Chapter I Introduction

Continental Warehousing Corporation (Nhava Seva) Limited is one of the biggest Warehousing providers among the private companies in India. CWCNSL is having 82 Warehouses and 3 CFS in India. CWCNSL was founded by Mr.N.D.R. CWCNSL is having CFS operations in three main regions Mumbai, Chennai and Tuticorin. CWCNSL started its first CFS operations in Mumbai in 1997. In Mumbai , CWCNSL CFS having 34 acres of land with an handling capacity of 10,000 15,000 TEUS (Twenty feet equivalent units) per month, having empty container storage yard of 12 acres of land for storing the empty containers in the yard and having a general warehouse of 2,65,000 sq.ft. CWCNSL started its Chennai CFS operations in 2006 with 10 acres of land with an Container handling capacity of 25,000 TEUS per annum, largest bonded warehouse of 2,50,000 sq.ft and import/export warehouse of 27,500 sq.ft. CWCNSL started its Tuticorin CFS operations in September 2009.It is located in Meelavittan in SIPCOT industrial area near to Sterlite industries, 12kms away from the Tuticorin Port. In Tuticorin CFS having 14 acres of land including empty container storage yard with a handling capacity of 3500 TEUS per month, enclosed export warehouse of 45,000 sq.ft and with 9 general warehouses measuring 2,10,000 sq.ft. There are 12 CFS in Tuticorin where lots of imports and exports with a volume of 20000 TEUS per month. In Tuticorin, CWCNSL alone is having Weigh Bridge inside the CFS. In Tuticorin, CWCNSL alone is handling the Wagon Operations also.

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Chapter II Container Freight Station

Container Freight Station is an extended arm of the port. In Proper definition, CFS is termed as the Port facility for loading and unloading the containerised cargo to and from ships. CFS is also termed as Container Terminal. In other words Container Freight Station (CFS) is a specialized cargo complex, which has received the status of an area of the Customs container control. It gives the opportunity to increase container throughput of the port. Container Freight offers third party Logistics to its customers. The name Container Freight Station was founded in 1990. Why CFS? Instead of avoiding too much congestion in the port, Customs Officers had given license to private companies for CFS. Because in port so many movements will happen (imports and exports) it is very difficult to stack the containers and examining the cargo in the port. So Customs Officers gave license by saying CFS is under 15kms from the port, Customs Superintendent and Inspector will be there to examine the cargo, access the bill, documentation and verification. Any have filing the bill alone happens in main customs in Customs House Tuticorin. Examination, verification and Documentation of the cargo alone do by the Customs in CFS. Container Freight Station is placed only in Wet port. Inland Container Depot (ICD) is slightly opposite to Container Freight Station (CFS). In ICD, Assistant Commissioner (Customs Officer) will be there so no need to go to main Customs house. Filing, Examination, Verification and Documentation everything happens inside ICD. Inland Container Depot is termed as Mini Customs House, because all things happen in one Roof. ICD is placed in Dry port. In Tuticorin only one ICD is there, it is named St.JOHN INLAND CONTAINER DEPOT.

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Chapter III Types of operations in CFS

There are two types of operations handling in Continental Warehousing Corporation Nhava Seva Limited Container Freight Station. They are

Import Export

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3.1. Import: Gate-in

Stacking

Delivery order

Examination

Report

O.C.C

FDS/CFS

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GATE-IN:

For Import first the CFS Staff in the container into the CFS gate. In that CFS staff put gate pass saying import container in, the driver brings the EIR COPY (Equipment Interchange Receipt) in that the Vessel Name, Container number, Customs Housing Agents (CHA) name, Line, Importer name, Seal number and Out time. In Gate CFS Staff put In-time, Transporter name in that EIR Copy. Driver brings the transporter slip in that back CFS Staff write the yard location. After that they give the Gate pass to the Security, the security check the Container Number, Seal Number and Vehicle number. If any of these is wrong they not allow the container into the yard.

STACKING:

Once the container got in from the gate they stack the container into the yard. Before that they plan where to stack the container whether it is 20 feet or 40 feet, whether it is Reefer or Ordinary container. With the help of Reach Stacker they stack the container into the yard. Up to 4 tiers they can stack the container.

