Perspectives on Integrated Transport

1. Perspectives on Integrated Transport

2. Integrated Transport :Why ? • Customers becoming increasingly indifferent to global sourcing issues. • Inventory to be held only briefly for staging, focus primarily on inventory in transit and not inventory in storage, distribution centres, or warehouses. • Expect their order to be delivered at the right place, at the right time, in the right condition, and for the right profit. • The internationalization and globalization of resources and markets placing unprecedented demands on transport. • Competition between global supply chains and their supporting modal and inter-modal capabilities.

3. Transport Options: Uni-modal • Unimodal-- the transport of goods by one mode of transport by one or more carriers(service providers). • If one carrier, he issues his own transport document, a bill of lading, an airway bill, a consignment note. • If more than one carrier, one of them may issue a through bill of lading covering the entire transport. • The issuing carrier may be responsible for the entire transport or for only that part which takes place on board his own vessel.

4. Transport options: Inter-modal • Transport of goods by several modes. • One of the carriers organises the whole transport from point of origin to destination. • If he takes responsibility only for the portion he performs himself, he may issue an inter-modal or combined transport bill of lading. • If he takes responsibility for the entire transport, he issues an Multi-modal transport document.

5. Intermodal Transportation Point-to-Point Network Intermodal Integrated Network C C A A B B Transshipment Rail Road D D Transshipment F F E E

6. Integration through Inter-modalism • Conventional: Competition between the modes.Transport system segmented and un-integrated. Each mode to exploit its own advantages in terms of cost, service, reliability and safety. • Intermodalism. Involving the use of at least two different modes. The line-haul economies of rail may be exploited for long distances, with the efficiencies of trucks providing local pick up and delivery. • The key is that the entire trip is seen as a whole, rather than as a series of legs.

7. Essence of Multi-modalism • One transport document • One Rate • Through Liability • Intermodalism is an operational concept • Multimodalism has commercial connotation.

8. Why Multimodal Transport • Variety of cultures, languages across international trade corridors. • Divergent commercial practices at both ends of trade. • Infrastructural incompatibilities. • Complexity of operations involving the use of various transport links. • Practical for a trader to let one qualified operator organize and be responsible & accountable for the entire transport chain.

9. What an Multi-modal Transport Operator looks for • Minimising cost. • Minimum handling. • Standard procedures and minimum documentation • Hassle-free border crossing with minimum detention. • Security of Cargo Containerisation ensures much of these.

10. Container on Truck

11. 40-Foot Containers

12. Tank Containers

13. Refrigerated Container

14. Versatility of Containers

15. Double-stack Containers on Rail

16. Containers being Unloaded from a Barge

17. Containership

18. Containerisation: Advantages • Inter-modal compatibility– can be loaded on trailers, rail wagons, ships & barges. Low-cost, fast transit. • Flexibility of usage: wide variety of cargo can be transported. • Through liability possible. • Door to door service feasible. • Parcel size can be small.

19. Containerisation:Advantages • Managing & monitoring easy. • Cargo does not require multiple handling. • Transhipment easy. • Can be used for storage of cargo. • Better security.

20. Physical requirements • Development of ICDs and CFSs. • Development of Port facitilies & port-side container terminals. • Feeder & Mainline services. • Development of Container Trade Routes: land-sea, land-inland waterway,and land-bridging across borders.

21. Port-side container terminal • Draft at the port- size of vessel. • Number of berths- pre-berthing delays. • Handling cranes- Number of moves. • Security: Scanning arrangements • Hinterland Connectivity-rail/road/inland waterway. • CFS facility: Stuffing/de-stuffing, warehousing, re-packing facility.

22. Inland Container Depots • Customs Formalities & documentation • Storage of Cargo and Containers. • Aggregation/dis-aggregation of cargo. • Stuffing/de-stuffing of Cargo. • Handling of containers. • Despatch by rail/road. • Road/rail conectivity, availability of adequate stacking area, type of handling equipment, warehousing facility, security arrangements are of critical importance.

23. Handling Equipment :Reachstackers

24. Handling equipment: RTG

25. Container Transport Costs

26. Land-bridging Across borders: Issues • Inter-modal transport services. • Road linkages : all weather roads. • Rail linkages: Compatibility of gauge, axle load, traction. • Bridging the Missing Links.

27. Land-bridging Across Borders: Issues • Border Crossing Formalities. • Improvements in Customs stations. • Electronic Data Interchange(EDI). • In-transit warehousing facilities. • Security

28. Containerized Cargo Flows along Major Trade Routes, 2000-2004 (in millions of TEUs) Increasing Importance of Asia

29. Trends In South Asia • Bilateral Free Trade Agreements. • Growth of Regional Economies. • Growing importance of Regional Co-operation for trade among developing countries in south-Asia. • ASEAN, BIMSTEC, SAFTA.

