Transportation and Logistics PDF

**CHAPTER 3** **Transportation -- the backbone of logistics** **Transport and logistics** - is a **collection of processes** involved in the **production, storage, inventory, delivery, and distribution of specific goods or services**. - referred to as transportation and logistics, it...

**CHAPTER 3** **Transportation -- the backbone of logistics** **Transport and logistics** - is a **collection of processes** involved in the **production, storage, inventory, delivery, and distribution of specific goods or services**. - referred to as transportation and logistics, it is an **integral element** of the **whole supply chain** and it involves proactive procedures to **safely and efficiently move products from the manufacturers**, to the **sellers**, and up to the end users or the consumers. - The primary goal of managing transport and logistics---especially for businesses and those in cargo consolidation---is to properly **oversee the flow of supply from point A to point B**, and for customers to **receive products on time, damage-free, and according to expectations**. - The **logistics industry** is **responsible** for **moving products domestically** and **internationally** and is therefore a **huge** contributor to **economic development**. **Transport and Logistics' Role and benefits** - **Increases efficiency --** Just like any other business practice that **aims to simplify processes;** - **Lowers costs** -- **Managing transport** and **logistics** properly provides better **visibility** in the supply chain. This allows businesses to **avoid unnecessary purchases**, eliminate **unproductive activities**, implement recognized areas for improvement. - **Improves production turn out --** An **optimized transport** and **logistics** process **helps streamline operations**, **reduce downtime**, and generally improve business performance. - **Enhances inventory management --** **Greater** supply chain visibility prevents **material stockout** and **material overstock,** **avoids damages** in products, and enables businesses to manage inventory more efficiently. - **Prevents disruption in the supply chain --** As an **integral unit** of the supply chain, an **organized transport** and logistics system helps spot **inefficiencies in the process**. - It also enables companies to **address issues before** **they cause disruption** and significantly affect business operations. **Transportation vs. Logistics** - **Transportation** is the **operation** involved in the **actual physical delivery** or **movement of products** from **one place to another**. - **Logistics** is a **bigger business unit** which refers to the procedures involved in the supply chain that intend to **safely** and **timely** deliver goods and services to consumers. A diagram of a transportation and logistics company Description automatically generated with medium confidence **Challenges faced by the logistics/Transportation** - Rising fuel prices - Driver shortages - Meeting customer satisfaction - Sustainability concerns / Environmental - Optimization of Inventory Flows - Becoming a Preferred Shipper **5 modes of transportation in logistics** 1. Road and Truck Transportation 2. Rail Transportation 3. Marine Transportation 4. Air Transportation 5. Intermodal Transportation 1. **Road and Truck Transportation** - primarily involving **trucks,** has been a cornerstone in the logistics industry for decades. - Trucks became the **most versatile solution** as direct routes became necessary to connect industries to ports or railheads. - **[Benefits:]** Road transport offers **delivery flexibility directly** from the producer to the consumer, accommodating smaller shipments efficiently. It provides a **cost-effective solution for short distances** and is often the preferred mode when the final destination isn't directly served by rail or sea networks. - **[Disadvantages:]** Despite its ubiquity, road transport is **vulnerable to delays due to weather conditions or traffic**. Moreover, its environmental concerns, primarily emissions, have been a consistent drawback. - **[Restrictions:]** **Weight** restrictions can sometimes hinder the transportation of **large volumes**. Certain dangerous materials may also require special permits or trucks. - **[Best for Goods:]** Road transportation is **ideal for agricultural produce**, **finished products for retail**, and any cargo that requires a **direct route to its destination**. 