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Ltd, Nashik. With reference to Transworld Group of Companies. This report would not have been possible without the support and guidance that I have received for various people at different stages of the project. I would like to express my profound gratitude and sincere thanks to Mr. Jignesh Joshi (CFS Manager) for giving me this opportunity to work with Transworld Group of Companies. I would like to express my special thanks to Mr. Sachin Joshi (Sr. Branch Manger of Clarion Solutions Ltd. Nashik) for guiding me throughout the project. It indeed has given invaluable exposure in Field Work and Logistic Market. I also express my sincere gratitude to my respected Prof. Sachin R. Pachorkar for his kind Co-operation and Invaluable Guidance. I would like to express my thanks in no less measure to the whole staff of Clarion Solutions Ltd. Nashik, to support me during the project and for their kind co-operation. Date: Aijaz S Shaikh (M. B. A. Marketing)
Acknowledgement
Declaration
I, Mr. Aijaz S Shaikh, hereby declare that this project report is the record of authentic work carried out by use during the academic year 2007 2009 and has not submitted to any other University or Institute towards the awards of any degree. Aijaz S Shaikh (M. B. A. II Marketing)
Date:
Particulars
Chapter 1: INTRODUCTION Object of the project Selection of the topic for study Introduction to the Topic Objectives of the study Plan of Action Research methodology Scope of the study Limitation of the study Rationale of the study Chapter 2: Profile of the Organization Background and history of the organization Organizational flow cha rt services offered by the organisation Chapter 3: Analysis and Interpretation of the information Topic under study Presentation, analysis and interpretation of the information Chapter 4: Conclusion of the stud y Chapter 5: Recommendation and suggestions Appendices a) Questionnaire b) Glossary b) Bibliography
Page No.
5 6 8 16 18 22 30 31 32
(2)
2.1 2.2 2.3
35 37 38
(3)
3.1 3.2
52 55
(4) (5)
67 69
71 76 78
CHAPTER 1
INTRODUCTION
(CH APTER 1 )
1 . 1 O b j ec t of P r o je c t :
The project forms a very vital aspect during the curriculum of M.B.A. At the end of the first year students are required to under go summer training and a project for span of two months. Being a M.B.A. student only theoretical knowledge is not enough but the actual exposure to the market and knowledge of actual marketing process can be gained by working in the market, which is well attended through the summer project This training is an integral part of M.B.A program and its importance lies in fact that it gives the students their first exposure to an organisational set-up and allows him to get acquainted with real organisational problems, perceptions and challenges. The main object of the project is to enable the marketing student gain the field experience by working on field and help him to understand how the practical marketing decisions, strategies and market research activity is carried out.
1 . 2 S e l ec t i on of t h e t op ic f or st u d y
Inland distribution is becoming a very important dimension of the globalization / maritime transportation / freight distribution paradigm. Observed logistics integration and network orientation in the port and maritime industry have redefined the functional role of ports in value chains and have generated new patterns of freight distribution and new approaches to port hierarchy. Inland freight distribution constitutes more than ever a cornerstone in port competitiveness. Existing models on the spatial and functional evolution of ports and port systems only partially fit into the new freight distribution paradigm. This topic aims to add to the existing strategy by introducing a regionalization phase in port and port system development. The regionalization phase and associated new hinterland concepts demand new approaches to port governance and a functional focus that goes beyond the traditional port perimeter.
Ocean freight transport industry has changed its structure as a result of the new trends and preconditions that came with the introduction of the container and the rise of intermodality. Short sea shipping has had the same impact as ocean shipping. The following factors are acknowledged as the most important driving forces behind the new trends: The rise of containerization; Door-to-door transport with a single bill of Lading; Deregulation of the transport market; Horizontal and vertical integration of the transport Market;
Globalization of the world economy; Rising demands from manufacturing industries. Intermodal and sea related transports are acknowledged as priority measures to solve common EU transport system problems. To meet market demands seaports have tried to increase their capacity within the seaport area. However seaports are among the most space extensive consumers of land in metropolitan areas and their expansion often generates environmental and land use conflicts. The main problems seaports face today, as a result of growing containerized transport, are lack of space at seaport terminals and growing congestion on the access routes serving their terminals. The real estate and approaching problems are among those that most ports face during their life time as well. The factors are supporting the dry port concept, to outsource the functions which will need a lot of territory with the cheaper hinterland locations. The concept of the dry port is based on a seaport directly connected by road/rail with inland intermodal terminals, where shippers can leave and/or collect their goods in intermodal loading units as if directly at the seaport. The seaport and the inland terminals are connected with high capacity traffic modes, such as rail, rather than only with road. In addition to the transshipment that a conventional inland intermodal terminal provides, services such as storage, consolidation, depot, maintenance of containers, and customs clearance are usually available at dry ports. Thus, from all above factors need for selection of this topic arises significantly.
