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CONTAINERS AND RELATED ISSUE H. D. GUJRATI EDTT-S

CONTAINERS AND RELATED ISSUE - … portindian port ... er sr wr nwr region region share of exim traffic. elements of hinterland ... water wayswater ways. rail connectivity

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Page 1: CONTAINERS AND RELATED ISSUE - … portindian port ... er sr wr nwr region region share of exim traffic. elements of hinterland ... water wayswater ways. rail connectivity

CONTAINERS AND RELATED ISSUE

H. D. GUJRATI

EDTT-S

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OUTLINE OF PRESENTATIONOUTLINE OF PRESENTATION

EXISTING SCENERIO EXISTING SCENERIO

CONTAINERISATION IN INDIA CONTAINERISATION IN INDIA

POST 2006 POST 2006 ----PRIVATE CONTAINER PRIVATE CONTAINER TRAINTRAIN

ISSUES WITH PRIVATE ISSUES WITH PRIVATE CONTAINER TRAIN OPERATORS CONTAINER TRAIN OPERATORS AND WAY AHEADAND WAY AHEAD

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EXISTING SCENERIOEXISTING SCENERIO

•GLOBALISATION

•GROWTH IN INDIAN ECONOMY -@ 8.5 to 9% IN MEDIUM TERM

•CHANGE IN SECTORAL CONSTITUENT OF INDIAN GDP PUSHING UP LOGISTICS DEMAND.

•GROWTH IN FINISHED PRODUCT

•REDUCTION IN PARCEL SIZE

•COMPETING ALTERNATIVES FOR TRANSPORT

•WORLD OVER THRUST TOWARDS INNOVATION IN INTER-MODAL OPERATION TO REDUCE LOGISTICS COST.

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The Dynamics of the Supply Chain The Dynamics of the Supply Chain O

rder

Siz

e

Time

CustomerDemand

CustomerDemand

Retailer OrdersRetailer OrdersDistributor OrdersDistributor Orders

Production PlanProduction Plan

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Worldwide Logistics Costs, Worldwide Logistics Costs,

39%

27%

24%

6%4%

TransportationWarehousingInventory CarryingOrder ProcessingAdministration

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The Changing Business ModelThe Changing Business Model

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LOGISTICS COSTLOGISTICS COST

COUNTRYCOUNTRY LOGISTICS COST AS LOGISTICS COST AS % OF GDP% OF GDP

SHARE OF 3PL IN OVERALL SHARE OF 3PL IN OVERALL LOGISTICSLOGISTICS

INDIAINDIA 13%13% <3%<3%

USAUSA 9.9%9.9% 57%57%

EUROPEEUROPE 10%10% 3030--40%40%

JAPANJAPAN 11.4%11.4% 80%80%

Source: KPMG Report ‘Skill Gaps in the Indian Logistics Sector’, 2007

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RAILWAYS ROLE/INITIATIVE FOR LOGISTICS SUPPORT:

•PREDOMINENTLY AS A 2PL SERVICE PROVIDER -TRANSPORTOR.•END TO END SERVICE, THROUGH PRIVATE SIDINGS.•VISIBILITY OF CARGO THROUGH FOIS•CONCOR A PSU OF IR, MOVING ABOUT 20% OF EXIM TRAFFIC AND ESTABLISHED A CHAIN OF ICDS/TERMINALS.•LICENSE TO PRIVATE OPERATORS FOR CONTAINER TRAIN TRANSPORTATION.•PRIVATE PARTICIPATION IN TERMINAL FACILITIES THROUGH RAILSIDE WARE HOUSES, BULK TERMINAL, PFT, AUTO LOGISTICS HUB, ETC.•PRIVATE PARTICIPATION IN SPECIAL PURPOSE WAGONS

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EXISTING SCENERIOEXISTING SCENERIO

•COAL, IRON ORE, RMSP , IRON& STEEL, POL, FERTILISER, CEMENT, FOOD GRAIN CONTRIBUTES FOR 89% OF TOTAL TRAFFIC OF IR. •FOR THIS COMMODITY GROUP, RAIL SHARE IS 55.4%.•SHARE OF THESE COMMODOTIES IN TOTAL TRANSPORT 53.9% ONLY.•SHARE OF OTHER GOODS INCLUDING CONTAINER REMAINED MORE OR LESS STATIC AT 11.5% IN 1991 AND 11.7 % IN 2011. EXCLUDING CONTAINER OTHER GOODS SHARE WAS ONLY 7.7%•IN ABSOLUTE TERM OTHER GOODS TRAFFIC INCREASED FROM 36.6 MILLION TONNES IN 1990 TO 70.96 MILLION TONNES IN 2011.

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EXISTING SCENERIOEXISTING SCENERIO

•IN ORIGINATING FREIGHT, RAIL SHARE DECLINED FROM 89% IN 1950-51 TO 30.1% IN 2007-08. DURING THE PERIOD, ROAD SHARE GREW FROM 11% TO 61%.

