Inbound Rake Management System in Cement Industry

REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT

FOR

POST GRADUTE PROGRAMME IN MANAGEMENT

BY

KUNAL DAS (EIILM/PGP/09-10/CO33)

UNDER THE GUIDANCE OF

Prof. POULAMI SENGUPTA

EIILM, KOLKATA

&

Mr. NARAYAN DIXIT

(Logistics Head)

CALCOM CEMENT INDIA LIMITED

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT

6, WATERLOO STREET, KOLKATA-700069

JUNE, 2009

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ACKNOWLEDGEMENT

At the onset I would like to express deep sense of gratitude to each and every personality in bringing up my summer internship project work to study the inbound rake management system of cement industries.

I am extremely grateful to the management of ‘Calcom Cement India Limited’ for giving us such an effective summer project.

We convey our immense thanks and gratitude to our external guide Mr. Narayan Dixit (Logistics Head) and to our internal guide Prof. Poulami Sengupta.

I also take the opportunity to convey our heartfelt gratitude to our institute ‘EIILM’ and placement department for sending us to Calcom Cement India Limited.

We are also thankful to all the people in Calcom Cement India Limited, Shilpukhri, Guwahati for their kindly support and proper guidance towards this project. They have constantly endeavored to supplement our knowledge with significant contributions from their vast pool of experience and ideas which helped us to make our project.

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EXECUTIVE SUMMARY

Logistic and Supply Chain Management are inevitable for competive business today. And both have great importance since supply chain managers have tremendous potential of reducing the operational cost, which has a perceptible impact on a firm’s profitability. Basically, raw material(clinker) is considered as a vital input for manufacturing firm one where raw material is converted into a certain output(cement) through the use of technological processing. Often called the five M’s to be managed, management of business, specially that of the manufacturing type, is concerned with getting optimum result through employing the following: men, machine, money, material and minitue(time).

The relationship clearly establishes the place where efforts can be expected to yield result. In an era of globalization and stiff competition, a firm can not control profit or sales, although it can put in all its energy to do that. However, it is the management of assets that that if done in a way that reduces the overall cost can fetch much better results. Thus, it is cost control that holds the key. Logistic and Supply Chain Management involves the movement and storage of raw materials and storage of raw materials, work-in-progress, inventory and finished goods from point-of-origin to point of consumption.

Logistic at present is given much importance by any business organization because logistic accounts to effective controlling of operation time and cost. Proper logistic operation can reduce the unnecessary cost and give greater revenue.

I carried out my project concerning “To Study the Inbound Rake Management System of Cement Industry.”

The project was carried out in Guwahati(Assam) region. The study reveals that there are different modes of transportation facilities available in the region but the company mostly stick to rail and road means of transportation. National Water Ways-2 is not being used sill present and the reasons for this is many. The study was done to know the potentiality of the rail so that it can help the

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company to transport raw materials and finished product to different geographical areas in more efficient and cost effective way.

The objectives of this project are as follows:

To know about the Northern Frontier Railways To know about the procedure of wagons booking To know about the procedure of wagons loading To know about the procedure of wagons unloading To know about the rules and regulations included in loading and unloading

of raw materials. To know about the free time available for loading and unloading. To know about the penalties involved in loading and unloading.

Thus my study attempts to understand the possibility of transportation of goods by rail in more efficiently connecting Eastern and North Eastern India at a low cost and less time and finally increasing the market share and thus increase the business prospects.

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Methodology:

Visited the plant and get information about the arrangement for the effective use of railway transportation.

Visited the different broad gauge yards and obtained the information. Our external guide Mr. Narayan Dixit guided us and gave useful information

and discussed how Calcom Cement India Ltd. is is using the railway transportation.

Visited different dealers and distributors.

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Introduction

Cement is a binder which sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term "opus caementicium" to describe masonry which resembled concrete and was made from crushed rock with burnt lime as binder. Cement is an essential component of infrastructure development and most important input of construction industry, particularly in the government’s infrastructure and housing programs, which are necessary for the country’s socioeconomic growth and development. The cement industry in India dates back to 1914, with the setting up of its first unit in Porbunder. It is considered as one of the core infrastructure industries. It is the second largest producer of cement in the world just behind China, with industry capacity of over 200 million tonnes. It is consented to be a core sector accounting for approximately 1.3% of GDP and employing over 0.14 million people. Also the industry is a significant contributor to the revenuecollected by both the central and state governments through excise and sales taxes. Encouraged by the positive response of the industry to the policy liberalization in the cement industry, Government decontrolled the industry fully on 1st March 1989. With the Industrial Policy Statement made by the Government on 24th July 1991, the cement industry stands delicensed. Indian cement industry has thus been one of the pioneering industries in introducingpolicy reforms. After the liberalization measures and globalization of Indian economy, the cement industry has been growing rapidly at an average rate of 8 per cent except for a short period in 1991-92 when the industry faced demand recession. The country is now the second largest producer of cement in the world. India has also started exporting large quantities of cement and clinker, the major raw material of cement production.

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Industry Overview: Indian Cement Industry

Cement is the preferred building material in India. It is used extensively in household and industrial construction. Earlier, government sector used to consume over 50% of the total cement sold in India, but in the last decade, its share has come down to 35%. Rural areas consume less than 23% of the total cement. Availability of cheaper building materials for nonpermanent structures affects the rural demand. The Indian Cement industry is the second largest cement producer in the world. The industry has undergone rapid technological upgradation and vibrant growth during the last two decades, and some of the plants can be compared in every respect with the best operating plants in theworld. The industry is highly energy intensive and the energy bill in some of the plants is as high as 60% of cement manufacturing cost. Although the newer plants are equipped with the latest state-of-the-art equipment, there exists substantial scope for reduction in energy consumption in many of the older plants adopting various energy conservation measures. There are around 11 different types of cement that are being produced in India. The production of all these cement varieties is according to the specifications of the BIS (Bureau of IndianStandards). Some of the various types of cement produced in India are:

Clinker Cement Ordinary Portland Cement Portland Blast Furnace Slag Cement Portland Pozzolana Cement Rapid Hardening Portland Cement Oil Well Cement White Cement Sulphate Resisting Portland Cement

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Company Profile

The Calcom Cement India Limited is the new upcoming plant of the group in Assam. Calcom Cement India Limited have their new plant in Lanka which is just 31 km away from Lumding which one of the very important division of North East Frontier Railways starting from Guwahati to Furkating in upper Assam to Agartala in Tripura. Unlike most cement plant in remote locations, Lanka is a big town in Nagaon district. It is an important railhead. A four lane highway which is a part of the East – West corridor connects it to Guwahati which is at two hour drive from the plant.

The CCIL plant in Lanka have the latest technology which have been imported from Germany but the plant in Lanka is not a full phased cement plant. It is a grinding plant where the clinker is brought from other plants and is converted into cement. The clinker is now being brought from Zuari cement in Andhra Pradesh.