2. **Airplane Transport** - is the **fastest** option for freight that have a further destination its even regarded as the best mode of transportation for perishable goods for this reason; doesn't require the infrastructure investment that railways do; airplanes fly freely, which means you don't need to spend the initial cash building a pathway to your destination; - **goods could be transported across continents within hours**. The electronics, pharmaceuticals, and fashion industries heavily rely on air freight due to the time-sensitive nature of their products. - air transport provides the swiftness they require; the air transport sector **supports millions of jobs globally**, both **directly and indirectly**. - **[Benefits:]** **Speed** is the prime advantage of air shipping. Deliveries that take weeks by sea can be achieved in hours, making it invaluable for time-sensitive products. - **[Disadvantages:]** **Cost** is the significant drawback. Air freight can be substantially more expensive than other modes. Moreover, it is vulnerable to disruptions from weather conditions and air traffic control delays. - **Restrictions:** **Weight and size restrictions** are more stringent in air transport. Certain dangerous materials or goods, like flammable substances, also face tighter regulations. - **[Best for Goods:]** Ideal for **high-value, low-volume shipments** such as electronics, pharmaceuticals, and urgent documents. 3. **Rail Transport** - a means of **transferring passengers** and **goods on wheeled vehicles** running on rails, which are located on tracks. - rail vehicles are **directionally guided by the tracks** on which they run. - evolved to address the needs of an ever-growing industrialized world. - plays a pivotal role, especially in **landlocked areas**. Industries like coal, minerals, and agricultural produce, which require shipping large volumes over long distances, often turn to rail. - **[Benefits:]** is cost-effective for **large volumes and offers a higher carrying capacity than trucks**; less affected by external factors like weather. - **[Disadvantages:]** requires goods to be **transported to and from rail yards,** adding to transit time; less flexible than road transport and adheres to fixed schedules. - **[Restrictions:]** it can handle **large quantities;** has **limitations on certain over-sized** or **over-weight cargo**;may not be available everywhere, limiting accessibility. - **[Best for Goods:] Bulk commodities** like coal, crude oil, agricultural goods, and raw materials are best suited for rail transport due to their size and weight. 4. **Maritime transport** - (or **ocean transport**) or more generally **waterborne transport**, is the transport of people (passengers) or goods (cargo) via waterways or via sea routes; a great option for those looking to ship bulky items that aren't in much of a rush. - **cheaper** than road transport, ships are usually the main cost that you'll incur---you won't have to worry about road tolls and other similar charges. - The main **[disadvantage,]** it can be **difficult to monitor the exact location** of the goods in transit, which can be a deal-breaker for some. - **[advantages]** to marine transport, the **downside of the lack of ability to closely track** the exact whereabouts of the specified freight can be crucial. - offers employment to millions, encompassing a wide range of roles, from ship crew to harbor personnel and logistics managers. - **[Benefits:]** Maritime transport is **cost-effective for transporting large volumes over vast distances.** It has the highest carrying capacity among all modes of transportation. - **[Disadvantages:]** Ocean shipping is comparatively **slower,** with potential delays caused by weather conditions, port congestions, or geopolitical issues. - **[Restrictions:]** Certain goods may be restricted due to international regulations. Also, ships are **bound to predefined shipping routes and schedules**. - **[Best for Goods:]** **Raw materials, bulk commodities, and large-volume goods**, such as electronics, machinery, and automobiles, are best suited for maritime transport. 5. **Pipeline Transport** - are **networks** that transport **liquids and gasses**, like crude oil, natural gas, and even water, across vast distances without intermediate loading or unloading. - Industries relying on consistent delivery of raw materials, notably refineries and utility providers, depend heavily on pipeline transportation. - **[Benefits:]** Pipelines provide a **continuous, efficient, and reliable method of transportation**. They're not as affected by external factors like road or maritime transport and offer a direct route from the source to the destination. - **[Disadvantages:]** The initial setup cost for pipelines is **high,** and they're geographically fixed. Environmental concerns arise from potential spills or leaks. - **[Restrictions:]** **Limited** to transporting liquids and gasses, and their fixed nature means they can't be repurposed easily for different goods. - **[Best for Goods:]** Best suited for transporting **crude oil**, refined petroleum products, **natural gas**, and other liquids or gasses over long distances. 