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Project Report

On
“ Container Corporation of India Ltd ”

Submitted To
Rashtrasant Tukdoji Maharaj Nagpur University
Nagpur
In the partial fulfillment for
The Award of
Degree of
M.B.A.

Submitted By
Ms. Bhavana M. Nanote

Under the Guidance Of


Mr. Vijay Joshi

Vilasrao Deshmukh College of Engineering


And Technology.Mouda, Nagpur.
2009-2010
CERTIFICATE

This is to certify that the project entitled


“Container corporation of India ltd.” Submitted by
Ms.Bhavana M. Nanote is in partial fulfillment of
the reuirement for the M.B.A. from Rashrasant
Tukdoji Maharaj Nagpur Universitry and is a
bonafide record of the work done by them at Vilasrao
Deshmukh college of engineering And technology,
Mouda, nagpur during the academic year 2009-10.

Place: Nagpur Project Guide


Date :
(Mr. Vijay Joshi)

Principal
Vilasrao Deshmukh
College of Engineering &
tech. Mouda,Nagpur.
DECLARATION

To,
The Principal,
Vilasrao Deshmukh college
of Engineering & Tech.
mouda , Nagpur.

Respected sir,
We the undersigned , hereby declare
that the work entitled “CONCOR” developed and
submitted by us is our original work. The system
presented herein is developed by us independently
and has not been duplicated from any other source.

We understand that any such coping is


liable to be punished in any way the University deem
fit.

Place: Nagpur
Date :
(Ms. Bhavana M. Nanote)
ACKNOWLEDGEMENT

We wish to express our sincere thanks to the


honorable Dr. J. F. Agrawal, principal, Vilasrao
Deshmukh College of Engineering & Tech. Mouda,
Nagpur. Providing us varieties of opportunities,
infrastructural facilities and aspiration to gather
professional knowledge and material without which
it would have been impossible to complete this hard
task.
We take this opportunity to express our deep
gratitude and whole hearted thanks to our project
guide Mr. Vijay Joshi for her guidance throughout
this work. We are very much thankful to her for her
kindness, encouragement and the valuable time,
which she has devoted to us.
We wish to thanks all those, who have helped
us in our way the others in bringing out this project
successful.

(Ms. Bhavana M. Nanote)


INTRODUCTION

International Business field is concerned with the


issues facing international companies and
governments in dealing with all types of cross border
Transactions. International Business involves all
business transactions that involve two or more
Countries export and import goods and services.

International Business consists of


transactions that are devised and carried out across
borders to satisfy the objectives of individuals and
organizations. International Business consists of
those activities private and public enterprises
Which, involves the movement across national
boundaries of goods and services, resources,
knowledge

A Multinational Enterprise has a worldwide


approach to foreign markets and production and an
integrated global philosophy encompassing both
domestic and international markets.

Defined as a process of accomplishing the


global objectives of a firm by effectively
coordinating the procurement, allocation, and
Utilization of the human, financial, intellectual,
and physical resources of the firm within and
Across national boundaries and effectively

Preparing the path toward the desired organizational


goals by navigating the firm through a global
environment that is not only dynamic but often very
hostile to the firm’s very Survival.
ABOUT CONCOR

Incorporated in March 1988, Container Corporation of


India (CONCOR) is a multi-modal (rail and road) logistics
support provider for the country`s EXIM and domestic
trade and commerce, working under the ministry of
railways, government of India. CONCOR commenced
operation from November 1989 taking over the existing
network of 7 Inland Containers Depots (ICD`s) from the
Indian Railways.

The company`s core business is characterized by three


distinct activities that of a carrier, a terminal operator, and
a warehouse operator. The company provides a single-
window facility coordinating with all the different
agencies and services involved in the containerized cargo
trade right from customs, gateway ports, and railways, to
road haulers, consolidators, forwarders, custom house
agents and shipping lines. Container Corporation of India
has value-added services like linking of road or short lead
rail shuttle services to long lead point-to-point train
services (hub and spoke services), integrated freight
terminals, coastal shipssping, transportation of perishable
products from source to end-user (cold chains), and total
logistics solutions.
CONCOR has over 5,200 state-of-the-art high-speed
bogies, low-height container flat-wagons (type BLC) in
service. The company has a total of 57 terminals, of which
48 are export-import container depots, and nine exclusive
domestic container depots. The customs bonded inland
container depots are dry ports in the hinterland and serve
to bring all port facilities including customs clearance to
the customer`s doorstep.
CONCOR also operates container terminals across the
country to cater to the needs of the trade, whether in the
EX-IM or the domestic business.