•IN TOTAL TRANSPORT (NTKM) , RAIL SHARE 36% AND ROAD SHARE 50%+.

•WHERE R WE HEADING?

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OPTIONS FOR CONSOLIDATIONOPTIONS FOR CONSOLIDATION

•• PIECEMEAL MOVEMENTPIECEMEAL MOVEMENT•• INTERMODAL INTERMODAL --CONTAINERCONTAINER•• PARCEL TRAFFICPARCEL TRAFFIC•• RORO--RO, ROAD RAILERRO, ROAD RAILER

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19561956--FIRST MARIEN CONTAINER BY FIRST MARIEN CONTAINER BY TRUCKING ENTREPRENEUR MALCOM TRUCKING ENTREPRENEUR MALCOM MCLEAN IN USMCLEAN IN US1966 1966 –– FIRST TRAIN CARRYING IRS FIRST TRAIN CARRYING IRS CONTAINERSCONTAINERS MOVED BY IRMOVED BY IR1972 1972 –– FIRST ISO CONTAINER LANDS AT FIRST ISO CONTAINER LANDS AT INDIAN PORTINDIAN PORT1981 1981 –– FIRST ICD ESTABLISHED BY IRFIRST ICD ESTABLISHED BY IR1988 1988 –– CONCOR INCORPORATEDCONCOR INCORPORATED20062006-- DOUBLE STACK CONTAINER TRAIN DOUBLE STACK CONTAINER TRAIN INTRODUCED ON IR.INTRODUCED ON IR.2007 2007 –– CONCESSION AGREEMENT SIGNED .CONCESSION AGREEMENT SIGNED .

HISTORICAL IMPRINTS

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CONTAINERISATION: CONTAINERISATION: ADVANTAGESADVANTAGES

INTERINTER--MODAL COMPATIBILITYMODAL COMPATIBILITY–– CAN CAN BE LOADED ON TRAILERS, RAIL BE LOADED ON TRAILERS, RAIL WAGONS, SHIPS & BARGES. WAGONS, SHIPS & BARGES.

OPTIMUMOPTIMUM--COST, FASTER TRANSIT.COST, FASTER TRANSIT.

THROUGH LIABILITY POSSIBLE.THROUGH LIABILITY POSSIBLE.

LOWER RISK OF LOSS, PILFERAGE AND LOWER RISK OF LOSS, PILFERAGE AND DAMAGE TO THE CARGO. DAMAGE TO THE CARGO.

DOOR TO DOOR SERVICE.DOOR TO DOOR SERVICE.

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MANAGING & MONITORING EASY.MANAGING & MONITORING EASY.

EASE IN TRANSHIPMENT.EASE IN TRANSHIPMENT.

BEST SUITED FOR CONSOLIDATIONBEST SUITED FOR CONSOLIDATION

CAN BE USED FOR STORAGE OF CAN BE USED FOR STORAGE OF CARGO.CARGO.

BETTER SECURITY.BETTER SECURITY.

CONTAINERISATION: CONTAINERISATION: ADVANTAGESADVANTAGES

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6,236 7,462 7,551

8061 9,110

-1,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Thousands

2006-07 2007-08 2008-09 2009-10 20010-11

Port Traffic of India (in 000 TEU)

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CONTAINER LOGISTICSCONTAINER LOGISTICS

EXIM TRAFFIC

POST 1991, GROWTH IN EXIM CONTAINER TRAFFIC IS ABOUT 2.1 TIMES OF THE GDP.GROWTH OF 15% PER ANNUM PROJECTS CONTAINER TRAFFIC AT 37.5 MILLION TEU IN 2019-20.WITH 30% RAIL SHARE , MORE THAN 11 MILLION TEU IN 2019-20, 360 SINGLE STACK TRAINS PER DAY.

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STRONG GROWTH IN PORT TRAFFICSTRONG GROWTH IN PORT TRAFFIC9.1 MIL TEUs 9.1 MIL TEUs ––> 14 M. TEU> 14 M. TEU------? ? China China ------ 170 M.TEUS, SINGAPORE170 M.TEUS, SINGAPORE------28.4 M. TEU 28.4 M. TEU INCREASING CONTAINERISATIONINCREASING CONTAINERISATION40% 40% ––> 55%> 55%GREATER HINTERLAND PENETRATION THROUGH RAILGREATER HINTERLAND PENETRATION THROUGH RAIL21% 21% ––> 40%> 40%CONTAINERISABLE DOMESTIC TRAFFICCONTAINERISABLE DOMESTIC TRAFFIC——MORE THAN 400 MT MORE THAN 400 MT 60600 MT ?0 MT ?

CRYSTAL BALL GAZING……..