The other plant of the group is situated in Umrangso in Assam. The plant is four and a half hour drive from Shillong.

The plants are very strategically located, to create an uninterrupted and efficient flow of input and output goods. It has strategic alliance to ensure uninterrupted supply of raw material at most competitive prices. The company ensures the least delivered cost of cement in the region.

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Factors Affecting Cement Industry:

LIMESTONE RESERVES Limestone is the main raw material for manufacture of cement. For

manufacture of one tone of cement, a quantity of 1.5 tonne of limestone is required. India is endowed with large deposits of limestone. The estimated total reserves of cement-grade limestone are 95.623 billion tonnes. However, the limestone deposits are not uniformly distributed in all the States.

Limestone reserve in North-Eastern states:State Location Estimated Reserve(in

million tons)

Assam Karbi Anglong District

Dima Hasao District(N. C. Hills)

62

401

Meghalaya Jaintia Hills, East Garo Hills

37.43

Arunachal Pradesh Tidding

Pagin

Hunli

Menga

140

225

13.35

0.70

Manipur - -

Nagaland 1000

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COAL The consumption of coal in a typically dry process system ranges from 20-

25% of clinker production. This means for per ton clinker produced 0.20-0.25 ton of coal is consumed. This contributes 35-40% of the production cost. The cement industry consumes about 10mn tons of coal annually. The Indian coal has a low calorific value (3,500-4,000 kcal/kg) with ash content as high as 25-30% compared to imported coal of high calorific value13 (7,000-8,000 kcal/kg) with low ash content 6-7%. Lignite is also used as a fuel by blending it with coal.The coal reserves in North-East:State Location Estimated Reserve(in million

tons)

Assam Dibrugarh & Sivasagar District

Tinsukia District

Karbi Anglong District(Koliajan, Sheelvetta)

Dima Hasao District(N. C. Hills)

368

0.5

0.65

2.28

Meghalaya Jaintia Hills 5.62

Arunachal Pradesh

Namchik-Namphuk 84.23

TRANSPORTATION Cement is mostly packed in paper bags now. Calcom Cement India Ltd. Uses Polyprophane cement bags which are much better than ordinary cement bags. It is then transported either by rail or road. Road transportation beyond 200 kms is not economical therefore about 55% cement is being moved by the railways. There is also the problem of inadequate availability of wagons especially on

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western railways, southeastern railways and NF railways. Under this scenario, manufacturer is looking for river routes, this being not only cheap but also reducing the losses in transit. Today, 70% of the cement movement worldwide is by sea compared to 1% in India. However, the scenario is changing with most of the big players like L&T, ACC and Grasim having set up their bulk terminals.

TECHNOLOGY: Calcom Cement India Ltd. uses technology imported from China for

improvising the production process. Calcom has installed two silos of capacity 5000 tons each.

ENERGY CONSERVATION The cement industry is an energy intensive industry by virtue of high

temperature reactions and various physical operations involved in its manufacture. The industry uses both coal and power as energy inputs. The cost of energy accounts for about 45% of the total production cost. Energy management in modern cement plants in India meets the standards comparable with the best in the world. Energy studies of cement plants are being carried out in a large number of plants on a continuing basis by the National Council for Cement & Building Materials (NCB). NCB has a mobile energy diagnostic unit (Energy Bus) equipped with necessary instrumentation and on-board computer with relevant software for conducting the energy studies on systematic and accurate manner. NCB has been giving National Awards for Energy Efficiency in Indian Cement Industry to the best performing cement plants on annual basis since 1986. Based on the recent data of 51 participating plants, the weighted average energy consumption is:-Thermal Energy Consumption(Kcal/kg Clinker) Electrical Energy Consumption (kWh/t Cement) Dry Process Plants 763 96.88 Overall (Combined for all Processes) 769 96.86.

POLLUTION CONTROL: The main source of pollution in cement industry is dust emission. The

industry’s achievement in controlling particulate emission has been quite satisfactory. Considerable progress has been made in installing Electrostatic Precipitators (ESPs) and bag houses/fabric filters in various sections of cement plants, especially after the promulgation of the environment legislation in 1981 and 1986.

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Issues concerning Cement Industry:

High Transportation Cost is affecting the competitiveness of the cement industry. Freight accounts for 17% of the production cost. Road is the preferred mode for transportation for distances less than 250km. However, industry is heavily dependent on roads for longer distances too as the railway infrastructure is not adequate.

Cement industry is highly capital intensive industry and nearly 55-60% of the inputs are controlled by the government.

There is regional imbalance in the distribution of cement industry. Limestone availability in pockets has led to uneven capacity additions.

Coal availability and quality is also affecting the production.

Government Policies

Government policies have affected the growth of cement plants in India in various stages. Their control on cement for a long time and then partial decontrol and then total decontrol has contributed to the gradual opening up of the market for cement producers. The stages of growth of the cement industry can be best described in the following stages:

Price and Distribution Controls (1940-1981):During the Second World War, cement was declared as an essential commodity under the Defence of India Rules and was brought under price and distribution controls which resulted in sluggish growth. The installed capacity reached only 27.9 MT by the year 1980-81.

Partial Decontrol (1982-1988):In February 1982, partial decontrol was announced. Under this scheme, levy cement quota was fixed for the units and the balance could be sold in the open market. This resulted in extensive modernization and expansion drive, which can be seen from the increase in the installed capacity to 59MT in 1988-89 in comparison with the figure of a mere 27.9MT in 1980-81.

Total Decontrol (1989):

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In the year 1989, total decontrol of the cement industry was announced. By decontrolling the cement industry, the government relaxed the forces of demand and supply. In the next two years, the industry enjoyed a boom in sales and profits. By 1992, the pace of overall economic liberalization had peaked; ironically, however, the economy slipped into recession taking the cement industry down with it. For 1992-93, the industry remained stagnant with no addition to existing capacity.

Government Controls

The prices that primarily control the price of cement are coal, power tariffs, railway, freight, royalty and cess on limestone. Interestingly, all of these prices are controlled by government.

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Major Players in North East

Barak Valley Cement

Barak Valley Cements Limited was incorporated as a Public Limited Company in the year 1999, under the Companies Act, 1956. Presently the Company is engaged in the business of manufacturing of cement of different grades and is marketing its product under the brand name "Valley Strong Cement". The company is located in Assam and all the operations of the company are concentrated in the North Eastern region. The manufacturing unit of the company is at Joom Basti, Devendranagar, Badarpurghat, District Karimganj, Assam. The sales are also concentrated in the North Eastern region.

The main products are:

Ordinary Portland Cement (OPC) Portland Pozzolana Cement (PPC)

The Company is ISO 9001: 2008 certified company and the products confirm to BIS (Bureau of Indian Standards) specifications.

