Proj ect Report

On“ C on t a i ner C orpora t i on of Ind i a L t d ”

Submitted ToRashtrasant Tukdoji Maharaj Nagpur University

NagpurIn the partial fulfillment for

The Award of Degree of M.B.A.

Submitted ByMs. Bhavana M. Nanote

Under the Guidance OfMr. Vijay Joshi

Vilasrao Deshmukh College of EngineeringAnd Technology.Mouda, Nagpur.

2009-2010

CERTIFIC ATE

This is to certify that the project entitled “Container corporation of India ltd.” Submitted by Ms.Bhavana M. Nanote is in partial fulfillment ofthe reuirement for the M.B.A. from RashrasantTukdoji Maharaj Nagpur Universitry and is abonafide record of the work done by them at Vilasrao Deshmukh college of engineering And technology, Mouda, nagpur during the academic year 2009-10.

Place: Nagpur Project GuideDate :

(Mr. Vijay Joshi)

PrincipalVilasrao Deshmukh

College of Engineering & tech. Mouda,Nagpur.

DECL AR ATIO N

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

Respected sir,We the undersigned , hereby declare

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

We understand that any such coping is liable to be punished in any way the University deem fit.

Place: NagpurDate :

(Ms. Bhavana M. Nanote)

ACK NO WLEDG EM ENT

We wish to express our sincere thanks to the honorable Dr. J. F. Agrawal, principal, Vilasrao Deshmukh College of Engineering & Tech. Mouda, Nagpur. Providing us varieties of opportunities, infrastructural facilities and aspiration to gather professional knowledge and material without which it would have been impossible to complete this hard task.

We take this opportunity to express our deep gratitude and whole hearted thanks to our project guide Mr. Vijay Joshi for her guidance throughout this work. We are very much thankful to her for her kindness, encouragement and the valuable time, which she has devoted to us.

We wish to thanks all those, who have helped us in our way the others in bringing out this project successful.

(Ms. Bhavana M. Nanote)

INTRO DU CTIO N

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

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

A Multinational Enterprise has a worldwide approach to foreign markets and production and an integrated global philosophy encompassing both domestic and international markets.

Defined as a process of accomplishing the global objectives of a firm by effectively coordinating the procurement, allocation, and Utilization of the human, financial, intellectual,

and physical resources of the firm within andAcross national boundaries and effectively

Preparing the path toward the desired organizational goals by navigating the firm through a global environment that is not only dynamic but often very hostile to the firm’s very Survival.

ABO UT CO NCO R

Incorporated in March 1988, Container Corporation of India (CONCOR) is a multi-modal (rail and road) logistics support provider for the country`s EXIM and domestic trade and commerce, working under the ministry of railways, government of India. CONCOR commenced operation from November 1989 taking over the existing network of 7 Inland Containers Depots (ICD`s) from the Indian Railways.

The company`s core business is characterized by three distinct activities that of a carrier, a terminal operator, and a warehouse operator. The company provides a single- window facility coordinating with all the different agencies and services involved in the containerized cargo trade right from customs, gateway ports, and railways, to road haulers, consolidators, forwarders, custom house agents and shipping lines. Container Corporation of India has value-added services like linking of road or short lead rail shuttle services to long lead point-to-point train services (hub and spoke services), integrated freight terminals, coastal shipssping, transportation of perishable products from source to end-user (cold chains), and total logistics solutions.

CONCOR has over 5,200 state-of-the-art high-speed bogies, low-height container flat-wagons (type BLC) in service. The company has a total of 57 terminals, of which48 are export-import container depots, and nine exclusive domestic container depots. The customs bonded inland container depots are dry ports in the hinterland and serve to bring all port facilities including customs clearance to the customer`s doorstep.CONCOR also operates container terminals across the country to cater to the needs of the trade, whether in the EX-IM or the domestic business.