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Region wise Traffic ShareRegion wise Traffic Share

7.39

25.71

47.88

19.02

-5.00

10.0015.0020.0025.0030.0035.0040.0045.0050.00

% S

HAR

E

ER SR WR NWR

REGION

REGION SHARE OF EXIM TRAFFIC

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ELEMENTS OF HINTERLAND ELEMENTS OF HINTERLAND CONNECTIVITYCONNECTIVITY

PORT INFRASTRUCTUREPORT INFRASTRUCTURE

HINTERLAND INFRASTRUCTUREHINTERLAND INFRASTRUCTURE

PORTPORT--HINTERLAND HINTERLAND CONNECTIVITYCONNECTIVITY

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PORT INFRASTRUCTUREPORT INFRASTRUCTURE

QUAY SIDE INFRASTRUCTUREQUAY SIDE INFRASTRUCTURELAND SIDE INFRASTRUCTURELAND SIDE INFRASTRUCTURE

DRAFT AT THE PORTDRAFT AT THE PORT-- SIZE OF VESSEL.SIZE OF VESSEL.NUMBER OF BERTHSNUMBER OF BERTHS-- PREPRE--BERTHING DELAYS.BERTHING DELAYS.HANDLING CRANESHANDLING CRANES-- NUMBER OF MOVES.NUMBER OF MOVES.SECURITY: SCANNING ARRANGEMENTSSECURITY: SCANNING ARRANGEMENTSHINTERLAND CONNECTIVITYHINTERLAND CONNECTIVITY-- RAIL / ROAD / RAIL / ROAD / INLAND WATERWAY.INLAND WATERWAY.CFS FACILITY: STUFFING/DECFS FACILITY: STUFFING/DE--STUFFING, STUFFING, WAREHOUSING, REWAREHOUSING, RE--PACKING FACILITY.PACKING FACILITY.

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PORT INFRASTRUCTUREPORT INFRASTRUCTURE

NEW PORTS AND TERMINALS WITH NEW PORTS AND TERMINALS WITH PUBLIC PUBLIC PRIVATE PARTICIPATION.PRIVATE PARTICIPATION.MAJOR PORTS AND MDPT, PPBR ARE MAJOR PORTS AND MDPT, PPBR ARE EXPECTED TO ADD ADDITIONAL EXPECTED TO ADD ADDITIONAL CAPACITY OF ABOUT 10 MILLION TEUS CAPACITY OF ABOUT 10 MILLION TEUS DURING NEXT FOUR YEARS.DURING NEXT FOUR YEARS.DEMAND FOR ADDITIONAL CAPACITY DEMAND FOR ADDITIONAL CAPACITY AT JNPORT.AT JNPORT.

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HINTERLAND INFRASTRUCTUREHINTERLAND INFRASTRUCTURE

INLAND CONTAINER DEPOTSINLAND CONTAINER DEPOTSCUSTOM BONDED AREA PROVIDING AN ALTERNATIVE CUSTOM BONDED AREA PROVIDING AN ALTERNATIVE FOR PORT SIDE CFS NEAR TO TRADE WITH COMPLETE FOR PORT SIDE CFS NEAR TO TRADE WITH COMPLETE LOGISTICS SOLUTION.LOGISTICS SOLUTION.THE ICD PROVIDES FACILITIES FOR:THE ICD PROVIDES FACILITIES FOR:

CUSTOMS FORMALITIES & DOCUMENTATIONCUSTOMS FORMALITIES & DOCUMENTATIONSTORAGE OF CARGO AND CONTAINERS.STORAGE OF CARGO AND CONTAINERS.LCL CONSOLIDATION & AGGREGATION/DISLCL CONSOLIDATION & AGGREGATION/DIS--AGGREGATION OF AGGREGATION OF CARGO.CARGO.SPECIALISED WARE HOUSES.SPECIALISED WARE HOUSES.HANDLING OF CONTAINERS.HANDLING OF CONTAINERS.TRANSPORT FACILITY.TRANSPORT FACILITY.

RECEIPT OF BILL OF LADING AT THE TERMINAL AND RECEIPT OF BILL OF LADING AT THE TERMINAL AND HENCE FASTER REALIZATION OF MONEY.HENCE FASTER REALIZATION OF MONEY.

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HINTERLAND INFRASTRUCTUREHINTERLAND INFRASTRUCTURE

CONCORCONCOR’’S TERMINAL NETWORKS TERMINAL NETWORK

FROM 7 TERMINALS IN 1989 TO 59 IN 2010FROM 7 TERMINALS IN 1989 TO 59 IN 2010..COMBINED : 32COMBINED : 32PURE EXIM : 18PURE EXIM : 18

PURE DOMESTIC : 09PURE DOMESTIC : 09

PRIVATE OPERATORS HAVE ADDED PRIVATE OPERATORS HAVE ADDED ANOTHER NINE TERMINALS.ANOTHER NINE TERMINALS.

GOODS SHED HAVE BEEN PERMITTED GOODS SHED HAVE BEEN PERMITTED FOR HANDLING CONTAINER FOR HANDLING CONTAINER

TRAFFIC.TRAFFIC.