Being located in Assam, we are entitled to get various benefits like Excise duty exemption, Central Sales tax/VAT exemption, Income-tax exemption, Working capital interest subsidy and Insurance subsidy.

There strength is good quality raw materials and fuel i.e. Limestone and coal. Limestone deposits of good quality having CaO (calcium Oxide) of more than 47% are spread over a large area just 75 KM away from there plant site. Coal having Calorific value of 6000-7000 Kcal /Kg. and ash content as low as 8% is available in plenty in Bapung and Surupi, areas of Meghalaya, which are 80-90 Kms from the factory site.

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The manufacturing unit is located in Barak Valley region, Assam. This entire area is surrounded by the other states of North-East such as Mizoram, Tripura, and Southern part of Meghalaya, which are the good markets for cement . Barak Valley is the foot land of all the three states and Badarpur Ghat is the junction point. The manufacturing unit is well connected with national - highways and railway. Location of the manufacturing unit helps them in reaching our customers economically. The location also helps us in meeting the demand of dealers/subdealers/ distributors in shortest possible time.

Topcem Cement

Meghalaya Cement Limited has emerged as one of the most successful players in the NE region. We have the 2nd largest market share of 24% in the eastern region of India. We have the people, the culture, and the opportunities to continue on our path of disciplined growth.

This integrated cement plant with advanced dry process rotary kiln technology has plans to augment the capacity to 3,000 tons per day in the very near future. This makes MCL one of the giants in NE region due to its efficiency & effectiveness in adopting the most contemporary & latest technology. To meet the power requirements in a seamless and cost effective manner, we’ve also undertaken 10 MW captive power plant projects which is also under fast progress. The plant would be able to cater complete power requirement uninterruptedly thus producing the premium quality cement achieving higher customer satisfaction.

The company is having dual certifications as an ISO 9000:2001 and ISO 14001 certified company coupled with TQM guided process. While many companies have to transport cement over several days & weeks from the plains to reach the North-East Region or transport limestone or clinker over similar distances, TOPCEM cement is made at a large new integrated cement plant next to captive limestone mines, very close to the market. The cement thus produced from this plant is of high early strength & better workability.

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The main products are:

53 Grade Ordinary Portland Cement OPC 43 Grade Ordinary Portland Cement OPC Portland Pozzolana Cement (PPC)

Star Cement

Cement Manufacturing Company Limited (CMCL) is the largest cement manufacturer in north east India. The plant is spread across 40 acres of land in the idyllic town of Lumshnong, a strategic location at Meghalaya that ensures easy availability of high-grade limestone. The brand “Star Cement” has established itself as the most accredited brand of the region on grounds of both quality and fair pricing.

The plant is located at village Lumshnong, situated on National Highway 44 and 135 Kms away from Shillong towards Silchar; in Jaintia Hills.Meghalaya.

The main products are: 43-Grade Ordinary Portland Cement (OPC) 53-Grade Ordinary Portland Cement (OPC) Portland Pozzolana Cement (PPC)

Lafarge India

Lafarge India is a subsidiary of the French Building Materials major Lafarge. Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. Lafarge entered the Indian market in 1999, with the acquisition of the cement business of Tata Steel. Lafarge currently has four cement plants in India: two integrated plants in the state of Chhattisgarh , one grinding station each in Jharkhand & West Bengal. All plants are ISO 9001 and 14001 certified.

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The main products are:

Portland Slag Cement Portland Pozzolana Cement

It’s brands Lafarge Cement and Lafarge Concreto Cement enjoy high brand equity here and are amongst the highest priced brands.

Vinay Cements Vinay Cement has been a leading manufacturer of cement in the North East

of India for the last seventeen years. Vinay has played a pioneering role in the development on the region since inception. Sold under the brand name Vinay, with over 94 percent brand recall, its products have been used to build homes, bridges, dams, oil well and even an entire National Games village in Mizoram. We at Vinay believe in providing a high quality experience to our customers by delivering a high quality product as an attractive price point..

Both Vinay Cements and RCL Cements belonging to the B.K. Group, has shares in Calcom Cement India Limited, the new proposed cement plant with a capacity of 1.40 million ton coming up in the North Cachar Hills district of Assam.

The main products are :

PORTLAND POZZPLANA CEMENT (PPC) 43- Grade Ordinary Portland Cement (OPC)

ACC Limited

ACC Limited is India’s foremost cement manufacturer with a countrywide network of factories and marketing offices. Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete technology. Among the first companies in India to include commitment to environment protection as a corporate objective, ACC has won accolades for environment friendly measures taken at its plants and mines, and has also been felicitated for its acts of good corporate citizenship.

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ACC's brand name is synonymous with cement and enjoys a high level of equity in the Indian market. Our range of cements and blended cements is marketed through a network of 19 Sales Units, 54 Area Offices, and 194 warehouses. This is backed by a countrywide network of over 9,000 dealer who, in turn, are assisted by their sub-dealers.

ACC manufactures the following types of cement, in addition to which, it provides Bulk Cement and Ready Mix Concrete.

The main products are:

43 Grade- Ordinary Portland Cements (OPC) 53 Grade Ordinary Portland Cements (OPC) Blended Cements Fly-ash based Portland Pozzolana Cement Portland Slag Cement

UltraTech Cement

UltraTech Cement Limited has an annual capacity of 48.8 million tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete (RMC). The company has 11 integrated plants, one white cement plant, 12 grinding units and five terminals — four in India and one in Sri Lanka. UltraTech Cement is the country’s largest exporter of cement clinker.

The main products are:

Ordinary Portland cement Portland blast furnace slag cement

Portland Pozzolana cement

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Railway Transport

Rail transport is a commonly used mode of long-distance transportation in India. Almost all rail operations in India are handled by a state-owned organization, Indian Railways, Ministry of Railways. The rail network traverses the length and breadth of the country, covering a total length of 63,140 kilometers (39,233 mi). It is said to be the 4th largest railway network in the world, transporting over 6 billion passengers and over 350 million tones of freight annually. Its operations cover twenty-eight states and three union territories and also provide limited service to Nepal, Bangladesh and Pakistan. Both passenger and freight traffic has seen steady growth, and as per the 2009 budget presented by the Railway Minister, the Indian Railways carried over 7 billion passengers in 2009.

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Northern Frontier Railway

The Northeast Frontier Railway is one of the 16 railway zones in India. Headquartered in Maligaon, Guwahati in the state of Assam it is responsible for rail operations in the entire Northeast and parts of West Bengal and Bihar. It is divided into 5 divisions:

1. Tinsukia2. Lumding

3. Rangiya

4. Alipurduar

5. Katihar

The area of Northeast Frontier Railway operations is characterized by exceptional beauty and at the same time by some of the most arduous terrain. This difficult terrain limits the rail network expansion, and the only state with a decent rail network is Assam. The network is not broad gauge in many parts and the rail lines are antiquated with speeds at some sections being limited to a maximum of 30 km/h (19 mph). Before the Saraighat Bridge was constructed, passengers had to get down on the Amingaon side of the Brahmaputra and take a ferry across to Pandu Junction from where they could resume your journey. Still there are some states in northeast like Arunachal Pradesh, Meghalaya, etc. which are not connected by railways.

