CONTAINER TRAINS

LOGISTICS ININDIA

CONTAINER TRAINS

India has become the prime location of logistics service provider all over the world. Logistics management is the part of the supply chain that plans, implements and controls the efficient and effective forward and backward flow of goods, services and information from point of origin to point of consumption. It evolved as a business in 1950 and includes transporting goods from one place to another through roadway, railway, air, shipment or intermodal movement. Government also works to improve the logistics services in the country. The 11th five year plan had logistics improvement as its objective. Planned expenditure on transport is expected to be about INR 13,750 billion and the split is INR 4813 billion on railways, INR 7013 billion on roadways and INR 963 billion each on ports and airports. INTRODUCTIONINTRODUCTIONINBOUND LOGISTICSIt concentrates on purchasing and arranging the inbound movement of materials, parts and finished inventory from suppliers to manufacturers or warehouses or retail stores.OUTBOUND LOGISTICSIt is related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.LOGISTICS

LOGISTICS VIA RAILWAYS :CONTAINER TRAINSABOUTContainerization is a system of freight transport based on a range of steel intermodal containers built on standardized dimensions that can be loaded, unloaded and transported efficiently over long distances. The system was developed after World War ll. It dramatically reduced the transport cost, supported post-war boom and was a major element in globalization.

ACTOACTO stands for Association of Container Train Operators. It is an organization formed to promote and protect the rights of container train operators. It also acts as a consultative body to the Indian Railways and other concerned government departments to formulate policies in common interest of container train operators. It also arranges seminars and workshops to share experience and knowledge with other national and international organizations.

MEMBERS OF ACTO

INLOGISTICSIt is Indias first private container cargo train and rake operator on the Indian Railways after striking deal under the Container Train Policy. Its operation started on April 1, 2007.Services offered :-Rail services : Terminals : provide a spectrum of facilities in terms of warehousing, container parking, repair facilities and even office complexes. Inlogistics has set up 3 rail linked terminals at Sahnewal, Rourkela and Raipur.

ASSETS

No. of rakes : 15No. of containers : 2500+ 5+ owned and leased terminals -10+ officesAttached/dedicated trucks 150

Current Routes

Rajasthan Kolkata Odissha - Punjab , Gujarat - Kolkata, Gujrat Raipur Punjab - Odissha/Chhatishgarh Punjab/Rajasthan, Orissa to East / North East - Kolkata

COMMODITIES TRANSPORTED

MarbleTilesClaySoft ironPig ironFood grainsSponge iron

CLIENTS

DS GroupEricssonVedantaBhushan Power and SteelAdhunikNK SteelIND EnergyCentral Warehousing Corporation OrientKajariaNitco and many more..

INLOGISTICSOBJECTIVESImproving customer serviceRapid responseReduce total distribution costGenerating additional salesCreating time and place utilitiesPrice stabilizationQuality improvementMovement consolidationFUNCTIONSORDER PROCESSING It includes :-Order checking if any deviation in any agreed or negotiated terms.Price, payment and delivery termsChecking the availability of the material stock.Production and material scheduling for storageAcknowledge the order indicating deviationWAREHOUSING It is a major decision and considers following factors :-LocationNumber of warehousesSizeDesign of buildingINVENTORY MANAGEMENT it involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling and other related costs are kept in check and reconciliation of inventory management.TRANSPORTATION it consists of transporting cargo from one place to another. At times it may involve other methods of logistics like trucks (roadways), ships or aviation.INFORMATION it involves keeping the customers informed about the status and position of their cargo.FACILITIESFUNCTIONSNODES OF DISTRIBUTIONFactory where goods are manufactured.Depot or deposit used for storing of merchandise.Distribution centers for order processing and fulfilment.Transit points built for cross docking purposes.Retail stores and supermarketsFinal consumerINFRASTRUCTUREInfrastructure of container train movement refers to the various supporting elements that facilitates smooth functioning. It includes ContainersHandling equipmentsTracks Container Freight Station (CFS)Inland Container Depot (ICD)

CONTAINERSThese are also called ISO containers as they are made according to the ISO standard dimensions. They are meant for carrying the goods from one place to another. Containers can broadly be divided into 3 categories Tank container : it is an intermodal container to transport liquid, gaseous and powder items. It is a stainless steel vessel surrounded by an insulation and protective layer of polyurethane. It can be loaded from top and bottom.Reefer container : these are meant for transport of temperature sensitive cargo. They have integral refrigeration units and rely on external power from electric power points at a land based site.Swap container : these are standard freight containers for road and rail transport.

