An Internship Report on
A STUDY ON CFS OPERATIONS AT ALLCARGO
LOGISTICS CHENNAI
In partial fulfillment of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
(International Transportation and Logistics Management)
Submitted by
NANDITHA S
Reg.1605305023
Under the esteemed guidance of
Dr.U Sreejith
Assistant Professor
SCHOOL OF MARITIME MANAGEMENT
INDIAN MARITIME UNIVERSITY
KOCHI CAMPUS
DECEMBER 2017
INDIAN MARITIME UNIVERSITY
SCHOOL OF MARITIME MANAGEMENT
KOCHI CAMPUS
Dr. M Sekar
Head of Department
School of Maritime Management Willingdon Island
Indian Maritime University Date:
Kochi Campus
CERTIFICATE
This is to certify that the MBA internship report entitled “A Study On CFS
Operations At Allcargo Logistics Chennai” is a bonafide record of internship done
by Ms. Nanditha S and is submitted in third semester of MBA International
Transportation and Logistics Management. It is also certified that the above work
has not previously formed the basis for the award of any degree, diploma associate
ship, fellowship or other similar titles, and it is an independent work done by the
candidate.
Dr. M Sekar
HOD
INDIAN MARITIME UNIVERSITY
SCHOOL OF MARITIME MANAGEMENT
KOCHI CAMPUS
Dr. U Sreejith
Assistant Professor
School of Maritime Management Willingdon Island
Indian Maritime University Date:
Kochi Campus
CERTIFICATE
This is to certify that the MBA internship report entitled “A Study On CFS
Operations At Allcargo Logistics Chennai” is a bonafide record of internship done
by Ms. Nanditha S and is submitted in third semester of MBA International
Transportation and Logistics Management. It is also certified that the above work
has not previously formed the basis for the award of any degree, diploma associate
ship, fellowship or other similar titles, and it is an independent work done by the
candidate.
Dr. U Sreejith
(Internship Guide)
DECLARATION
I hereby declare that the internship report titled “A STUDY ON CFS
OPERATIONS AT ALLCARGO LOGISTICS CHENNAI” is a bonafide
record of work done under the guidance and supervision of Dr.U Sreejith,
Assistant Professor, School of Maritime Management in Indian Maritime
University.
This report neither in full nor in part has ever been submitted for award of
any other Degree of either this university or any other university.
Place:Kochi NANDITHA S
Date: 15/12/2017 (1605305023)
ACKNOWLEDGEMENT
I am greatly thankful to SHRI. RAJEEV PRAKASH, Director, Indian Maritime
University, Kochi Campus, for his continuous encouragement and valuable support
to complete the internship report. I am owed to Dr.M.Sekar, Head of Department
Assistant Professor, School of Maritime Management, and Course Coordinator for
his suggestions and guidance at each and every stage of my internship. I
acknowledge my deep sense of gratitude to my internship guide Dr.U Sreejith,
Assistant Professor, School of Maritime Management, Indian Maritime
Management, Kochi Campus for their suggestions during the time of report
preparation. I express my sincere thanks Mr.Venugopal Shetty, Deputy General
Manager, Captain Avinash Iyer, Vice President-CFS for giving me an
opportunity to do this internship at Allcargo Logistics Limited-CFS and a special
thanks to Mr.Rashmin Jolapra, Senior Operations Manager and the Operation
team for his continuous support in the work and involving me in this internship in
the first place. I like to thank Mr.S.V.Ravi Kumar, Human Resource Manager of
Allcargo Logistics Limited - CFS, who has provided some good opportunities to
look around the CFS. I would like to thank all executives of Allcargo Global
Logistics Limited who have always supported me in this internship and have given
some ideas regarding the internship to well know the CFS work process.They gave
many opportunities to express my views regarding project. I would really like to
thank them for giving time for me in their busy schedule. They showed me
different ways to approach a problem and the need to be persistent to accomplish
any goal.
NANDITHA S
EXECUTIVE SUMMARY
Allcargo Logistics Limited is a part of the Avashya Group and is a leading
Indian multinational company providing integrated logistics solution worldwide.
They offer specialized logistics services across global Multimodal Transport
Operations (NVOCC, LCL and FCL), Pan India Container Freight Station (CFS),
Inland Container Depots (ICD), Project & Engineering Solutions (P&E), Ship
Owning & Chartering and 3PL & Warehousing services. From the above
mentioned business of Allcargo Logistics
I did internship report on CFS operation at Chennai CFS. In this internship
programme, I came to know what is a CFS, how a CFS works, what are their
operations, duties and responsibilities of each employee. Allcargo Logistics CFS
commenced on 18 April 2007. This CFS is near to Chennai port, Kattupalli port as
well as Chennai airport.
CFS is a place where containers are stuffed, de-stuffed and aggregation/
segregation of export/import cargo take place. With the growing volume of
international trade, the need for expeditious clearance of goods at the port within
the minimum possible time has been gaining importance. This is more so when the
ports are facing congestion at their premises. Further, for optimal utilization of
existing infrastructure, space, equipment, goods that are landed at ports need to be
evacuated straight away without any loss of time. Accordingly the concept of
Container Freight Stations (CFS) has grown in importance along with the
development and growth of ports. I focused on CFS gate in and gate out,
documentation, import- LCL, export, bonded warehouse and transport. I had
gained hands-on experience from this internship programme.
CONTENTS
CHAPTER
NO
TITLE PAGE
NO
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
CHAPTER 1 INTRODUCTION
 Role of Logistics in Indian scenario
 Service related to Logistics
 Non Vessel Operating Common Carrier
 Container Freight Station
 Inland Container Depot
 Project Forwarding and Crane Rental
 Warehousing
 CFS Operation
 Objectives of Internship
 Need and Methodology
 Presentation of the study
2-3
4-7
8-9
9
9
10
CHAPTER 2 PROFILE OF ALLCARGO LOGISTICS
 An overview of company
 Mission
 Vision
 Board of Director
12-14
15
15
16
 Companies which became subsidiaries
 List of Indian subsidiaries
 List of foreign subsidiaries
 Achievement and Milestones
16-18
19-20
CHAPTER 3 CFS OPERATIONS AT ALLCARGO
LOGISTICS
 Location of Allcargo and Facilients
 Operations Department
 CFS Gate in and Gate out
 Documentation
 Import-LCL
 Export
 Bonded Warehouse
 Transport
22-26
27-28
28-34
34-35
35-37
38-42
42-46
47
CHAPTER 4 FINDINGS AND INFERENCES
 Strengths
 Weaknesses
 Opportunities
 Threats
49
50
50-51
51
CHAPTER 5 CONCLUSION 53
BIBLIOGRAPHY 54
1
CHAPTER 1
INTRODUCTION
2
ROLE OF LOGISTICS IN INDIAN SCENARIO
Logistics is the management of the flow of goods between the point of origin
and the point of consumption in order to meet requirements of customers or
corporations. The logistics of physical items usually involves the integration of
information flow, production, packaging, inventory, transportation, warehousing
and often security. Logistics management is the part of supply chain management
that plans, implements and controls the efficient forward and reverse flow and
storage of goods, service and related information between the point of origin and
the consumption. With the advancement in the science and technology in field of
logistics, complexity in logistics business can be modeled, analyzed, visualized and
optimized by dedicated simulation software. Such automation in logistics led to the
use of RFID technology. It further helped in achieving maximum customer
satisfaction, ensuring high product quality and brings flexibility in the complex
changing market. These are the key components of warehousing, material and
handling and purchasing, protective packing and information maintenance. Any
logistics strategy have three basic objectives of the company. Apart from that
another challenge that comes into picture is the flow of information from
manufacture r to supplier or supplier to manufacturer. The best way to deal with
the above problem is to introduce the enterprise wide information system that is
Enterprise Resource Planning.
The components of the transportation can be separated into three categories
 Facilities: These are the fixed component of the transportation. This mostly
includes railway, road and waterway.
3
 Equipment: They help in making the optimum use of the facilities that you
have. Usually equipment belongs and maintained by the shipper such as
trailer, container, vehicle etc.
 People: People that are involved in transportation related functions are one
of the crucial components of transportation networks. Related working
positions are operating personnel like drivers, pilots etc., supportive
personnel (maintenance, loading/unloading etc) and managerial personnel.
But when it comes to the distribution of goods to the customer, there two ways of
doing that on is physical distribution of goods to the customer there two ways of
doing that on is physical distribution networks and trading network. Physical
distribution network describes the method and products by which a product of a
group of products are physically transfers or distributed from their point of
production to the point at which they made available to the final customer. Trading
network is concerned with the non-physical aspects of the products transfer. These
aspects concern the following sequence: negotiation, buying and selling of the
product and ownership of the goods as they are transferred through the various
distribution systems.
4
SERVICES RELATED TO LOGISTICS
Allcargo logistics has been a veteran player in the field of logistics in
India by providing the unique services like Multimodal Transport Operations,
Container Freight Stations (CFS), Inland Container Depots (ICD), Ship Owning
and Chartering and 3PL and Warehousing services. With the development of
intermodal transportation in India there is glorious scope for the company. Below I
have discussed few services offered by the logistics company.
Non Vessel Operating Common Carrier (NVOCC)
A freight forwarder, forwarder or forwarding agent also known as a non-
vessel operating common carrier is a person or company that organizes shipments
for individuals or corporations to get goods from the manufacture or producer to a
market, customer or final point of distribution. Forwarders contract with a carrier
or often multiple carriers to move the goods. A forwarder does not move the goods
but acts as an expert in the logistics network. These carriers can use a variety of
shipping modes, including ships, airplanes, trucks and railroads and often multiple
modes for a single shipment. For example, the freight forwarder may arrange to
have cargo moved from a plant to an airport by truck, flown to the destination city
and then moved from the airport to a customer’s building by another truck.
Container Freight Station
A container freight station (CFS) is a warehouse where goods are
consolidated into or deconsolidated from containers for transport to their next
destination. They are an integral part of LCL shipments; if you ever use LCL, then
5
you should have a good grasp of what happens to your shipments when they pass
through CFS warehouses.
Shipping LCL means that goods are handled by more parties than when
shipping FCL. That increases costs and transit time as well as the risk of
mishandling and damages. Furthermore, LCL cargo has a greater chance for going
through Customs exams. That’s because if any single shipment in a container box
has to be examined, then the whole container will be pulled for an examination by
Customs.
Inland Container Depot (ICD)
Inland Container Depots, otherwise known as ICD’s are dry ports
equipped for handling and temporary storage of containerized cargo as well as
empties. This means that hinterland customers can receive port services more
conveniently closer to their premises. Purpose behind establishing Inland
Container Depot is to bring customers based in the hinterland can have access to
the same services offered at the port of Mombasa without having to travel all the
way for the same thus saving time and money.
These depots facilitate for the dispatch of export containers therefore
decreasing container turnaround time creating more space at the container terminal.
It facilitates the diversion of heavy container traffic from the road to rail. This in
turn minimizes road damage caused by heavy trucking thus ensuring smoother
roads while giving them more life. Cargo transported by rail is safer and more
secure therefore ensuring the safe transportation of cargo.
6
Project Forwarding and Crane Rental
Project Forwarders work in a much specialized area of shipping. Project
forwarding describes a service that goes beyond standard freight forwarding, often
involving the transport of heavier or more complicated goods. They might work to
oversee the movement of cargo such as heavy machinery, military equipment,
yachts, aerospace equipment or structures such as oil platforms or buildings.
Project forwarding is often a turn-key service where cargo is taken ‘door to door’.