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Northern Frontier Railway Map

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Lanka, the location for uninterrupted and efficient flow of goods

The CCIL plant in Lanka is very strategically located create an uninterrupted and efficient flow of input and output goods. The plant has their railway shed. Lanka is very well connected to Guwahati and Lumding both by railway and roadway which are one of the very important stations of North East Frontier Railways.

The North East Frontier Railways are divided into five divisions:

Katihar Divisiono It starts from Malda Town and finishes at Bagdora towards

north and Haldibari in south.o The section is having Broad gauge double lines from Malda

town to New Jalpiaguri.

Alipurduar Divisiono It starts from Bagdogra in North and lower from Raninagar.o The section is having fully single Broad gauge line.

Rangiya Divisiono It starts from New Bongiagoan to Markongselek.o The section is having fully single Broad gauge line.

Lumding Divisiono This division is the largest division among all the five division.o It starts from Guwahati to Furkating and to Agartala in Tripura.o The section is having single Broad gauge line from Guwahati to

Furkating and meter gauge line from Lumding to Agartala.o Conversion to broad gauge is done up to Lower Haflong and

from Dharmanagar to Agartala.o All rakes are transshipped at Lumding from broad gauge to

meter gauge.

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Tinsukia Divisiono It starts from Furkating to ends at Dangari.o The section is having is fully Broad gauge line.

Therefore, the transportation of raw materials and finished goods can be easily done by railways in northeast as many parts of northeast are very well connected through railways. Maximum rail lines are broad gauge lines and the meter gauge lines are now converted into broad gauge lines. Till now Northern Frontier Railways are using diesel engines but NFR have plans to convert it to electric engine by 2019.

The transshipment of goods from broad gauge to meter gauge and from meter gauge to broad gauge is done by railways and the cost is also borne by railways as it is due to the problem of shifting it from broad gauge to meter gauge.

There is a separate BG yard in Guwahati. It has got 7 lines but at a time only 5 rakes can loaded or unloaded and in Lumding there are 5 lines but at a time 3 rakes can be loaded or unloaded.

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OBSERVATIONS AND FINDINGS

Types of Rakes used in inbound movement

There are generally following types of wagons:

A. Closed WagonB. Open Wagon

i. BOXN

The most common wagon and are around 64,000 or more of these are in use. BOXN are used for bulk movement of material commodities like coal, iron ore, stone, etc.

ii. BOXNHSThe BOXNHS wagons are converted BOXN wagons. These types of bogies are high speed bogies raising the maximum speed to 100 km/hr. But now the manufacture of these types of wagons has been stopped mainly due the poor condition of some bridges and other track structures.

iii. BOXNHA

The BOXNHA type is a BOXN variant with improved bogies and higher capacity. ‘HA’ stands for high axle load. The wagon is similar to the BOXN wagon in length and width but taller by 225mm.

iv. BOXNEL

The BOXNEL wagons are BOXN wagon with ‘enhanced loading ‘features designed for transporting coal, iron ore, etc.

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v. BOXNHS

The BOXNLW wagons are low tare weight BOXN wagons. The tare weight is reduced by 1.8 tonne compared to BOXN wagons. This wagon has a stainless steel body to reduce corrosion.

Mainly BOXN and BOXNHS are being used for movement of raw materials in cement industries.

Standard rake size is 59 i.e. a complete rake consist of 59 open wagons.

Open wagon are of 10.71 meter in length which can be loaded up to 66 metric tonne.

Total length of the rake is 631.89 meter with 59 open wagons with a capacity of 3894 metric tonne.

Closed wagon are of 14.5 meter in length which can be loaded up to 65 metric tonne.

Total length of the rake is 594.5 meter with 41 closed wagons with a capacity of 2665 metric tonne.

The above details is given below in a tabular form:

Length(mtr)

Net Weight(mt)

No. of Wagons

Total Weight(mt)

Total Length(mtr)

Engine and mashtek(mtr)

TotalLength(mtr)

Open Wagon

10.71 66 59 3894 631.89 50 681.89

Closed Wagon

14.5 65 41 2665 594.5 50 644.5

Length of each track is about 750 meters such it can handle a full rake of 59 wagons, the length of which is 720 meters.

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Presently with only one line operating in Lanka, which can handle both types of wagons that are open and closed wagons. At a time full rake of closed wagon can be handled there without any hindrance as the track was basically designed for the handling of Bamboo rakes.

Difficulty in handling full rake of open wagon in Lanka

The length of a closed wagon (BCN Type) is 14.7 meter and there are 41 wagons in a standard rake. Therefore the total length of full rake is 14.7* 41 meter = 602.7 meter (excluding the length of engine and mastech).

The track length in Lanka is approximately 605.00 meter. Thus it is not difficult to handle a full rake of closed wagons at a time.

But the length of an open wagon (BOXN Type) is 10.7 meter and there are 59 wagons in a standard rake. Therefore the total length f full rake is 10.7* 59 meter = 631.3 meter (excluding the length of engine and mastech).

The track length in Lanka is approximately 605.00 meter. Thus it is difficult to handle the full rake but as per railway official the full rake of open wagon can be handle on partly basis or fifty basis.

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Registration of indents for wagon

All demands for dispatch of goods in wagon loads/rake load should be entered in the Wagon Demands/Priority Register maintained at the stations or goods sheds open for booking of goods in wagon loads. The signature of the sender or his representative should be taken in the appropriate column provided in the register after duly filing in all the other columns. The prescribed registration fee will be paid by the sender or his representative at the time of registration of demands for wagons.

The Wagon Demand/Priority Register is open for inspection by merchants and traders during the hours of working of goods sheds at stations.Railways may restrict from time to time the type of wagon (covered or open) that will be supplied in respect of specified commodities. Railways do not guarantee to supply at stations wagons of any particular type or carrying capacity.A limit may be placed by the Railway on the quantity of goods permitted to be registered at a time by one indenter.

WAGON REGISTRATION FEE:

The wagon Registration Fee to be deposited at the time of registration of indents as under:

Types of Gauge Registration fee per wagon (Rs.)

Registration fee per rake (Rs.)

Broad Gauge (BG) 500 15,000Meter Gauge (MG) 400 12,000Narrow Gauge (NG) 300 1,500

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Routing of Goods Traffic

1. The goods will be sent by the route operationally feasible unless written instructions from the sender/ authorised agent is received.