30. South Asia • Benefits of geographical contiguity are often lost due to poor transport linkages. • Countries vary in terms of the availability and quality of infrastructure. • Many missing links between highways, besides poor condition of roads in some countries. • Deficient Railway links. Lack of gauge harmonization. • The ports need to be modernized. • Lack of uniformity in the customs and clearance procedures at the borders.

31. Trends In Globalisation Free Trade Customs Union Common Market Economic Union Political Union

32. The CONCOR Story Corporate Mission “TO PROVIDE RESPONSIVE, COST EFFECTIVE, EFFICIENT ANDRELIABLE LOGISTICS SOLUTIONS TO OUR CUSTOMERS THROUGH SYNERGY WITH OUR COMMUNITY PARTNERS AND ENSURING PROFITABILITY AND GROWTH. WE STRIVE TO BE THE FIRST CHOICE FOR OUR CUSTOMERS. WE WILL BE FIRMLY COMMITTED TO OUR SOCIAL RESPONSIBILITY AND PROVE WORTHY OF TRUST REPOSED IN US.”

33. CONCOR - THE COMPANY • Incorporated - March 1988 • Operational - November 1989 • Authorised capital - Rs.100 Crores • Paid-up Capital - Rs. 64.99 Crores • Took over 7 the then existing container Terminals from Indian Railways.

34. CONCOR - BUSINESS • CONCOR’S CORE BUSINESS IS CHARACTERISED • BY TWO IMPORTANT ACTIVITIES: • Door to Door Transport • -by rail/road/coastal shipping. • Terminal Operations • -Operating dry Ports (ICDs/CFSs) And • Domestic Container Terminals • All Over The Country

35. Services • International: • Door to port & Port to door movement of containers by rail/road via inland container depots. • Handling and storage of laden and empty containers and cargo. • Transit & Bonded warehousing. • Consolidation of LCL cargo. • Bonded trucking movement of air-cargo between airports and ICDs.

36. Services • Domestic: • Supply of containers. • Door to door movement of cargo in containers by rail/road/coastal shipping. • Handling, storage of cargo. • Transport & distribution of cargo as per customer requirements. • New Venture: • Cold Chain distribution system for fruits and vegetables

37. JVs • Air Cargo Terminal at Bangalore Air Cargo Complex. Developing a simialr air-cargo complex at Nasik. • 4 JV CFSs at Dadri (with Maersk, APL, Transworld & CMA-CGM). • Participation in Port projects- JNPT(with Maersk) and Vallarpadam(With DP World). • Managing ICD in Birgunj(Nepal).

38. CONCOR’S TERMINAL NETWORK EXISTING TERMINALS : 56 COMBINED : 29 PURE EXIM : 18 PURE DOMESTIC : 09 TERMINALS PLANNED IN THE NEXT 2 YEARS : 5

39. REGIONAL DISTRIBUTION OF TERMINALS • NORTHERN INDIA - 16 • SOUTHERN INDIA - 10 • WESTERN INDIA - 13 • EASTERN INDIA - 08 • CENTRAL INDIA - 09 TOTAL - 56

40. The Market Share Issue ‘000 TEUs

41. CONCOR vis-a-vis existing Competition SOURCE-SURVEY-2005 BY TNS MODE

42. Introspection • Continuous Review of internal processes. • ISO 9000 certification. • Benchmarking exercise to reduce costs. • Gathering market intelligence to create new products.

43. Reaching out to Customers • Container Tracking and tracing. • ETMS/DTMS : dissemination of information. • Centralised PDA. • E-billing, E-payments. • Training of employees by customers • “How can we serve you better?”.

44. Developing new services. • Round trip pricing against booking of a full train. • Scheduled day service. • A ‘tatkal’ scheme to for urgent clearance. • Double-stack Container trains. • Aggregation of volumes through business associates. • Volume based/commodity based incentive schemes.

45. CONCOR’s EXIM BUSINESS HANDLING (TEUS)

46. CONCOR DOMESTIC BUSINESS HANDLING (TEUS)

47. FINANCIAL PERFORMANCE NET INCOME In Rs.Crores (ten million) TURNOVER In Rs.Crores (ten million)

48. CONCOR vis-à-vis Indian Railways • Indian Railways Own 63% of CONCOR’s equity. • Have provided land for construction of terminals. • Railways collect haulage charges for CONCOR’s trains and license fee for land. • CONCOR Wagon Fleet is maintained by the Railways. • Officers on deputation from the Railways man senior and middle management positions in CONCOR.

49. New Developments • In 2006, Indian Railways have decided to facilitate entry of private operators in container train operation. • 13 players from pubic/private sectors have obtained in-principle approval. • Agreements are being finalised. • Level playing field vis-à-vis CONCOR has been promised.

50. THANK YOU