The role of project forwarding can involve carrying out pre-contract investigations
to choose the best mode of transport. Suitable transport may include submersible
barges, pontoons or heavy logistics vehicles. Working in Project Freight may
sometimes mean infrastructure will need to be created or changed such as
widening roads, strengthening bridges or building bypasses.
A worker in the role of a project forwarder will also need to ensure their
projects comply with customs, shipping regulations, quality requirements and
safety procedures. A project forwarder will need to coordinate the administration
and operational procedures for their project team. They may need to support team
members across different areas of the company during busy periods. They will be
responsible for coordinating logistics services and communicating with different
logistics service providers.
A project forwarder has to ensure that all projects are run in accordance
with company policies and procedures. Workers on this role also need to ensure
that projects are completed to a client’s satisfaction; including meeting cost,
schedule and contractual requirements. They needs to ensure their financial and
7
administrative files comply with their company’s standards. They will regularly
need to source pricing for rate and quote requests.
Warehousing
Warehousing refers to the activities involving storage of goods on a large scale in a
systematic and orderly manner and making them available conveniently when
needed. A warehouse is the point in the supply chain where raw materials, work-
in-progress (WIP) or finished goods are stored for varying lengths of time. In oter
words, it means holding or preserving goods in huge quantities from the time of
their purchase or production till their actual use or sale. It is one of the important
auxiliaries to trade. It creates time utility by bridging the time gap between
production and consumption of goods.
Warehouses only add value if the benefits of storing products in a
warehouse enough to offset the additional cost associated with carrying any
inventory. Other potential benefits associated with storage include the following:
time bridging , which allows products to be available when it is needed
(e.g.,storing spare machine parts at the facility); processing operation because the
product undergoes a required change during storage and securing.
8
CFS OPERATIONS
A CFS is an extended arm of Port/ ICD/ Aircargo Complex, where import/
export goods are kept till completion of their examination and clearance. The
imported goods can be immediately shifted from the port to CFS which also helps
in the reduction of port congestion. All the activities related to clearance of goods
for home consumption, warehousing, temporary admissions, re-export, temporary
storage for onward transit and outright export and transshipments take place from
such stations. Therefore, clearance of goods from CFS is an important point of
consideration for trade in respect of export/ import Cargo as it is the final Customs
contact point.
The Main function of CFS is receipt, dispatch and clearance of
Containerized Cargo, up-to-date inventory control and tracking system to locate
containers/cargo.
The goods received at ports are brought to CFS and stacked in CFS after
verification of the seal by Customs Officers. In respect of import consignment, the
Steamer Agents/liners/ Importers desiring to take the consignment to CFS, file
Import General Manifests in the port. After obtaining the permission from the
AC/DC, the Container moves to CFS under Customs escort or under bond and
bank guarantee. The CFS allow de-stuffing of the goods. The CHA / importer files
the Bill of Entry at Customs House and then Customs formalities of assessment,
examination and payment of duty are completed. Thereafter, Customs gives “Out
of Charge” and the Custodian releases the goods from CFS by issuing a Gate-Pass.
9
In respect of exports, the goods are brought directly to CFS under a
Shipping Bill. The export cargo in Less than Container Load (LCL)/ Full container
Load (FCL) is received by the Custodian of CFS for safe custody. After stuffing of
the goods, Container/ Customs Bonded Truck (CBT) is sealed by the Custom
Officer and the same is removed from CFS for export through the desired Port.
OBJECTIVE OF INTERNSHIP
To learn the CFS operations and services provided by Allcargo Logistics Limited.
NEED AND METHODOLOGY
In today’s date most of the organization is trying to reduce their operation
cost and try to provide all services in a cost effective manner. In my internship I
came to know how a CFS works. The CFS handled PNR (Public Notification
Receipt), carting, export handling, import handling, bonded and open warehouse,
transportation, documentation, maintenance and repair of dry container and reefer
monitoring service. Through this internship at Allcargo Logistics Limited, an
attempt is been made to find CFS operations without compromising the quality of
services. For completion of report, primary and secondary data were collected.
Primary data include personal interview and discussions held with the all
departments of Allcargo Global CFS and Employees & Surveyors in the respective
department. Since the study mainly focused on company’s work procedure, I had
given immense importance to collect secondary data from the company. Internal
records and the company website are used as a secondary data.
This internship report is confined to Allcargo Logistics Limited only.
10
PRESENTATION OF REPORT
The internship that has been presented in Chapter 1 dealt with introduction to
logistics , logistical scenario in India and some of the services related to logistics.
In Chapter 2, the profile of organization and its areas of operation like NVOCC,
ICD, CFS, crane rental and project forwarding has explained. In chapter 3, I have
discussed about my observations on the functioning of Allcargo Logistics CFS
Chennai while Chapter 4 gives the conclusion and suggestions.
11
CHAPTER 2
PROFILE OF ALLCARGO LOGISTICS LIMITED
12
PROFILE OF ALLCARGO LOGISTICS LIMITED
In chapter I have given the overview of the company including their
mission, vision and all the business they are running. I have also included the name
of various Indian and International subsidiaries.
AN OVERVIEW OF COMPANY
Allcargo Logistics Limited is a part of the Avashya Group and is a leading
Indian multimodal company providing integrated logistics solution worldwide.
They offer specialized logistics services across global Multimodal Transport
Operations (NVOCC, LCL and FCL), Pan India Container Freight Stations (P&E),
Ship Owning and Chartering, 3PL and Warehousing services.
Their benchmarked quality standards, standardized processes and
operational excellence across all there service verticals and facilities have enabled
them to emerge as a leading player across these segments. They have a strong
global footprint through its multinational multimodal transport operation Arms-
EcuLine headquartered in Belgium, Europe. Ecu Line is the world’s largest less
than Container Load (lcl) service provider. Another global footprint is through
Econocaribe Consolidators headquartered in Miami, USA, NVOCC leader and
Rotterdam based Full Container Load (FCL) Marine Agencies specializing in FCL
services.
Currently company operates in 200 plus offices and in 90 plus countries and is
supported by an even larger network of franchisee offices across across the globe.
Presently, company is one of the India’s largest publicly owned logistics company,
listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE)
13
and is categorized under S&P BSE Midcap and CNX Nifty 500 indices. Company
has a fleet of 784 equipment comprising of 143 cranes, 584 trailers, 36reach
stackers and 21 forklifts.
Company has crossed a major milestone of its mission plan of being a
USD 1 billion company in previous financial year. Previous financial year was
good for the company as micro and macro-economic situatuin improved during the
year, thus boosting the company’s performance. The performance of company was
further strengthened on account of the robust measures undertaken by the company
at all levels such as focus on pricing and aggressive marketing strategy, disciplined
project executions, focused management approach, prudent financial and human
resources management, better control over cost and consistent follow-up
receivables.
Company has consistently delivered and exceeded customer expectations
in the deliverables and performance. Company’s achievements in maintaining
quality are evident from the credentials and recognitions that were awarded over
the years. Allcargo Logistics is among India’s top 4 companies inn the Logistics
sector to have been featured in Dun and Bradstreet’s edition of top 500 companies
in India.
Allcargo has redefined the global logistics landscape with its unique and
pioneering integrated logistics services. Today spanning over 90 countries,
Allcargo is one of the world’s leaders in NVOCC services with a comprehensive
network connecting all continents and trade hubs globally. Their world class
Container Freight Station (CFS) and Inland Container Depot (ICD) facilities, best
in class equipment, leadership in Project Logistics and Coastal Shipping as well as
expertise in Contract Logistics Solutions has consolidated its leadership s one of
14
the most experienced, reliable and innovative organizations in the logistics space
globally.
They have emerged as the top LCL Consolidators in the world, largest
CFS operators in India and the only company with significant presence at all 3
major container ports of country. They have shown a good growth from previous
years, despite all the challenging economic conditions in India and across the
world. Amongst the leading P&E players in India, today they are at the helm of
India”s only logistics multinational company with capabilities to provide integrated
logistics services. Company has emerged as a leading and formidable player in all
the businesses that it operates in. They will continue to be on profitable growth and
increasing ROCE across businesses and increasing shareholder value.
In the past year, we saw the global economic scenario continue to recover
but in a fractured manner and remain challenging. Even in presence of these
challenges India continued to be one of the growing economies in the world but the
growth stemmed due to various factors like inflation, policy reform setbacks, rise
in cost of borrowing, paucity of funds amongst others. These factors somewhere
affected the growth and profitability of company across various sectors.
Recognizing the early signs, they were focused on bringing in efficiencies
through process improvement, cost optimization, technology enhancement and
investing in their most valuable resources that is people.
Allcargo Logistics have launched more direct LCL services globally to
many destinations as they grew volume of freight booked with us. They have
continued to expand their business in this period of recession and this will be a key
differentiator in their wish to be the largest NVO in the world. In project &
engineering business, they have enhanced asset utilization and higher movement of
15
project cargo along with increase in coastal shipping business. They have a strong
order book and have added new customers by offering innovative and integrated
logistics solutions.
Their business strategy of a diversified global presence and as an
integrated logistics service provider in India has not only avoided dependence on a
particular segment or geography of logistics but also makes us the partner of
choice for their customer in terms of service offerings. Their global scale with
operations across 90 countries, covering over 4000 port pairs and focus on LCL
consolidation, has made us more or less resilient to global trade volatility.
MISSION
 Create benchmarks of quality, consistency and commitment in the integrated
logistics business worldwide.
 Create better value for clients and for us through ingenuity supported by
knowledge, expertise, technology and imagination.
 Nurture long-term relationships with all stakeholders through growth, trust
and by delivering on promises.
 Be a responsible corporate citizen by contributing to the society and
respecting cultural sensibilities.
 Inspire creativity, initiative and leadership.
VISION
Become a leader in the business known for pioneering solutions in logistics
worldwide.
16
BOARD OF DIRECTORS
 Dr.Shashi Kiran Shetty, Founder and Chairman
 Adaesh Hedge, Executive Director
 Arathi Shetty, Non-Executive Director
 Mohindar Pal Bansal, Non-Executive Independent Director
 Hari Mundra, Non-Executive Independent Director
 Prof. J Ramachandran, Non-Executive Independent Director
 Keki Elavia, Non-Executive Independent Director
COMPANIES WHICH BECAME SUBSIDIARIES
The List of Indian Subsidiaries
 Hindustan Cargo Limited
 Acex Logistics Limited
 Credo Shipping Agencies
 Contech Transport Sevices Private Limited
 Comptech Solutions Private Limited
 Amfin Consulting Private Limited
 Ecu Line(India) Private Limited
 Allcargo Shipping Co.Private Limited
 South Asia Terminal Private Limited
 Southern Terminal & Trading Private Limited
 AGL Warehousing Private Limited
 Allcargo Logistics Park Private Limited
 Trans India Logistics Park Private Limited
 Combiline Indian Agencies Private Limited
17
The List of Foreign Subsidiaries
 Ecu-Line N.V
 Ecu- Line Algeriesarl
 Ecu Logistics SA
 FMA-Line Holding nv
 Ecu-Tech BVBA
 Ecuhold NV
 Ecu International N.V
 Ecu Global Services N.v
 HCL Logistics N.V
 AGL N.V
 Allcargo Belgium N.V
 Ecu Logistics do Brazil Ltd
 Ecu-Line Polska SP. Zo.o
 Ecu-Line Doha W.L.L
 Ecu-Line Romania SRL
 Ecu- Line Singapore Ltd
 Ecu-Line South Africa Ltd
 Ecu-Line South Africa Ltd
 Mediterranean Cargo Center S.L. (MCC)
 EcuUluslarasi Tas. VeTicaret Ltd
 China Consolidated Company Ltd
 Star Express Company Ltd
 DEOLIX S.A
 CLD Compania Logistica de Distribution S.A
18
 Guldary S.A
 Administradora House Line C.A
 Asia Line Ltd
 Eurocentre FZCO
 CCS Shipping Ltd
 Flamingo Line Del Peru SA
 China Consolidation Services Shipping Ltd
 Flamingo Line del Ecuador SA
 ELWA Ghana Limiteed
 Contech Transport Services Ltd
 PT EKA ConsolUtama Line
 Jordan Gulf for Freight Service Agencies Co.LLC
 CELM Logistics SA de CV
 Rotterdam Freight Station BV
 S.H.E. MARITIME Service Ltd
 Ocean House Ltd
 Centro Brailiero de Armazenagem E Distribuicao Ltd
 OTI cargo Inc
 Econoline Storage Corp
 PRISM Global, LLC
19
ACHIEVEMENTS AND MILESTONES
As a leading technology-enabled logistics company, Allcargo Logistics is building
a business that can have a lasting positive impact on society. They are doing all the
efforts to empower disadvantaged sections through need based interventions by
running a NGO named as Avashya Foundation. Past year company has been
conferred with many accolades and appreciation for significant contribution made
in development and growth of the logistics industry.