2. The freight charges will be levied by the shortest route.

3. For despatching goods other than the shortest route,the sender must write on the F/Note the specific route.

4. Endorsement will also be made in the RR.

5. If there is an order u/s 71(1)(b) by the Central Government that the goods specified in the order can be carried by a route therein, the goods will be chargeable by the specified route even if it is not the shortest route.

Shortest routeShortest route is the route between forwarding & receiving stations as

determined upon the basis of the distance notified by Railways as being the distance for charges.

For the purpose of calculation of shortest route in the case of break of gauge transshipment, it will be treated as equivalent to 200 Kms. When there are separate goods booking stations at the same centre or separate goods sheds belonging to the same Railway, the route shall be determined from amongst such routes only as are open from the particular station of goods shed at which the goods have been tendered for dispatch.

In exercise of the powers conferred by Section 71 of the Railway Act-1989(24 of 1989) read with notification of the Government of India in the Ministry of Railways, the Railway Board hereby directs that all Railway Administrations shall carry, unless it is necessary to divert such wagons for operational convenience

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after the consignments are booked, any goods or class of goods by such route or routes as specified in the general order (Rationalization Scheme).

Rating of Traffic

There are three divisions of rates:(a) Class rates(wagon load and train load)(b) Station to station rates(c) Lump sum rates(d) Wagon Km rates(e) Flat rates.

(a) Class Rates : All commodities are grouped into classes both for Train load &

Wagon load in the General classification of Goods in Goods Tariff. This is for the purpose of arriving at the rate to be charged when there is no station to station rate or lump sum rate is quoted. Class rate means a rate fixed according to the class given to a commodity in the General Classification of Goods. Class rate for different classes and the different distances will be those notified in the corresponding columns in the goods rate Table. When any article not appearing under any of the entries in the General Classification of Goods, a reference should be made to Chapter II of goods Tariff Part I Vol II showing the synonyms, trade proprietary and Local names of the commodities, to determine the appropriate head under which it is chargeable in the General Classification.

Train Load Class/Rate: When offered for booking by rail, train load is generally lower than the wagon load class chargeable to a particular commodity. This benefit is provided by the Railway Administration to the party indenting for a standard rake either to one or two destinations as allowed by R.B. from time to time to ensure optimum utilization of existing wagons, faster movement, quick delivery, avoiding delay in transit, reducing theft & claims etc. If train load classification not declared, it will be one step lower than the wagon load classes. There is no train load class if class of goods is 90 or below.

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Conditions for application of Train load Class/RateThe Central Government has examined the matter in detail and

w.e.f.15.9.1998 modified instructions issued in reference to above.

The benefit of trainload class rate shall be granted on fulfillment of following conditions:

A. The consignor/s indent/s for the full number of wagons of standard rake as indicated below:

SL. No.

Types of Wagon Standard Rake Size

Min. No. of wagons reqd. to be loaded for

Train Load rate1 BOXN 58 56

2 BOX 35 30

3 BCN/BCNA 40 38

4 BOBR 52 50

5 BOBR’N’ 58 56

6 BRN 35 32

7 BTPN 48 46

8 BRH 35 30

9 BFR 30 28

10 BCX 35 30

11 Covered 4 wheeler 70 65

12 CRT 68 64

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13 TANK WAGON 4 WHEELER 70 65

14 MIXED(BG)BOX/ BFRBRH 30 30 – MIN. 10 OF EITHER

15 MG-MG TO MG 34 – 4 WHEELERS

16 MG TO BG 90 – 4 WHEELERS

B. When full rake has been supplied by the Railway, the consignor loads all the wagons or when the Railway Administration has failed to supply the full size standard rake, the consignor loads at least the minimum number of wagons required for train load rate as mentioned in table above. The rail users should not be sufferer in case the minimum no. of wagons qualifying for train load rate benefit is not supplied by the Railway. However this dispensation will not cover the cases where standard rakes cannot be run due to capacity constraints.

The concerned Railways will accept the indents for train load at notified stations for notified stations. Relaxation can be granted only on the written authority of the concerned Railway (COM/ CFTM).

Trainload rate can also be extended, as a special case, to trains originating from one point and terminating at two points provided that:

a) The two points are either the serving station and its siding or two sidings of the same serving station, or two sidings notified as independent booking points but operationally branched out from the same station.

b) The two points may also be separate railway stations if the combination of points in question is approved by the Railway Board.

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In these cases of (a) & (b), the train load rate will be allowed for entire distance now.

1. In case of two point rakes whether originating from two points or terminating at two points, benefit of Train Load rate will be given for entire distance.

2. There will be no separate weight condition for train load rate either for CC commodities for W condition commodities. For calculation of freight, the chargeable weight will be the same as for wagon load traffic for each wagon.

1. The compositions of combined rakes viz. Sherpa rakes of BOB/BFR/BRHs have been indicated in the table above. Any other combined rake will be notified by the Board as & when required.

2. For rakes loaded with two or more commodities having similar or varying weight conditions i.e. some with CC conditions and others with W conditions, the train load benefit for each of the commodities loaded will be admissible if the conditions of loading the required number of wagons are complied with and the train load classification for the commodity or commodities has been notified.

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Train load weight conditions for CC Commodities in

Combined BOX N/BRN Rakes :

On the communication by the Railway board, the Central government has allowed trainlaod class rate in respect of commodities with CC weightcondition when loaded in combined rakes of BOX N and BRNs in the following combination:

30 BOX Ns + 20 BRNs

20 BOX Ns + 20 BRNs

BOX Ns: BRNs-Total 35 with minimum 10 wagon units of either type 2 for this combination, no separate weight condition for trainload is prescribed.

Facility of train load rate has also been provided if loading is from two points for one destination station. The benefit of Train load rate shall apply for entire distance.

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Different rates on Railways

Wagon load rate is the base rate. Train load rate is one class below the wagon rate. Railway’s risk rate is 20% higher than ORR (Owner’s risk rate) and To pay rate is 5% higher than paid rate except coal where it is 10% higher than paid rate

Station to Station rate:

Station to Station rate means a special reduced rate applicable to a specific commodity booked from one specified station to another specified station. These rates may be quoted from and to stations on the same railway or from a station on one Railway to a station on another Railway.

Lump Sum rate:

Lump Sum rate means the rate mutually agreed upon between the Railway administration and a consignor for the carriage of goods and for any service in relation to such carriage.

Wagon KM rate:

Wagon KM rate is applicable to wagons on distance basis without consideration for weight.

Method of ascertaining a through rate:

For chargeable rates, list of station to station rates should be checked. If available, the conditions attached are to be complied with. In

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through booking with foreign Railways where station to station is quoted over more than one Railway, the proportion of each or any Railway cannot be taken separately or in conjunction with other rates. The through rate can only be taken as a whole.

When no station to station rate is available or the conditions attached to the station to station rate are not complied with Good Tariff No.43 Part I(Vol II) should be checked to ascertain the classification.

