A Presentation on Challenges in CFS Services of Kutch Region

Presentation ToMr. Sunil Mishra Prof. Vivek Raina Prof. Devang Patel

Presentation ByUtsav Soni-M00118 Niraj Raval-M00133 Sagar Nathani-M00134 Tejas Prajapati-M00137

Flow of Presentation

Introduction of the topic Industry Profile Company Profile Research Methodology Findings Suggestions References

Introduction of the topic

CFS is a place where containers are stuffed, de-stuffed and aggregation and segregation of export and import cargo happens. With the growing volume of international trade, the need for expeditious clearance of goods at the port within the minimum possible time has been gaining importance. Activities in CFS(Container freight Satiation) Container and Cargo inspection Container stuffing and Destuffing Invoice and Shipping bills Validation Container clearance from the CFS Container store yard

Industry Overview
Major ports-12, minor ports-185 all over India Major ports-2, minor ports-3 all over Kutch Shipping Companies In Gandhidham -185 shipping Liner /Agents/ Nvocc -55 custom House Agents -120clearing& Forwarding Agents -130 Container Transporter Cargo Handlers Shipping Companies In Mundra -70 shipping Liner/Agent/ Nvocc -67 Custom House Agents+clearing&forwarding Agent -19 Container Freight Stations
Source.www.Exim.In

Major CFS In Kutch

MICT A.V.Joshi Transworld CFS Saurashtra CFS Aushotosh CFS CWC CFS(Central Warehouse Corporation.) Seabird CFS Honey Com CFS Aditya Freight Station Gautam Freight Station Mundra Container Freight Station Kandla Port CFS

Pain Point of CFS

Time consumption in gate pass Non-availability labour beaurocatic customs works Use of traditional methods Large untapped LCL market

LCL- Less than Container load

Equipments used in CFS(Container Freight Station)

Weigh Bridge Reach stacker Fork lift Side slider Hydra Carne Heavy duty loaded truck (20ft,40ft,45ft) Movable conveyor belt

Industry Profile
Container Traffic In India
Kolkatta, 4.20% Visakhpatnam, 2.40% Haldia, 1.40%

Mundra, 15.30% Kandla, 1.70%

Chennai, 15.70% Pipavav, 6.40%

Tuticorin, 4.40%

Cochin, 3.40% Mangalore, 0.50% Mumbai, 0.60% Nhava Sheva, 43.50%

Mundra Kandla Pipavav Nhava Sheva Mumbai Mangalore Cochin Tuticorin Chennai Visakhpatnam Kolkatta Haldia

CFS strategic group mapping

Research Objectives

To understand CFS services. To know the expectation of consumer from CFS services. To understand CFS operations To understand setting up of working arrangement for closer coordination between customs and custodian of port CFS

Scope of the report

Study of Customer services (shipping line, CHA , Freight forwarder, exporter and importer ) Study of Operations (container Fright station) Study of differentiation of CFSs
Ex. Transworld Differentiate it self by giving variety of services.

Research methodology

Data source: Primary data & secondary data Data collection method: Questionnaire & In-depth interview

Sample design Target population: CHA, Shipping line, freight forwarder, CFS, ICD Sampling method: Convenience sampling Sample size: 30 respondents Techniques of analysis: Descriptive analysis

Function of CFS
Receipt and dispatch/delivery of cargo. Stuffing and stripping of containers. Transit operations by rail/road to and from serving ports. Customs clearance. Consolidation and desegregation of LCL cargo. Temporary storage of cargo and containers. Maintenance and repair of container units.

Export Operations container Freight station s service

Exporter
LCL CARGO Port Terminal Entry Get Pass

CFS

Inspection

Stuffing

Custom Seal

14

Import Operations container Freight station s service

Port Unloaded Cargo

Trucking

Port Customs

CFS

Custom Clearance

Destuffing

LCL CARGO

15

Drivers & Challenges of Container freight station

Challenges

cargo Drivers

- High cost for the Development for a facility - No technical Know how of modern equipment's - Procedures for the movement of containerize

- Growth in port Traffic - Custom clearance actives CFS/ICD - Higher margin in comparison with Other logistics actives

Findings

Ports Preferred in Kutch

At which Port you are working?

Kandla Mundra 0% 3% Both Other port

44%

53%

Service Ranking
Service Ranking %
highly motivated workforce 9 24 Hrs & 365 says uninterrupted service 8 Fully Computerized reporting system 7

Rates & tariffis in INR 9 Dedicated container repair yard 9 Hazardous cargo handing 10 Stuffing of export cargo 7 DE Stuffing & Storage of import cargo 4

Storage yard for loaded container 9

internal roads for services & circulating areas 9

Ample Parking areas for vehicles using facility 7

Technology based report & entry facilities 6 Gate complex with seperate entry & exit 6

4 3.9 3.8 3.7

The emphasis a CFS should make to serve the customer better?

Satisfaction level

3.6 3.5 3.4 3.3 3.2 3.1 3

Interviews
Interview with Mr. Bondi Kesav Rao Government Systems Different government bodies Quota system Infrastructure inefficiency Problems with the port Interview with Mr. Kamlesh Singh Biasness in service Unavailability of Equipment's

Suggestions

 Emphasis on the services like Ample parking area for vehicles using facility Highly motivated workforce Storage yard for loaded container Technology based report and entry facilities Gate complex with separate entry & exit Opportunity of new market, Tuna port Establishment of marketing department Appointment of Relationship Manager Better co-ordination with container line

References

http://www.seaportsofindia.com/Container_Traffic% 20_Ports.html http://planningcommission.nic.in/aboutus/committe e/wrkgrp12/transport/report/wg_port.pdf\ http://s3.amazonaws.com/pptdownload/containerlogisticscfsicdmarketinindia2012 sample-1 http://www.indianmirror.com/indianindustries/shipping.html http://www.fairplayexpo.net/GUJARAT2011/GujratD efault.aspx http://www.kandlaport.gov.in http://www.adaniports.com Journal on commerce Cargo look magazine Daily shipping times news papaer12thdec2013

Thank You