Bharat Book Bureau

Container Freight Stations/Inland Container Depots

Press Release   •   Sep 18, 2010 14:18 IST

Container Freight Stations/Inland Container Depots

Container freight stations/Inland container depots (CFS/ICDs) are facilities set up for handling and temporary storage of Exim as well as empty containers. It is a common user customs-bonded facility with public authority status, equipped with warehousing space, adequate handling equipments and IT infrastructure. ( )

The key value proposition of CFS/ICD is that it provides an integrated platform for activities such as loading/unloading, transporting and stuffing/de-stuffing of containers. CFS and ICD service providers also extend value-added services, including customs clearance, less than container consolidation, refrigerated warehousing, hub-and-spoke services, etc. Although similar in functional aspects, the main distinction between a CFS and an ICD is that a CFS is an off-dock facility located near the service ports, while an ICD is generally located in the hinterland.

Key trends in the sector

· Over the past few years, the Indian CFS/ICD industry has witnessed several changes in infrastructure development as well as policies, which is expected to drive growth for this industry. The government has announced several measures for this segment over the past few years, which could change the dynamics of this industry. These measures include improving port infrastructure, construction of dedicated freight corridors, policies for attracting private investment and opening up of container rail movement to private players.

· Revival in Exim trade, increasing acceptance of containerisation in port logistics and the huge potential of containers in domestic railway haulage have set the stage for sustained growth in the CFS/ICD business in India. The proportion of container traffic in port cargo has been steadily increasing over the past few years, which is primarily expected to drive growth in the CFS/ICD segment.

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