COMPANIES MISSION STATEMENT


“OUR MISSION IS TO JOIN WITH OUR COMMUNITY
PARTNERS AND STAKE HOLDERS TO MAKE
CONCOR A COMPANY OF OUTSTANDING
QUALITY. WE DO THIS BY PROVIDING
RESPONSIVE, COST EFFECTIVE, EFFICIENT AND
RELIABLE 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.”

COMPANIES OBJECTIVES
“WE WILL BE A CUSTOMER FOCUSSED , PERFORMANCE
DRIVEN , RESULT ORIENTED ORGANISATION, FOCUSSED
ON PROVIDING VALUE FOR MONEY TO OUR
CUSTOMERS..”

“WE WILL STRIVE TO MAXIMISE PRODUCTIVE


UTILISATION OF RESOURCES, DELIVER HIGH QUALITY
OF SERVICES, AND BE RECOGNISED AS SETTING THE
STANDARDS FOR EXCELLENCE.”

“WE WILL CONSTANTLY LOOK FOR NEW AND BETTER


WAYS TO PROVIDE INNOVATIVE SERVICES. WE WILL
AIM FOR CUSTOMER CONVENIENCE AND
SATISFACTION, LEARN FROM OUR COMPETITORS AND
ALWAYS STRIVE FOR EXCELLENCE.”

“WE WILL SET MEASURABLE PERFORMANCE GOALS TO


SUPPORT THE OBJECTIVES AND MISSION OF OUR
ORGANISATION AND WORK AS A PROFESSIONAL,
COMPETENT AND DEDICATED TEAM FOR THE
ORGANISATION TO ACHIEVE EXCELLENCE IN ALL
AREAS OF OUR BUSINESS AND OPERATIONS BY
BENCHMARKING OURSELVES WITH OUR
COMPETITORS.”

“WE WILL FOLLOW HIGHEST STANDARDS OF BUSINESS


ETHICS AND ADD SOCIAL VALUE FOR THE COMMUNITY
AT LARGE BY DISCHARGING SOCIAL OBLIGATIONS AS
A RESPONSIBLE CORPORATE ENTITY.”

“WE WILL MAINTAIN ABSOLUTE INTEGRITY, HONESTY,


TRANSPARENCY AND FAIR-PLAY IN ALL OUR OFFICIAL
DEALINGS AND STRIVE TO MAINTAIN HIGH
STANDARDS OF MORALITY IN OUR PERSONAL LIFE.”

INDEX
1. Operation department

2. MIS

3. Billing counter

4. PDA A/C Department

5. Custom Department

6. Documentation and Procedure.

7. Role of CHA

8. Role of Shipping line

9. Role of Freight forwarders

10. Role of Warehouse.

11. Contractor

OPERATION DEPARTMENT
Operation department handles container movement
from one destination to another destination, it keeps
the records of all wagons with loaded and unloaded
container movement from dry port to desirable
destination port.

All shipping companies containers kept at dry port,


which when required are been allotedthe container of
the respective shipping line, then operation
department will allot the container to that particular
allotted customer.

The concor department has its own 100(+) railways


which are only used for container transaction. There
are 45 wagons in one train the total of 45 wagons is
called as a Rake.
There are 12 separate rake allotted to Nagpur only.
In one Rake there are 45 wagons in one wagon two
20 feet container or one 40 feet container can be
placed.
In one movement 90 containers are transported.

The booking, checking of the container is done in


operation department. It also handles the rake
planning and gives position of the container (arrival,
departure and present status).
MIS
Management information system is particularly a
concor department where the complete networking of
the server is done . It is directly connected to the
headquarter at Delhi.
It is to provide faster service to the customer. This
section is always keen to handle the network system
within the organization. It also gives exact location of
container due to the faster technology. It has ETMS
software within the organization. All the information
of goods can be easily gathered/viewed via online
software.
RDT(Radio data terminal) is a device which shows
detailed about the container position and gives
appropriate information.
Billing counter

The billing section is main source of the concor there


are two types of billing counter.
1. Domestic
2. International

Domestic :
Domestic bill contain all billing for domestic
business i.e. within the country. The difference is
only that it provides containers to party but it
does not contain any duties. There is a different
section of billing for domestic transaction and
the server is connected to MIS department. This
has link with headquarter at Delhi.

International :
International billing contains all billing of
exported and imported goods. It has its different
section of billing. The various documents needed
along with bills i.e. Bill of entry for imported
goods etc. Bill of lading for shipping line and
shipping bill for exported goods. Job order is
also attached from this section.
PDA A/C Department

Concor maintains PDA a/c of customer for dealing


daily financial transaction which provide the facility
to customer for that they have to maintain Rs.20,000
minimum balance on the PDA a/c.
If exporter or importer use this facility of concor then
the service charges are deducted from the pre deposit
a/c balance.
By the use of PDA a/c in the organization it is easily
forwarded with the exact position of the business to
the head office. They can fatly transfer the fund also.

