ICDs & CFS - What are the functions ?

Definition

 

A common user facility with public authority status and offering services for handling and temporary storage of import/export laden and empty containers carried under customs control . Clear goods for home use, warehousing, re-export, temporary storage for transit .

 

Why ICD / CFS ?

 Generally ports are located in the proximity of densely populated areas and are already mainly space pressed and plagued by congestion . ICD s & CFS are the most viable alternatives to reduce the impact of congestion on ports. Also helps to relieve local communities from the negative externalities generated by increasing  cargo flows to/from sea ports.

 

The extended gate concept .

 

      To resolve the complexities associated with terminal gate management and to reduce congestion in the proximity of the port, the extended gate concept has been proposed.The extended gateway would allow truck operators to move containers to a hinterland location, ideally making use of  road ,barge or rail connection. In this way the terminal would reduce congestion at its gates as well as reducing pressure on its yard capacity.

Distinction between an ICD/CFS

 

ICD is a consolidation node for containers, where as CFS aggregates individual consignments into containers (stuffing) .

 

Both are transit facilities, which offer services for containerization of break bulk cargo and vice-versa. 

 

An ICD is generally located in the interiors (outside the port towns) of the country away from the servicing ports

 

Where as the CFS, is an off dock facility located near the  port which helps in decongesting the port by shifting cargo and Customs related activities outside the port area. Also, CFS function might be added to the ICD

   

 

FUNCTIONs OF ICDs/CFSs

The primary functions of ICD/CFS may be summed up as under:

 

•Receipt and dispatch/delivery of cargo.

•Stuffing and stripping (de-stuffing) of containers.

•Transit operations by rail/road to and from serving ports.

•Customs clearance.

•Consolidation and desegregation of LCL cargo.

•Temporary storage of cargo and containers.

•Reworking of containers.

•Maintenance and repair of container units.

  

The operations of the ICDs/CFSs revolve around the following centers of activity

i) Rail Siding (in case of a rail based terminal)

• The place where container trains are received, dispatched and handled in a terminal. Similarly, the containers are loaded on and unloaded from rail wagons at the siding through overhead cranes and / or other lifting equipments.

ii) Container Yard

•Container yard occupies the largest area in the ICD.CFS. It is stacking area were the export containers are aggregated prior to dispatch to port, import containers are stored till Customs clearance and where empties await onward movement. Likewise, some stacking areas are earmarked for keeping special containers such as refrigerated, hazardous, overweight/over-length, etc.

 

Warehouse

•A covered space/shed where export cargo is received and import cargo stored/delivered; containers are stuffed/stripped or reworked; LCL exports are consolidated and import LCLs are unpacked; and cargo is physically examined by Customs. Export and import consignments are generally handled either at separate areas in a warehouse or in different nominated warehouses/sheds.

iv) Gate Complex

•The gate complex regulates the entry and exist of road vehicles carrying cargo and containers through the terminal. It is place where documentation, security and container inspection procedures are undertaken.

 

BENEFITS OF ICDs/CFSs

- Concentration points for long distance cargoes and its unitisation.

- Service as a transit facility.

- Customs clearance facility available near the centres of production and consumption

-Reduced level of demurrage and pilferage

-No Customs required at gateway ports.

-Issuance of through bill of lading by shipping lines, hereby resuming full liability of shipments.

-Reduced overall level of empty container movement.

-Competitive transport cost.

-Reduced inventory cost.

-Increased trade flows.

 

Factors Influence Development of ICDs

¢To be developed where there is a market potential.

¢Requires public support

¢Requires support of local entrepreneur or public official to ensure momentum in the development 

¢The attitude and overall strategy of the local and national administration is also crucial

¢The efficiency of the rail/road transport services is critical 

¢Need to have a clear ownership structure and transparent organisation

 

Main Features of ICD

 

¢Is an intermodal terminal which is situated inland.

¢Has rail / road connection to the gateway port with scheduled and Reliable to/from service

¢Offer all services available at sea ports such as storage / maintenance of containers, customs clearance, forwarding facility , road/rail haulage

 

Benefits of ICD / CFS

¢One – stop – shop concept

¢Provide seamless seaport inland intermodal access

¢Reduce port congestion and thus save cost

¢Helps to penetrate interior market to widen the service access of port

¢Add competitive advantage to the port

¢Offers service to the EXIM trade at par with the seaport facilities

¢Helps to reduce total cost in the supply chain.