 Dr. Shashi Kiran Shetty was felicitated with the ‘Lifetime Contribution to
Freight’ award by the Global Freight Award.
 Dr. Shashi Kiran Shetty was honored with the ‘Distinction of Commander of
the Order of Leopold 2- The Highest civilian honor by the Royalty of
Belgium, H.M, King Philippe.
 Dr. Shashi Kiran Shetty was awarded an Honorary Doctorate from
Mangalore University, for his philanthropic contributions in the field of
healthcare for the underprivileged in Mangalore. These contributions were
undertaken by Allcargo’s NGO, Avvshya Foundation.
 Allcargo was awrded the Brand Excellence Award in Logistics & Supply
Chain by the World Marketing Congress.
 Allcargo was awarded the ‘LCL Consolidator of the Year’ award at the
South East Cargo & Logistics Awards.
 Allcargo was honored with 3 awards at the Gateway Maritime Award.
 CFS of the Year, Freight Forwarder of the Year and Ms. Shantha Martin was
awarded the ‘WISTA Personality of the Year’.
20
 Ms.Shantha Martin was awarded with the ‘Women in Logistics’ Award by
Supply Chain Management Professional magazine at the Logistics Service
Provider Awards.
 Allcargo was felicitated with 2 awards at the Gujarat Star Awards, best
Integrated Logistics Company of the Year and best CFS Owner of the Year.
 Ms. Shantha Martin was awarded the ‘Business Leader Award’ at the annual
World Women Leadership Congress & Awards.
21
CHAPTER 3
CFS OPERATION AT ALLCARGO LOGISTICS
22
LOCATION OF ALLCARGO AND FACILIENTS
It is situated in Wimco Nagar, Thiruvottiyur High Road, Ernavur, Chennai –
600057. Allcargo is about 7 kilometers away from Chennai Port and Allcargo is
well connected by inner-ring and outer-ring roads.
1 Name of the CFS Allcargo Global Logistics Ltd,
Container Freight Station,No.913,
Thiruvottiyur High Road,
Near Wimco Nagar Railway Station,
Ernavur, Chennai – 600 052.
2 Date of Commencement of
Operation
18th
April 2007
3 Working Strength  Appraiser - 2
 Examiner - 3
 Preventive Officer - 1
 Ministerial Staff - 2
 Havildar - 1
 Sepoy
4 Location No. 913, Thiruvottiyur High Road,
Near Wimco Nagar Railway Station,
Ernavur, Chennai - 600 052.
Regd.Office : Diamond Square,
CSTRoad,
Kalina, Mumbai.
23
5 Facilities for Customs Officers
at the CFS
 Rooms with A/C- 6
 Telephones Intercom
 Computers -6
 Printer -1
 Internet facility
 Conveyance Presently 6 cars
6 General Information about Allcargo Global Logistics Ltd - CFS.
a Area 25 acres
b Yard & Layout 25 acres
c Yard Capacity 5000 tues
d Ware House  Export. 7570Sq.Meters
 Import LCL .2925 Sq.Meters other
than LCL 1254 Sq.Meters, Bond
2627 Sq.Meters.
e General Yard Segregation  Entire Yard is laid with interlocked
paved Blocks, Scrap yard is at the
East end.
 Seized/Detained Containers are
stacked separately.
f Reefer Facility 25 Reefer plug points are available. The
number of reefer points can be increased
on need basis.
g Security  Area is covered by high compound
wall and above that barbed wire
fencing.
 Round the clock security vigilance.
 Labors are provided with tokens.
Their Entry & Exit are noted.
 Fire Fighting Equipments are
provided.
 CCTV Camera is installed.
24
h Approach Situated on Ennore Express Highway at a
distance of 9 KM from Port ‘O’Gate.
24Hours through fare and no traffic
restrictions.
i Weighing Weighbridge of 100MT capacity is
available. Weighing Machines are
periodically maintained and annually
stamped by Metrology Department.
j Electricity &Lighting  Electrical illumination is provided.
 350 KVA Generator is used during
power failure.
 Usage of solar panel for electricity
consumption
k Equipments.  Reach Stacker 40MT- 4 Nos
 Fork Lift 16MT-1Nos
 Escort 10MT-1Nos
 Forklift 5MT- 21 Nos
 Rubber Tyre Gantry 41Tons-2
 Trailer- 30
l Facilities to Customers.  Drinking Water Cooler
 Air Conditioned Rest Room
 Phone
 Fax
 Xerox Centre
m Pre-Advise Export stuffed containers are passed out
with “Pre-Advise” for customer
satisfaction and to minimize the waiting
time for trailers.
n Installation of
“TOUCH SCREEN KIOSKS”
Installed Touch Screen Kiosks to facilitate
the trade to track consignments and to
know the status of documents.
7 System of entry and exit of
persons
The Importer / Exporters, Custom House
clearing Executives are allowed to enter
the CFS after verifying their Identity and
screening by the security personnel posted
at the gate. This is also ensured by the
25
preventive officer on duty.
8 System of entry and exit of goods The entry and exit of goods are done
based on the due authority as reflected
upon in the documents produced by the
Importer / Exporter / CHA.
9 Registers Maintained by CFS
Staff
 Gate Register:
The Gate Register is being maintained to
record the details of trucks, time of entry
and exit, details of cargo and the agency
concerned
 Export:
Cargo inward register
 Import :
All activities are governed by
Computerized systems.
10 Storage of Seized Goods There is a separate ear marked area to
store seized goods.
The detained containers are locked in the
CFS systems so that the detained
containers are prevented from accidental
opening and inspection. Due care is being
exercised in this aspect.
11 Duties of Customs Officers
Posted at Allcargo CFS,
 Appraiser: Examination of Import
cargo, attending Green channel and
RMS bills and overall supervision
of customs work related to
Appraising in the CFS.
 Examiner: Examination of Import
cargo and maintenance of cash
declaration register and discrepancy
register.
 Superintendent: Overall
Supervision of all Preventive works.
Examination of Export cargo and
giving “Let Export Order”.
26
 Preventive Officer: Maintenance
of requisite registers, verification of
seals of import container / Time of
arrival. Supervision of stuffing of
Export containers and other
preventive works.
 Preventive Officer (Export
Examination): Examination of
Export cargo and audit the export
Documents.
 Ministerial Staff: In charge of
taking printout of shipping bills and
Bill of entries and forwarding of
RMS bills to audit.
 Havildar: Locking one time seal on
export containers, submit the
samples drawn from the CFS and
carries file if any, to the Docks
Office and maintains sample
register.
13 Registers Maintained by the
Customs Preventive Unit
 Import Register
 Export Register
 Transfer Bond Register
 Shutout cargo Register
 Seal Register
 Central Excise Register
 Cash Register
14 Registers Maintained by the
Customs Appraising Unit
 Sample Register
 Cash Register
 Discrepancy Register
15 Suggestions:
The officials have been instructed to develop appropriate intelligence both in
respect of imports, Exports and to be more vigilant during the work and
follow the procedures / circulars issued by the board and pursue the reasons
for pendency of cargo and take a necessary action to clear the same.
27
OPERATIONS DEPARTMENT
The Allcargo commenced its commercial operations on 18th
April 2007. Since
then, it has steadily increased its market share from percentage to percentage,
thereby establishing the number one status amongst the other CFS operators in
Chennai.
The CFS can handle the following per day:
Approximate Daily movement report of Allcargo Global - CFS
PNR – 200 / Day (Approx)
Carting – 100 / Day (Approx)
Export – 50 / Day (Approx)
Allcargo Global Logistics Limited - CFS is one of the fast growing logistics
company among the other companies in Chennai. They carry out the following
operations.
Import handling Port movement, handling and delivery of container to
end customer.
Export handling Cargo carting, stuffing, custom clearance, and
movement to port.
LCL shipment Handling, consolidation, stuffing, de-stuffing and
reporting.
Bonded & Open
Warehouse
Scientific storage of cargo with planned inventories
and streamlined processes.
Transportation Complete end-to-end service that includes pick-up and
drop to specified locations.
Specialized cargo With container lashing, choking and palletizing
services to secure cargo and prevent damage during
transit.
Documentation All import and export operation entries including
customs documentation and related formalities are
28
computerized.
Maintenance &
Repair of dry
container
They provide complete repair, welding, cleaning and
washing services as required, to maintain
seaworthiness of containers.
Weigh bridge They offer weighment services to their customers and
ensures no loss of cargos.
Reefer monitoring
service
All necessary equipment are available to monitor and
regulate temperatures of reefer containers and ensure
maintenance of optimal temperatures as per
recommendations.
Hazmat handling Handling hazardous cargo.
CFS GATE IN &GATE OUT
It’s an important department where the CFS uses to gate in & out of any
sort of vehicle. They collect details of the cargo, lorries & trailers (Name of
transport, CHA Name, Number, Name of driver) the purpose of vehicle entry when
it comes from port and they get gate pass.
They collect an EIR (Equipment Interchange Report) for the container
which is given by the port for import PNR’s. The EIR is about the condition of
containers, when it’s out of port to CFS. If there is any damage the port authorities
will specify about that, So that it avoids unnecessary fine payments by the
Consignee/Importer.
The PNR (public notification registration) movement register are entered
in at the security Gate then P.O will verify the seal, container number, and entered
time then the RFID (radio frequency identification) tag will place on the container
29
for knowing the location in CFS then the container are off loaded in the CFS, this
is for the PNR movement. Before that PNR movement IGM (Import Generate
Manifest) was mailed by the port authority to the CFS, so that they will know
about the detail of container which is going to be placed in the CFS. In Allcargo
Logistics they are using CFS MAG3.0 software for this process.
ISO code are used for identifying and differentiating the container, it’s the
code cover the identification of intermodal (shipping) container used within
containerized intermodal freight transport .it include a unique serial number, the
owner ,country code ,size ,type ,and equipment category as well as any operation
mark.
They also do empty container handling. When cargoes are packed for
export, the shipping line makes necessary arrangements to transport to the
destination as per the letter of credit of consignee. After finalizing carrier accepts
and confirms his freight. The carrier request the shipping line for booking the
container. It can be done either by online or email. When procedure for booking
completes a confirmation is given by carrier to the exporter. The booking
confirmation is also called delivery order. The delivery order mentions the location
of empty container. The empty container is moved to his factory for stuffing. The
whole Gate work is controlled and operated by surveyors under the regulations of
CFS Officials.