The rate to be charged for a particular class at a particular distance is the rate shown under that class in the Goods rate Table. In order to ascertain the freight charges quickly SM should with the help of distance and calculated rate tables, prepare rate register showing the chargeable distance and the rate per quintal under each class for each station to which traffic is generally booked.

The changes should be entered in the register as and when required with authority. At stations where no rate registers are maintained, Tariff should be consulted. The forwarding note should bear the chargeable distance & the freight charges due.

In the case of those Railways over which telescopic class rates on continuous distance basis do not apply, the chargeable rates are given in the rate circular which will show the rate per quintal.

All station to station rates are shown in station to station rate circulars. Class rates, Station to station rates and the rates quoted in Rate circulars do not include charges for extra service.

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Wharfage Charge

Wharfage charges are levied on goods or consignments not removed from railway premises after the expiry of free time (Section VI of Railways Act, 1989).

Classification of Railway Premises

Railway premises (goods sheds, stations, etc.) will be classified into three groups as prescribed below on the basis of average, number of rakes dealt with during the period from 1st January to 30th April.

Group Number of rakes per month

Group I More than 12 rakes per monthGroup II 7 rakes to 12 rakes per monthGroup III Less than 7 rakes per month

Classification of railway premises is reviewed every year in the month of May based on the actual performance during January- April notified for the period of July- June.

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Permissible free time for removal of goods from Railway Premises

Free time for removal of goods from railway premises will be as under:

Goods stacked in goods sheds, etc. waiting to be loaded in wagons/ rake o Group I - 12 hours from the expiry of free time for loading of

wagons/ rakeo Group II - 15 hours from the expiry of free time for loading of

wagons/ rakeo Group III - 48 hours from the expiry of free time for loading wagons

of wagons/ rake

Goods unloaded from wagons/ rake, waiting to be removed from goods sheds, etc.

o Group I – 12 hours from the expiry of free time for unloading of wagons/ rake

o Group II – 15 hours from the expiry of free time for unloading of wagons/ rake

o Group III – 48 hours from the expiry of free time for unloading of wagons/ rake

National holidays, namely 26th January, 15th August and 2nd October will not be reckoned while calculating free time for removal of goods from railway premises and for charging wharfage.

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Wharfage Rates

Wharfage charge will be levied on per wagon per hour basis, uniformly for all types of wagons whether 4 wheeler or 8 wheeler or any other type.

A. First 24 hours Group I – Rs 60 per wagon per hour or part thereof Group II – Rs 40 per wagon per hour or part thereof Group III – Rs 10 per wagon per hour or part thereof

B. Beyond 24 hours Group I – Rs 90 per wagon per hour or part thereof Group II – Rs 60 per wagon per hour or part thereof Group III – Rs 15 per wagon per hour or part thereof

Lanka station falls under the Group III type of railway premises. So, the free lifting time is 72 hours which is advantageous under present condition.

Permissible Free Time for Advance Stacking of Goods in Railway Premises

Zonal Railway may permit stacking of goods in railway premises at selected goods sheds without payment of wharfage charges up to a period of ten days in advance of loading after review of traffic pattern at such goods and without causing any hold up to other traffic.

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Rates of Stacking Charges

Stacking charges shall be leviable beyond the permissible advance stacking period of ten days as prescribed for wharfage charges as below:

Rates of wharfage charges per quintal or part of a quintal per day or part of a day leviable after completion of permissible free time for removal of goods from railway premises.

Period Rates of Wharfage Charges1st day NIL2nd day Rs. 2.003rd day Rs. 3.004th day Rs. 4.005th day Rs. 5.006th day Rs. 6.00

7th day onwards Rs. 7.00

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Classification of Commodities for Freight Charge

Indian Railway has classified different items in different classes and prepared the chart of freight. This chart includes seasonal and non-seasonal discounts, wagon types and destinations. For example items like fly ash comes in Class 120 and items like Cement, Clinker, Coal, etc. comes in Class 150.

There are total of 15 classes and total of 80 groups of commodity.

Only train load classification of commodities has been indicated in the goods tariff .Classification for wagon load movement is as under:

Train Load Class Wagon Load Class

Up to Class LR1 Class 120

Above Class LR1 & Up to Class 200

One class higher than train load class or Class 150 whichever is

higher

Class 200 Base freight of Class 200 + 5%

The wagon load class of all commodities shall be one class higher than their respective train load class when loaded on Meter Gauge and Broad Gauge system. However, for the commodities in the

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Minimum weight condition for train load rates

Types of Wagons Broad Gauge

Minimum No. of Rakes/ Wagon

Minimum Weight (Tonne)

Average Carrying Capacity(Tonne)

BOXN 56 3290 58.75

BOX 30 1740 58.00

BCN/BCNA 38 2200 57.9

BOBR 50 2760 55.2

BRN 32 1910 59.7

BTPN 46 2500 54.3

BRH, BFR 30 1770 59.0

BCX, JUMBO 30 1660 55.3

COVERED FOUR WHEELERS

65 1560 24.0

TANK WAGON 65 1140 17.5

Procedure for booking of goods

1. Execution of forwarding note

2. Registration of a wagon demand

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3. Examination of goods and their packing

4. Weighment of consignments

5. Marking of packages

6. Loading of consignments in the wagons

7. Labeling sealing and riveting of loaded wagons

8. Calculation of freight and issue of Railway Receipt.

The following points are to be noted: The freight rate varies according to the class and distance. The higher the distance, lower is the rate per km/ton The higher the class, higher is the freight

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Demurrage

“Demurrage” means the charge levied for the detention of any rolling stock after the expiry of free time, if any, allowed for such detention. It will be applicable at such rates as may be decided by the Railway Board and the Zonal Railway.

The system of making payment for detention at the destination

The entire group of wagons placed for loading/ unloading shall be treated as one unit for the purpose of levy of demurrage charges i.e. even if one wagon out of the group is detained for loading/ unloading beyond the prescribed free time, demurrage will be imposed on all the wagons in the group.

If a rake is placed in one spur in multiple placements, the free time will start with the placement of 1st part of the rake. However, intervening periods between the time of completion of loading/ unloading of the 1st part and the time of placement of 2nd part of the same rake for loading/ unloading between the time of completion of loading/ unloading of the 2nd part and the time of placement of 3rd part of the same rake for loading/ unloading and so on should be treated as dies on.

The calculation of Demurrage is done as below:

Time of excess detention = (Time of release of the last part – Time of placement of first part) – (Free time) – (Total Period of dies on)

The rate of demurrage is Rs. 100 per wagon per hour.

Therefore, Demurrage = Rupees 100 per wagon * Full rake * Number of detention hours

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Payment of Demurrage can be done by following system:

A. We can immediately ask for the detention bill from CGS at the unloading station on completion of the unloading and pay the charges as per the bill while submitting the wagon release memo/ cargo handling memo.