1 . 3 I n t r od u c t io n t o t h e t op ic
What Is Inland Intermodal Container Depot? DEFINITION OF ICD/CFS An Inland Container Depot / Container Freight Station may be defined as:A common user facility with public authority status equipped with fixed installations and offering services for handling and temporary storage of import/export laden and empty containers carried under customs control and with Customs and other agencies competent to clear goods for home use, warehousing, temporary admissions, re-export, temporary storage for onward transit and outright export. Transshipment of cargo can also take place from such stations. An Inland Clearance Depot is a common-user inland facility, other than a seaport or an airport, with public authority status, equipped with fixed installation, and offering services for handling and temporary storage of any kind of goods (including container) carried under customs transit by any applicable mode of inland surface transport, placed under customs control to clear goods for home use, warehousing, temporary admission, re-export, temporary storage for onward transit, and outright export. An Inland Container Depot is a common user facility with public authority status, equipped with fixed installations and offering services for handling and temporary storage of import/ export stuffed and empty containers. An Intermodal Freight Centre is a concentration of economic independent companies working in freight transport and supplementing services on a
designated area where a change of transport units between traffic modes can take place. An Inland Freight Terminal is, any facility, other than a seaport or an airport, operated on a common- user basis, at which cargo in international trade is received or dispatched.
DISTINCTION BETWEEN AN ICD & A CFS Functionally there is no distinction between an ICD/CFS as both are transit facilities, which offer services for containerization of break bulk cargo and viceversa. These could be served by rail and/ or road transport. An ICD is generally located in the interiors (outside the port towns) of the country away from the servicing ports. CFS, on the other hand, is an off dock facility located near the servicing ports which helps in decongesting the port by shifting cargo and Customs related activities outside the port area. CFSs are largely expected to deal with break-bulk cargo originating/terminating in the immediate hinterland of a port any may also deal with rail borne traffic to and from inland locations. Keeping in view the requirements of Customs Act, and need to introduce clarity in nomenclature, all containers terminal facilities in the hinterland would be designated as ICDs. An Inland Port is located inland, generally far from seaport terminals. It supplies regions with an intermodal terminal or a merging point for traffic modes rail, air, and truck routes involved in distributing merchandise that comes from water ports. An inland port usually provides international logistics and distribution services, including freight forwarding, customs brokerages, integrated logistics, and information systems.
When containerization is bumming, ports often meet with shortage of capacities for container storage areas. A HALCON is a inland port situated at the Ojhar Airport servicing an industrial/commercial region connected with other ports by road transport and is offering specialized services between the inland container depot and the transmarine destinations. HALCON is container and multimodal oriented and has all logistics facilities, which is needed for shipping and forwarding agents in a port. Most ports in India are located in sea coast, which demands the effective and safe goods transport with a minimum of environmental strain. Simultaneously the ports demand space and facilities for loading, unloading, storage, terminals, etc. in order to ensure the keeping of high quality and growth with the growing traffic and amount of cargo in question. Extending the port areas by filling docks and dam, new sea areas solve the space problem. To fill the sea area is very problematic in view of environmental protection of coastal sea land. The increasing problem of transporting goods to and from the port through the city, together with the expensive costs of establishing new docks have created preconditions to establish HALCON, which almost can handle all of the port related activities (Fig A). The development of HALCON is therefore an essential tool to promote sustainability and effectiveness of freight transport from the Nashik district as well as in the north Maharashtra region.
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RECEIVER
SENDER
ROAD TRANSPORT
High capacity mode connections: High capacity cargo storage Consolidation Desolidation Additional services like transportation Custom Clearance PORT OF SHIPMENT SEA TRANSPOTATION
HALCON
To ensure an effective Inland container depot there are two general objectives: (1) Consolidation of maritime goods in intermodal short- and long distance transport flows and (2) Collecting and distribution of local, regional and international transports.
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FUNCTIONs OF ICDs/CFSs The primary functions of ICD/CFS may be summed up as under: a. Receipt and dispatch/delivery of cargo. b. Stuffing and stripping of containers. c. Transit operations by rail/road to and from serving ports. d. Customs clearance. e. Consolidation and desegregation of LCL cargo. f. Temporary storage of cargo and containers. g. Reworking of containers. h. Maintenance and repair of container units.
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The operations of the ICDs/CFSs revolve around the following centres of activity:i.) Rail Siding (in case of a rail based terminal) The place where container trains are received, dispatched and handled in a terminal. Similarly, the containers are equipments. ii) Container Yard loaded on and unloaded from rail wagons at the siding through overhead cranes and / or other lifting
Container yard occupies the largest area in the ICD.CFS. It is stacking area were the export containers are aggregated prior to dispatch to port, import containers are stored till Customs clearance and where empties await onward movement. Likewise, some stacking areas are earmarked for keeping special containers such as refrigerated, hazardous, overweight/over-length, etc. iii) Warehouse
A covered space/shed where export cargo is received and import cargo stored/delivered; containers are stuffed/stripped or reworked; LCL exports are consolidated and import LCLs are unpacked; and cargo is physically examined by Customs. Export and import consignments are generally handled either at separate areas in a warehouse or in different nominated warehouses/sheds. iv) Gate Complex
The gate complex regulates the entry and exists of road vehicles carrying cargo and containers through the terminal. It is place where documentation, security and container inspection procedures are undertaken.