This is the software application screen shot of Allcargo for gate in process
30
Vessel Updation-Import Arrival List
PNR Generation
31
Empty Container
Empty Container Work
32
Empty Container Gate Out Confirmation
Import Loaded Container Confirmation Gate–Out
33
Export Loaded Container Confirmation Gate-Out
Import FCL/LCL Cargo Confirmation Gate-Out
These are the two important sort of work where the Gate’s backend. Staffs
performing all over, apart from these they use to create and forward Daily reports
34
about the container status to CFS officials, Liners and Agents with Pendency and
current status report of the containers
DOCUMENTATION
There are two types of operation
Open Operation
RMS Operation
If it is open FCL there is a seal cutting to check the goods in the container for the
verification. If it an RMS there is no need for verification of operation process
without opening the container. Sometime the cargo may be in hold position due to
the payment, after the payment process is over the holding will be released.
The documents required for delivering the goods from CFS are
 Delivery order,
 Examination Order (if there is any necessary to open the container to
examine with custom officials)
 Bill of Lading
 Bill of Entry
 Duty Paid Challan (if the cargo is duty payable)
 Certificate of origin / Insurance for cargo (If needed)
 Commercial Invoice
 Bill of entry with appraisal officer seal.
 Out of charge is provided by the customs and then the passed out order is
given by the preventive officer of the customs.
35
If all these documents are satisfied by executive in documentation dept, then they
allows for generating open order for the container. After examination, the CHA
will have Custom Tally sheet for billing and pays the storage, fuel charges for
movement of PNR etc. After billing the CHA will apply for Job order, if there is
destuff or direct out. Then the final step is gate pass for both movement direct out
or destuffs out. If the container is De-stuffed, the empty container has to be moved
to the empty yard as per liners advice. So the Empty Container Gate out has to
generated and gated out then the bill gets over.
IMPORT-LCL
LCL is one of the major money earning departments in the CFS and for
consolidators, The LCL container consist of cargo’s which belongs to two or more
consignee’s. Once the container is gated in with LCL status, the container will be
de-stuffed by CFS employees as per the manifest sent by the consolidator for that
work order for destuffing is provided by adding vessel number, IGM number. Then
container destuffing entry is provided. Inorder to provide container destuffing entry
work order for destuffing, cargo declaration and import LCL tally sheet is required.
The manifest has every details about the cargo in container, it has Name of
importer, Marks & No’s, cargo descriptions, etc with the inputs of all these details.
With the help of manifest the container is de-stuffed in the presence of surveyors
then the executive will check the located cargo placed in the warehouse with the
manifest for de-stuff tally (both the given manifest quantity & de-stuffed quantity
should tally). Then the delivery tally sheet will be prepared by the surveyor in-
charge of the LCL warehouse and the scanned copy is sent to consolidator for their
reference. Then the CHA’s will get the endorsement and the location of cargo
stacked, and they have to make billing for their cargo, and then CHA load their
cargo into their trucks and then the gate pass will be generated in the LCL
36
Warehouse, the final document should be signed by CHA, surveyor in-charge for
cargo & the executive in-charge.
Import Document Entry
LCL Work order for Destuffing
37
LCL Container Destuffing Tally
Work order for Loading of LCL
Import LCL Cargo gate pass
38
EXPORT
In Allcargo Global Logistics Ltd, Exports also has a better business compared with
other CFS. The necessary documents for exports are Letter of Credit, Shipping bill,
Commercial Invoice, Packing list, Form 13 and PHA Certificate (If needed).The
exports are done in two way of process:
 Direct Export (Stuffing in CFS)
 Self-Sealing (Stuffed from Factory/Company)
The Direct Exports are done in CFS, the cargoes (Carting trucks) were gated in and
after the inspection is over, the empty container will be gated in/placed and cargo
will be stuffed in under the view of surveyors in-charge, the no of quantities of
cargo in truck and the no of quantities of cargo in check list & shipping bill has to
tally before stuffing into the container. If there is any excessive cargo which cannot
be stuffed are treated as shut out cargo and special permission to CHA will be
given by the CFS to take them out. After stuffing the container the SSR copy will
be given to CHA for Billing by the Export dept. After billing, the documents are
produced for the gate pass in documentation dept. Once the gate pass is generated
the CHA’s will get gate out time from PO (Preventive Officer) with duly signed.
In export they issue Work-Order Export Cargo Carting using CFSMag3.0 and
enter truck number, driver name, surveyor, driving license number, select the
equipment save and print it.
Carting tally sheet need to be provided if the agent name is not Allcargo. The next
step is empty truck gate out. To do this step first need to save export carting tally
updation and then take empty truck gate out in CFS Mag 3.0
39
Export Job order Truckwise
Export Carting Tally Updation
40
Empty Truck Gate out
Stuffing Request for One Container more Shipping bill
41
Stuffing Request for One Shipping bill
Export Cargo Receiving (Declared & received weight need to be same)
Export CLP Updation
42
Export Movement Work order
Export Carting Pendency Report
BONDED WAREHOUSE
When goods are in the bonded warehouse, under the supervision of customs
authority, be manipulated by clearing, sorting, repacking or changing their
conditions by processes that do not amount to manufacturing. After manipulation
and within the warehousing period, the goods may be exported without the
payment of duty, or they may be withdrawn for consumption upon payment of duty
at the rate applicable to the goods in their manipulated condition at the time of
43
withdrawal. There are inbond and exbond procedures take place in Allcargo
Logistics Limited. Inbond process starts with,
Inbond Document Entry
Work Order for Inbond Container
44
Work Order for Inbond Cargo
Destuffing Inbond Container
45
Inbond Cargo Receipt
Exbond Assessment Entry
46
Workorder for Exbond
Exbond Delivery Gate Pass
47
TRANSPORT
Transport department deals with all transport movement of trailers from port to
CFS, they takes full responsibility for the movement of PNR movement, empty
containers handling. The PNR movement process starts with port formalities. The
vessel berth details are send through electronic mail by port to CFS. When vessels
arrive PNR list is send to Allcargo Logistics-CFS in PDF format. Then the list is
taken to customs for PNR filing for getting acknowledged. After getting PNR
number it is then taken to terminal for the release of containers with Form13 DRF
of those containers of AGL. Hologram is provided with form13 by Allcargo
Logistics. Delivery Request Form need to be provided to the terminal for the
release of import containers. For export plot permission letter which is also called
booking confirmation letter for empty containers are send by customers to CFS and
form13 is released by the terminal for export. For vessel empty liner sends Form13
from terminal then the vessel list is downloaded from IGM downloading and it is
converted to CFSMag3.0.
48
CHAPTER 4
FINDINGS AND INFERENCES
49
FINDINGS AND INFERENCES
Through my direct observation into the operations of Allcargo Global Logistics
Limited, I have found some of the Strengths, Weaknesses, Threats and
Opportunities. I have listed all of them as follows.
STRENGTHS
 The main strength is location of CFS, which is just 9 kilometers away from
the Chennai port.
 The regular customers were made satisfied with the service of Allcargo CFS.
 Regular customers tend to be less expensive to service because they are
familiar with the process, require less education and are consistent in their
order of placement.
 Highly experienced and skilled employees with better infrastructure.
 It has separate warehouse spaces for the Export, Import and Bonded cargoes.
 Availability of large area for the operations.
 The leading market shareholder and market leader.
 Proper planning has been made for controlling operational equipment
movement in stacking and allocation.
 Team spirit.
 Concreted yard spaces for operations.
 Friendly environment for the employees, no mental torture has been given
yet.
 It has greater ability to go for merger and acquisitions of their liners and
customers.
50
WEAKNESSES
 Non availability of space in warehouse leads to congestion of cargoes.
 The cameras in warehouse are not in working condition and it leads to theft.
 Less number of surveyors leads to consume a lot of time for preparing
carting tally sheet preparation while stuffing takes place in export.
 Absence of ramp point in old export warehouse leads to wastage of time and
money for stuffing containers.
 Occurrence of damages for cargoes inside export warehouse during
monsoon season.
 Non availability of pure drinking water facility.
 Absence of hand truck for labors.
 No proper planning for stuffing containers which causes unloading of
cargoes from containers and restuffing it again leads to wastage of time.
OPPORTUNITIES
 Lot of possibilities to increase their Export TEUs.
 Increase customer participant in CFS, with specific emphasis on LCL which
add on additional finance.
 Analysis of customer complaints and competitive benchmarking can
increase the profit.
 E – Marketing and Telephone marketing (Telemarketing) can reduce the
cost and time required for the marketing people to gain the market.
 Long term customers may initiate free “word of mouth” promotions and
references.
51
 Regular customers tend to be less inclined to switch and also tend to be
fewer prices sensitive.
 Customer retention can increase profitability.
 Setting benchmark to determine the best corrective practices and visible
endorsement of top management.
THREATS
 Since most of the contract laborers could not be well experienced and
educated regarding the CFS operations, they are not fully involved in their
works in an efficient manner.
 Increasing number of competitors could be a possible threat to the company.
52
CHAPTER 5
CONCLUSION
53
CONCLUSION
Logistics have always been an important part of supply chain management
that plans implements and controls effective flow of storage of goods, services and
related information. While logistics in India is been evolving rapidly and growing
at a good pace. Even the government of India is also putting great emphasis on the
development of logistics in country. Apart from that India is bearing huge losses
due to poor logistics infrastructure.
In the period of economic recession and era of challenges infield of
logistics, Allcargo Logistics limited had kept their head up faced the challenges
from the front and shown the fantastic results in the business of logistics. Recenlty
they have become the India’s largest public listed company and they crossed the
milestone of 1 billion dollars revenue company. The following are the services that
they offer across globe, Multimodal Transport Operations (NVOC, LCL and FCL),
Container Freight Station (CFS) and Inland Container Depot (ICD), Ship owning
and Chartering and 3PL and Warehousing services. In order to provide the logistics
services across the globe they have merged and acquisitioned many international
companies. Presently they have more than 15 Indian subsidiaries and they have
more than 40 intenational subsidiaries.
The internship exercise was mainly to enable me to acquire practical
skills and I have been able to acquire practical skills by the support and guidance
of Allcargo team of Chennai CFS. Thus my internship at Allcargo Logistics Global
Limited has made and with the use of that study SWOT analysis has been done.
Personal talk done with the entire department people has helped me to make some
suitable solutions which would really help to the organization.
54
BIBLIOGRAPHY
 Lambert D.M, Stock J.R and Lisa M Ellram, Fundamentals of Logistics
Management
 D.K Agarwal, Textbook of Logistics and Supply Chain Management
 Alan Rushton, Peter Baker 2012, The handbook of Logistics and
Distribution Management
 www.google.com
 www.allcargologistics.com
 www.wikipedia.com
 www.shippingworld.com
 www.port.cctl
 www.kictl.in
 www.citpl.co.in
55
ABBREVIATIONS
CFS CONTAINER FREIGHT STATION
CCTL CHENNAI CONTAINER TERMINAL PVT LTD
CITPL CHENNAI INTERNATIONAL TERMINAL PVT LTD
KICT KATTUPALLI INTERNATIONAL CONTAINER TERMINAL
JNPT JAWAHARLAL NEHRU PORT TERMINAL
CHA CUSTOM HOUSE AGENT
LCL LESS CONTAINER LOAD
FCL FULL CONTAINER LOAD
RFID RADIO FREQUENCY IDENTIFICATION
PNR PUBLIC NOTOFICATION REQUEST
IGM IMPORT GENERAL MANIFEST
IAL IMPORT ARRIVAL LIST
DRF DELIVERY REQUEST FORM
ISO INTERNATIONAL ORGANISATION FOR STANDARDIZATION
CODE
BOE BILL OF ENTRY
TEU TWENTY-FOOT EQUAL UNITS
FEU FORTY-FOOT EQUAL UNITS
UCC UN CLEARED CARGO
EIR EQUIPMENT INTERCHANGE RECEIPT
56
EDI ELECTRONIC DATA INTERCHANGE
PO PREVENTIVE OFFICER
EO EXAMINATION OFFICER
AO APPRAISING OFFICER
NVOCC NON VESSEL OPERATING COMMON CARRIER
IMDG INTERNATIONAL MARITIME DANGEROUS GOODS CODE
SB SHIPPING BILL
FOB FREE ON BOARD
POD PORT OF DISCHARGE
POL PORT OF LOADING
CLP CONTAINER LOAD PLAN
DO DELIVERY ORDER
RTG RUBBER TYRE GANTRY

AllCargo Logistics

  • 1.