Custom Department
It is a government authorized department at every
ICD in the country. As mostly the area surrounded in
the ICD is custom bounded area. And from this
particular area goods cannot be taken in or out
without prior information or permission to custom
department.

Custom department basically performs the work of


collection of appropriate amount of duties levied
either on import or export and verify thoroughly the
essential documents for import and export.

As under the custom act 1962 the provision are


collection of duty, import/export procedures, to
prohibit import and export of goods, to charge
penalties.

And custom tariff act 1975 in which there are


various types of duties import tariff and export tariff.
Custom valuation act 1988, baggage rules, 1998.
These are basically the act made by the government.

Documents for custom clearance


1. Sales contract or Performa invoice.
2. Tax invoice or export/custom invoice.
3. ARE1 form.
4. Packing list.
5. Test certificate.
6. Fumigation certificate.

Procedure for custom clearance-


1. Noting.
2. Assessment.
3. Examination.
4. Custom examination of material (10 to 100%)
5. File audit.
6. Custom sealing.
7. Assistance commissioner of custom sign in
documents.
8. Let export.

In export shipping bill is made for custom.

Custom documents = Tax invoice + ARE1 +


ARE2

Documentation & procedure


Procedure for Import

1 DGFT (Director General Foreign Trade) issue a


license for Export and import.
2 IEC (Import Export Code) code is generated.
3 Registration in Central Excise. (for SSI
registration is not necessary)
4 Then search vendor for deal.
5 Exporter sends a sample to Importer.
6 Importer contract with Exporter.
7 Importer decided the cost.
8 Then Import the good.

Documents for Import :

1. Bill of Lading (issued by shipping line)


2. Commercial invoice.
3. Packing list.
4. Container wise detailed packing list.
5. Certificate of origin.
6. Test analysis report/Quality
certificate/technical analysis report.
7. Detention free certificate.
8. Sales contract/purchase order copy/letter of
credit copy.
9. Fumigation certificate for wood products.
10. Pre inspection certificate + Technical
specification.
11. Detailed in foreign trade policy.

Procedure for Export :

The following are the documents required for the


processing of the Shipping Bill:
1. GR forms (in duplicate) for shipment to all the
countries.
2. 4 copies of the packing list mentioning the
contents, quantity, gross and net weight of each
package.
3. 4 copies of invoices which contains all relevant
particulars like number of packages, quantity,
unit rate, total f.o.b./ c.i.f. value, correct & full
description of goods etc.
4. Contract, L/C, Letter of origin, Purchase
Order of the overseas buyer.
5. AR4 (both original and duplicate) and invoice.
6. Inspection/ Examination Certificate.
7. The formats presented for the Shipping Bill are
as given below:
8. White Shipping Bill in triplicate for export of
duty free of goods.
9. Green Shipping Bill in quadruplicate for the
export of goods which are under claim for duty
drawback.
10. Yellow Shipping Bill in triplicate for the
export of dutiable Blue Shipping Bill in 7
copies for exports under the DEPB scheme.

Export

In export ARE1 & ARE2 forms are used for


custom purpose.

Duties paid excisable rules are cleared then we


used ARE1 form.
And if duty is not paid then ARE2 form is used.

Custom = Tax invoice + ARE1 + ARE2

Documents for Export

There are 2 types of documents.

1. Pre shipment document.

2. Post shipment document.

1. Pre Shipment documents are-


Performa invoice.
Sales contract.
Acceptance.
Purchase order.
Test certificate.
Packing list.
Invoice for custom purpose.
ARE1 and ARE2 form.

2. post shipment documents are-


Commercial shipment.
GR form or SDI form.
Commercial invoice.
Packing list.
Container packing list.
Test certificate.
Fumigation certificate.
Certificate of origin.
Bill of exchange.
Benefit certification.
Shipping advice.
Insurance certificate.

Shipping line
Shipping line plays a very important role. It
provides the container to the customers for the
movement of goods/ raw material. In addition to
the procurement of the container the surveyor,
vessel is provided by the shipping line.

Shipping line is very important part for container


movement as container are carried by way of sea
through vessel.
Seven days prior to the vessel entry shipping line
files IGM(import general manifest).

Custom allows SMPT for ICD.


The rate of shipping line is decided as per the
destination, volume of movement.
The detention charges of shipping line and concor
are different for import unloading and export
loading to the factory of the container.
Ground rent is charged on the shipping line by
concor.