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BENEFITS OF ICDs/CFSs The benefits as envisaged from an ICD/CFS are as follows:The main benefits from ICDs/CFSs 1) Concentration points for long distance cargoes and its unitization. 2) Service as a transit facility. 3) Customs clearance facility available near the centers of production and Consumption 4) Reduced level of demurrage and pilferage. 5) No Customs required at gateway ports. 6) Issuance of through bill of lading by shipping lines, hereby resuming full liability of shipments. 7) Reduced overall level of empty container movement. 8) Competitive transport cost. 9) Reduced inventory cost. 10) Increased trade flows.
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To achieve these two objectives, it is necessary for the HALCON to carry out the following functions: Inland warehousing; Management of container flows to different ports based on Consolidation of individual container flows; Reduction of pre and end haulage with road transport Offering special- and extra services; Reduction of transport costs; Increase in the firms of ship owners and the port influence to ensure the intensification of the transport chains effectiveness.
In order to carry out these functions HALCON have taken into consider the following measures: Centrally placed areas; Choice Loading or reloading or shunting; Co-ordination between different operators and Custom House Agents; Using advanced or existing technology; Integrated flow of information on road transport, inland container depot, air cargo complex and maritime related data.
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Primary objective: The primary objective of the project is to find out the market scenario for Inland Container Depot and Air Cargo Complex of HALCON in Nasik city. As defining the marketing strategy for a leading Logistics solution provider and an Industry Analyst firm focused on providing integrated business solutions at the right time and at right cost. .
Secondary objective: The secondary objective of the study was to collect the relevant data, prepare a database, awareness of industries, perception, requirements, etc for inland container depot and the container freight station. Few other objectives are like this: -
To suggest new growing market opportunities for business development. To analyzed the data prepare from survey To find out customer preferences for price, period, availability, services To find out customer wants and their proper fulfillment. To find out existing freight forwarder in the market and their market position. To find out customer attitude To know the industries about whole scenario for facilities provided by the CFS, their probable customers and market value of the services.
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Market research has been used here as an instrument for decision making. Some research conducted in the actual business field is routine, while some are commissioned for a specific one-time purpose. However, it may not be taken for granted that this will always provide with the right answer to a particular problem. Therefore, adherence to the correct method of conducting a research was therefore a prerequisite. The research activity was carried under the guidance of Sales Manager and CFS manager It started with understanding the procedures and services offered by HALCON. I accompanied the sales manager for onsite visits to customers to get the view of exact procedure followed in the organization. These live interactions with customers gave me an idea to understand & satisfy the customer single handedly in the days to come. A questionnaire schedule was developed considering the objective behind the project. This was altered with few modifications depending upon the client and its status. The research activity was done for 130 probable customers, 10 existing customers and 20 CHAs. This data handed over by the business partner covered the contact information, products in use, and remarks as mentioned. These customers were classified depending on: Region Urgency of attending them New prospects Business Potential Industry type
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Company Mahindra & Mahindra JAIN irrigation Desan Agro Omshree Agro Sanjay Soya Maharashtra Oil Extraction Everest Industries Jindal Saw British Scaffoldings
Schemes Drawback & DEBP 100 % EOU DEBP DEBP DEBP DEBP Drawback DEPB &/ DBK 100 % EOU
Table 1: Company Undergone Shipment from HALCON A pre approach helped obtaining vital information about prospective buyers prior to calling them. When calling a customer I needed to find out whom to meet, what to speak, and what the customers hot buttons are and how to push them. Before every visit, I interacted with the sales representative who guided me on how to approach each customer that was handed over to me. Once I had the information about the customers, it was time to set up the area and get to work. Following points helped in segmenting the customers location: Ensuring I have a good map of the area. Sort the qualified customers by region and street (viz. Dindori, Ozar etc).
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Setting my appointments as close to route order as possible. Establish a regular work schedule. Mondays were a good day to book the week's appointments.
Following points kept in mind during field visits: Don't be "too" formal. When one asks a stranger for directions one doesn't drag on and introduce oneself first. In the approach one can introduce oneself but has only 30 seconds to "cut to the chase." Wasting time with too many formalities was not a good idea every time. Tell the customer how we can help them. Tell the CHAs how we can help them. Remove the blockage in the CHAs mind by telling them the fact that we are not their competitor but a business developer. Concentrate and be confident. Keep it simple. Re-work on my approach with the help of CHAs if it isn't working then take his advice. Get help whenever needed. Rejection is a natural aspect of this process.
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In methodology of the study, we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind it. Research design plays an important role in collecting useful information in cost effective manner. The flow of the research process is decided first hand so that the conduct of the research does not take an incorrect diversion from its objective.