    An Internship Reporton A STUDY ON CFS OPERATIONS AT ALLCARGO LOGISTICS CHENNAI In partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION (International Transportation and Logistics Management) Submitted by NANDITHA S Reg.1605305023 Under the esteemed guidance of Dr.U Sreejith Assistant Professor SCHOOL OF MARITIME MANAGEMENT INDIAN MARITIME UNIVERSITY KOCHI CAMPUS DECEMBER 2017
  • 2.
    INDIAN MARITIME UNIVERSITY SCHOOLOF MARITIME MANAGEMENT KOCHI CAMPUS Dr. M Sekar Head of Department School of Maritime Management Willingdon Island Indian Maritime University Date: Kochi Campus CERTIFICATE This is to certify that the MBA internship report entitled “A Study On CFS Operations At Allcargo Logistics Chennai” is a bonafide record of internship done by Ms. Nanditha S and is submitted in third semester of MBA International Transportation and Logistics Management. It is also certified that the above work has not previously formed the basis for the award of any degree, diploma associate ship, fellowship or other similar titles, and it is an independent work done by the candidate. Dr. M Sekar HOD
  • 3.
    INDIAN MARITIME UNIVERSITY SCHOOLOF MARITIME MANAGEMENT KOCHI CAMPUS Dr. U Sreejith Assistant Professor School of Maritime Management Willingdon Island Indian Maritime University Date: Kochi Campus CERTIFICATE This is to certify that the MBA internship report entitled “A Study On CFS Operations At Allcargo Logistics Chennai” is a bonafide record of internship done by Ms. Nanditha S and is submitted in third semester of MBA International Transportation and Logistics Management. It is also certified that the above work has not previously formed the basis for the award of any degree, diploma associate ship, fellowship or other similar titles, and it is an independent work done by the candidate. Dr. U Sreejith (Internship Guide)
  • 4.
    DECLARATION I hereby declarethat the internship report titled “A STUDY ON CFS OPERATIONS AT ALLCARGO LOGISTICS CHENNAI” is a bonafide record of work done under the guidance and supervision of Dr.U Sreejith, Assistant Professor, School of Maritime Management in Indian Maritime University. This report neither in full nor in part has ever been submitted for award of any other Degree of either this university or any other university. Place:Kochi NANDITHA S Date: 15/12/2017 (1605305023)
  • 5.
    ACKNOWLEDGEMENT I am greatlythankful to SHRI. RAJEEV PRAKASH, Director, Indian Maritime University, Kochi Campus, for his continuous encouragement and valuable support to complete the internship report. I am owed to Dr.M.Sekar, Head of Department Assistant Professor, School of Maritime Management, and Course Coordinator for his suggestions and guidance at each and every stage of my internship. I acknowledge my deep sense of gratitude to my internship guide Dr.U Sreejith, Assistant Professor, School of Maritime Management, Indian Maritime Management, Kochi Campus for their suggestions during the time of report preparation. I express my sincere thanks Mr.Venugopal Shetty, Deputy General Manager, Captain Avinash Iyer, Vice President-CFS for giving me an opportunity to do this internship at Allcargo Logistics Limited-CFS and a special thanks to Mr.Rashmin Jolapra, Senior Operations Manager and the Operation team for his continuous support in the work and involving me in this internship in the first place. I like to thank Mr.S.V.Ravi Kumar, Human Resource Manager of Allcargo Logistics Limited - CFS, who has provided some good opportunities to look around the CFS. I would like to thank all executives of Allcargo Global Logistics Limited who have always supported me in this internship and have given some ideas regarding the internship to well know the CFS work process.They gave many opportunities to express my views regarding project. I would really like to thank them for giving time for me in their busy schedule. They showed me different ways to approach a problem and the need to be persistent to accomplish any goal. NANDITHA S
  • 6.
    EXECUTIVE SUMMARY Allcargo LogisticsLimited is a part of the Avashya Group and is a leading Indian multinational company providing integrated logistics solution worldwide. They offer specialized logistics services across global Multimodal Transport Operations (NVOCC, LCL and FCL), Pan India Container Freight Station (CFS), Inland Container Depots (ICD), Project & Engineering Solutions (P&E), Ship Owning & Chartering and 3PL & Warehousing services. From the above mentioned business of Allcargo Logistics I did internship report on CFS operation at Chennai CFS. In this internship programme, I came to know what is a CFS, how a CFS works, what are their operations, duties and responsibilities of each employee. Allcargo Logistics CFS commenced on 18 April 2007. This CFS is near to Chennai port, Kattupalli port as well as Chennai airport. CFS is a place where containers are stuffed, de-stuffed and aggregation/ segregation of export/import cargo take place. With the growing volume of international trade, the need for expeditious clearance of goods at the port within the minimum possible time has been gaining importance. This is more so when the ports are facing congestion at their premises. Further, for optimal utilization of existing infrastructure, space, equipment, goods that are landed at ports need to be evacuated straight away without any loss of time. Accordingly the concept of Container Freight Stations (CFS) has grown in importance along with the development and growth of ports. I focused on CFS gate in and gate out, documentation, import- LCL, export, bonded warehouse and transport. I had gained hands-on experience from this internship programme.
  • 7.
    CONTENTS CHAPTER NO TITLE PAGE NO ACKNOWLEDGEMENT EXECUTIVE SUMMARY CHAPTER1 INTRODUCTION  Role of Logistics in Indian scenario  Service related to Logistics  Non Vessel Operating Common Carrier  Container Freight Station  Inland Container Depot  Project Forwarding and Crane Rental  Warehousing  CFS Operation  Objectives of Internship  Need and Methodology  Presentation of the study 2-3 4-7 8-9 9 9 10 CHAPTER 2 PROFILE OF ALLCARGO LOGISTICS  An overview of company  Mission  Vision  Board of Director 12-14 15 15 16
  • 8.
     Companies whichbecame subsidiaries  List of Indian subsidiaries  List of foreign subsidiaries  Achievement and Milestones 16-18 19-20 CHAPTER 3 CFS OPERATIONS AT ALLCARGO LOGISTICS  Location of Allcargo and Facilients  Operations Department  CFS Gate in and Gate out  Documentation  Import-LCL  Export  Bonded Warehouse  Transport 22-26 27-28 28-34 34-35 35-37 38-42 42-46 47 CHAPTER 4 FINDINGS AND INFERENCES  Strengths  Weaknesses  Opportunities  Threats 49 50 50-51 51 CHAPTER 5 CONCLUSION 53 BIBLIOGRAPHY 54
  • 9.
  • 10.
    2 ROLE OF LOGISTICSIN INDIAN SCENARIO Logistics is the management of the flow of goods between the point of origin and the point of consumption in order to meet requirements of customers or corporations. The logistics of physical items usually involves the integration of information flow, production, packaging, inventory, transportation, warehousing and often security. Logistics management is the part of supply chain management that plans, implements and controls the efficient forward and reverse flow and storage of goods, service and related information between the point of origin and the consumption. With the advancement in the science and technology in field of logistics, complexity in logistics business can be modeled, analyzed, visualized and optimized by dedicated simulation software. Such automation in logistics led to the use of RFID technology. It further helped in achieving maximum customer satisfaction, ensuring high product quality and brings flexibility in the complex changing market. These are the key components of warehousing, material and handling and purchasing, protective packing and information maintenance. Any logistics strategy have three basic objectives of the company. Apart from that another challenge that comes into picture is the flow of information from manufacture r to supplier or supplier to manufacturer. The best way to deal with the above problem is to introduce the enterprise wide information system that is Enterprise Resource Planning. The components of the transportation can be separated into three categories  Facilities: These are the fixed component of the transportation. This mostly includes railway, road and waterway.
  • 11.
    3  Equipment: Theyhelp in making the optimum use of the facilities that you have. Usually equipment belongs and maintained by the shipper such as trailer, container, vehicle etc.  People: People that are involved in transportation related functions are one of the crucial components of transportation networks. Related working positions are operating personnel like drivers, pilots etc., supportive personnel (maintenance, loading/unloading etc) and managerial personnel. But when it comes to the distribution of goods to the customer, there two ways of doing that on is physical distribution of goods to the customer there two ways of doing that on is physical distribution networks and trading network. Physical distribution network describes the method and products by which a product of a group of products are physically transfers or distributed from their point of production to the point at which they made available to the final customer. Trading network is concerned with the non-physical aspects of the products transfer. These aspects concern the following sequence: negotiation, buying and selling of the product and ownership of the goods as they are transferred through the various distribution systems.
  • 12.
    4 SERVICES RELATED TOLOGISTICS Allcargo logistics has been a veteran player in the field of logistics in India by providing the unique services like Multimodal Transport Operations, Container Freight Stations (CFS), Inland Container Depots (ICD), Ship Owning and Chartering and 3PL and Warehousing services. With the development of intermodal transportation in India there is glorious scope for the company. Below I have discussed few services offered by the logistics company. Non Vessel Operating Common Carrier (NVOCC) A freight forwarder, forwarder or forwarding agent also known as a non- vessel operating common carrier is a person or company that organizes shipments for individuals or corporations to get goods from the manufacture or producer to a market, customer or final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the goods. A forwarder does not move the goods but acts as an expert in the logistics network. These carriers can use a variety of shipping modes, including ships, airplanes, trucks and railroads and often multiple modes for a single shipment. For example, the freight forwarder may arrange to have cargo moved from a plant to an airport by truck, flown to the destination city and then moved from the airport to a customer’s building by another truck. Container Freight Station A container freight station (CFS) is a warehouse where goods are consolidated into or deconsolidated from containers for transport to their next destination. They are an integral part of LCL shipments; if you ever use LCL, then
  • 13.
    5 you should havea good grasp of what happens to your shipments when they pass through CFS warehouses. Shipping LCL means that goods are handled by more parties than when shipping FCL. That increases costs and transit time as well as the risk of mishandling and damages. Furthermore, LCL cargo has a greater chance for going through Customs exams. That’s because if any single shipment in a container box has to be examined, then the whole container will be pulled for an examination by Customs. Inland Container Depot (ICD) Inland Container Depots, otherwise known as ICD’s are dry ports equipped for handling and temporary storage of containerized cargo as well as empties. This means that hinterland customers can receive port services more conveniently closer to their premises. Purpose behind establishing Inland Container Depot is to bring customers based in the hinterland can have access to the same services offered at the port of Mombasa without having to travel all the way for the same thus saving time and money. These depots facilitate for the dispatch of export containers therefore decreasing container turnaround time creating more space at the container terminal. It facilitates the diversion of heavy container traffic from the road to rail. This in turn minimizes road damage caused by heavy trucking thus ensuring smoother roads while giving them more life. Cargo transported by rail is safer and more secure therefore ensuring the safe transportation of cargo.