COMPANIES MISSION STATEMENT

“OUR MISSION IS TO JOIN WITH OUR COMMUNITY PARTNERS AND STAKE HOLDERS TO MAKE CONCOR A COMPANY OF OUTSTANDING QUALITY. WE DO THIS BY PROVIDING RESPONSIVE, COST EFFECTIVE, EFFICIENT AND RELIABLE LOGISTICS SOLUTIONS TO OUR CUSTOMERS THROUGH SYNERGY WITH OUR COMMUNITY PARTNERS AND ENSURING PROFITABILITY AND GROWTH. WE STRIVE TO BE THE FIRST CHOICE FOR OUR CUSTOMERS. WE WILL BE FIRMLY COMMITTED TO OUR SOCIAL RESPONSIBILITY AND PROVE WORTHY OF TRUST REPOSED IN US.”

C O MP AN I E S O B J ECT I VE S

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

“WE WILL STRIVE TO MAXIMISE PRODUCTIVE UTILISATION OF RESOURCES, DELIVER HIGH QUALITY OF SERVICES, AND BE RECOGNISED AS SETTING THE STANDARDS FOR EXCELLENCE.”

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

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

“WE WILL FOLLOW HIGHEST STANDARDS OF BUSINESS ETHICS AND ADD SOCIAL VALUE FOR THE COMMUNITY AT LARGE BY DISCHARGING SOCIAL OBLIGATIONS ASA RESPONSIBLE CORPORATE ENTITY.”

“WE WILL MAINTAIN ABSOLUTE INTEGRITY, HONESTY, TRANSPARENCY AND FAIR-PLAY IN ALL OUR OFFICIAL DEALINGS AND STRIVE TO MAINTAIN HIGH STANDARDS OF MORALITY IN OUR PERSONAL LIFE.”

I NDE X

1. Operation department

2. MIS

3. Billing counter

4. PDA A/C Department

5. Custom Department

6. Documentation and Procedure.

7. Role of CHA

8. Role of Shipping line

9. Role of Freight forwarders

10. Role of Warehouse.

11. Contractor

O P ERAT I O N DE P ART M E N T

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

All shipping companies containers kept at dry port, which when required are been allotedthe container of the respective shipping line, then operation department will allot the container to that particular allotted customer.

The concor department has its own 100(+) railways which are only used for container transaction. There are 45 wagons in one train the total of 45 wagons is called as a Rake.There are 12 separate rake allotted to Nagpur only. In one Rake there are 45 wagons in one wagon two20 feet container or one 40 feet container can be placed.In one movement 90 containers are transported.

The booking, checking of the container is done in operation department. It also handles the rake planning and gives position of the container (arrival, departure and present status).

MIS

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

Bi lli ng count er

The billing section is main source of the concor there are two types of billing counter.

1. Domestic2. International

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

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

PDA A/ C Departm ent

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

C us t om D epar t m ent

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

Custom department basically performs the work of collection of appropriate amount of duties levied either on import or export and verify thoroughly the essential documents for import and export.

As under the custom act 1962 the provision are collection of duty, import/export procedures, to prohibit import and export of goods, to charge penalties.

And custom tariff act 1975 in which there are various types of duties import tariff and export tariff. Custom valuation act 1988, baggage rules, 1998. These are basically the act made by the government.

D ocu m en t s f or cu s t om c l earance

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

Procedure f or cu s t om c l earanc e - 1. Noting.2. Assessment.3. Examination.4. Custom examination of material (10 to 100%)5. File audit.6. Custom sealing.7. Assistance commissioner of custom sign in

documents.8. Let export.

In export shipping bill is made for custom.

Custom documents = Tax invoice + ARE1 + ARE2

D ocu m en t a ti on & pro c edure

Procedure for Im port

1 DGFT (Director General Foreign Trade) issue a license for Export and import.

2 IEC (Import Export Code) code is generated.3 Registration in Central Excise. (for SSI

registration is not necessary)4 Then search vendor for deal.5 Exporter sends a sample to Importer.6 Importer contract with Exporter.7 Importer decided the cost.8 Then Import the good.