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NORTHERN INDIA NORTHERN INDIA -- 2424SOUTHERN INDIA SOUTHERN INDIA -- 1010WESTERN INDIAWESTERN INDIA -- 1515EASTERN INDIAEASTERN INDIA -- 0909CENTRAL INDIACENTRAL INDIA -- 0909

TOTALTOTAL -- 6767

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PORT HINTERLAND CONNECTIVITYPORT HINTERLAND CONNECTIVITY

RAILRAILROADROADSEA (SHORT SEA BRIDGING)/INLAND SEA (SHORT SEA BRIDGING)/INLAND WATER WAYSWATER WAYS

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RAIL CONNECTIVITYRAIL CONNECTIVITY

CONCOR ORIGINATES ABOUT 47 CONCOR ORIGINATES ABOUT 47 EXIM AND 15 DOMESTIC TRAINS EXIM AND 15 DOMESTIC TRAINS PER DAY.PER DAY.OTHER OPERATORS ADD ABOUT 17 OTHER OPERATORS ADD ABOUT 17 TRAINS PER DAY.TRAINS PER DAY.90% OF TRAIN CARRYING EXIM 90% OF TRAIN CARRYING EXIM CONTAINERS ARE RUN FOR CONTAINERS ARE RUN FOR WESTERN/NORTH WESTERN WESTERN/NORTH WESTERN SECTOR.SECTOR.RAIL EVACUATION SHARE IN TOTAL RAIL EVACUATION SHARE IN TOTAL TRAFFIC VARIES FROM ABOUT 10% TRAFFIC VARIES FROM ABOUT 10% TO 27% IN DIFFERENT PORTS..TO 27% IN DIFFERENT PORTS..DOUBLE STACK CONTAINER TRAINS DOUBLE STACK CONTAINER TRAINS TO PIPAVAV AND MUNDRA PORTS.TO PIPAVAV AND MUNDRA PORTS.AVERAGE SPEED OF AVERAGE SPEED OF INTERNATIONAL CONTAINER INTERNATIONAL CONTAINER TRAINS: 25 KMS./ HRTRAINS: 25 KMS./ HRLONG HAUL CONTAINER TRAINLONG HAUL CONTAINER TRAIN

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INTERMODALINTERMODAL-- ISSUE ISSUE

•• INDIA RANKED 47TH AMONG 155 COUNTRIES IN WORLD INDIA RANKED 47TH AMONG 155 COUNTRIES IN WORLD BANKBANK’’S LOGISTICS PERFORMANCE INDEX (LPI) SURVEY S LOGISTICS PERFORMANCE INDEX (LPI) SURVEY 2010, DOWN FROM 39TH IN THE 2007 .2010, DOWN FROM 39TH IN THE 2007 .

•• IMBALANCE IN THROUGHPUT ACROSS VARIOUS IMBALANCE IN THROUGHPUT ACROSS VARIOUS MODES.MODES.

•• CHALLENGES ARISING OUT OF INADEQUACY OF CHALLENGES ARISING OUT OF INADEQUACY OF CAPACITY: CAPACITY:

INADEQUATE STORAGE/HANDLING CAPACITY OF INADEQUATE STORAGE/HANDLING CAPACITY OF TERMINALS.TERMINALS.INFRASTRUCTURAL INADQUACY AFFECTING EVACUATION. INFRASTRUCTURAL INADQUACY AFFECTING EVACUATION.

CHALLENGES IN DATA INTERCHANGE RESULTING CHALLENGES IN DATA INTERCHANGE RESULTING IN DELAYS IN CARGO CLEARANCE.IN DELAYS IN CARGO CLEARANCE.

LACK OF EDI LINKAGES AMONG TERMINALS ALONG LINKAGE LACK OF EDI LINKAGES AMONG TERMINALS ALONG LINKAGE WITH CUSTOMS.WITH CUSTOMS.DEFICIENCIES IN CARGO VISIBILITY.DEFICIENCIES IN CARGO VISIBILITY.

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INTERMODALINTERMODAL-- ISSUEISSUE

TECHNOLOGICAL DEFICIENCIES AT TECHNOLOGICAL DEFICIENCIES AT TERMINALS.TERMINALS.

INAPPROPRIATE/INADEQUATE HANDLING EQUIPMENT INAPPROPRIATE/INADEQUATE HANDLING EQUIPMENT

LOGISTICS QUALITY RELATED CHALLENGESLOGISTICS QUALITY RELATED CHALLENGESABSENCE OF BENCHMARKS FOR PRODUCTIVITY OF ABSENCE OF BENCHMARKS FOR PRODUCTIVITY OF TERMINALS.TERMINALS.LACK OF INTEGRATED PERFORMANCE LACK OF INTEGRATED PERFORMANCE PARAMETERS/BENCHMARKS FOR TRANSPORT CHAINS.PARAMETERS/BENCHMARKS FOR TRANSPORT CHAINS.