Research design:
Research design is nothing but the master plan for the actual research. It is a framework for carrying out research activities it comprises of series of prior decisions. Master plan for this research was as follows:-
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Sources of data:
The sources used for data collection were primary sources as well as secondary sources. For the data related to the behavior, the dependence was totally on the primary tools of interviewing with the help of questionnaire.
The methods used for data collection were Survey Method, Observation Method (participative) & Interview Method for the different type of export and import units, organization and agricultural bodies supported with a structured Questionnaire, used as a tool for collecting primary data needed.
The sources of data collection are explained as follows. Primary Data Observations of customer, interviews & questionnaire Secondary Data - magazines, internet, books, newspaper etc.
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Research instruments:
Marketing researchers have three main research tools: questionnaires, psychological tools and mechanical devices. Questionnaire: A questionnaire consists of a set of questions presented to respondents. Because of its flexibility, it is by far the most common instrument used for collecting primary data. They need to be carefully developed, tested and debugged before they are administered on a large scale. The questions can be closed ended or open ended. Closed ended questions specify all the possible answers and provide answers are possible to interpret and tabulated. On the other hand open ended questions allow respondent to answer in their own words and reveal more on how people think. These are useful for exploratory research. Psychological tools: Researchers can probe into a customers deeper beliefs and feelings using Psychological tools such as depth interviews and laddering questionnaires or by Rorschach test. Mechanical devices: These are occasionally used in marketing research. Galvanometer measures the interest or emotions aroused by exposure to a specific ad or picture. Eye cameras observe the eye movement of customers to see where their eyes land first, how long they linger on a given item. Audiometer is attached to TVs in participating homes to note which channel is being watched.
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The project involves collection of data from end users about awareness and satisfaction; it did not involve findings deeper belief and feelings or emotions aroused. Hence psychological tools and mechanical devices are not used. Moreover collecting data through questionnaire is easy and economical as compared to eye camera, audiometer, television etc. For the project purpose most of the survey is done through telephonic and by mailing. Telephone interviewing The telephone interview gradually has become the dominant method for obtaining information from large samples, as the cost and non response problems of personal interviews have become more acute. At the same time, many of the accepted limitations of telephone interviewing have been shown to be of little significance for a large class of marketing problems. Advantages: More interviews can be conducted in a given time period, because no time period lost in traveling and locating respondents. More hours of the day are productive. Repeated call back at different times of the day can be made at very low cost.
Overall, the telephone method dominates the personal interview with respect to speed, absence of administrative problem, and cost per completed interview.
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Mail survey: In this survey mode, questionnaires traditionally are mailed to potential study participants, who complete and return them by mail. Superficially, interviewing by mail consists of identifying and locating potential study participants, mailing them questionnaires, and waiting for completed questionnaires to be returned. Advantages: The most likely reason for choosing a mail survey is cost, but most of the potential end-users are located through out country so it was most effective way for doing survey through mail.
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Sampling plan:
A definite plan was developed for obtaining sample from a given population that is called as sampling design. With this technique the item were selected from the sample. The following points were taken into consideration. Type of universe: It was the first step before starting data collection. It was necessary to definite the universe (i.e. the set of objects to be studied). Here the universe defined was finite. The universe: Here for the study purpose major sector were chosen i.e. export oriented units, government organizations for export etc Sampling units: Who is to be surveyed? This was the first question that pops in the initial stage. Survey was conducted for those firms who were active in the export and import activities. Project was design for Industries, govt. organization, Farmers, and Manufacturing firm. Sample size: How many organizations should be surveyed? It is one of the most crucial parts of survey since nobody has right solution for the question. Though large sample give more reliable results than small sample size but they take more time and money. However, it is not necessary to sample the entire target population or even substantial portion to achieve reliable results.
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Sampling procedure: Sampling units who are good prospect and having more accurate information were selected. After deciding on the research approach and instruments, it is important for a researcher to design a sampling plan. Sampling is the process of obtaining information about an entire population by examining only a part of it. A survey conducted on the basis of the samples, is described as sample survey. With consideration to the research study the following sampling plan is designed; Sampling Unit All type of the export and import units. Sampling Procedure - Procedure followed is, Simple random sampling. Sample Size - Samples are divided into five categories, explained in the following table-
CATEGORY 1.Engineering Industries 2.Food Processing Industries 3.Agri industries 4.Agricultural Bodies(Farmers) 5.Custom House Agents (CHA) 6.Others TOTAL
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1.7
Limitations of Study:-
1) Time duration: The time duration for conducting the research was very short; due to this one could not do justice for market survey. 2) sample size: The sample size does not cover maximum number of organization and end users through out the country. The sample size was restricted to certain number only. 3) Response from interviewer: Some of the respondent were not providing the information and some of the mail respondent have not forward the data of questionnaires. 4) Telephonic interviewing problems: A related problem with the telephone is that the interview must rely solely on verbal cues to judge the reaction and understanding of respondents. Since most of the telephone interviews are kept as short of 5 to 10 minutes, because of the belief that a bored or hurried respondent to likely to hang up the phone. 5) Mail surveys: Some of the organization has not responded and some fail to send answer to all question.