HANDLING EQUIPMENTThe equipments used for loading unloading purposes are called handling equipments.Container Granty Cranes : they are meant for transferring goods from ships to rail or road wagons. A spreader beam moves in several directions allowing accurate positioning of cargo. Some newer cranes can carry up to 2-4 20 foot container at once.Straddle Carrier : they are capable of straddling container stacks as well as rail and road vehicles allowing for quick transfer for containers.Grappler Lift : it is similar to straddle carrier except for it grips the cargo from bottom instead of the top.Reach Stackers : they have arms as well as spreader beams for lifting containers and can stack them on top of each other.Sidelifters : they are road going truck or semi trailers with cranes fitted at each end to hoist and transport containers in small yards or longer distance.TRACK GAUGEThere are mainly 5 types of tracks used in India Broad Gauge(BG) or Indian gauge is 1676mm or 5ft 6in Standard Gauge(SG) 1435mm or 4ft 8.5inMetre Gauge(MG) is 1000mm or 3ft 3..37 5inNarrow Gauge(NG) 762mm or 2ft 6inNarrow Gauge 610mm or 2 ftBroad gauge is preferred in India as it provides greater stability during periods of high wind and unpredictable weather and greater space between the wheels for bigger inside circles.Some lines of Delhi Metro are standard gauge.

INLAND CONTAINER DEPOTICDs are dry ports equipped with fixed installations and offering services for handling and temporary storage of containerized cargo as well as empty containers. It is a custom station in its own right having independent existence at par with any other custom station. It has an automated system of its own with separate station codes. It also offers the services of maintenance and repair of containers. ICDs are mostly located near hinterlands. They are the concentration points of long distance cargoes and their unitization. It helps reduce the inventory cost and increases the flow of trade.

CONTAINER FREIGHT STATIONCFS are specified as custom areas wherein imported or exported goods are temporarily kept before clearance by custom. With the increase in volume of international trade, a number of CFS have been developed near the stations in order to facilitate easy clearance and mobilization of goods. CFS is merely an appendage to a parent Customs station. At CFS, goods are stuffed into containers or de-stuffed therefrom and aggregation/segregation also takes place at such places. It is generally located near ports.

CHALLENGESIt is high cost low profit business.There is lack of skilled and knowledgeable labor in logistics sector.Important rail networks are oversaturated.Rail freight tariffs are high.Transmit times are long and uncertain.Rail terminal quality is poor.Less flexibility in carrying different types of goods.Railway carriage not easy for companies that cannot provide full train loads.

GAME CHANGERSLow transportation cost as compared to other modes of logistics Seamless connectivityTransportation of bulk cargoAdvantage of time, cost and efficiencyDouble stacking and reefer services ALLS NOT WELLInflexibility to reach deep interiorsLarge number of unorganized playersHike in fuel prices increases the costSuffers from threat of smuggling Trade regulationsCURRENT STATUS IN INDIABeing the seventh largest nation in terms of geographical area and a prominent force among emerging countries in terms of technology and infrastructure, India is now well ahead on the growing curve of the world economy. The role and potential of logistics companies is on the upswing as crucial business operations like supply chain management and contract logistics become key issues of managing humongous surge in national business locally, nationally and globally. On logistics front India has picked good momentum over the last decade. With an estimated market worth of Rs 260000 crores the industry contributes around 13% to the national GDP. International logistics players are also expanding their base in India.

THE WAY FORWARDLogistics sector has a great future ahead. The Indian logistics sector growth depends on the growth of its soft infrastructure like education, training and policy framework as much as the hard infrastructure. It is estimated that Indian logistics sector will continue to robust growth of 10-15% annually, leading to the growth of the economy. Some steps that may help in this direction are :-Increase investment in railways by reallocating from roads.Creating enablers to maximize efficiency, logistics parks, standardized containers, etc.

THANK YOUMADE BY M VAISHNAVI