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GOVERNMENTGOVERNMENT’’s INITIATIVESs INITIATIVES

ENTRY OF PRIVATE PLAYERS IN RAIL MOVEMENT OF CONTAINERISED CARGO.

PORT SECTOR IS EXPECTED TO ADD ADDITIONAL CAPACITY OF ABOUT 9.5 MILLION TEU IN NEXT FOUR YEAR .

STRENGTHENING ROAD AND RAIL CONNECTIVITY BETWEEN PORT AND HINTERLAND.

SIMPLIFICATION IN CUSTOM PROCEDURES , EDI CONNECTIVITY.

DEDICATED RAIL FREIGHT CORRIDOR PROJECT.

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POLICY FOR PRIVATE CONTAINER TRAIN POLICY FOR PRIVATE CONTAINER TRAIN OPERATORSOPERATORS

A POLICY WAS LAUNCHED IN 1994. BUT THE A POLICY WAS LAUNCHED IN 1994. BUT THE POLICY DID NOT TAKE OFFPOLICY DID NOT TAKE OFFCWC AND PRCL APPLIED LATER BUT THEIR CWC AND PRCL APPLIED LATER BUT THEIR LICENCES DID NOT MATERIALISE.LICENCES DID NOT MATERIALISE.IN RAILWAY BUDGET 2005IN RAILWAY BUDGET 2005--06, IT WAS ANNOUNCED 06, IT WAS ANNOUNCED THAT A POLICY WILL BE FORMULATED TO THAT A POLICY WILL BE FORMULATED TO ALLOW CONTAINER OPERATIONS TO PARTIES ALLOW CONTAINER OPERATIONS TO PARTIES OTHER THAN CONCOR.OTHER THAN CONCOR.

THE POLICY WAS ANNOUNCED IN 2006.THE POLICY WAS ANNOUNCED IN 2006.TOTAL RS 640 CRORE WAS COLLECTED AS TOTAL RS 640 CRORE WAS COLLECTED AS LICENSE FEES.LICENSE FEES.

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POLICY FOR PRIVATE CONTAINER TRAIN POLICY FOR PRIVATE CONTAINER TRAIN OPERATORSOPERATORS

CONCESSION AGREEMENT CONCESSION AGREEMENT -- BASIC CONTOURSBASIC CONTOURS

VARIOUS ROUTES ON IR NETWORK GROUPED VARIOUS ROUTES ON IR NETWORK GROUPED INTO 4 CATEGORIESINTO 4 CATEGORIESNONNON--REFUNDABLE REGISTRATION FEE RS 10 & 50 REFUNDABLE REGISTRATION FEE RS 10 & 50 CR. CR. VALIDITY OF CONCESSION FOR 20 YEARS; VALIDITY OF CONCESSION FOR 20 YEARS; EXTENDABLE BY 10 YEARSEXTENDABLE BY 10 YEARSROLLING STOCK, LOADING/UNLOADING, ROLLING STOCK, LOADING/UNLOADING, TERMINALS TERMINALS -- OPERATORSOPERATORS’’ RESPONSIBILITYRESPONSIBILITYOPERATORS FREE TO DECIDE PUBLIC TARIFFSOPERATORS FREE TO DECIDE PUBLIC TARIFFS

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POLICY FOR PRIVATE CONTAINER TRAIN POLICY FOR PRIVATE CONTAINER TRAIN OPERATORSOPERATORS

CONCESSION AGREEMENT CONCESSION AGREEMENT -- BASIC CONTOURSBASIC CONTOURS

BEST INTERNATIONAL PRACTICESBEST INTERNATIONAL PRACTICES-- BANKABLEBANKABLE-- LEVEL PLAYING FIELDLEVEL PLAYING FIELD-- ADEQUATE SAFEGUARDS FOR OPERATORSADEQUATE SAFEGUARDS FOR OPERATORS

-- FAIRFAIR-- COMPREHENSIVECOMPREHENSIVE

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POLICY FOR PRIVATE CONTAINER TRAIN POLICY FOR PRIVATE CONTAINER TRAIN OPERATORSOPERATORS

AGREEMENT SIGNED WITH 16 PARTIESAGREEMENT SIGNED WITH 16 PARTIESCOMMENCEMENT OF OPERATIONS BY COMMENCEMENT OF OPERATIONS BY ALL OPERATORS BUT ACTIVE OPERATION ALL OPERATORS BUT ACTIVE OPERATION BY 13 OPERATORS.BY 13 OPERATORS.121 RAKES PROCURED BY OPERATORS 121 RAKES PROCURED BY OPERATORS OTHER THAN CONCOROTHER THAN CONCOR9 PRIVATELY OPERATED ICDS/TERMINALS 9 PRIVATELY OPERATED ICDS/TERMINALS IN OPERATIONIN OPERATIONLAND PROCURED FOR ICDS/TERMINALS LAND PROCURED FOR ICDS/TERMINALS AT MANY LOCATIONS.AT MANY LOCATIONS.ABOUT RS 3000 CR INVESTMENT BY ABOUT RS 3000 CR INVESTMENT BY PRIVATE OPERATORS PRIVATE OPERATORS