DELIVERY ORDER & EXAMINATION:

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Before examining, the Customs Officer checks whether the delivery order is there or not. If Liners say (MAERSK) and CHA moves the containers, while cutting the seal for examination Delivery order have to be there otherwise Customs will not examine the cargo. Delivery order is must for Import cargo. In that Delivery order it will mention the Valid Date, Vessel Name, Voyage Name and the Yard. Once De-stuffing over, the container got empty they have to check the yard and validity mentioned in the D.O. If the validity is today CFS Import staff has to arrange transport and deliver the empty container to the yard. If the validity got over, again they have to get the extension period before that CFS staff should not deliver the container. If it is MAERSK Line, three yards are handling the Empty Containers CWCNSL, SICAL and DIAMOND.

REPORT & O.C.C:

Once the Examination got over Customs Officer Types the Bill of Entry Number and they verify the cargo if the pricing everything is correct they type the report and keep seal by saying the cargo is verified. Once the cargo got verified they gives Out of charge of Customs copy. After getting the Bill of entry Copy, O.C.C Copy, Delivery order Copy they can out the container from the CFS Gate. Without O.C.C copy and Delivery Copy they will not allow the container to go out from CFS.

FDS/CFS:

Once the Examination got over by the Customs they can do de-stuffing. It will go in lorry (Trailer or Taurus). Sometimes it goes to factory de-stuffing. It goes in the container itself. If it is CFS de-stuffing, in gate they write in import cargo out gate pass after getting the gate pass the vehicle can move from the CFS. If it is Factory De-stuffing, they write in Import container out gate pass after getting the pass they can move the container from the CFS.
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DOCUMENTATION:

Once the Import Bill of Entry document got closed, the Import Staff gives the document to the billing section. They put the charges saying Lift on, Lift off, Ground Rent, Examination charges, Labour charges (if it is CFS de-stuffing, Mechanical or Manual), TSA charges, seal charges and Weighment Charges.

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3.1.1 IMPORT TOP FIVE COMMODITIES IN CWCNSL CFS IN THE MONTH OF APRIL - JUNE 2010 Table No: 3.1 S.I NO 1 2 3 4 5 COMMODITY PP GRANULES WASTE PAPER SCRAP APPLES TILES PERCENTAGE 35% 25% 20% 15% 5%

1.1.1

IMPORT TOP FIVE COMMODITIES IN CWCNSL CFS IN THE MONTH OF APRIL - JUNE 2010

Chart No: 3.1

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3.2. Export: Cargo-In

Cargo Receipt

Stacking

Examination

Verify the cb.m

Planning
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Stuffing

Gate-Out

Documentation

CARGO INCOMING:

For Export, First the CFS Staff allows the cargo into the CFS Gate. The vehicle driver brings the Invoice copy and Checklist (Packing List). For Export Invoice No and Shipping Bill No is very necessary. After getting both the copy, the CFS Staffs put the Cargo-In gate pass. By seeing the Invoice copy in gate they put the No of Cartons, Shipping Bill No/Date, Invoice No/Date, Arrived from and in-time. From Gate they call to Export staff and tell from this Exporter, Cargo came from this place. Once they tell in (allow) the cargo into CFS. The cargo goes to the export warehouse.

CARGO RECEIPT, STACKING & EXAMINATION:

Once the cargo entered into the CFS gate, it goes into the Export Warehouse. The Export Staff will be there in the Export Warehouse. The vehicle driver gives the documents to the

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Export Staff. The Export Staff puts the Carting Order in that Name of the Exporter, Name of the Consignee, CHA Name, No of packages, Place of Orgin and stuffing method (whether it is mechanized or manual handling). After entering the carting order they ask the driver to bring the vehicle to the point (side door). It is easy to take the cartons from the vehicle and keep it in the export warehouse. If it is manual, labours are asked to take the cartons and keep it in the respected places. If it is mechanized, say Forklift (FLT) Flt Operators are asked to take the cargo and store it in the yard. Once storing the cargo in the yard got over, the Export Staff counts the cartons mentioned in the document. If everything is correct then only the Export Staff gives the cargo receipt to the driver. The Export Staff asks the driver to keep signature in the carting order. After getting the cargo receipt and gate pass the vehicle out from the CFS gate. The Export Staff keeps the Stock Card in the cargo to show the difference between the other cargos. In that the Exporter name, Consignee name, CHA name, Number of packages, Shipping Bill No/Date and Invoice no/Date. After storing the cargo in the Warehouse, CHA inform to the Customs for Examination. The Customs Super indent and Inspector examines the cargo. They do examination randomly. They check whether the prices, quality everything mentioned in the cargo. Once the examination got over, Customs Officer types the Report saying that the cargo got verified. Even (for ex) from Delhi Customs, they can check what is happening in Tuticorin customs.