The shipping lines basically use EDI (Electronic Data


Interchange) it is an electronic means for companies
to exchange business documents, such as purchase
order or invoices.
The various type of business information available
via EDI are :

Booking Information.
Bill of lading information.
Invoicing.
Electronic funds transfer.
Arrival notice information.
Shipping status information.

CONTAINER
Container is basically suitable for carrying goods
by the way of sea. So it is mostly preferred. There
are 130 parts stick to the container.

Tues:- twenty feet equivalent units.


Fues:- forty feet equivalent units.
1 tues = one 20 feet container

There are 3 types of container


40 feet , 20 feet , 22 feet.
40 and 20 feet container are used for international
trade.
22 feet container is used for domestic transaction.

Capacity limit
20feet empty container 2.3 metric tons/with load
upto24 metric tons.
40 feet empty container 4.6 metric tons/with load
upto28 metric tons.

Types of container
High cube , opentop , reffer, tank container.
CHA

CHA is a custom house agent. It acts as a mediator


between importer, exporter and customs department.
CHA is a supporting part of the industry.
He is a person who is licensed as an agent for
transaction of export and import of goods on a behalf
of party.
The CHA presents all the documents related to
Import/Export and clears all the documents from
customs.
CHA maintain all the copies of documents such as
shipping line, bill of entry, etc.
The CHA is a duty bound to advice the client to
comply with the provisions of the act, regulation and
all the schemes provided by the government.

He is a person who works for importers and exporters


goods/raw material to be cleared from custom
department by fulfilling all required documents. As
well as generally perform the work of using job
order, getting position of container with concor.
Freight forwarder

Freight forwarder is a middleman who quotes the


best rate of shipping charges to the customer from
one country to another country. It acts as a bridge
which meets the gap between exporter/importer and
shipping line. And for this service they take the
commission for the deal. They also handle their own
transportation line. Moreover they act in a similar
function as that of a CHA’s.
Warehouse

The basic purpose of warehouse is for the storage of


goods. The goods are charged rent (warpit) as per the
weight and the time period.
In Concor there are two warehouses is present near
to the yard.

1. Bonded warehouse
2. Public bonded warehouse.

1.Bonded warehouse :
In the bonded warehouse the various
exporting /importing companies store there goods.
As per the weight and the time period the
warehouses rate is charged on the
exporter/importer.

2.Public bonded warehouse :


In the public bonded warehouse the
imported goods are stuff. The goods which do not
clear the custom duty this types of goods are stored
in public bounded warehouse. There after the custom
cleared goods are handed over to the party, if the
party is not able to pay all the whole amount of duty
in one stroke so they take the good in partial manner
and pay the duty accordingly.
Required job order in warehouse

Job order is required for all


departments. Without job order the container cannot
be moved.

 Arrival Job order.


 Unloading job order.
 Stuffing job order.
 De stuffing job order.
 Exit job order.
Contractor

The overall operational work is done on the basis of


contractors.
Like transportation, loading unloading of the
container, handler, packing, repairing yard.
Whenever the requirement arises for any contractor
they give notice for the tender in newspaper and
invite for the particular work accomplishment in a
specific time period. the contractors have contract
with concor w.r.to there work.

Transporter
The role of transporter is to do the transaction of
containers from source to destination. Transporter
signs the contract with concor via. Tender. The
payment of transporter by any party is paid earlier
where as the payment to transporter is paid
fortnightly by concor. distance covered by the trailers
of the transporter are specified in terms of short
lead(from 0-99km),long lead(99 km onwards).

Handler

Handler works for the loading and unloading of a


containers with the help of Kalmar(Lifter) from the
rake. When rake reach at Yard the time allotted to
handler is minimum 6 hours for loading, unloading
respectively. If they exceed beyond the time limit
then Concor charge the penalty on hourly basis. The
kalmar is also used for placing the container at the
appropriate place which can lift the container from
ground+1+2+3.
Security

In Concor the security plays a vital role for incoming


and outgoing of container. Security checks all the
containers numbers in a designated way for
throughput movement. They also check the container
status at the time of in or out.

Workshop
This is a contractor to concor they check the
container whether damaged and repair it. If any
damage is seen then they charge the penalty to party.
In one container there near about 130 parts present,
all parts have there separate name.
If any damage is in the container it is firstly noted
down and then applies the charges on the paper
respect to the damage. And this paper is submit to
shipping line otherwise exporter. Then they can pay
the charges to the Concor.
They have link with the surveyor of the damaged
shipping line container.
Conclusion

To conclude, I would say that my training in


Container Corporation of India Ltd. was indeed a
great learning experience. The company in itself is an
example of terminal management, logistic activity,
export/import procedure had a direct bearing to our
curriculum, so the training also helped me to
understand part of our syllabus. All in all, it was an
excellent learning experience for me.

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