payment of duty.

Concept of territorial waters not relevant:


It may be noted that concept of date of entering into territorial waters is not relevant for
purposes of determination of rate of customs duty.

Billing & Payment:


After all the formalities with the customs are done & the cargo is being delivered to the
customer, then it is the final stage of the import process. A proper billing (Bill of Entry &
Supporting Bills) with all expenses incurred has to be sent to the customer and the customer
will cross check and will make the payment. With this the process of import clearance is over.

ROLE OF FREIGHT FORWARDERS


A freight forwarder, forwarder, or forwarding agent is a person or company that organizes
shipments for individuals or other companies and may also act as a carrier. A forwarder is
often not active as a carrier and acts only as an agent, in other words as a third-party (nonasset-based) logistics provider that dispatches shipments via asset-based carriers and that
books

or

otherwise

arranges

space

for

these

shipments.

Carrier

types

include ships, airplanes, trucks, and railroads.


Freight forwarders typically arrange cargo movement to an international destination. Also
referred to as international freight forwarders, they have the expertise that allows them to
prepare and process the documentation and perform related activities pertaining to
international shipments. Some of the typical information reviewed by a freight forwarder is
the commercial invoice, shipper's export declaration, bill of lading and other documents
required by the carrier or country of export, import, or transshipment. Much of this
information is now processed in a paperless environment.

ROLE OF NVOCC
As the name indicates, NVOCC operators do not own a vessel. Their function is that of
principal to the shipper and they ultimately become the customer for a Liner who carries their
box. Few of them may have own containers and they will be issuing their own Bill of Lading
and they will be having a wide network in the sector they operate.
They issue their House Bill of Lading to the Shippers and them upon handing over the
container to the Liner, get Liner Bill of Lading. This Original Bill of Lading will be

forwarded to the counter party of the NVOCC operator at the destination end and they
surrender this to the Liner.
Alternatively, to avoid the delay in sending the original document to the destination end, the
same will be surrendered at the load port Liner / agents office itself. The Liner / Agent at the
load port will send an electronic message to the discharge port about the surrendering of
original bill of lading at the load port and to release the delivery order based on the
endorsement of the freight forwarder / NVOCC operator itself.
NVOCC Operators issue House-to-House Bill of Lading or Combined Transport Document to
the shipper since they undertake the movement from the Shippers ware house and taking the
responsibility of reaching the cargo till the buyers warehouse. It is not the same pattern of
working for all the operators but in the present days, the amount of significance given to
Logistics Providers are of immense importance and this type of functioning is gaining greater
acceptance among the shippers as well as buyers since the entire activity is under single point
control.
Few other operators just function as freight forwarders and their role of play are limited to the
extent of the contacting the shippers and booking the cargo through a particular Liner. They
will have a contracted freight charges with the Liner and depending upon their strength to offer
volume of business to a particular line and to a particular sector, they enjoy good discounts on
the tariff. When they get the rates based on a committed volume, they hunt around shippers
and they book the cargo through them to a Liner wherein they have a better freight charges.
The difference in booking the price would be their profit i.e., the difference between the
buying rate and the selling rate to the customer. In this case, the bill of lading will directly be
given to the customer from the Liner office and there is no involvement of house bill of lading
and the related surrendering formalities at the destination counter.

ROLE OF CLEARING AGENT

Clearing agent means any person who is engaged in providing any service, either directly or
indirectly, concerned with the clearing and forwarding operations in any manner to any other
person and includes a consignment agent. Once the cargo arrives at the port/ CFS the clearing
agent at the consignees place will go with the necessary documents and take delivery of cargo.
In order to take delivery of cargo there are many processes that are to be done which is already
mentioned in CHA import process and the clearing and forwarders agent.

ROLE OF CONSIGNEE
Party, who is to receive goods, usually is the buyer. One to whom a consignment is made.
When the goods consigned to him are his own and they have been ordered to be sent they are
at his risk the moment the consignment is made according to his direction; and the persons
employed in the transmission of the goods are his agents. When the goods are not his own, if
he accept the consignment he is bound to pursue the instructions of the consignor; as if the
goods be consigned upon condition that the consignee will accept the consignor's bills, he is
bound to accept them.
It is usual in bills of lading to state that the goods are to be delivered to the consignee or his
assigns, him or them paying freight; in such case the consignee or his assigns, by accepting the
goods, by implication become bound to pay the freight. When a person acts publicly as a
consignee there is an implied engagement on his part that he will be vigilant in receiving goods
consigned to his care, so as to make him responsible for any loss which the owner may sustain
in consequence of his neglect.