VERIFY THE CUBIC METRE:

Before stuffing the cargo into the container the surveyor from the CHA side or CFS surveyor measures the C.B.M. How many cartons they can stuff inside the container according to that they tell the container, whether 20 feet, 40 feet or 40 feet high cube. In 20 feet they can stuff up to 30 cubic metres, in 40 feet they can stuff up to 60 cubic metres and in 40 feet high cube they can stuff up to 70 cubic metres. They measure the cub.m by calculating the Length of the Cartons, Breadth of the Cartons and Height of the Cartons. Multiplying all with the Number of the Cartons, they get the cubic metre approximately. Say 65 cubic metres they

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arrange the 40 feet high cube container with the stuffing capacity of 70 cubic metres, stuffing can takes place freely without any shortage of cargo and any damage.

STUFFING:

The Examination and Verification of cubic metre gets over, they can stuff the cargo into the container. Stuffing does by both mechanized and manual, it depends upon the cargo. If its mechanized say FORKLIFT, Flt operators do stuffing with less timing even if its 40 feet high cube container. If it is manual, labours do stuffing. The Surveyor and CFS Export Staff tells the planning, according to that labour stuffs the cargo into the container. Once the Stuffing got over the CHA takes the photos of the cargo and send mail to the Shipper saying that the cargo got stuffed.

GATE-OUT:

Once the stuffing got over the container moves from the Export warehouse to the Customs Office. There Vehicle parked in front of Customs Office. The Customs Inspector checks the Container Number and allocates the Seal. After that Customs Officer gives the Export gate-out pass, in that they mention the Out Time. They have to show the Gate pass to the security, in that Security checks the container number and the seal number. Once verification over, the Export Container can move out from the CFS Gate. Once it got out from the CFS Gate, it has to reach approximately two and half hrs from CFS to the Port Gate.

DOCUMENTATION:

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Once the Export container out from the CFS Gate, the Export staffs have to give the documents to the billing section. The Export Staff gives the stuffing cum tally sheet to the Operations Senior Executive. The Operations Senior Executive checks and puts the signature in the tally sheet. After that it goes to the billing section, they prepare the bill saying that the ground rent for the cargo, labour charges, cleaning charges and Weighment charges. Sometimes CFS arranges the vehicles or otherwise the CHA itself arrange the vehicles.

3.2.1 EXPORT TOP FIVE COMMODITIES IN CWCNSL CFS IN THE MONTH OF APRIL - JUNE 2010 Table No: 3.2 S.I NO 1 2 3 4 5 COMMODITY COIRPITH GARMENTS SULPHATE RICE MADE-UPS PERCENTAGE 50% 20% 10% 10% 10%

3.2.1 EXPORT TOP FIVE COMMODITIES IN CWCNSL CFS IN THE MONTH OF APRIL - JUNE 2010

Chart No: 3.2

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Chapter IV Other Types of Operations

The other types of Operations handling in Continental Warehousing Corporation Nhava Seva Limited are Coastal Wagon