  • 14.
    6 Project Forwarding andCrane Rental Project Forwarders work in a much specialized area of shipping. Project forwarding describes a service that goes beyond standard freight forwarding, often involving the transport of heavier or more complicated goods. They might work to oversee the movement of cargo such as heavy machinery, military equipment, yachts, aerospace equipment or structures such as oil platforms or buildings. Project forwarding is often a turn-key service where cargo is taken ‘door to door’. The role of project forwarding can involve carrying out pre-contract investigations to choose the best mode of transport. Suitable transport may include submersible barges, pontoons or heavy logistics vehicles. Working in Project Freight may sometimes mean infrastructure will need to be created or changed such as widening roads, strengthening bridges or building bypasses. A worker in the role of a project forwarder will also need to ensure their projects comply with customs, shipping regulations, quality requirements and safety procedures. A project forwarder will need to coordinate the administration and operational procedures for their project team. They may need to support team members across different areas of the company during busy periods. They will be responsible for coordinating logistics services and communicating with different logistics service providers. A project forwarder has to ensure that all projects are run in accordance with company policies and procedures. Workers on this role also need to ensure that projects are completed to a client’s satisfaction; including meeting cost, schedule and contractual requirements. They needs to ensure their financial and
  • 15.
    7 administrative files complywith their company’s standards. They will regularly need to source pricing for rate and quote requests. Warehousing Warehousing refers to the activities involving storage of goods on a large scale in a systematic and orderly manner and making them available conveniently when needed. A warehouse is the point in the supply chain where raw materials, work- in-progress (WIP) or finished goods are stored for varying lengths of time. In oter words, it means holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale. It is one of the important auxiliaries to trade. It creates time utility by bridging the time gap between production and consumption of goods. Warehouses only add value if the benefits of storing products in a warehouse enough to offset the additional cost associated with carrying any inventory. Other potential benefits associated with storage include the following: time bridging , which allows products to be available when it is needed (e.g.,storing spare machine parts at the facility); processing operation because the product undergoes a required change during storage and securing.
  • 16.
    8 CFS OPERATIONS A CFSis an extended arm of Port/ ICD/ Aircargo Complex, where import/ export goods are kept till completion of their examination and clearance. The imported goods can be immediately shifted from the port to CFS which also helps in the reduction of port congestion. All the activities related to clearance of goods for home consumption, warehousing, temporary admissions, re-export, temporary storage for onward transit and outright export and transshipments take place from such stations. Therefore, clearance of goods from CFS is an important point of consideration for trade in respect of export/ import Cargo as it is the final Customs contact point. The Main function of CFS is receipt, dispatch and clearance of Containerized Cargo, up-to-date inventory control and tracking system to locate containers/cargo. The goods received at ports are brought to CFS and stacked in CFS after verification of the seal by Customs Officers. In respect of import consignment, the Steamer Agents/liners/ Importers desiring to take the consignment to CFS, file Import General Manifests in the port. After obtaining the permission from the AC/DC, the Container moves to CFS under Customs escort or under bond and bank guarantee. The CFS allow de-stuffing of the goods. The CHA / importer files the Bill of Entry at Customs House and then Customs formalities of assessment, examination and payment of duty are completed. Thereafter, Customs gives “Out of Charge” and the Custodian releases the goods from CFS by issuing a Gate-Pass.
  • 17.
    9 In respect ofexports, the goods are brought directly to CFS under a Shipping Bill. The export cargo in Less than Container Load (LCL)/ Full container Load (FCL) is received by the Custodian of CFS for safe custody. After stuffing of the goods, Container/ Customs Bonded Truck (CBT) is sealed by the Custom Officer and the same is removed from CFS for export through the desired Port. OBJECTIVE OF INTERNSHIP To learn the CFS operations and services provided by Allcargo Logistics Limited. NEED AND METHODOLOGY In today’s date most of the organization is trying to reduce their operation cost and try to provide all services in a cost effective manner. In my internship I came to know how a CFS works. The CFS handled PNR (Public Notification Receipt), carting, export handling, import handling, bonded and open warehouse, transportation, documentation, maintenance and repair of dry container and reefer monitoring service. Through this internship at Allcargo Logistics Limited, an attempt is been made to find CFS operations without compromising the quality of services. For completion of report, primary and secondary data were collected. Primary data include personal interview and discussions held with the all departments of Allcargo Global CFS and Employees & Surveyors in the respective department. Since the study mainly focused on company’s work procedure, I had given immense importance to collect secondary data from the company. Internal records and the company website are used as a secondary data. This internship report is confined to Allcargo Logistics Limited only.
  • 18.
    10 PRESENTATION OF REPORT Theinternship that has been presented in Chapter 1 dealt with introduction to logistics , logistical scenario in India and some of the services related to logistics. In Chapter 2, the profile of organization and its areas of operation like NVOCC, ICD, CFS, crane rental and project forwarding has explained. In chapter 3, I have discussed about my observations on the functioning of Allcargo Logistics CFS Chennai while Chapter 4 gives the conclusion and suggestions.
  • 19.
    11 CHAPTER 2 PROFILE OFALLCARGO LOGISTICS LIMITED
  • 20.
    12 PROFILE OF ALLCARGOLOGISTICS LIMITED In chapter I have given the overview of the company including their mission, vision and all the business they are running. I have also included the name of various Indian and International subsidiaries. AN OVERVIEW OF COMPANY Allcargo Logistics Limited is a part of the Avashya Group and is a leading Indian multimodal company providing integrated logistics solution worldwide. They offer specialized logistics services across global Multimodal Transport Operations (NVOCC, LCL and FCL), Pan India Container Freight Stations (P&E), Ship Owning and Chartering, 3PL and Warehousing services. Their benchmarked quality standards, standardized processes and operational excellence across all there service verticals and facilities have enabled them to emerge as a leading player across these segments. They have a strong global footprint through its multinational multimodal transport operation Arms- EcuLine headquartered in Belgium, Europe. Ecu Line is the world’s largest less than Container Load (lcl) service provider. Another global footprint is through Econocaribe Consolidators headquartered in Miami, USA, NVOCC leader and Rotterdam based Full Container Load (FCL) Marine Agencies specializing in FCL services. Currently company operates in 200 plus offices and in 90 plus countries and is supported by an even larger network of franchisee offices across across the globe. Presently, company is one of the India’s largest publicly owned logistics company, listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE)
  • 21.
    13 and is categorizedunder S&P BSE Midcap and CNX Nifty 500 indices. Company has a fleet of 784 equipment comprising of 143 cranes, 584 trailers, 36reach stackers and 21 forklifts. Company has crossed a major milestone of its mission plan of being a USD 1 billion company in previous financial year. Previous financial year was good for the company as micro and macro-economic situatuin improved during the year, thus boosting the company’s performance. The performance of company was further strengthened on account of the robust measures undertaken by the company at all levels such as focus on pricing and aggressive marketing strategy, disciplined project executions, focused management approach, prudent financial and human resources management, better control over cost and consistent follow-up receivables. Company has consistently delivered and exceeded customer expectations in the deliverables and performance. Company’s achievements in maintaining quality are evident from the credentials and recognitions that were awarded over the years. Allcargo Logistics is among India’s top 4 companies inn the Logistics sector to have been featured in Dun and Bradstreet’s edition of top 500 companies in India. Allcargo has redefined the global logistics landscape with its unique and pioneering integrated logistics services. Today spanning over 90 countries, Allcargo is one of the world’s leaders in NVOCC services with a comprehensive network connecting all continents and trade hubs globally. Their world class Container Freight Station (CFS) and Inland Container Depot (ICD) facilities, best in class equipment, leadership in Project Logistics and Coastal Shipping as well as expertise in Contract Logistics Solutions has consolidated its leadership s one of
  • 22.
    14 the most experienced,reliable and innovative organizations in the logistics space globally. They have emerged as the top LCL Consolidators in the world, largest CFS operators in India and the only company with significant presence at all 3 major container ports of country. They have shown a good growth from previous years, despite all the challenging economic conditions in India and across the world. Amongst the leading P&E players in India, today they are at the helm of India”s only logistics multinational company with capabilities to provide integrated logistics services. Company has emerged as a leading and formidable player in all the businesses that it operates in. They will continue to be on profitable growth and increasing ROCE across businesses and increasing shareholder value. In the past year, we saw the global economic scenario continue to recover but in a fractured manner and remain challenging. Even in presence of these challenges India continued to be one of the growing economies in the world but the growth stemmed due to various factors like inflation, policy reform setbacks, rise in cost of borrowing, paucity of funds amongst others. These factors somewhere affected the growth and profitability of company across various sectors. Recognizing the early signs, they were focused on bringing in efficiencies through process improvement, cost optimization, technology enhancement and investing in their most valuable resources that is people. Allcargo Logistics have launched more direct LCL services globally to many destinations as they grew volume of freight booked with us. They have continued to expand their business in this period of recession and this will be a key differentiator in their wish to be the largest NVO in the world. In project & engineering business, they have enhanced asset utilization and higher movement of
  • 23.
    15 project cargo alongwith increase in coastal shipping business. They have a strong order book and have added new customers by offering innovative and integrated logistics solutions. Their business strategy of a diversified global presence and as an integrated logistics service provider in India has not only avoided dependence on a particular segment or geography of logistics but also makes us the partner of choice for their customer in terms of service offerings. Their global scale with operations across 90 countries, covering over 4000 port pairs and focus on LCL consolidation, has made us more or less resilient to global trade volatility. MISSION  Create benchmarks of quality, consistency and commitment in the integrated logistics business worldwide.  Create better value for clients and for us through ingenuity supported by knowledge, expertise, technology and imagination.  Nurture long-term relationships with all stakeholders through growth, trust and by delivering on promises.  Be a responsible corporate citizen by contributing to the society and respecting cultural sensibilities.  Inspire creativity, initiative and leadership. VISION Become a leader in the business known for pioneering solutions in logistics worldwide.
  • 24.
    16 BOARD OF DIRECTORS Dr.Shashi Kiran Shetty, Founder and Chairman  Adaesh Hedge, Executive Director  Arathi Shetty, Non-Executive Director  Mohindar Pal Bansal, Non-Executive Independent Director  Hari Mundra, Non-Executive Independent Director  Prof. J Ramachandran, Non-Executive Independent Director  Keki Elavia, Non-Executive Independent Director COMPANIES WHICH BECAME SUBSIDIARIES The List of Indian Subsidiaries  Hindustan Cargo Limited  Acex Logistics Limited  Credo Shipping Agencies  Contech Transport Sevices Private Limited  Comptech Solutions Private Limited  Amfin Consulting Private Limited  Ecu Line(India) Private Limited  Allcargo Shipping Co.Private Limited  South Asia Terminal Private Limited  Southern Terminal & Trading Private Limited  AGL Warehousing Private Limited  Allcargo Logistics Park Private Limited  Trans India Logistics Park Private Limited  Combiline Indian Agencies Private Limited
  • 25.
    17 The List ofForeign Subsidiaries  Ecu-Line N.V  Ecu- Line Algeriesarl  Ecu Logistics SA  FMA-Line Holding nv  Ecu-Tech BVBA  Ecuhold NV  Ecu International N.V  Ecu Global Services N.v  HCL Logistics N.V  AGL N.V  Allcargo Belgium N.V  Ecu Logistics do Brazil Ltd  Ecu-Line Polska SP. Zo.o  Ecu-Line Doha W.L.L  Ecu-Line Romania SRL  Ecu- Line Singapore Ltd  Ecu-Line South Africa Ltd  Ecu-Line South Africa Ltd  Mediterranean Cargo Center S.L. (MCC)  EcuUluslarasi Tas. VeTicaret Ltd  China Consolidated Company Ltd  Star Express Company Ltd  DEOLIX S.A  CLD Compania Logistica de Distribution S.A
  • 26.