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The research survey was carried out from 1st June 2008 to 30th July 2008. The title is an acronym of Integrating Logistics Centre Networks in the Nashik District, the objectives of which were
(1) To improve the networking and operation of ports, logistics centers and other logistics operators and to create innovative solutions and strategies for all actors in the logistics chains,
(2) To create conditions for the spatial integration of logistics operations, to analyze spatial and environmental consequences of logistics centers development and to remove bottlenecks in port-hinterland-logistics centre connections,
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(3) To improve the compatibility of different information technology based transport and logistics networks, and
(4) To organize educative events related to logistics centers and disseminate knowledge and potential of logistics centers and logistics in general
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CHAPTER 2
ORGANISATION PROFILE
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(Late)Shri.R.Sivaswamy found of Transworld Group of Companies, whos far sighted vision created an opening in marine business globally. Heading the group today is Mr. S. Ramakrishnan Chairman, whose infectious dynamism and expertise has brought a remarkable growth. Ably supporting him is Mr.S.Mahesh (Vice-Chairman & Managing Director), Mr. V. Ramnarayan (Vice- Chairman & M.D) and Mr. L. B. Culas (Managing Director) .The Company has scaled Great heights to be reckoned internationally as a business house of repute.
From humble beginning of handling Indias first ever container in late 70s for Contship, company is today managing over 5,77,392 TEUs of container movement, commanding approximately 12 % of this market. It represent over ten shipping companies in India, employing over 1,000 people across 30 locations and handle over 1000 ship calls annually.
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INTERNATIONAL OPERATIONS
INDIAN OPERATIONS
Mundra Port
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Annual Throughput: About 600,000 TEUs. Also handling about 200 vessels per annum. Value System Truly understanding our customers and their business. Being Innovative to provide integrated business and logistics solutions. Creating profitable opportunities to offer Right Solution at Right Time. ` Laying utmost emphasis on Integrity and Ethics in whatever we do emerge as a leading player in the market Core businesses Ship Owning, Feeder Services, NVOCC. Shipping Agency & Freight Forwarding Domestic Activities: Supply Chain Management & 3 PL Transportation (primary & secondary distribution) Port to port containerized movements. Warehousing, Container Freight Station Container Yard Management & Container Handling.
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Group Arms (Operating into international business Ship owning, feeder services, shipping agencies etc.): Orient Express Lines (Singapore) Pte. Ltd. Shreyas Shipping Limited. Balaji Shipping (UK) Limited. Haytrans India Limited. Meridian Shipping Agency Pvt Limited. Albatross CFS Private Limited.
And there are more than 2 dozens associations & subsidiaries are marching ahead in various allied business.
(The Logistics arm of Transworld Group) As the logistics arm of Transworld Group, Clarion Solutions provides following end to end supply chain / logistics solutions to customer with a clearly visible differentiator in terms of companys approach towards the service & quality delivery:-
Warehousing / 3 PL Primary Transportation Domestic Express & Air Cargo Secondary Transportation & distribution Packaging, labeling & order management. Retail supply chain management. Freight Forwarding (Sea & Air)
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Custom Documentation Project Cargo & Cargo consolidation. Port to port containerized movement.
Domestic Transportation service Company have started focusing with great vigor on this area of logistics, for there is a need of highly professional & service quality driven company in this rather chaotic segment of industry. It have been doing Port to Port, Port to ICD movements since long, now company have focused on total transport solutions, with a highly diversified movements of open trucks ( LCV, MCV, 9 MT open, 15 MT Taurus Trucks), open-trailers carrying ODC consignment, localdistribution and carting (into small tempos and one toners). Highlights of Transport Division Company is associated with few of very prestigious name of various industry segments, namely FMCG, Engineering & Machinery, Consumer Durables, Industrial, Automobile etc. Company serves all over India with same service efficiency hence ensure that customer get the entire requirement serve at a single point itself. Company has a movement of 15 to 20 various kinds of trucks on daily basis, lifting a consignment load of approximately 400-500 MT on daily basis. Company do offer customers with regular MIS report, apprising them of companys service levels in terms of vehicle placement, dispatch, safe & efficient delivery.
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Few of esteemed customers are Colgate, Exide, Emerson, Tata Motors, Ashok Leyland etc Presence
Locations: Ludhiana, New Delhi, Nashik, Jaipur, Jodhpur, Mundra, Kandla, Ahamedabad, Baroda, Mumbai, Pune, Goa, Nagpur, Bangalore, Cochin, Tuticoron, Tripura, Coimbatore, Nagapattinam, Chennai, Hyderabad, Vizag, Kolkata.