6. **Multimodal and Intermodal Transport** - Multimodal and Intermodal transportation are **intricate frameworks** strategically designed to **optimize cargo movement** using **multiple modes of transportation**. **Multimodal Transport** - refers to the **movement of goods under a single contract** but carried out with at least **two modes** of transportation, like **air, sea,** or **road;** developed as a cost-efficient and time-saving strategy. - industries, especially those involved in international trade, rely on multimodal shipping; chosen for shipping large volumes across vast distances, using air or sea freight combined with road or rail networks. **Intermodal Transport** - is quite **similar but operates under multiple contracts** for each transportation mode. Unlike intermodal shipping, each leg of the journey is distinct. - for industries requiring more flexibility in their logistics routes, **allowing them to pick and choose providers for each leg.** - **[Benefits:]** **Both methods offer flexibility,** potentially lower costs, and efficient use of resources. They cater to both large volumes and smaller shipments, offering a cost-effective solution. - **Disadvantages:** These methods might **face issues like missed connections** or delays in one leg affecting the subsequent ones. Also, handling the cargo multiple times might increase the risk of damage. - **[Restrictions:]** **Requires sophisticated coordination** among different carriers, modes, and schedules. Proper containerization is a must, especially for intermodal transportation. - **[Best for Goods]: Diverse range of goods**, from **raw materials to finished products,** especially when traveling long distances involving multiple transportation modes. **Choosing the Best Mode of Transportation** Selecting the most suitable mode of transportation is a critical decision in the logistics industry: \> **ensuring that goods** are **delivered** to their **final destination** efficiently, \> **securely**, and \> within **budget constraints**. **Right Mode Of Transport: Factors** - The products of the company and their type, e.g. perishables or non-perishables, breakables etc. - Supplier production lead times; - Product availability. - Source of supply i.e. the pick-up destination, e.g. China or others. - Customs and Excise rules, such as duty, quarantine regulations and others. - Volume. **FACTORS INFLUENCING TRANSPO** **1) Cost of Transport** When selecting the best and most suitable transport for exportation of products, the budget is the most important consideration. Costs vary based on the **type and amount of goods needed** to be transported. **2). Reliability and Regularity of Service** The reliability and regularity **parameters of different transport modes**, differ from each other. The **urgency and speed** by which the goods are to be delivered, influences the decision as to which mode of transport to use. **3) Safety** \> safety and security of goods in transit. **Land transport** is **more preferred to railway transport because the losses are less.** \> **sea transport** is the **most risky**, as water transport exposes the goods to the perils of sea, and the **long duration of travel adds to the risk factors**. **4) Characteristics of goods** \> the **size and weight** of goods play a crucial role. **\> Land and air** transport primarily cater to **fragile and small shipments**. \> **Rail and sea** transport are a **more suitable option for heavy shipments**. \> How **dangerous,** **fragile or high value** the products are, also influences the selection of the transport mode. \> For **breakable and fragile**, **high value** products, air and land transport are the best option. **5) Budget** \> Transportation costs are **add-on cost** on the sale price of a product. \> The transport costs add to how much the goods can be sold for, to make a profit. \> Budget requirements need to be considered accordingly. \> The **volume or weight** of the goods play a key role in determining which method of transport is the **best value**. **\> water transport** is the **most cost effective**, and is mostly suitable when there is **no hurry**, and the goods are bulky or heavy, and need to be carried a long distance. Rail transport is relatively inexpensive for these types of goods. \> The **advantage of road transport,** in terms of cost is that there are savings to be made on the **costs of handling and packaging**. **\> Air transport** is **one of the most expensive modes**, but has the benefit of being fast, so is best suited for perishable and fragile goods. **6) Timescale** \> **Air transport** is the best option for **long distances requiring urgent and speedy** transport, to meet deadlines or because the goods are perishable or fragile. \> **Motor transport** is **faster than rail transport** for **short distance** deliveries. However, for longer haul journeys rail is faster and more economical. \> **Water transport** is often **not suitable where time is a