Docum ent s for Im port :

1. Bill of Lading (issued by shipping line)2. Commercial invoice.3. Packing list.4. Container wise detailed packing list.5. Certificate of origin.6. Test analysis report/Quality

certificate/technical analysis report.7. Detention free certificate.8. Sales contract/purchase order copy/letter of

credit copy.9. Fumigation certificate for wood products.10. Pre inspection certificate + Technical

specification.

11. Detailed in foreign trade policy.

Procedure for Export :

The following are the documents required for the processing of the Shipping Bill:

1. GR forms (in duplicate) for shipment to all the countries.

2. 4 copies of the packing list mentioning the contents, quantity, gross and net weight of each package.

3. 4 copies of invoices which contains all relevant particulars like number of packages, quantity, unit rate, total f.o.b./ c.i.f. value, correct & full description of goods etc.

4. Contract, L/C, Letter of origin, PurchaseOrder of the overseas buyer.

5. AR4 (both original and duplicate) and invoice.6. Inspection/ Examination Certificate.7. The formats presented for the Shipping Bill are

as given below:8. White Shipping Bill in triplicate for export of

duty free of goods.9. Green Shipping Bill in quadruplicate for the

export of goods which are under claim for duty drawback.

10. Yellow Shipping Bill in triplicate for the export of dutiable Blue Shipping Bill in 7

copies for exports under the DEPB scheme.

Export

In export ARE1 & ARE2 forms are used for custom purpose.

Duties paid excisable rules are cleared then we used ARE1 form.And if duty is not paid then ARE2 form is used.

Custom = Tax invoice + ARE1 + ARE2

Docum ent s for Export

There are 2 types of documents.

1. Pre shipment document.

2. Post shipment document.

1. Pre Sh i p m e n t docu m en t s a re - Performa invoice.

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

2. post sh i p m ent docu m e n t s ar e - Commercial shipment. GR form or SDI form. Commercial invoice. Packing list.Container packing list. Test certificate. Fumigation certificate. Certificate of origin. Bill of exchange. Benefit certification. Shipping advice. Insurance certificate.

Sh i pp i ng l i ne

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

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

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

The shipping lines basically use EDI (Electronic DataInterchange) it is an electronic means for companies to exchange business documents, such as purchase order or invoices.

The various type of business information available via EDI are :

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

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

Tues:- twenty feet equivalent units. Fues:- forty feet equivalent units.

1 tues = one 20 feet container

There are 3 types of container40 feet , 20 feet , 22 feet.40 and 20 feet container are used for international trade.22 feet container is used for domestic transaction.

Capacity limit20feet empty container 2.3 metric tons/with load

upto24 metric tons.40 feet empty container 4.6 metric tons/with load

upto28 metric tons.

Types of containerHigh cube , opentop , reffer, tank container.

CH A

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

He is a person who works for importers and exporters goods/raw material to be cleared from custom department by fulfilling all required documents. As well as generally perform the work of using job order, getting position of container with concor.

Frei ght f orwarder

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

Warehouse

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

1. Bonded warehouse2. Public bonded warehouse.

1.Bonded warehouse :In the bonded warehouse the various

exporting /importing companies store there goods. As per the weight and the time period the warehouses rate is charged on the exporter/importer.

2.Public bonded warehouse :In the public bonded warehouse the

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

Required job order in warehouse

Job order is required for all departments. Without job order the container cannot be moved.

Arrival Job order. Unloading job order. Stuffing job order. De stuffing job order. Exit job order.

Cont ract or

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

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

H andl er

Handler works for the loading and unloading of a containers with the help of Kalmar(Lifter) from the rake. When rake reach at Yard the time allotted to

handler is minimum 6 hours for loading, unloading respectively. If they exceed beyond the time limit then Concor charge the penalty on hourly basis. The kalmar is also used for placing the container at the appropriate place which can lift the container from ground+1+2+3.

Secur i t y

In Concor the security plays a vital role for incoming and outgoing of container. Security checks all the containers numbers in a designated way for throughput movement. They also check the container status at the time of in or out.

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

C onc l us i on

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