INCOTERMS
Inco terms are ICCs standard definitions of trade term s and are internationally
recognized as indispensable evidence of the buyers and sellers responsibilities for
delivery under a sales contract.
EXW

SERVICES

Ex Works

FCA

Free
Carrier

FAS

FOB

Free

Free

Alongside Onboard
Ship

Vessel

CFR

Cost &
Freight

CIF
Cost
Insurance
& Freight

CPT

Carriage
Paid To

Warehouse Storage

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Warehouse Labor

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Export Packing

Seller

Seller

Seller

Seller

Seller

Seller

Seller

Loading Charges

Buyer

Seller

Seller

Seller

Seller

Seller

Seller

Inland Freight

Buyer

Seller

Seller

Seller

Seller

Seller

Terminal Charges

Buyer

Buyer

Seller

Seller

Seller

Seller

Seller

Forwarders Fees

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Seller

Loading On Vessel

Buyer

Buyer

Buyer

Seller

Seller

Seller

Seller

Ocean/Air Freight

Buyer

Buyer

Buyer

Buyer

Seller

Seller

Seller

Charges On Arrival At Destination

Buyer

Buyer

Buyer

Buyer

Buyer

Buyer

Seller

Duty, Taxes & Customs Clearance

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Delivery To Destination

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Factory stuffing permission:


The grant of a single factory stuffing permission valid for all the Customs stations instead of
Customs station-wise permission is permitted. This facility is subject to the following
safeguards:
(i) The exporter is required to furnish to Customs a list of Customs stations from where he
intends to export his goods.
(ii) The Custom House granting the factory stuffing permission should maintain a proper
register to keep a track-record of such permissions, and also create a unique serial number for
each of such permissions.
(iii) The Custom House should circulate the factory stuffing permission to all Custom Houses
concerned clearly indicating the name and contact details of the Preventive Officer/Inspector
and Superintendent concerned of the Custom House granting the permission as well as those of
the Central Excise Range concerned to facilitate real time verifications, if required.
(iv) In case something adverse is noticed against the exporter, the Customs station concerned
shall promptly intimate the Custom House granting the permission, which will, in turn,
withdraw the permission, and inform all Custom Houses concerned.

Variation between declaration and physical examination:


The check list and the declaration along with all original documents submitted with the
Shipping Bill are retained by the Appraiser concerned. In case of any variation between the
declaration in the Shipping Bill and physical documents/examination report, the Appraiser may
mark the Electronic Shipping Bill to the Assistant Commissioner/Deputy Commissioner of
Customs (Exports) alongwith sending the physical documents and instruct the exporter or his
agent to meet the Assistant Commissioner/Deputy Commissioner of Customs (Exports) for
settlement of dispute. In case the exporter agrees with the views of the Department, the
Shipping Bill needs to be processed accordingly. Where, however, the exporter disputes the
view of the Department the issue will be finalized in accordance with the principles of natural
justice.

Drawl of samples:
Where the Appraiser Dock (Export) orders for samples to be drawn and tested, the Customs
Officer may proceed to draw two samples from the consignment and enter the particulars
thereof along with details of the testing agency in the ICES/EDI system. There is no separate
register for recording dates of samples drawn. Three copies of the test memo shall be prepared
by the Customs Officer and signed by the Customs Officer and Appraising Officer on behalf of
Customs and the exporter or his agent. The disposal of the three copies of the test memo are as
follows:
(i) Original to be sent along with the sample to the test agency.
(ii) Duplicate Customs copy to be retained with the 2nd sample.
(iii) Triplicate Exporters copy.
If he considers it necessary, the Assistant Commissioner/Deputy Commissioner, may also order
sample to be drawn for purposes other than testing such as for visual inspection and
verification of description, market value inquiry, etc.
Stuffing / loading of goods in containers:
The exporter or his agent should hand over the Exporters copy of the Shipping Bill duly
signed by the Appraiser permitting Let Export to the steamer agent who would then
approach the proper officer (Preventive Officer) for allowing the shipment. In case of container
cargo the stuffing of container at Dock is done under Preventive Supervision. Further, loading
of both containerized and bulk cargo is to be done under Preventive Supervision. The Customs
Preventive Superintendent (Docks) may enter the particulars of packages actually stuffed into
the container, the bottle seal number, details of loading of cargo container on board into the
EDI system and endorse these
details on the Exporters copy of the Shipping Bill. If there is a difference in the quantity/
number of packages stuffed in the containers/goods loaded on vessel the Superintendent
(Docks) may put a remark on the Shipping Bill in the EDI system and that it requires
amendment or change in quantity. Such Shipping Bill may not be taken up for the purpose of

sanction of Drawback/DEEC logging, till it is suitably amended. The Customs Preventive