factor**. **7) Flexibility** \> The most flexible mode of transport is **Motor or road transport**, as it is **not constrained by factors such as flight times,** shipping routes or pre-scheduled timetables. Motor transport can operate day and night, at personal convenience, to suit all time frames, and has the added advantage of door-to-door delivery. **8. Fuel Cost:** plays a very vital role in the transport industry; when the price of fuel comes down, the transport **price also goes down and vice versa**. **9. Government Regulations:** \> levy specific **hours of driving** for commercial operators; set rules and regulations which **directly affects charges** of freight while carrying goods. **Transport Documents Required** **1. Delivery note or waybill** \* is the **fundamental tool** for transportation. \* It defines transportation **freight details and responsibilities**. \* is an internal document that has an official value; potential deductions on the final payment are based on the information on the delivery note **2. Freight notice** \* is an **internal email or fax** that immediately informs the **consignee of freight details** (content, estimated time of departure and arrival, details on the documentation, and method of expedition of the documentation). **3. Transport letters** (air waybill, bill of lading, rail consignment note, international consignment note) \* with a **legal value**. \* The name will vary according to the transport mode. \* Only the **consignee** mentioned on the **bill** or an authorized representative can release the goods. **4. Invoices, pro forma** - **indicates the value of the goods**. - When **no money was paid** for the goods a pro forma has to be prepared. - The value indicated will be the basis for custom **declarations and insurance policies.** 5. **Cargo manifest** - mentions the type of goods, their **origin and destination**. - The shipment should contain a **packing list**. - The packing list identifies the contents of each carton or parcel. - The packing list facilitates delivery control. 6. **Packing lists** The shipment should contain a packing list. The packing list identifies the contents of each carton or parcel. The packing list facilitates delivery control. 7. **Gift certificate** - When the organisation is **exempted from import taxes**, a gift certificate states that the goods are part of a non-profit effort. 8. **Origin certificates, phyto-sanitary control** - Some items (drugs, food, etc.) need additional documents for international transportation. 9. **Hazardous materials declaration** - This document, normally with a red border, has to be included when the freight contents require special care, handling or testing (for example, insecticides, laboratory reactants, purification products). 10. **Tax exemption certificates** - In some countries, general agreements have been established for **'exempt'** organisations, which simplify the formalities of free entry. - In other countries, each consignment must be certified separately. - Getting the necessary documents can take some time. **Chapter 4:** The practice of carrying goods from one place to another in standard shapes and sizes of containers is know as **containerization.** The use of containers has enhanced carrying of goods and products and has made distribution easier. **Inland Container Depot (ICD**), known as **container freight stations**. **CONCEPT OF CONTAINERISATION** Containerization is a system wherein intermodal freight is transported by using intermodal containers of standard sized and shapes. **1930s** The system of containerization was established. **1955** The concept gained importance, when Malcolm McLean came up with a new idea of shipping goods. **1965** Introduction of metal containers. **1967** Ships carrying both loose products in its hold and containers on its deck used to transport cargo. **INTERNATIONAL CONTAINER SHIPPING PROCESS** - IMPORTERS - EXPORTERS BANKS - INSURANCE ORGANIZATIONS - FREIGHT FORWARDERS - CUSTOMS HOUSE AGENTS (CHA) - SHIPPING ORGANIZATIONS - CUSTOMS PORT AUTHORITIES - INTERMODAL TRANSPORT PROVIDERS **NEED FOR CONTAINERISATION** The purpose of logistics is to move the right product to the right place at the right with the right price. Containerization plays a vital role in the downstream process of transportation in logistics, as well as in the upstream process of the supply chain management. Containerization is the main cog of the whole multimodal transport system because it is easily adaptable in this form of transport and also facilitates international commerce. Thus, containerization has brought all the modes of transport together to a common field along with the bringing in revolutionary changes in the system of shipping moving cargoes across the countries. **ADVANTAGES/BENEFITS OF CONTAINERISATION** - **STANDARDISATION** Each container is given a unique identification