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EXPECTATION FROM PRIVATE EXPECTATION FROM PRIVATE CONTAINER TRAIN OPERATORSCONTAINER TRAIN OPERATORS

QUANTUM GROWTH IN RAILQUANTUM GROWTH IN RAIL--BORNE BORNE CONTAINER TRAFFIC; SPECIALLY IN CONTAINER TRAFFIC; SPECIALLY IN DOMESTIC VOLUMESDOMESTIC VOLUMES

SERVICE IMPROVEMENT DUE TO SERVICE IMPROVEMENT DUE TO COMMITMENTS MADE BY RAILWAYS IN COMMITMENTS MADE BY RAILWAYS IN CONCESSION AGREEMENTCONCESSION AGREEMENT

COMPETITIVE RAIL FREIGHT CHARGES TO COMPETITIVE RAIL FREIGHT CHARGES TO BENEFIT SHIPPERS/CUSTOMERSBENEFIT SHIPPERS/CUSTOMERS

FASTER DEVELOPMENT OF FASTER DEVELOPMENT OF INFRASTRUCTUREINFRASTRUCTURE

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THE REVENUE SCENARIO OF IRTHE REVENUE SCENARIO OF IR20092009--1010

TOTAL FREIGHT REVENUE TOTAL FREIGHT REVENUE RS. 57595 CR.RS. 57595 CR.

REVENUE FROM PRIVATE OPERATORS RS. 734CRS.REVENUE FROM PRIVATE OPERATORS RS. 734CRS.

REVENUE FROM CONCOR RS. 2127 CRS.REVENUE FROM CONCOR RS. 2127 CRS.

REVENUE FROM CONTAINER TRAFFIC RS. 2861 CRS.REVENUE FROM CONTAINER TRAFFIC RS. 2861 CRS.

TOTAL FREIGHT TRAFFICTOTAL FREIGHT TRAFFIC 887.89 MT887.89 MT

TOTAL CONTAINER TRAFFICTOTAL CONTAINER TRAFFIC 34.95 MT34.95 MT

CONTAINER TRAFFIC IS 3.93% OF ORIGINATING TRAFFIC CONTAINER TRAFFIC IS 3.93% OF ORIGINATING TRAFFIC CONTRIBUTING 4.6% EARNING OF IR.CONTRIBUTING 4.6% EARNING OF IR.

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EMERGING TREND IN CONTAINER MOVEMENTEMERGING TREND IN CONTAINER MOVEMENT

POSITIVE DEVELOPMENTPOSITIVE DEVELOPMENT::INDUCTION OF ADDITIONAL RAKES.INDUCTION OF ADDITIONAL RAKES.CREATION OF TERMINALSCREATION OF TERMINALSCONCEPT OF CONCEPT OF

LOGISTIC PARKS THAN SIMPLE WARE HOUSE.LOGISTIC PARKS THAN SIMPLE WARE HOUSE.VALUE ADDED SERVICES VALUE ADDED SERVICES DEMAND AND EFFORTS FOR END LOGISTICSDEMAND AND EFFORTS FOR END LOGISTICSDEVELOPMENT OF COASTAL BRIDGING DEVELOPMENT OF COASTAL BRIDGING

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EMERGING TREND IN CONTAINER MOVEMENTEMERGING TREND IN CONTAINER MOVEMENT

RAILWAYS SUPPORTRAILWAYS SUPPORT::OPENING OF RAILWAY GOODS SHED FOR OPENING OF RAILWAY GOODS SHED FOR PRIVATE OPERATORSPRIVATE OPERATORSACCESS TO PRIVATE SIDING ACCESS TO PRIVATE SIDING C&W EXAMINATION IN RAILWAY YARD.C&W EXAMINATION IN RAILWAY YARD.POLICY ON PRIVATE FREIGHT TERMINALSPOLICY ON PRIVATE FREIGHT TERMINALS

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EMERGING TREND IN CONTAINER MOVEMENTEMERGING TREND IN CONTAINER MOVEMENT

AREA OF CONCERNAREA OF CONCERNENTRY OF 16 NEW PLAYERS, PRESSURE ON LAND ENTRY OF 16 NEW PLAYERS, PRESSURE ON LAND AVAILABILITYAVAILABILITY---------- LAND PRICES HAS GONE UP.LAND PRICES HAS GONE UP.SPLITTING OF CARGOSPLITTING OF CARGO––

INCREASED IMBALANCE, INCREASED IMBALANCE, EMPTY RUNNING OR IDLING OF ASSETSEMPTY RUNNING OR IDLING OF ASSETSMIXED TRAINS AT THE PORTSMIXED TRAINS AT THE PORTS

•• PRESSURE ON PORT PRESSURE ON PORT ––RAILWAYS NETWORK.RAILWAYS NETWORK.•• PROLIFERATION OF PORT SIDE PROLIFERATION OF PORT SIDE CFSsCFSs TO AVOID TO AVOID

IMBALANCE AND COST ADVANTAGES.IMBALANCE AND COST ADVANTAGES.