B. It can also be paid after the bill is raised by railway. There is no stipulated time for the raising bill which is supposed to be at the end of every month but railways always fail to raise it timely.

Thus, it is advisable to pay the charges immediately on completion of the unloading of the rake. As in case of the railways they suddenly put the amount in due which after certain period they put up restriction on the handling also

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Time involved in Loading

If the engine is taken on load ( EOL) then the time allowed by railway is 5-6 hours to load/unload a rake and if take rake without engine on load ( EOL), available loading and unloading time is 9 hours.

Assuming the loading time is 6 hours and loading happens continuously, we can load about 8 rakes in a day. Otherwise normal loading/unloading time without EOL is about 9 hours plus you require two hours to call the engine. It means we can handle only 4 rakes a day.

Calcom Cement India Ltd. can supply 1.50 million tonne by rail. For this CCIL have to handle two rake a day. They need handle one rake of clinker per day and two rake of fly ash per three days.

Now CCIL have three railway sidings in Lanka in which two rakes can be handled at a time. It means current three tracks can handle 4 million tonne of incoming and outgoing easily without engine on load (EOL).

The loading capacity of wagon loaders is 540 tonne per hour provided that the entire cement is being loaded through the wagon loaders only.

The whole rake can be loaded by the mobile packers without shunting the rake.

There are no wagon tipplers. All incoming materials are been unloaded manually.

Availability of Rakes Rakes are always available in broad gauge as there are lots of empty

incoming rakes in North East. But there is huge scarcity of rakes for the meter gauge. In a day 5 rakes are

only allowed in meter gauge out of which 4 rakes are always booked for government purposes.

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So for urgent need CCIL have to go for wagons instead of complete rakes.

Weigh Bridge Weigh bridge is a type of bridge which is needed to weight the wagons. The

wagons pass through this bridge and the weight of the wagons are recorded which is secured by the operating software having a in-built software so that the data cannot be manipulated by any unauthorized person.

Features of Weigh Bridge It should be able to record the tare weight of all the passing through

serially. It should be able record the gross weight of all the passing against the same

serial. It should be possible to store the information of one rake weighing into a

separate file which can be retrieved and printed at a later date. Such stored information should be complete with original date and time and it should not be possible to edit such file.

The measurement technique used may be either axle by axle or bogie by bogie. However, the machine shall identify two axle or four axle wagons.

It shall be possible to weigh all types of standard wagons available on Indian Railways.

The operating software should have in-built security so that no unauthorized person can alter/ interfere with the system to ensure reliability of weigh.

The system should have adequate capacity to store the record of about 100 rakes weighed without having to delete the earlier stored records.

These records will be normally preserved for about 6 months and the system should not permit any alteration of records after the weigh is completed.

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Penalties on Over LoadingAs per the penalty system of the railways the penalty will be levied as

following:

The penalty is levied based on two situationo Situation A- Overloading of wagons up to 5 tones falls under this

situation o Situation B- Overloading of wagons beyond 5 tones falls under this

situation Situation A

The tolerance limit per wagon is up to 2 tonesTherefore, Penalty= 2 tones * 2 times of Normal Tariff Rate

Penalty= 2-5 tones * 6 times of normal Tariff Rate Situation B

The penalty = +5 tones * Highest class as per the freight class

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Security and safety aspect of in-transit risk and insurance aspect

As per the SCM for the purpose of security the company can also give its own escort with the rakes but railway also takes care for the prevention of pilferage of cargo in transit.

In case of the insurance, company can arrange for the insurance by getting the cargo insured by any external agency, but in no case railway will provide us the insurance facility.

Shrinkages

Generally shrinkages occurrence depends on various factor as: Nature of cargo Nature of packaging The distance to be shifted Volume of cargo Stacking pattern Types of wagons used for loading Pattern in which loaded Reaction to natural effects

Presently there is no system under railways for filing shrinkages or the refund in case if any shrinkage occurs during transit.

During movement of clinker’sAs it is loaded in open wagons and loaded in bulk the vibration during the

transit also shrinks the clinker as there is void between the clinkers.

PrecautionsAs the cement is loaded in bags there is very less chances of shrinkages

occurring while transportation.

By proper stacking of the cement bags during the loading of the wagons.48

Proper locking of doors after completion of loading. Selection of proper wagons commodity wise.

Insurance can be taken for transit risk

Presently the company can go for insurance for the consignment as the insurance companies are providing Inland Marine Insurance for transportation through railways and roadways.

But the covering provided by the insurance companies is restricted. They do not provide any kind of insurance on shrinkages.

Various insurance companies offering insurance

HDFC Ergo- General Insurance Oriental Insurance National Insurance Company Limited TATA AIG General Insurance Company Limited

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System of Claiming the Missing Wagon

Incase of missing wagons the railways itself intimidates the party/ shipper on arrival of particular rake at destination. On arrival at the destination the train guard gives the details of the journey starting from the originating source to the destination.

The railways also supplies the exact bogie number, the location where the bogie is kept after its detachment and the cause of detachment in transit.

At the time of submitting the Railway Receipt (RR) for the particular rake, the number of missing bogie is mentioned in the reverse side of RR. It is necessary to give the details/ particulars of the missing wagons while endorsing the receipt of the rake.

The said missing wagons are attached to the next rake which is in transit to the same destination. The rake may be of the company or of any other shipper/ party. On reaching to the destination the railways inform the shipper/ party that the missing wagon has arrived.

The time frame may be anything between 2 days to 30 days. But if the time frame exceeds 30 days then the company has to give railways a letter stating the non- receipt of the missing wagons and ask for the details.

Main causes of detachment of wagons in transit

Usually the main causes of the detachments are as follows: Derailment Getting unfit for travelling during the transit Due to overload

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Railway Siding

A siding is a low speed track section distinct from a through route such as a main line or branch line or spur. It may connect to through track or to other sidings at either end. The distinction between sidings and other type of track is that a siding generally denotes an auxiliary or not exactly specified usage. Sidings often have lighter rails, meant for lower speed or less heavy traffic.

Currently Calcom Cement is making three broad gauge railway sidings. However, at a time only two tracks can be occupied by the rakes. Management of Railway Siding by Calcom Cement, Lanka

Marketing department will confirm on daily basis the destination and the quantity to the logistic head by planning schedule for the full week in advance.

The authorized person/ shift-in-charge shall place the indent at the coordinating station.

Beside this the shift-in-charge shall be liable to maintain the record of the dispatch and received material. As well as the company is responsible for the track maintenance also.

The operation goes on round the clock in three shifts – A, B and C. Each shift to be managed by shift-in-charge, supervisors and loading gang

including counter. Shift-in-charge is responsible for all the activity during the shift.