number and a code which defines its size. - **FLEXIBILITY** It is used to carry goods of different shapes, sizes, quality and nature. - **COSTS VELOCITY** Transport cost is reduced. Containers are 20 times less expensive. - **WARE HOUSING** Act as a storage place for commodities where products are safe and protected. - **SECURITY & SAFETY** The products which are being carried by containers remain safe in the entire shipment. - **VELOCITY** Organizations can confidently produce goods and commodities which can fully utilize the space of the container. **TYPES OF CONTAINERS** - **General Purpose Container** Most common types which are used for shipping. Made up of steel and one can easily find them stacked in several seaports. - **Specific Purpose Container** Used for the purpose of carrying goods, like food items, frozen products or perishable commodities. **GENERAL PURPOSE CONTAINERS** - **Dry containers:** are fully covered from all sides and are like huge boxes standardized by ISO which carry goods in themselves. - **Open-top containers:** come with a top which can be easily removed. - **Flat-rack containers:** come with detachable and collapsible sides. - **Closed ventilated containers:** use for the purpose of protecting the goods from a high level of humidity and moisture in the external environment. **SPECIFIC PURPOSE CONTAINERS** - **Thermal containers:** these are insulated from inside and outside to protect the commodities from the external environment and temperature. Also known as Reefers. - **Insulated shipping containers:** these are kind of thermal containers, the only difference being that there are no devices used for controlling the temperature. - **Refrigerated shipping containers:** the temperature inside these types of containers is regulated by icebox or liquified gases. - **Mechanically refrigerated containers:** these types of containers come with temperature regulation and require an external supply of power to maintain the temperature. These are specifically used for perishable products only. **SPECIFIC PURPOSE CONTAINERS** - **Heated containers: used** for goods which are required to be kept at a higher temperature to keep them safe. - **Named cargo containers:** used to transport products, such as cars, poultry, livestock and other such specific commodities. - **Dry bulk containers:** used for the purpose of transporting products which do not require any kind of external packaging. - **Tank containers:** are typically used for storage and transport of liquid products. **DISADVANTAGES OF CONTAINERISATION** - **SITE CONSTAINTS** Terminal storage space should be enough to hold these containers. - **CAPITAL INTENSIVENESS** A huge amount of investment is required in order to handle containers. - **STACKING ILLICIT TRADE,** The containers which are properly arrange on the ground are required to be rearranged when placing. - **REPOSITIONING** It is not necessary that all the containers carry with themselves 100% of load. - **THEFT AND LOSSES** It may happen that a unit of container load can be opened by force and the goods available in them can be carried away in trucks. - **ILLICIT TRADE** Containerization, to some extent, has given advantage to illegal traders in the world who trade illegal products with the use of containers **CONCLUSION** In conclusion, containerization has revolutionized the global shipping industry, transforming it from a slow and inefficient system to a highly efficient and streamlined process. By enabling the quick and efficient movement of large quantities of goods, containerization has facilitated international trade, boosted economic growth, and simplified logistics management for businesses and countries worldwide. The integration of technology and the standardization of container sizes have further enhanced the efficiency and effectiveness of this system, making it an indispensable component of the modern global supply chain. **Chapter 5** **Container Freight Stations (CFSs)** are facilities where cargo containers are **handled, stacked, and moved between different transport modes**. They serve as intermediate locations for storing and consolidating goods before they are shipped to or from ports. CFSs are strategically located for easy access by exporters, importers, and ports. Before export, goods from production houses are consolidated at CFSs according to shipping requirements. For imports, containers are received at CFSs, examined, and then sent to their final destinations. CFSs are crucial for Less than Container Load (LCL) shipments, where goods are consolidated until containers are full. CFSs also manage customs clearance and other import/export processes, acting as the first point of contact for customs-related activities. Skilled professionals ensure the safe storage and efficient shipping of goods at CFSs. Container freight stations, commonly known as CFS, are centers of multimodal logistics system wherein cargo containers and customs are handled. These stations are directly connected to the seaports by way of words or rails and are a points of transshipment for export and imports of all sorts of goods.  **Customs Officers in CFSs** The officers who are appointed as the guardians of the CFSs are required to monitor and provide customs clearance services for the export and import of goods and cargo. Prerequisites of setting up of CFS are as follows. - Prior survey - In-principle approval by Jurisdictional Customs Commissioner - Land requirements - Design and layout - Infrastructure **The infrastructure of a CFS must have the following:** - To support heavy-duty goods and equipment, a separate and standard pavement must be constructed to be used in the area of operation and stacking of the terminal. - To have a separate office building for the Inland Container Depot and customs. Also, a separate block must be constructed for the user agencies and it should be self-sufficed with all the basic amenities and facilities. - To provide a separate warehousing facility for goods and cargo which are bonded and which are to be stored for a long-term period. - To have gateways, exit and entry points must be constructed at separate ends of the set-up. - To extend parking facility that must be big enough for all vehicles which are waiting to enter the complex. - To have a boundary wall constructed as per rules specified by the customs. - To possess an electronic weighbridge. - To provide a separate computer set-up for electronic processing of all important documents and they must be capable enough to be linked to EDI. **Functions of container freight stations** - **Stuffing and De-stuffing:** CFSs are involved in stuffing and de-stuffing containers for **export or import,** ensuring **quick customs clearance** to prevent congestion at **gateway ports**. - **Inland Container Depots: **CFSs are part of inland container depots where goods are **stored until they clear customs.** Imported goods are moved to CFSs to avoid port congestion, making them crucial for handling customs-related activities in international trade. - **Secure Storage: **CFSs provide a secure area for **Less than Container Load (LCL**) and **Full Container Load (FCL) cargo**. After inspection, Customs Bonded Trucks (CBT) are sealed by customs officers and sent to ports for export. - **Customs Clearance**: CFSs primarily handle customs clearance and are the first point of contact for all customs-related issues. - **Transit Facilitation: **They facilitate the transit of goods by rail or road to and from ports for import and export. - **Cargo Reception and Delivery: **CFSs receive imported cargo from seaports, verify customs stamps, and deliver goods to their destinations. - **Container Maintenance and Repair: **They also serve as facilities for container maintenance and repair. **Benefits of container freight stations** - **Centralized Cargo Handling: **CFSs act as a common point for all cargoes coming from long distances. CFSs are built in places where goods to be exported and imported can reach easily. - **Containerized Goods and Services: **CFSs provide services of containerized goods for international trade purposes. - **Custom Clearance Proximity: **CFSs provide custom clearance facilities near to places of production of goods (goods produced for export) as well as consumption of goods (goods imported from another country.) - **Reduced Demurrage and Pilferage: **CFSs assist in reducing the level of demurrage and pilferage of goods when handled by CFSs. - **Time-Saving Customs Clearance: **CFSs facilitate in saving time of customs clearance of goods that reach the gateway port, as the clearance is already done by the operators of CFSs. - **Bill of Laiding Issuance: **CFSs issue bill of lading to the shipping lines and takes the full responsibility of the shipment of goods. - **Reduced Empty Container Movement: **CFSs act as checkpoints before finally sending out goods to be exported, there are reduced chances of the overall level of empty container movement. - **Inventory Handling Cost Reduction: **CFSs assist in reducing the inventory handling cost is reduced as they provide service for the temporary storage of cargoes and act as the temporary warehouse for the goods. **Approval of cfs -- guidelines and implementation** - A CFS is termed as a common facility equipment with the permanent installation and which offers services such as storing imported or exported goods, to empty container carried under customs control, warehousing and time being storage for further transit. **Below are the procedures/guidelines and the implementation for the approval of CFS:** - **Inter-Ministerial Committee (IMC) Approval: **Applications and proposals to set up Container Freight Stations (CFSs) are processed after clearance