Officer supervising the loading of container and general cargo into the vessel may give
Shipped on Board endorsement on the Exporters copy of the Shipping Bill.
24.2 Pollicisation of cargo is done after grant of Let Export Order (LEO). Thus, there is no
need for a separate permission for pollicisation from Customs. However, the permission for
loading in the aircraft/vessel would continue to be obtained.
[Refer Circular No.18/2005-Cus., dated 11-3-2005]

Amendments:
Any correction/amendments in the check list generated after filing of declaration can be made
at the Service Centre provided the documents have not yet been submitted in the EDI system
and the Shipping Bill number has not been generated. Where corrections are required to be
made after the generation of the Shipping Bill number or after the goods have been brought
into the Export Dock, the amendments will be carried out in the following manner:
(i) If the goods have not yet been allowed Let Export the amendments may be permitted by
the Assistant Commissioner (Exports).
(ii) Where the Let Export order has already been given, amendments may be
Permitted only by the Additional/Joint Commissioner in charge of Export.
In both the cases, after the permission for amendments has been granted, the Assistant
Commissioner/Deputy Commissioner (Export) may approve the amendments on the EDI
system on behalf of the Additional/Joint Commissioner. Where the print out of the
ieport.com - India's Premier Export Import Portal 36
Shipping Bill has already been generated, the exporter may first surrender all copies of the
Shipping Bill to the Dock Appraiser for cancellation before amendment is approved on the
system.

In respect of amendment in AEPC Certificate on receipt of request from the exporter, the
Assistant Commissioner /Deputy Commissioner (Exports) should allow the change of port in
EDI Shipping Bills / invoice to help exporters in getting the goods cleared without waiting for
an amendment of documents by AEPC. The ratification of the port of change would be done
subsequently by AEPC. [Refer Circular No.46/2003-Cus., dated 5-6-2003]

Drawback claim:
After actual export of the goods, the Drawback claim is automatically processed through EDI
system by the officers of Drawback Branch on first-come-first-served basis. The status of the
Shipping Bills and sanction of Drawback claim can be ascertained from the query counter set
up at the Service Centre. If any query is raised or deficiency noticed, the same is also shown on
the terminal and a print out thereof may be obtained by the authorized person of the exporter
from the Service Centre. The exporters are required to reply to such queries through the
Service Centre. The claim will come in queue of the EDI system only after reply to
queries/deficiencies is entered in the Service Centre.
All the claims sanctioned on a particular day are enumerated in a scroll and transferred to the
Bank through the system. The bank credits the drawback amount in the respective accounts of
the exporters. The bank may send a fortnightly statement to the exporters of such credits made
in their accounts.
The Steamer Agent/Shipping Line may transfer electronically the EGM to the Customs EDI
system so that the physical export of the goods is confirmed, to enable the Customs to sanction
the Drawback claims.

Generation of Shipping Bills:


After the Let Export order is given on the EDI system by the Appraiser, the Shipping Bill is
generated in two copies i.e., one Customs copy, one exporters copy (EP copy is generated
after submission of EGM). After obtaining the print out the Appraiser obtains the signatures of
the Customs Officer and the representative of the CHA on both copies of the Shipping Bill and
examination report. The Appraiser thereafter signs and stamps both the copies of the Shipping
Bill.
The Appraiser also signs and stamps the original and duplicate copy of SDF and thereafter
forwards the Customs copy of Shipping Bill and original copy of the SDF along with the
original declarations to Export Department. The exporter copy and the second copy of the SDF
are returned to the exporter or his agent. ieport.com - India's Premier Export Import Portal
Export General Manifest:
All the shipping lines/agents need to furnish the Export General Manifests, Shipping Bill-wise,
to the Customs electronically before departure of the conveyance.
Apart from lodging the EGM electronically the shipping lines need to continue to file manual
EGMs along with the exporter copy of the Shipping Bills in the Export Department where they
would be entered in a register. The shipping lines may obtain acknowledgement indicating the
date and time at which the EGMs were received by the Export Department. .
Electronic Declarations for Bills of Entry and shipping Bills:
Bill of Entry (Electronic Declaration) Regulations, 2011 has been framed in supersession of the
Bill of Entry (Electronic Declaration) Regulations, 1995 to incorporate changes made vide
Finance Act, 2011 and mandate self-assessment by the importer or exporter, as the case may
be. Likewise, Shipping Bill (Electronic Declaration) Regulations, 2011 are framed in tune with
statutory provisions of Sections 17, 18 and 50 of the Customs Act, 1962.