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A glimpse to few additional services Container Freight Station, Dadri (Albatross CFS Pvt Ltd) A joint venture between Transworld Group of Companies and Container Corporation of India, a Govt of India Undertaking Strategically located in ICD Dadri Total area of 500,000 sq. feet Capacity to handle 150,000 Teus per annum Covered Warehouse 52,000 sq. feet 50 meter proximity from the railway siding Recently Opened a New CFS at Mundra Note:Also venturing into CFS (Container Freight Station) at Nhava Sheva (JNPT), and Chennai.
Quick Facts about Transworld Group of Companies Have a worldwide presence representing all major routes for various shipping lines, Very strong into feeder services in Indian Subcontinent & Gulf. Own a strong fleet of ships. Very strong in containerized cargo movements in India. A fleet of 100 + trailers to handle containerized movements, ODC & heavy lifts. An intensive present at all major ports & cities to provide you unmatched service delivery & network.
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Internationally
renowned
team
to
provide
&
handle
modern
Its top management and employee involvement drives the quality initiatives, thereby cultivating a culture for continuous improvement. Certification like ISO 9001:2000 by DNV, along with over 80 certified Internal Quality Auditors ensures the implementation of the best industry practices. Companys internal practices include 25 training modules across levels, delivering 11, 000 hours of training, annually. Awards and Recognitions like Best Ship Owner Award 2006 Lloyds List Dubai Runner up Best Shipping Agency 2006- Lloyds List Dubai Runner up Best Ship Management 2006- Lloyds List Dubai Recognition for establishing and expanding MISC presence in India Best Shipping Agent Award for four consecutive years Transworld Shipping Award for Excellence CONCOR A Govt. of India Undertaking Ministry of Railways, North West Region OEL SINGAPORE was ranked FIFTH among all the private enterprises in Singapore. The ranking takes in to account all the private enterprises across all the business sections in Singapore
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HALCON
AIR/SEA CARGO COMPLEX Ojhar Airport Nashik
It is a joint Working Group of Hindustan Aeronautics Limited (HAL) & Container Corporation of India (CONCOR), established for developing the air/sea cargo complex at HALs Ojhar Airport, Nashik. HAL is a well established organization in aerospace. Concor is a pioneer and leader in multi modal logistics operations in India
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AIR CARGO COMPLEX Plot area 24,000 sq. mtrs Covered bonded warehouse area 1350
sq. mtrs
Handle air cargo consolidation Bonded trucking facility Distance between cargo terminal and
Aircraft parking bay 2 kms
Facility available for handling special cargo Separate office space for carriers
ADVATAGES: AIR World class infrastructure & facility Proximity from Mumbai airport Dedicated cargo complex Competitive
charges parking and landing
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CORE ACTIVITIES:
Carting and stuffing of export a cargo/containers Destuffing and storage of import cargo/ container Cargo consolidation and desolidation for export and import cargo Container handling and stacking One stop custom clearance and post examination and clearance for exportimport consignments Movement of container to and from ports
ADVANTAGES: SEA
Empty container availability at icd Secured world class infrastructure facility Ample yard and operational area Well illuminated warehouse Personalized services One window custom clearance 24 hours uninterrupted power supply
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WAREHOUSE
Prefabricated structure Covered bonded warehouse area 1800 sq. mtrs Separate bonding space: 500 sq. mtrs. Separate carting and stuffing points Dedicated handling equipments Modern fork lifts Hydraulic hand carts Trolleys Electronic weighing machine Round the clock security Rain gutter all along the peripheral length of the warehouse
YARD:
Completely paved yard: 80,000 sq.ft. Separately demarked for 20 40, open tops, reefers, tanks and ODCs Well illuminated high mast lighting Fully fenced
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YARD EQUIPMENTS: Ultra modern reach stacker Heavy duty cranes to handle ODCs Dedicated modern fork lifts
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CHAPTER 3
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CATEGORY 1.Engineering Industries 2.Food Processing Industries 3.Agri industries 4.Agricultural Bodies(Farmers) 5.Custom House Agents (CHA) 6.Others TOTAL
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From all above sources 23 % of questionnaires came from micro-sized companies, 39 % from small-sized companies, 23 % from medium-sized companies and 15 % from large companies.
Type of the Company Micro-Sized Companies Small-Sized Companies Medium-Sized Companies Large Companies
Percentage 23 39 23 15
Graph 2: Responded Companies The questionnaire was taken to 272 export oriented units and companies, 160 questionnaires which are duly answered are received from the companies, i.e. 60 % of the recipients answered the questions. The companies that do not cooperate in networks are probably not as motivated to give their answers.
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3 . 2 P r e s en t a t io n , a n a l ys is a n d in t e r p r et a t i on of t h e i n f or m a t i on
1. Motives of Co-operation First of all motives for cooperation were analyzed. Transaction cost minimization; economies of scale and risk minimization were the three most important reasons for that (Fig 1). Economies of scope, learning and Need for resources are least important reasons for the companies to co-operate, because of following: Not ready to divert from conventional practices Lack of interest Lack of attitude towards learning Lack of awareness of ICD concept
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No.
