We are pleased to introduce us as a small entrepreneur operating as freight forwarder at Inland Container Depot (ICD) Malanpur, near Gwalior, in Madhya Pradesh. It is since last three years that we have been operating at this location and would like to put forth the following observations to your kind consideration:

ICD Malanpur was initiated by the Container Corporation Of India Limited (CONCOR) in the year 1998 keeping in view the potential of export import traffic of the area and the CONCOR has put in a substantial investment in the project and successfully started the facility for the trade. As a trade we understand that in spite of all the efforts and hard work, till date the Inland Container Depot Malanpur, is not able to get 50% of the total volume of exim business even after 8 years of its commencement.

The area is known to produce mustard crop in volumes, which is the major source of income for the farmers in this area. The produce is processed at the local units extracting oil and thus getting the bi product De Oiled Cake in huge volumes. This is being exported to the Far East Asian countries such as Indonesia, Vietnam, and Thailand etc. Due to the high protein content, it is used as a dietary supplement for the cattle.  

The total cost of transportation the goods up to Mumbai through CONCOR is approx. Rs 1900 per MT where as the cost from Mumbai to the various countries varies from Rs 300 - Rs 600 per MT. The figures clearly indicate that the inland costs play major role in deciding the competitiveness of such low value produce in the international market. The potential of exports is 150,000 MTs per annum, for the said commodity from this area, which is presently being stuffed in the containers at the ports. It would not be out of place to mention that the stated commodity is very low priced and even the slightest hike in the freight may disturb the entire economics of the routings.

Due to the disparity in the freight structures of the CONCOR as compared to the rail wagons, the huge facility and infrastructure goes waste without being used by the major volume clients.

Furthermore this creates a dual negative impact at the gate way ports; firstly the cargo is carried through the alternative arrangements such as rail wagons or road, which adds to the decongestion of the ports, secondly the CONCOR has to run the empty flats to the ports to get the import volumes to the various ICDs in this region. These rakes can be effectively utilized by the CONCOR to carry the export volumes at a rational freight level for the agriculture produce.

On one hand the Container Corporation of India resists to compromise on their freight tariffs to carry the goods at a reduced price, and on the other hand they are running empty rakes to NSICT/JNPT from North Indian ICDs to decongest the ports hence losing huge revenues. Further more, the condition of the ports gets worsened as the rail wagons are carrying the goods directly to the gateway ports adding to the congestion at a lower freight structure.
The very purpose of establishing the Inland Container Depots' to decongest the ports and offer a faster clearance gets defeated also the industries and agro producers located in the hinterlands lose business to the industries located around the ports adding to the further congestion.  We as a trade suffer and are not able to sustain the business, which originates from our area, and are getting deprived of from participating in the exim trade just because of the higher costs involved and disparity as compared to the alternative solutions.

This has a significant repercussion on the trade also that the manufacturers are not able to compete with the cost ingredients as per the international market standards. They are left with no other option except to sell the goods to the middlemen or in the domestic market.

There has been a tremendous restoration of the freights imposed by Container Corporation of India in the last 18 months. As compared to the railways that did not changed their tariff since than till date.

We have continuously followed up the matter with the top officials in Container Corporation of India since last 12 months and got a little relief of Rs 1750 per TEU recently, which was overruled with an immediate hike of Rs 3550 per TEU a few days after the receipt of the previous order.

We here by pray to you to kindly intervene in the situation and grant us some relief as an industry located farther from the gateway ports. We all are looking forward for your positive response in this regard.

Regards,

Anurag Khurana
R S international
810, Silver Estate
University Road
Gwalior 474 011 M.P.