    18  Guldary S.A Administradora House Line C.A  Asia Line Ltd  Eurocentre FZCO  CCS Shipping Ltd  Flamingo Line Del Peru SA  China Consolidation Services Shipping Ltd  Flamingo Line del Ecuador SA  ELWA Ghana Limiteed  Contech Transport Services Ltd  PT EKA ConsolUtama Line  Jordan Gulf for Freight Service Agencies Co.LLC  CELM Logistics SA de CV  Rotterdam Freight Station BV  S.H.E. MARITIME Service Ltd  Ocean House Ltd  Centro Brailiero de Armazenagem E Distribuicao Ltd  OTI cargo Inc  Econoline Storage Corp  PRISM Global, LLC
  • 27.
    19 ACHIEVEMENTS AND MILESTONES Asa leading technology-enabled logistics company, Allcargo Logistics is building a business that can have a lasting positive impact on society. They are doing all the efforts to empower disadvantaged sections through need based interventions by running a NGO named as Avashya Foundation. Past year company has been conferred with many accolades and appreciation for significant contribution made in development and growth of the logistics industry.  Dr. Shashi Kiran Shetty was felicitated with the ‘Lifetime Contribution to Freight’ award by the Global Freight Award.  Dr. Shashi Kiran Shetty was honored with the ‘Distinction of Commander of the Order of Leopold 2- The Highest civilian honor by the Royalty of Belgium, H.M, King Philippe.  Dr. Shashi Kiran Shetty was awarded an Honorary Doctorate from Mangalore University, for his philanthropic contributions in the field of healthcare for the underprivileged in Mangalore. These contributions were undertaken by Allcargo’s NGO, Avvshya Foundation.  Allcargo was awrded the Brand Excellence Award in Logistics & Supply Chain by the World Marketing Congress.  Allcargo was awarded the ‘LCL Consolidator of the Year’ award at the South East Cargo & Logistics Awards.  Allcargo was honored with 3 awards at the Gateway Maritime Award.  CFS of the Year, Freight Forwarder of the Year and Ms. Shantha Martin was awarded the ‘WISTA Personality of the Year’.
  • 28.
    20  Ms.Shantha Martinwas awarded with the ‘Women in Logistics’ Award by Supply Chain Management Professional magazine at the Logistics Service Provider Awards.  Allcargo was felicitated with 2 awards at the Gujarat Star Awards, best Integrated Logistics Company of the Year and best CFS Owner of the Year.  Ms. Shantha Martin was awarded the ‘Business Leader Award’ at the annual World Women Leadership Congress & Awards.
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    21 CHAPTER 3 CFS OPERATIONAT ALLCARGO LOGISTICS
  • 30.
    22 LOCATION OF ALLCARGOAND FACILIENTS It is situated in Wimco Nagar, Thiruvottiyur High Road, Ernavur, Chennai – 600057. Allcargo is about 7 kilometers away from Chennai Port and Allcargo is well connected by inner-ring and outer-ring roads. 1 Name of the CFS Allcargo Global Logistics Ltd, Container Freight Station,No.913, Thiruvottiyur High Road, Near Wimco Nagar Railway Station, Ernavur, Chennai – 600 052. 2 Date of Commencement of Operation 18th April 2007 3 Working Strength  Appraiser - 2  Examiner - 3  Preventive Officer - 1  Ministerial Staff - 2  Havildar - 1  Sepoy 4 Location No. 913, Thiruvottiyur High Road, Near Wimco Nagar Railway Station, Ernavur, Chennai - 600 052. Regd.Office : Diamond Square, CSTRoad, Kalina, Mumbai.
  • 31.
    23 5 Facilities forCustoms Officers at the CFS  Rooms with A/C- 6  Telephones Intercom  Computers -6  Printer -1  Internet facility  Conveyance Presently 6 cars 6 General Information about Allcargo Global Logistics Ltd - CFS. a Area 25 acres b Yard & Layout 25 acres c Yard Capacity 5000 tues d Ware House  Export. 7570Sq.Meters  Import LCL .2925 Sq.Meters other than LCL 1254 Sq.Meters, Bond 2627 Sq.Meters. e General Yard Segregation  Entire Yard is laid with interlocked paved Blocks, Scrap yard is at the East end.  Seized/Detained Containers are stacked separately. f Reefer Facility 25 Reefer plug points are available. The number of reefer points can be increased on need basis. g Security  Area is covered by high compound wall and above that barbed wire fencing.  Round the clock security vigilance.  Labors are provided with tokens. Their Entry & Exit are noted.  Fire Fighting Equipments are provided.  CCTV Camera is installed.
  • 32.
    24 h Approach Situatedon Ennore Express Highway at a distance of 9 KM from Port ‘O’Gate. 24Hours through fare and no traffic restrictions. i Weighing Weighbridge of 100MT capacity is available. Weighing Machines are periodically maintained and annually stamped by Metrology Department. j Electricity &Lighting  Electrical illumination is provided.  350 KVA Generator is used during power failure.  Usage of solar panel for electricity consumption k Equipments.  Reach Stacker 40MT- 4 Nos  Fork Lift 16MT-1Nos  Escort 10MT-1Nos  Forklift 5MT- 21 Nos  Rubber Tyre Gantry 41Tons-2  Trailer- 30 l Facilities to Customers.  Drinking Water Cooler  Air Conditioned Rest Room  Phone  Fax  Xerox Centre m Pre-Advise Export stuffed containers are passed out with “Pre-Advise” for customer satisfaction and to minimize the waiting time for trailers. n Installation of “TOUCH SCREEN KIOSKS” Installed Touch Screen Kiosks to facilitate the trade to track consignments and to know the status of documents. 7 System of entry and exit of persons The Importer / Exporters, Custom House clearing Executives are allowed to enter the CFS after verifying their Identity and screening by the security personnel posted at the gate. This is also ensured by the
  • 33.
    25 preventive officer onduty. 8 System of entry and exit of goods The entry and exit of goods are done based on the due authority as reflected upon in the documents produced by the Importer / Exporter / CHA. 9 Registers Maintained by CFS Staff  Gate Register: The Gate Register is being maintained to record the details of trucks, time of entry and exit, details of cargo and the agency concerned  Export: Cargo inward register  Import : All activities are governed by Computerized systems. 10 Storage of Seized Goods There is a separate ear marked area to store seized goods. The detained containers are locked in the CFS systems so that the detained containers are prevented from accidental opening and inspection. Due care is being exercised in this aspect. 11 Duties of Customs Officers Posted at Allcargo CFS,  Appraiser: Examination of Import cargo, attending Green channel and RMS bills and overall supervision of customs work related to Appraising in the CFS.  Examiner: Examination of Import cargo and maintenance of cash declaration register and discrepancy register.  Superintendent: Overall Supervision of all Preventive works. Examination of Export cargo and giving “Let Export Order”.
  • 34.
    26  Preventive Officer:Maintenance of requisite registers, verification of seals of import container / Time of arrival. Supervision of stuffing of Export containers and other preventive works.  Preventive Officer (Export Examination): Examination of Export cargo and audit the export Documents.  Ministerial Staff: In charge of taking printout of shipping bills and Bill of entries and forwarding of RMS bills to audit.  Havildar: Locking one time seal on export containers, submit the samples drawn from the CFS and carries file if any, to the Docks Office and maintains sample register. 13 Registers Maintained by the Customs Preventive Unit  Import Register  Export Register  Transfer Bond Register  Shutout cargo Register  Seal Register  Central Excise Register  Cash Register 14 Registers Maintained by the Customs Appraising Unit  Sample Register  Cash Register  Discrepancy Register 15 Suggestions: The officials have been instructed to develop appropriate intelligence both in respect of imports, Exports and to be more vigilant during the work and follow the procedures / circulars issued by the board and pursue the reasons for pendency of cargo and take a necessary action to clear the same.
  • 35.
    27 OPERATIONS DEPARTMENT The Allcargocommenced its commercial operations on 18th April 2007. Since then, it has steadily increased its market share from percentage to percentage, thereby establishing the number one status amongst the other CFS operators in Chennai. The CFS can handle the following per day: Approximate Daily movement report of Allcargo Global - CFS PNR – 200 / Day (Approx) Carting – 100 / Day (Approx) Export – 50 / Day (Approx) Allcargo Global Logistics Limited - CFS is one of the fast growing logistics company among the other companies in Chennai. They carry out the following operations. Import handling Port movement, handling and delivery of container to end customer. Export handling Cargo carting, stuffing, custom clearance, and movement to port. LCL shipment Handling, consolidation, stuffing, de-stuffing and reporting. Bonded & Open Warehouse Scientific storage of cargo with planned inventories and streamlined processes. Transportation Complete end-to-end service that includes pick-up and drop to specified locations. Specialized cargo With container lashing, choking and palletizing services to secure cargo and prevent damage during transit. Documentation All import and export operation entries including customs documentation and related formalities are
  • 36.
    28 computerized. Maintenance & Repair ofdry container They provide complete repair, welding, cleaning and washing services as required, to maintain seaworthiness of containers. Weigh bridge They offer weighment services to their customers and ensures no loss of cargos. Reefer monitoring service All necessary equipment are available to monitor and regulate temperatures of reefer containers and ensure maintenance of optimal temperatures as per recommendations. Hazmat handling Handling hazardous cargo. CFS GATE IN &GATE OUT It’s an important department where the CFS uses to gate in & out of any sort of vehicle. They collect details of the cargo, lorries & trailers (Name of transport, CHA Name, Number, Name of driver) the purpose of vehicle entry when it comes from port and they get gate pass. They collect an EIR (Equipment Interchange Report) for the container which is given by the port for import PNR’s. The EIR is about the condition of containers, when it’s out of port to CFS. If there is any damage the port authorities will specify about that, So that it avoids unnecessary fine payments by the Consignee/Importer. The PNR (public notification registration) movement register are entered in at the security Gate then P.O will verify the seal, container number, and entered time then the RFID (radio frequency identification) tag will place on the container
  • 37.
    29 for knowing thelocation in CFS then the container are off loaded in the CFS, this is for the PNR movement. Before that PNR movement IGM (Import Generate Manifest) was mailed by the port authority to the CFS, so that they will know about the detail of container which is going to be placed in the CFS. In Allcargo Logistics they are using CFS MAG3.0 software for this process. ISO code are used for identifying and differentiating the container, it’s the code cover the identification of intermodal (shipping) container used within containerized intermodal freight transport .it include a unique serial number, the owner ,country code ,size ,type ,and equipment category as well as any operation mark. They also do empty container handling. When cargoes are packed for export, the shipping line makes necessary arrangements to transport to the destination as per the letter of credit of consignee. After finalizing carrier accepts and confirms his freight. The carrier request the shipping line for booking the container. It can be done either by online or email. When procedure for booking completes a confirmation is given by carrier to the exporter. The booking confirmation is also called delivery order. The delivery order mentions the location of empty container. The empty container is moved to his factory for stuffing. The whole Gate work is controlled and operated by surveyors under the regulations of CFS Officials. This is the software application screen shot of Allcargo for gate in process
  • 38.
  • 39.
  • 40.
    32 Empty Container GateOut Confirmation Import Loaded Container Confirmation Gate–Out
  • 41.