1 2 3 4 5 6
Motives of Co-operation
Need for resources Learning Risk Minimization Economies of scale Economies of scope Transaction cost minimization
Average Grading in %
15.26 9.54 16.03 20.99 7.63 30.53
Motives
Risk Minimization
Learning
Average grading in %
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2. Framework of Prospective Customers The framework of the prospective customers is mainly based on one of the following kinds Engineering Industries, Food Processing Industries, Agri industries, Agricultural Bodies (Farmers), Custom House Agents (CHA) and others. The survey shows (Fig ) that the Agro industries and Agricultural Bodies (Farmers) are most acceptable forms of cooperation for exports units in Nasik. One third of the respondents were without opinion when they were asked to express interest to use value added HALCON terminal. Percentage of agreed customers was higher among the Agro industries and Agricultural bodies (Farmers), due to following reasons: Avoidance of congestion for perishables Convenient alternative for dock stuffing Convenient location Availability of container
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The reason for shortage of opinions was the lack of understanding of dry port concept and lack of good practice cases for ensuring the advantages. Anyway, the respondents agreed that offering of special and extra services could be one of the main driving forces for HALCON.
Engg. Industrie s Strongly disagree Disagree No Opinion Agree Strongly agree Total 6 8 11 9 2 36
Agri. Industrie s 3 4 16 13 6 42
Others
Total
1 1 3 1 1 7
16 24 55 42 23 160
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1 4 7 6 3 2
Strongly agree
1 2 11 13 6 9
Agree
3 6 12 16 7 11
No Opinion
1 6 3 4 2 8
Disagree
Strongly disagree
2 2 3 2 6
0
Engineering Industries Agricultural Bodies (Farmers)
10 Prospects
15
20
59
No. 1 2 3 4 5
No Opinion, 48.50%
Strongly disagree
Disagree
No Opinion
Agree
Strongly agree
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4. Functions Available at HALCON With other types of cargo at one common transport centre, HALCON should concentrate on the following Functions: Offer more specialized and extra services; Ensure Intensification of the Transport Chain effectiveness; Offer customs clearance services.
Strongly disagree Offering special and extra services Management of container flows to different ports Custom Clearance High capacity cargo storage Warehousing Consolidation of individual container flows Ensure intensification of the transport chains effectiveness 0% 0% 0% 0% 0% 0% 0%
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Strongly agree
No Opinion
Disagree
Strongly disagree
Percent
Graph 6: The functions available at HALCON Ensure intensification of the transport chains effectiveness Warehousing Management of container flow to different ports Custom Clearance 62 Consolidation of individual container flows High capacity cargo Offering special and extra Services
5. Average Opinion on HALCON advantage Opinion on the dry port advantages (Fig 6) was positive as expressed by the respondents. The dry port is feasible due to its following features: It helps to avoid traffic bottlenecks; Strengthens multi-modal solutions; Helps to connect cargo handling from the port
Agree Reduction of total transport expense Strengthening the ports in transport chains Connecting cargo Handling from the port with other types of cargo at one transport centre Strengthening the multi modal solutions Reducing the use of expensive, centrally located areas in port Reducing load environmental problems in the cities Ensuring Quality service Avoiding the traffic bottlenecks Integrating the port area with cities 52 63
Neutral 33 37
Disagree 15 0
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22
81 63 67 67 89 67
19 33 33 30 11 22
0 4 0 3 0 11
63
Connecting cargo Handling from the port with other types of cargo at one transport centre
Percent
Agree
Neutral
Disagree
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6. CHA Analysis:
Factors for Not Diverting Business Export under schemes Location of HALCON Reluctant to change Lack of understanding Customer non-cooperation Cost Percentage 40 21 12 11 9 7
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CHAPTER 4. CONCLUSIONS
Based on the Survey it can be stated that: The main reason for the respondents to cooperate is Transaction cost minimization. Bu Transaction cost minimization is closely followed by the willingness to learn and acquire new knowledge as well as economies of scope. Only few companies have answered that the reason why they co-operate is risk limitation. Concerning the sharing of technical and logistic aspects the respondents have proclaimed that they can see the advantages of sharing container terminals warehouses, logistics track and trace systems, innovative transshipment equipment and vehicles. The main framework condition for logistics networking should be a framework agreement. It could create some standard of cooperation attitudes and it is more primary than simple agreements or other kinds of partnership;
There is a positive attitude towards the dry HALCON Concept in Nashik. A segment of approximately 33 % of the respondents is positive of the idea of the HALCON and 48 % are neutral. This shows that there could be the basis for developing the concept of dry ports in the North Maharashtra Region.
An offering of extra services should be the main driving force for the HALCON according to operators point of view. The reason for such investigation results is
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that some services are not offered by typical ports. Improvement of already existing services is not substantial for decision making.