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PPP IN CONTAINER TRAFFICPPP IN CONTAINER TRAFFIC

ISSUE NEEDS TO BE ADDRESSEDISSUE NEEDS TO BE ADDRESSED•• OPERATIONAL ISSUESOPERATIONAL ISSUES-- PRIORITY, TRANSIT TIME, STABLINGPRIORITY, TRANSIT TIME, STABLING

TRAIN EXAMINATIONTRAIN EXAMINATION-- TERMINAL , ENROUTE TERMINAL , ENROUTE DETACHMENTS, ROHDETACHMENTS, ROH--POH CAPACITYPOH CAPACITYCOMMERCIAL ISSUESCOMMERCIAL ISSUES-- STREAMLINING OF PROCEDURE STREAMLINING OF PROCEDURE

FOR REFUNDFOR REFUNDSTABLING CHARGESSTABLING CHARGESBV CHARGESBV CHARGESHUB & SPOKEHUB & SPOKEHAULAGE RATE POLICY, RCHAULAGE RATE POLICY, RC--55WEIGHMENTWEIGHMENT

TERMINAL CONSTRAINTSTERMINAL CONSTRAINTSDIVERSION OF CONVENTIONAL RAIL TRAFFIC .DIVERSION OF CONVENTIONAL RAIL TRAFFIC .

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Container Transport CostsContainer Transport Costs

23%

18%

21%

25%

13%

ShipsContainersTerminalsInland TransportOther

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PPP IN CONTAINER TRAFFICPPP IN CONTAINER TRAFFIC

ISSUE NEEDS TO BE ADDRESSEDISSUE NEEDS TO BE ADDRESSED

LACK OF UNDERSTANDING IN LACK OF UNDERSTANDING IN RELATIONSHIP BETWEEN RAILWAY AND RELATIONSHIP BETWEEN RAILWAY AND CTOS CTOS IGNORANCE OF FIELD STAFF/OFFICIALS IGNORANCE OF FIELD STAFF/OFFICIALS ON PROCEDUREON PROCEDUREINCREASING MISTRUST.INCREASING MISTRUST.INCREASING COMPLAINTSINCREASING COMPLAINTSCHANCES OF LITIGATIONCHANCES OF LITIGATION

IS PPP WORKING?IS PPP WORKING?

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CONTAINERCONTAINER-- WAY AHEADWAY AHEAD

ACTION FOR CENTRAL GOVTACTION FOR CENTRAL GOVTFOCUS SHIFT TOWARDS INTEGRATED TRANSPORT NETWORKS . PROMOTION OF ENERGY EFFICIENT SYSTEMS CONSIDERING ITS SOCIAL IMPACT RATIONALISATION OF LAWS RELATING TO VARIOUS TAX INCLUDING VAT AND SERVICE TAXFORMULATION OF HARMONISED LIABILITY REGIME .

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CONTAINERCONTAINER-- WAY AHEADWAY AHEAD

ACTION FOR CENTRAL GOVTACTION FOR CENTRAL GOVTDISCOURAGE LONG DISTANCE ROAD BRIDGING OF CONTAINERS BY CUSTOMS.SINGLE WINDOW CLEARANCE FOR TERMINAL SET UP.A CENTRAL AUTHORITY TO MANAGE EDI NETWORK FOR THE MULTIMODAL SECTOR PROVIDING ACCESS TO USERS ACROSS ALL SECTORS OF TRANSPORT. STANDARDIZATION OF DOCUMENTS AND FORMATS.

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CONTAINERCONTAINER-- WAY AHEADWAY AHEADACTION FOR IRACTION FOR IR•• RAIL INFRASTRUCTURE AUGUMENATIONRAIL INFRASTRUCTURE AUGUMENATION

•• DOUBLE STACK CONTAINER TRAINSDOUBLE STACK CONTAINER TRAINS•• RAIL PORT CONNECTIVITYRAIL PORT CONNECTIVITY

•• PAPERLESS TRANSACTION AND EDI WITH MAJOR PAPERLESS TRANSACTION AND EDI WITH MAJOR USER.USER.