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Rake handling operational chart at Calcom Siding

Coordinating with local station for information on incoming rakes. The allotment of rakes is done by railways. The proper placement is rake shall be the responsibility of the shift-in-

charge/ Supervisor. Arrangement for the loading/ unloading of the rake. Arranging for the labours, trucks in case of the manual unloading or in the

case of the mechanical unloading company have to maintain a loco engine for the pushing of the wagons and collection of the empty wagons.

In case of the loading of the rakes supervisor shall be responsible for the proper stacking of the bags in each wagons with proper number of bags being loaded.

Assigning day to day duties to the supervisors. Getting the rake unloaded within the free time. The supervisors continuously keep check on the process while unloading, On completion of unloading the supervisor must place the completion

memo. The supervisors must coordinate with the local station for immediate

withdrawal of the rake from the siding. Arranging the goods supervisor for witnessing the final weigh during the

withdrawal of rake from the siding and the DTP operator shall prepare the final weigh report and it will be signed by shift-in –charge and the goods supervisor.

The shift-in-charge shall be responsible for freight payment and issuing of the railway receipt (RR) in time without any penalty for the late freight payment that is 5% of the total value of the freight + overload charges + detention charges.

SIC shall be responsible for the deposition of the RR of the received goods at Lanka siding with railways.

SIC shall dispatch the railway receipt (RR) to the destination for which the rake is loaded.

SIC has to report daily availability of the stock, dispatch and the receipt of the material to the logistic head.

The freight DD/ CNCC shall be in custody of the logistics-in-charge ready at any time.

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Rake Handling Operational Chart for the other sidings (For Loading Operations)

Production department shall be giving the stock availability of all the raw materials at plant as well as last 24 hour consumption report too on a daily basis to the logistic head.

The siding-in-charge shall give the daily receipt as well as dispatch report source/ destination wise of each commodity to the logistic head.

In turn the logistic head shall plan for the placement of the indent for particular siding in consideration to the commodity needed on urgent basis/stock availability.

Logistic head shall convey to the person deputed at the designated siding for the placement of the indent.

Person deputed shall place the indent at station. The person also coordinates with the local station and allotting station for

the allotment of the rake at the earliest. After allotment and prior to the placement the person shall make all the

arrangement such as trucks, labour gangs if possible the 50% of the cargo at the siding for the speedy loading of the rake.

After placement of the rake the person supervises the entire loading operation such that the whole operation completes within free permissible time.

After completion of loading in the rake he shall be responsible for the payment of freight and issue of the railway receipt (RR).

The person shall dispatch the railway receipt (RR) to the Lanka siding immediately prior to the arrival of the rake at Lanka.

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Rake Handling Operation Chart for the other sidings (For Unloading Operation)

Coordinating with local station for information on incoming rakes. Arranging for the labours, trucks, etc. for the speedy unloading and

transportation of the cement to the ware house. After arrival of the rake getting it properly placed as per the convenience of

our handling. In case of the unloading of the rakes supervisor shall be responsible for the

proper unloading within permissible free time. The supervisor continuously supervises during the unloading. Coordinating with the CF for the smooth operation. He shall be responsible for the deposition of the railway receipt (RR) for the

received goods at the siding with railways. SIC has to report the daily availability of the received stocks, dispatch and

the receipt of the material to the logistic head.

In case of reloading operation all the activity shall be the same as the loading activities mentioned for loading at the other sidings.

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MARKETING VIEW

There are some internal and external factors which affect the company. There are some strengths, weakness, opportunities and threats involved in Calcom Cement India Limited. As Calcom Cement India Limited is a new upcoming company in North East. It came with some opportunity, some weakness, strengths and threats. Some of the opportunities, weakness, strength and threats are given below.

Strength

The CCIL plant in Lanka has the latest technology which has been imported from Germany which ensures quality products.

Calcom cement is having best packaging in comparison to other brands. They use polypropyl paper bags for packaging which are high quality waterproof bags.

The logistic and supply chain is very strong in Calcom Cement.

Opportunities

The plant of Calcom Cement India Limited is strategically located in Lanka, Assam. The plant is just 31 km away from Lumding which one of the very important division of North East Frontier Railways. A four lane highway which is a part of the East – West corridor connects it to Guwahati which is at two hour drive from the plant.

The CCIL plant in Lanka has the latest technology which has been imported from Germany which ensures quality product from CCIL.

The limestone reserves and coal mine depots are very near to the CCIL plant. The limestone reserves are in Assam, Arunachal Pradesh,

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Meghalaya and Manipur. The coal reserves in North East are in Assam, Meghalaya and Arunachal Pradesh.

The Indian Railways are now well computerized. The freight movements are now monitored by highly designed computer system. Freight Operations Information System are now used for monitoring freight movements.

The track from Lumding to Silchar is now been converted into Broadband Gauge which make the connectivity more efficient and cost effective.

Calcom Cement India Limited can have better market coverage in North East and Eastern India.

Weakness

The products from CCIL are very new in the market. Customers are yet to know about Calcom Cement as it is a new brand coming to the market. The awareness level within the customers is also very low.

The company is not doing much advertisement. The promotional activities from the company must be increased.

Threats

The competition is very high as there are many major players in North Eastern market.

The competition may increase as many international companies are coming up.

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RECOMMENDATIONS

Lanka station doesn’t have the proper road link from main road to siding as its not maintained over the period it has worn out badly. If the renovation of that road is done then it will help in smooth and speedy transportation of our cargo.

The track line over there is able to only accommodate BCN rakes as it was built with the purpose of handling bamboo rakes. That is why company will have to manage by handling half–half part of BOX-N rakes at the time for which company can ask railways for the extra time of unloading.

Company can ask railway for the proper lamination at the siding area as the flow will be high and working of round the clock.

There is a need a proper paved platform at least of track height to prevent the material from getting wasted. As there is mud platform for the handling of timber/bamboo. Company can get it leveled with Lime stone. So that the any clinker/cement loaded or unloaded will not get wasted.

Company can go for wagon booking in areas with narrow and meter gauge as the number of rakes in these areas is less. So that the flow of finished goods is interrupted

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CONCLUSION

To attain the objective of the project detailed information was collected

from the plant and different broad gauge yards. The research has revealed many

facts and figures about the rake management system in the cement industry. It

also revealed the cost and time required for different transportation problem

through rakes. There are freight incentive schemes which are been offered by

Indian Railways for train load and wagon load classes.

In the market, Calcom cement upcoming brand of cement. The good quality

of the cement along with their effective marketing efforts, which covers the

whole market customers of Calcom Cement can be satisfied by properly using the

rake management system. The uninterrupted supply of raw materials will ensure

that there will be no problem in supply of products to the market.

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References

Websites-

www.nfrailway.org www.indainrailway.com www.vinaycements.com www.wikipedia.org www.google.com

Books-

Logistics and Supply Chain Management( G. Raghuram and N. Rangaraj)

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