from the Inter-Ministerial Committee (IMC). This committee includes members from the Finance, Railways, Civil Aviation departments, and the Ministry of Commerce. Input from the State Government may also be required. - **Jurisdictional Commissioner Approval: **Before submitting a proposal to the IMC, applicants must receive approval from the Jurisdictional Commissioner. The application is submitted to the Commissioner, who examines its feasibility. If it meets the guidelines, the Commissioner will approve it within 30 days, allowing it to proceed to the IMC. - **Online Proposal Submission: **Proposals are submitted online at www.imcdryports.commerce.gov.in. Applicants must be familiar with customs rules, security requirements, bonding, and the associated application fees. - **IMC Decision: **The Inter-Ministerial Committee (IMC) must approve or reject CFS applications within 60 days. If approved, a No Objection Certificate (NOC) is issued to the applicant. - **Letter of Intent (LOI): **Along with the NOC, a Letter of Intent (LOI) is provided, allowing applicants to set up infrastructure at the CFS. The LOI specifies a timeframe for completing the setup. Any investment made before receiving the LOI is at the applicant\'s risk and requires approval from the Jurisdictional Commissioner. - **Infrastructure Setup: **After approval and receiving the LOI, applicants have one year to set up their infrastructure. Extensions may be granted by the IMC based on the progress of the setup. - **Quarterly Progress Reports: **Applicants must submit quarterly progress reports to the IMC, following specific guidelines and formats. - **Regulatory Compliance: **During setup, applicants must comply with the regulatory requirements of the Customs Act, 1992, for the CFS to become operational. - In presence of the below-mentioned situations, the IMC has the right to revoke the approval: - If the applicants are found guilty in breaching of the contract, or - If the committee feels and is sure that the infrastructure is not in accordance to the public interest, or - If the CFS has offended any of the provision of the Act in force and is under conviction. **Role of container corporation of India limited in logistics** - Container Corporation of India Limited, commonly known as CONCOR, was incorporated as a public sector entity and was given autonomous rights under the Ministry of Railways in the year 1988. - CONCOR started functioning in March 1988 with a total capital of 165 crores, which included authorized capital of 100 crores and the remaining as the paid-up capital. - The role of CONCOR is characterized by three major activities, which are of a **[Carrier]**, a **[Terminal Operator]** and a **[Warehouse Operator]**. The three major activities are: - **[Terminal and Warehouse Operator]** - inland container depots/container freight stations are dry ports which are part of CONCOR. - The terminal of CONCOR provide a number of essential facilities such as that of a warehouse, parking of containers, repair of containers, etc. The logistics chain derives valued services from CONCOR such as: - Warehousing facilities for in-transit goods in export and import - Facilities of bonded warehousing which enables the importers to store all the goods over a longer period of time, taking away cargoes in instalments which helps them in deferring the duty payments - Consolidation and reworking of Less than Container Load cargoes - Facility of clearing air cargo by the use of bonded trucking The door-to-door pickup and delivery systems are very common in domestic trade. CONCOR also helps single customers in moving cargo to multiple locations. The official processes for containerization in CONCOR are summarized in the process flow charts given below:  **The core functions of CONCOR are as follows:** - It works for bringing about a container resolution in India - It is involved in building up and operating the infrastructure in order to organize the linkages of roads and railways so that imports of international containers increase in the country - It sets up and manages all the container freight stations and inland container depots of the country and acts as a guardian and custodian on behalf of the customs - It effectively works in sync with all the agencies which are working for the international trade and are involved in the transport for containerized goods and cargo in order to provide services for door-to-door transportation of goods. It, therefore, acts as a carrier of the goods carried in containers for international trade **Summary** - Container freight stations (CFSs) are facilities wherecargo containers/freight shipments are stacked, de-stacked, and handled between different modes of transport. - Container freight stations (CFSs) are nothing but centres of multi-modal logistics system wherein cargo containerss and customs are handled - Container freight