SWOT ANALYSIS
STRENGTH
The first Multi Modal ICD in India utilizing inland navigational facility
As dreamt by the president of India this project materializes the

development of Inland

waterway and the special economic zone

Adjacent to this ICD, development of a special economic zone by KINFRA is also


under process.
The total logistics cost can be reduced than the present cost by the road transportation
to cochin port from kottayam.
KOTTAYAM IS THE MAIN district where majority of the rubber and spices are
produced and thus kottayam port will be the hub for rubber and spices export
Fast documentation and efficient administration of services backed by a fully

computerized network
Adequate warehousing capacity
There is a good Cooperation among Employees

WEAKNESS

Delay in getting sanctioned due to various controls


Lack of most modern infrastructure facilities and advanced equipments.
High operating and handling cost as sundry expenses
Problems faced due to the strikes and other labor problem at port.
Cargo to be sent the DP World port that is Vallarpadam will have to TRAVEL 70 KMS
by road to reach which takes a lot of time.

OPPORTUNITIES

Proposals for the extensive renovation of Thanneermukkam barrage at a cost of 110


crore.
Approved under Kuttamadu development scheme by Govt of India
Increasing exports and imports due to globalization.
As the cheapest way of transportation it has wide opportunities
Vigorous marketing for better revenue
As the rate of exporting increases there will be a good margin of profit.
Multimodal transportation could be done by the company by the way of inland
waterways such that it will be much cost effective.

THREATS
The clearance height and width of Thaneermukkam barrage located in
NW111 is 6.5 Mts and12.5 Mts respectively.
The insufficient size of the bund clearance make it impossible for bigger
size barges to ply between Southbound districts of Kerala and Cochin Port.
The maximum number of containers that could be brought through in a
barges subject to the above limitation is 10-15TEUs/trip.
The size of the barrage clearance should be invariably thrice the current
size so as to enable larger vessels and cruise ships to pass through.
Labour problems
Slow industrial growth in Kerala
Increase in the number of trade unions such that it takes times to get solved any problem
which is kept for discussion.
Lack of supporting infrastructure such as better road connectivity.
As there are two ports in Cochin which is known to be Cochin port and the Vallarpadam
port the connectivity through road is too long.

CHAPTER 5
SUGGESTIONS TO THE ORGANISATION

SUGGESTIONS TO THE ORGANISATION

KPACT should allot more space for imported goods in the warehouse as the import is

more than export.


The number of barges should be increased
The technology used should be upgraded to ensure 100% utility of resources
Resources should not be left idle as it causes additional cost
More trailers, semi trailers and flat trailers should be acquired
KPACT should encourage exporters so as to enjoy the benefits given to exporters and
inland container terminals

Conclusion
The organization study carried out in KOTTAYAM PORT & CONTAINER TERMINAL(AN
INLAND CONTAINER DEPOT & MINOR PORT)has paved way to understand the various

departments and their functions and to get general overview of the functioning of the
organization. It is the first Multi Modal ICD in India utilizing inland navigational facility.
Cochin Port basically deals with export and import of cargo and goods through waterways.
KOTTAYAM port plays a major role in increasing the export and import from kottayam
district which is the major producer of rubber, spices and coir. The total cost of transporting
the containers to the Cochin port through river is half the cost through roadways. It also plays a
pivotal role in the developmental activities.

Such that we would like to conclude the organization goes in a well manner with well planning
and well planning of the upcoming projects and have all the chances of being the best in next
few years

CHAPTER 6
REFRENCES

Bibliography
Websites :

www.kottyamport.com
www.cochinport.com
www.indiaports.com
www.cbec.gov.in