4.1. Coastal:

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In CWCNSL Tuticorin they are handling Coastal Operations also. For Coastal Operation the Container goes within India. For Coastal mostly the Container comes from Gujarat Mundra port. In CWCNSL, the Coastal containers got stacked in the yard. It is just like the Import Operations the container comes from Mundra port, they in the container into the yard. For Coastal Operations no need of Customs Inspection and Examination because it goes within India. For Coastal it is same like Import Operation the Bill of Entry and EIR (Equipment Interchange Receipt) Copy. Only with the help of EIR Copy, the CFS Staff allows the container into the yard. In CWCNSL mostly soda ash cargos only come, CTA Logistics CHA takes care of the coastal operations in CWCNSL Tuticorin. Mostly they only give the coastal movement for CWCNSL Tuticorin. It is same like Import operation De-stuffing takes place. It goes in lorry (Trailer or Taurus). Sometimes it goes in that container itself for factory De stuffing. If the cargo goes in the lorry by de stuffing, the CFS Gate staffs entry the Coastal load out Gate pass in that they writes the Container Number, CHA Name, Vessel Name, Voyage Name and Despatched place. After de-stuffing the container gets empty, they have to deliver the container to the Empty Container yard mentioned in the delivery order. The CFS Staff writes in the Coastal Empty Out Gate pass, in that they writes the Container No, Unit, Line, Vessel Name, Voyage Name, Empty yard, Bill to and out time.

4.2. Wagon:

In Tuticorin, CWCNSL alone is handling the Wagon Operations. For Wagon it goes and comes in the rail. Their main Customer is Sterlite Industries. Because the company is situated beside to the Sterlite Industries and the Railway station is also very near, the Meelavitaan Station. In Wagon the Copper concentrate comes bulk from Madhya Pradesh (Bhuj). In wagon 90 Containers land Tuticorin twice a month. From there, they bring the container to the yard through transport vehicle. They store the Wagon containers in the CWCNSL yard. Whenever the importer needed it goes in the Container from the yard to the Sterlite Industries. Otherwise they store the bulk cargo in the General Warehouse. In Tuticorin, Out

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of Nine warehouses seven warehouse is for Sterlite Industries. Sterlite Industries producing Copper plates with the help of copper slag. In the Wagon Empty Containers also comes. The Empty Container goes to Sterlite Industries. They stack the copper plates in the Empty Container and it comes to the yard. Once next wagon arrives, they send the loaded container in the Wagon it goes to Madhya Pradesh. In CFS, the Gate Staffs entry the pass saying the cargo got de stuffed and the load entered to Sterlite Industries. The Staff entry in the Wagon Load Out Gate pass in that the Container number, Vehicle number, Importer Name, CHA Name, Despatched place and out time.

Chapter V Empty Container Yard

In Tuticorin, CWCNSL is having Empty Container Yard of 7 acres of land with a storing capacity of 500 TEUS in the Empty Storage yard. CWCNSL handling two major lines in their Empty Container Storage yard one is MAERSK Line and the other one is EMIRATES Line. MAERSK Empty Containers are handled in three yards CWCNSL, SICAL and DIAMOND yard. Empty Container Storages and Repair Services are performing in CWCNSL ECY. In CWCNSL, Empty Containers comes by Vessel, De-stuffing and other

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Empty by Wagon and by Road, suppose due to shortage of containers in MAERSK Line the containers comes from (Ex: Chennai) by road. In CWCNSL Empty yard, they are using Container Track Management System Software (CTMS). In the software the options like Master, Data entry, Daily reports, MIS Reports and utilities. In Master they stores the client names, Vessel names, Container sizes whether it is 20 feet dry, 20 open top containers, 20 reefers, 40 dry, 40 high cubes, 40 flat and 40 reefers. The list of lines handling the empty containers comes under the line options. In Data Entry, the options like inward and outward is used for Import and Export Containers in that the Gate Operation Staff type and send the reports to the line that reports Billing Staff send mail to the liners. Available conversion option is mentioning the undamaged containers and the details. Ex: The damaged containers entering into the empty yard, once it got repaired and washed it gets stored in the available conversion lot. Container number change option, suppose if they entered the container wrongly that option is used. In survey report option, the Surveyors mention the conditions of the container say ex: Bend, Dent, Cut weld and other damages. In ECY office they are having the tariff according to that they mention to the liners in the report. If the repair works tariff is within 100 -10000, once they get approval from the liners the repairers start doing the work but the Staffs in the container into the empty yard. Ex: In MAERSK Line if the damage is above Rs 10,000, once they get approval from the liners after that only the security in the container into the yard. Next the Container Holding options in that they tell this container is for sale or one way lease so they should not lift the containers. Ex: The 20 feet container allotted for Sri Mathi cargo, it should not been given to any other Exporter. If it is given to any one wrongly in that option remarks appear saying that the container is allotted for Sri Mathi cargo. In Daily Report, transaction options in that they send the Vessel wise details, Inward and Outward Details and Client wise reports etc internally. In ECY they are having the Container Stock Details and the Container History. In MIS Reports options, the Gate operation staff will be having the liners report, they have to mail to the liners day by day. They maintain the Seal Report saying that these many seal out from the yard. It is mostly for export purpose. Next option is Ground rent Calculation in that they mention the ground rent saying that these many days the Container stored in the yard. In ECY AC will kept in one lot and damage containers are kept in another lot, it is for their reference.