stations are directly connected to the seaports by way of roads or rails and are a point of transshipment for exports and imports of all sorts of goods - The officers who are appointed as guardians of the CFSs are required to monitor and provide custom clearance services for the export and import of goods and cargo - The pre-requisite of setting up of CFSs are prior survey, in-principle approval by Jurisdictional Customs Commissioner, land requirements, design and layout and infrastructure. **Chapter 6** **Dry Ports** - an **inland terminal connected to a seaport by road or rail**, where goods are transferred, stored, and cleared through customs, acting as an extension of the seaport to reduce congestion and improve logistics efficiency. **Importance of dry ports** - Dry ports act as inland terminals connected directly to seaports, enhancing the efficiency of cargo transport. They reduce congestion at seaports, improve customs clearance processes, and facilitate better distribution of goods to inland destinations. This makes them crucial for improving supply chain efficiency and reducing transportation costs. **The various operations and services at the dry port help in adding value to the services and capabilities that take place. Some of the services and capabilities are as follows:** - To handle and provide third- and fourth-party logistics - To introduce new tailored services - To enable in handling heavy types of cargo - To adapt the changing schedules - To assist in making fast decisions on the schedules and changing orders - To provide various kinds of services in intermodal operations - To send cargo through the multiple routes and modes at a short time - To act as a collaborative intermodal hub for the networks - To possess the capability of delivering tailored services to different market segments **3 different type of dry ports** 1. **Close Dry Ports** 2. **Mid-range dry ports** 3. **Distant Dry Ports** 1. **Close Dry Ports -** Located near the seaports, they help alleviate port congestion by providing additional space for cargo handling and storage. 2. **Mid-range dry ports -** Positioned at a moderate distance from seaports, serving as key hubs for transportation networks, facilitating the transfer of goods between different modes of transport.  3. **Distant dry Ports -** Situated far from seaports, often in inland regions, they cater to local markets by bringing goods closer to consumers, reducing transportation costs and time. **Major services provided in Dry Ports** - To provide extra hinterland space for port - To improve the efficiency and effectiveness of the logistics chain with a high-quality terminal - To connect directly with seaports through rail or road - To provide effective modal shift with high capacity traffic mode, which is normally through rail - To have a terminal where the port is able to outsource its functions and have the same facilities as found in the seaport   **The facilities that are available in dry ports may include:** - Large and bulk container yards - All kinds of transit sheds - Various types of warehouses - Railway siding - Truck parking   **Other services that form part of dry ports are as follows:** - **Container yards --** refers to a facility from which ocean carriers receive and deliver ocean containers - **Container freight stations** -- acts as centers of the multimodal logistics system wherein cargo containers and customs are being handled - **Inland container depot** -- Provides all the services and facilities of the ports including the facility of custom clearance at the doorstep of the customers - **Logistics park or freight depot** -- refers to an area where cargo is parked while it awaits for onward transportation **FUTURE PROSPECTS FOR DRY PORTS** - **Logistics and Supply Chain Efficiency:** - Dry ports enhance logistics and supply chain effectiveness. Infrastructure with high capacity and modern equipment is key to providing adequate storage and benefits for shippers and end users. - **Location and Competitiveness:** - Technological and economic considerations are crucial when selecting a location. Suitable locations help optimize intermodal transport costs and competitiveness. - **Shifts in Global Transport Systems:** - Tri-modal and bimodal terminals are becoming vital for trade-dependent regions. Intermodal transport solutions have emerged to manage congestion and energy consumption issues are becoming vital for trade-dependent regions. - **Emerging Relationships Between Ports and Hinterland:** - Dry ports are developing globally due to functional connections between port terminals and inland areas. China's initiatives, like the Belt and Road, aim to promote trade through Central Asia to Europe. In India, Over 300 dry ports aim to boost foreign trade by addressing infrastructure constraints and they are funding their dry ports to match global standards.