    33 Export Loaded ContainerConfirmation Gate-Out Import FCL/LCL Cargo Confirmation Gate-Out These are the two important sort of work where the Gate’s backend. Staffs performing all over, apart from these they use to create and forward Daily reports
  • 42.
    34 about the containerstatus to CFS officials, Liners and Agents with Pendency and current status report of the containers DOCUMENTATION There are two types of operation Open Operation RMS Operation If it is open FCL there is a seal cutting to check the goods in the container for the verification. If it an RMS there is no need for verification of operation process without opening the container. Sometime the cargo may be in hold position due to the payment, after the payment process is over the holding will be released. The documents required for delivering the goods from CFS are  Delivery order,  Examination Order (if there is any necessary to open the container to examine with custom officials)  Bill of Lading  Bill of Entry  Duty Paid Challan (if the cargo is duty payable)  Certificate of origin / Insurance for cargo (If needed)  Commercial Invoice  Bill of entry with appraisal officer seal.  Out of charge is provided by the customs and then the passed out order is given by the preventive officer of the customs.
  • 43.
    35 If all thesedocuments are satisfied by executive in documentation dept, then they allows for generating open order for the container. After examination, the CHA will have Custom Tally sheet for billing and pays the storage, fuel charges for movement of PNR etc. After billing the CHA will apply for Job order, if there is destuff or direct out. Then the final step is gate pass for both movement direct out or destuffs out. If the container is De-stuffed, the empty container has to be moved to the empty yard as per liners advice. So the Empty Container Gate out has to generated and gated out then the bill gets over. IMPORT-LCL LCL is one of the major money earning departments in the CFS and for consolidators, The LCL container consist of cargo’s which belongs to two or more consignee’s. Once the container is gated in with LCL status, the container will be de-stuffed by CFS employees as per the manifest sent by the consolidator for that work order for destuffing is provided by adding vessel number, IGM number. Then container destuffing entry is provided. Inorder to provide container destuffing entry work order for destuffing, cargo declaration and import LCL tally sheet is required. The manifest has every details about the cargo in container, it has Name of importer, Marks & No’s, cargo descriptions, etc with the inputs of all these details. With the help of manifest the container is de-stuffed in the presence of surveyors then the executive will check the located cargo placed in the warehouse with the manifest for de-stuff tally (both the given manifest quantity & de-stuffed quantity should tally). Then the delivery tally sheet will be prepared by the surveyor in- charge of the LCL warehouse and the scanned copy is sent to consolidator for their reference. Then the CHA’s will get the endorsement and the location of cargo stacked, and they have to make billing for their cargo, and then CHA load their cargo into their trucks and then the gate pass will be generated in the LCL
  • 44.
    36 Warehouse, the finaldocument should be signed by CHA, surveyor in-charge for cargo & the executive in-charge. Import Document Entry LCL Work order for Destuffing
  • 45.
    37 LCL Container DestuffingTally Work order for Loading of LCL Import LCL Cargo gate pass
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    38 EXPORT In Allcargo GlobalLogistics Ltd, Exports also has a better business compared with other CFS. The necessary documents for exports are Letter of Credit, Shipping bill, Commercial Invoice, Packing list, Form 13 and PHA Certificate (If needed).The exports are done in two way of process:  Direct Export (Stuffing in CFS)  Self-Sealing (Stuffed from Factory/Company) The Direct Exports are done in CFS, the cargoes (Carting trucks) were gated in and after the inspection is over, the empty container will be gated in/placed and cargo will be stuffed in under the view of surveyors in-charge, the no of quantities of cargo in truck and the no of quantities of cargo in check list & shipping bill has to tally before stuffing into the container. If there is any excessive cargo which cannot be stuffed are treated as shut out cargo and special permission to CHA will be given by the CFS to take them out. After stuffing the container the SSR copy will be given to CHA for Billing by the Export dept. After billing, the documents are produced for the gate pass in documentation dept. Once the gate pass is generated the CHA’s will get gate out time from PO (Preventive Officer) with duly signed. In export they issue Work-Order Export Cargo Carting using CFSMag3.0 and enter truck number, driver name, surveyor, driving license number, select the equipment save and print it. Carting tally sheet need to be provided if the agent name is not Allcargo. The next step is empty truck gate out. To do this step first need to save export carting tally updation and then take empty truck gate out in CFS Mag 3.0
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    39 Export Job orderTruckwise Export Carting Tally Updation
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    40 Empty Truck Gateout Stuffing Request for One Container more Shipping bill
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    41 Stuffing Request forOne Shipping bill Export Cargo Receiving (Declared & received weight need to be same) Export CLP Updation
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    42 Export Movement Workorder Export Carting Pendency Report BONDED WAREHOUSE When goods are in the bonded warehouse, under the supervision of customs authority, be manipulated by clearing, sorting, repacking or changing their conditions by processes that do not amount to manufacturing. After manipulation and within the warehousing period, the goods may be exported without the payment of duty, or they may be withdrawn for consumption upon payment of duty at the rate applicable to the goods in their manipulated condition at the time of
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    43 withdrawal. There areinbond and exbond procedures take place in Allcargo Logistics Limited. Inbond process starts with, Inbond Document Entry Work Order for Inbond Container
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    44 Work Order forInbond Cargo Destuffing Inbond Container
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    47 TRANSPORT Transport department dealswith all transport movement of trailers from port to CFS, they takes full responsibility for the movement of PNR movement, empty containers handling. The PNR movement process starts with port formalities. The vessel berth details are send through electronic mail by port to CFS. When vessels arrive PNR list is send to Allcargo Logistics-CFS in PDF format. Then the list is taken to customs for PNR filing for getting acknowledged. After getting PNR number it is then taken to terminal for the release of containers with Form13 DRF of those containers of AGL. Hologram is provided with form13 by Allcargo Logistics. Delivery Request Form need to be provided to the terminal for the release of import containers. For export plot permission letter which is also called booking confirmation letter for empty containers are send by customers to CFS and form13 is released by the terminal for export. For vessel empty liner sends Form13 from terminal then the vessel list is downloaded from IGM downloading and it is converted to CFSMag3.0.
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    49 FINDINGS AND INFERENCES Throughmy direct observation into the operations of Allcargo Global Logistics Limited, I have found some of the Strengths, Weaknesses, Threats and Opportunities. I have listed all of them as follows. STRENGTHS  The main strength is location of CFS, which is just 9 kilometers away from the Chennai port.  The regular customers were made satisfied with the service of Allcargo CFS.  Regular customers tend to be less expensive to service because they are familiar with the process, require less education and are consistent in their order of placement.  Highly experienced and skilled employees with better infrastructure.  It has separate warehouse spaces for the Export, Import and Bonded cargoes.  Availability of large area for the operations.  The leading market shareholder and market leader.  Proper planning has been made for controlling operational equipment movement in stacking and allocation.  Team spirit.  Concreted yard spaces for operations.  Friendly environment for the employees, no mental torture has been given yet.  It has greater ability to go for merger and acquisitions of their liners and customers.
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    50 WEAKNESSES  Non availabilityof space in warehouse leads to congestion of cargoes.  The cameras in warehouse are not in working condition and it leads to theft.  Less number of surveyors leads to consume a lot of time for preparing carting tally sheet preparation while stuffing takes place in export.  Absence of ramp point in old export warehouse leads to wastage of time and money for stuffing containers.  Occurrence of damages for cargoes inside export warehouse during monsoon season.  Non availability of pure drinking water facility.  Absence of hand truck for labors.  No proper planning for stuffing containers which causes unloading of cargoes from containers and restuffing it again leads to wastage of time. OPPORTUNITIES  Lot of possibilities to increase their Export TEUs.  Increase customer participant in CFS, with specific emphasis on LCL which add on additional finance.  Analysis of customer complaints and competitive benchmarking can increase the profit.  E – Marketing and Telephone marketing (Telemarketing) can reduce the cost and time required for the marketing people to gain the market.  Long term customers may initiate free “word of mouth” promotions and references.
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    51  Regular customerstend to be less inclined to switch and also tend to be fewer prices sensitive.  Customer retention can increase profitability.  Setting benchmark to determine the best corrective practices and visible endorsement of top management. THREATS  Since most of the contract laborers could not be well experienced and educated regarding the CFS operations, they are not fully involved in their works in an efficient manner.  Increasing number of competitors could be a possible threat to the company.
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    53 CONCLUSION Logistics have alwaysbeen an important part of supply chain management that plans implements and controls effective flow of storage of goods, services and related information. While logistics in India is been evolving rapidly and growing at a good pace. Even the government of India is also putting great emphasis on the development of logistics in country. Apart from that India is bearing huge losses due to poor logistics infrastructure. In the period of economic recession and era of challenges infield of logistics, Allcargo Logistics limited had kept their head up faced the challenges from the front and shown the fantastic results in the business of logistics. Recenlty they have become the India’s largest public listed company and they crossed the milestone of 1 billion dollars revenue company. The following are the services that they offer across globe, Multimodal Transport Operations (NVOC, LCL and FCL), Container Freight Station (CFS) and Inland Container Depot (ICD), Ship owning and Chartering and 3PL and Warehousing services. In order to provide the logistics services across the globe they have merged and acquisitioned many international companies. Presently they have more than 15 Indian subsidiaries and they have more than 40 intenational subsidiaries. The internship exercise was mainly to enable me to acquire practical skills and I have been able to acquire practical skills by the support and guidance of Allcargo team of Chennai CFS. Thus my internship at Allcargo Logistics Global Limited has made and with the use of that study SWOT analysis has been done. Personal talk done with the entire department people has helped me to make some suitable solutions which would really help to the organization.
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    54 BIBLIOGRAPHY  Lambert D.M,Stock J.R and Lisa M Ellram, Fundamentals of Logistics Management  D.K Agarwal, Textbook of Logistics and Supply Chain Management  Alan Rushton, Peter Baker 2012, The handbook of Logistics and Distribution Management  www.google.com  www.allcargologistics.com  www.wikipedia.com  www.shippingworld.com  www.port.cctl  www.kictl.in  www.citpl.co.in
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    55 ABBREVIATIONS CFS CONTAINER FREIGHTSTATION CCTL CHENNAI CONTAINER TERMINAL PVT LTD CITPL CHENNAI INTERNATIONAL TERMINAL PVT LTD KICT KATTUPALLI INTERNATIONAL CONTAINER TERMINAL JNPT JAWAHARLAL NEHRU PORT TERMINAL CHA CUSTOM HOUSE AGENT LCL LESS CONTAINER LOAD FCL FULL CONTAINER LOAD RFID RADIO FREQUENCY IDENTIFICATION PNR PUBLIC NOTOFICATION REQUEST IGM IMPORT GENERAL MANIFEST IAL IMPORT ARRIVAL LIST DRF DELIVERY REQUEST FORM ISO INTERNATIONAL ORGANISATION FOR STANDARDIZATION CODE BOE BILL OF ENTRY TEU TWENTY-FOOT EQUAL UNITS FEU FORTY-FOOT EQUAL UNITS UCC UN CLEARED CARGO EIR EQUIPMENT INTERCHANGE RECEIPT
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    56 EDI ELECTRONIC DATAINTERCHANGE PO PREVENTIVE OFFICER EO EXAMINATION OFFICER AO APPRAISING OFFICER NVOCC NON VESSEL OPERATING COMMON CARRIER IMDG INTERNATIONAL MARITIME DANGEROUS GOODS CODE SB SHIPPING BILL FOB FREE ON BOARD POD PORT OF DISCHARGE POL PORT OF LOADING CLP CONTAINER LOAD PLAN DO DELIVERY ORDER RTG RUBBER TYRE GANTRY