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5.1. Inward:

For Inward, Delivery Order is important. In delivery order they mention the Empty Container Yard and Valid Date. If it is in the current date they can in the Container to the Empty yard. If it is not in the current date, they have to get the extension period. After that the security allows the container to the empty yard. In the Empty yard Gate the surveyor checks the Container and mention in the gate pass, For Ex., any repairs or any washing needed for the container. For Inward the document which is necessary are EIR Copy and Delivery order. In CWCNSL ECY they are performing FIFO (First in First Out) Operations for Inward containers. If the container is coming to yard for repair works or storage, they have to give the containers within a month. Say ex: if it is 15th April the Container entered into the yard within 15th May it goes out from the empty container yard.

5.2. Outward:

For Outward, Booking Number is important. The driver brings the Booking number to the Empty yard office. The Gate Operation Staff types the booking number in the outlook express find options, in that the following Release order document opens. In that Release order Shipper name, booking number, Port of destination, Equipment whether 20 or 40, Cargo weight and local depot name. Release order is mainly for Export Containers. TSA

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Copy is for permission for the Export Containers. Liners issue the TSA Copy to the Empty Container yard. From ECY they issue the TSA to the Exporter. TSA permission is must for export suppose the container is going to the factory or CFS, on the way some of the government staff is asking where it is going or show the document for this empty container. For that TSA Copy is must for export. In CFS Customs Officer verifies the Container Number and the Line Seal Number, they issue the Customs Seal and write the seal number in the TSA Copy and they put the seal in the TSA Copy. In main Customs they check the Container Number and Seal Number from the TSA copy. From Green Gate the Container enters into P.S.A SICAL. For outward, Release order Amendment is to inform the line that they send the container in the other vessel. For outward types of containers, light duty and heavy duty. It is mainly for Export purpose. Light duty means the Pay Load is 21,750 kg (up to 21750 kg they can stuff the cargo).Heavy duty means the Pay Load is in between 21750 to 28000 kg. Suppose its 24000 kg they have to get the heavy duty containers, because light duty they stuff up to 21750 kg.

Chapter VI Conclusion
In Tuticorin Port, Five years before the Port Volume was 5000TEUS per month that time Five or Six Container Freight Station only. That time CFS was getting the TEUS movement from the Port Volume. But now there are 12 CFS in Tuticorin, the Port Volume is 10000TEUS per month but still the CFS are sharing their TEUS movement like five years
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before. Nowadays the Vessels are going through Colombo Port. Once the Sedhu Samutram project starts, the Volume also will increase. From Tuticorin the Vessels goes directly instead of going through the Colombo Port. Then more Exports and Imports (lot of TEUS) happen through Tuticorin Port. The TEUS movement also comes more for Container Freight Stations. In Tuticorin, CWCNSL CFS offering competitive and giving value added services to their clients. Even though the CWCNSL is Mumbai based company. But they are doing decent business in Tuticorin (850-1000TEUS per month). In the near Future CWCNSL CFS can come under the first three numbers out of 12 CFS.

Chapter VII Bibliography

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2. www.tuticorinport.com 3. www.scribd.com

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4. Logistics Business Management Insight

Chapter VIII Abbreviations used in CFS

CFS

Container Freight Station

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EIR TSA BL BE CHA C&F LCL FCL TEUS O.C.C ICD D.O CBM Equipment Interchange Receipt Transhipment Application Bill of Lading Bill of Entry Customs Housing Agents Clearing and Forwarding Agents Less than Container Load Full Container Load Twenty Feet Equivalent Units Out of Charge of Customs Inland Container Depot Delivery Order Cubic metre

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