Avoiding of traffic bottlenecks in port areas is mentioned as the most important environmental advantages of the HALCON by transport operators.
4. Aspects for the future development of networks of ports, logistics centers and other operators:
Further facilitation of legal aspects of the cooperation, Further facilitation of administrative and financial aspects of operating in strategic business networks; It would be worthwhile for small and medium sized enterprises to co-operate Well together in order to improve their conditions for competition.
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APENDICES :
A) CLIENT ASSESSMENT FORM B) GLOSSARY C) BIBLIOGRAPHY
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COMPANY ADDRESS/TELEPHONE
ADDRESS : ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ PHONE NO: ___________________________________________________________
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WEBSITE: ___________________________________________________________ NO OF BRANCHES : ______________________________________________ WHETHER IS IT A (A) FACTORY: _____________________________ (B) CORPORATE OFFICE : ______________________ (C) BRANCH: ______________________________ (D) OTHERS : ______________________________
CONTACT PERSONS DETAILS NAME: ___________________________________________________________ DESIGNATION : ___________________________________________________________ WHETHER HE IS A DECISION MAKER : __________________________________
IF NO ,
LOCATION MOBILE NO
: _____________ :______________
DO YOU THINK THE VALUE ADDED SERVICES AVAILABLE AT HALCON WILL LEAD TO ITS SUCCESS ? A) STRONGLY DISAGREE C) NO OPINION E) STRONGLY AGREE B)DISAGREE D) AGREE
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WHAT DO YOU THINK ABOUT THE NECESSITY OF HALCON? A) STRONGLY DISAGREE C) NO OPINION E) STRONGLY AGREE
DO YOU THINK FUNCTIONS OF HALCON FACILITATE EXIM PROCESS ?
B)DISAGREE D) AGREE
B)DISAGREE D) AGREE
HOW HALCON WILL BE BENEFICIAL FOR THE GROWTH OF YOUR FIRM? ___________________________________________________________ ___________________________________________________________ ___________________________________________________________
TONNAGE
RATE
RATE
40 FT
RATE
LCL
CBM
RATE
IMPORT BY AIR
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PORT
TONNAGE
RATE
WHO IS THE EXISTING FORWARDER ___________________________________________________________ CLEARING AGENT ___________________________________________________________ WHETHER HE IS LOOKING FOR CHANGE THE EXISTING YES / NO
DO THEY HAVE HAVE AIR/LCL/FCL/ (OTHER THAN WHAT IS HE CURRENTLY STATING ) NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 SECTOR GULF IOS FAR EAST EUROPE MED(E AST-WEST EAST AFRICA SOUTH AFRICA WEST AFRICA NORTH AFRICA US EAST COAST US WEST COAST SOUTH AMERICA AUSTRALIA/NEWZEAL
AND
EXPORT 20 FT
40 FT
LCL
IMPORT 20 FT 40 FT
LCL
POTENTIAL
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YES
NO
IF YES THAN WHAT CAN WE HANDLE? EXPORT FCL IMPORT FCL EXPORT LCL IMPORT LCL AIR EXPORT AIR IMPORT DOMESTIC W/H CUSTOM CLEARANCE TRANSPORT
AFTER 3
MONTH
AFTER 6
MONTH
AFTER 12
MONTH
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B) GLOSSARY
Inland Container Depot: A common user facility with public authority status equipped with fixed installations and offering services for handling and temporary storage of import/export laden and empty containers, generally located in the interiors (outside the port towns) of the country away from the servicing ports. Container Freight Station: CFS is an off dock facility located near the servicing ports which helps in decongesting the port by shifting cargo and Customs related activities outside the port area.
Dry Port: The dry port is concept based on moving of intermodal terminals further to hinterland from the port areas Intermodal Terminals: Point of connection of two or more sea ports for the convenience of the shipping commodities.
Hinterland: 1. District beyond a coast or river's banks. 2. Area served by a port or other centre.
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Maritime Transportation: A system of conveying goods and material connected with the sea or seafaring. Containerization: Use of containers for the conveyance of the goods and material in daily transport, in the process of import and export LCL cargo: Less than Container Load Cargo FCL Cargo: Full Container Load Cargo JNPT: Jawaharlal Nehru Port Trust
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A) BIBLIOGRAPHY
Philip Kotler & Kevin Keller (2006), Marketing Management, 12th Ed. Prentice Hall of India Pvt. Ltd. New Delhi, Experiential marketing, Market Research, 245 to 246 & 101 to 116. C. R. Kothari (2005), Research Methodology, 2nd Ed. New age International Publishers Pvt. Ltd., New Delhi, Research Design, Sampling Design, Methods of data collection, 31 to 54, 55to 67 and 95 to 113. Customs Manual 2007 Ed. By Government of India, Arrival of Goods, export procedure through icd, procedure for clearance. www.google.com www.wikipedia.com www.transworld-group.com www.clr.co.in www.twgrp.com
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