•• BENCHMARK FOR SERVICE PERFORMANCEBENCHMARK FOR SERVICE PERFORMANCE•• APPROPRIATE PRICING POLICYAPPROPRIATE PRICING POLICY•• RELAXATION IN MMD RELAXATION IN MMD •• HIGHER AXLE LOADHIGHER AXLE LOAD•• SINGLE WINDOW CLEARANCESINGLE WINDOW CLEARANCE•• SEPARATE DEDICATED AGENCY FOR TERMINAL SEPARATE DEDICATED AGENCY FOR TERMINAL

MANAGEMENT MANAGEMENT -- LOGISTIC CORPORATION LOGISTIC CORPORATION

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CONTAINERCONTAINER-- WAY AHEADWAY AHEADACTION FOR IRACTION FOR IR

ATTITUDINAL CHANGE IN OUR APPROACHATTITUDINAL CHANGE IN OUR APPROACHCLEARITY IN OUR INSTRUCTION AND CLEARITY IN OUR INSTRUCTION AND IMPLEMENATIONIMPLEMENATIONEDUCTING STAFF AND OFFICERSEDUCTING STAFF AND OFFICERS-- NEED TO NEED TO GO THROUGH PROVISIONS OF CONCESSION GO THROUGH PROVISIONS OF CONCESSION AGREEMENT AND VARIOUS INSTRUCTIONSAGREEMENT AND VARIOUS INSTRUCTIONSAPPROPRIATE GRIVENCE REDRESSAL APPROPRIATE GRIVENCE REDRESSAL MECHANISM MECHANISM SUPPLEMENT CTOS EFFORTS IN DIVERSION SUPPLEMENT CTOS EFFORTS IN DIVERSION OF TRAFFIC FROM ROAD TO RAIL.OF TRAFFIC FROM ROAD TO RAIL.

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CONTAINERCONTAINER-- WAY AHEADWAY AHEADCERTAIN Dos FOR DIVISIONSCERTAIN Dos FOR DIVISIONS

NOMINATE ONE OFFICER AS NODAL OFFICER FOR NOMINATE ONE OFFICER AS NODAL OFFICER FOR DEALING WITH DEALING WITH CTOsCTOs..ENSURE RUNNING OF TRAINS AS PER LICENSE OF ENSURE RUNNING OF TRAINS AS PER LICENSE OF OPERATOR. OPERATOR. COMMODITY RESTRICTION SHOULD BE STRICTLY COMMODITY RESTRICTION SHOULD BE STRICTLY FOLOWED.FOLOWED.ENSURE 100% WEIGHMENT OF CONTAINER TRAINS.ENSURE 100% WEIGHMENT OF CONTAINER TRAINS.CASES OF FREQUENT COMPLAINTS AGAINST A CASES OF FREQUENT COMPLAINTS AGAINST A TERMINAL OR AN INDIVIDUAL SHOULD BE TERMINAL OR AN INDIVIDUAL SHOULD BE THROUGHLY INVESTIGATED.THROUGHLY INVESTIGATED.IDENTIFY YARDS OR TERMINALS FOR STABLING OF IDENTIFY YARDS OR TERMINALS FOR STABLING OF TRAINS .TRAINS .

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CONTAINERCONTAINER-- WAY AHEADWAY AHEADCERTAIN Dos FOR DIVISIONSCERTAIN Dos FOR DIVISIONS

FREQUENT CASES OF LONGER HANDLING TIME OR FREQUENT CASES OF LONGER HANDLING TIME OR BLOCKAGE OF SIDING SHOULD BE TAKEN UP WITH BLOCKAGE OF SIDING SHOULD BE TAKEN UP WITH THE RESPECTIVE OPERATORS.THE RESPECTIVE OPERATORS.ENSURE PROPOER SYSTEM OF DOCUMENTATION ENSURE PROPOER SYSTEM OF DOCUMENTATION FOR STABLING, MOVEMENT, CORRESPONDENCE FOR STABLING, MOVEMENT, CORRESPONDENCE etc.etc.PRESCRIBE SYSTEM OF INFORMATION EXCHAGE PRESCRIBE SYSTEM OF INFORMATION EXCHAGE BETWEEN RAILWAYS AND BETWEEN RAILWAYS AND CTOsCTOsDELAY IN PROVISION OF LOCOMOTIVES ATTRACTS DELAY IN PROVISION OF LOCOMOTIVES ATTRACTS PENALTY .SUCH CASES SHOULD BE IDEALLY ZERO. PENALTY .SUCH CASES SHOULD BE IDEALLY ZERO. ANY CASE ARISING SHOULD BE THROUGHLY ANY CASE ARISING SHOULD BE THROUGHLY INVESTIGATED AND ACTION SHOULD BE TAKEN INVESTIGATED AND ACTION SHOULD BE TAKEN TO AVOID RECURRENCE.TO AVOID RECURRENCE.CLEARANCE OF ENROUTE DETACHED BLC UNITS CLEARANCE OF ENROUTE DETACHED BLC UNITS WAGONS.WAGONS.

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ContainershipContainership

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4040--Foot ContainersFoot Containers

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OPEN TOP CONTAINERS

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Refrigerated ContainerRefrigerated Container

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Tank ContainersTank Containers

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Double stacked Containers on Rail Double stacked Containers on Rail

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