When my editor asked me to travel to and cover a dry port, I felt all excited. I could almost see the blue waters and feel the breeze. Oh wait, did he say a ‘dry port’? How can a port be dry? Isn’t that a bit of an oxymoron? Only after a bit of reading up, did I realise that a dry port is essentially a hub in a land-locked country or far-away-from-the-coast part of a country, built to act as proxy to a real port and ease the movement of containers to the nearest sea port. This got me excited again, although the blue waters were now out of the picture. And the excitement reached a crescendo when I realised that India’s largest dry port – the technical name being Inland Container Depot – was located at Tughlakabad, just a few kilometers away from our office in New Delhi. And it was worth the visit.

Purba Das | @TheDollarBiz

The road to Inland Container Depot Tughlakabad, fondly called ICD TKD by all stakeholders, narrows down as one gets closer to the facility. Surrounded by heaps of garbage and long queues of waiting-to-be-cleared container carriers, the view is not exactly pleasing to the eye. Being the flagship Inland Container Depot (ICD) of Container Corporation of India (CONCOR) – Government of India’s Navaratna logistics service provider with 63 container terminals, out of which 13 are entirely dedicated to Exim trade – one expected hustle and bustle outside. Not a serpentine queue of commercial vehicles that extended as far as the eye could reach! 

 

“The hordes of trucks you see today is because of the extended Independence Day weekend,” said Atul Dikshit, Commissioner of Customs at ICD TKD. The fact that he was almost a bit embarrassed while saying this, is probably a statement on the pride he takes in his job. He added that the long queue was a function of Delhi’s state borders having been sealed because of Independence Day celebrations. “Post the 15th of August, the borders will open up and it will be business as usual,” he assured (not that I needed an assurance). Having read a lot of reports and heard a lot of praises about its way of functioning (from the people who actually matter; exporters and importers), I never had doubts that the long queue was an aberration. And when Dikshit added the following lines, “We also work on several Saturdays to clear congestion” – I almost felt a little awkward for having asked him the reason for the queue in the first place.

 

 

Northern artery

Spread across 55 acres of land in Tughlakabad and commissioned in 1993, ICD TKD is the largest dry port in Asia and serves as a focal point for most traders in North India. On an average, it handles nearly 2,000 containers a day. According to a report by the Indian Railways, ICD TKD handles approximately 60-70% more traffic than its capacity of about 2,50,000 TEUs/year (TEUs means ‘Twenty-foot equivalent units’ which is a standard container size). “On an average, about 8,000-10,000 TEUs of containers (both LCL and FCL) on the export front, and about 10,000 TEUs of import containers are cleared every month,” said Nitin Gupta, Director, Oak Shipping Private Limited, a freight forwarding firm.

The depot has a three-storied administrative building that houses several offices, including that of Custom Department officials, administrative staff of Container Corporation of India (CONCOR), a Punjab National Bank branch, as well as offices of a few shipping liners and Custom House Agents (CHAs). Apart from the administrative building, the depot has what is known as the custom bonded area, where all core operations of the dry port takes place. It is heavily manned by CISF personnel and requires prior permission from the administrative office of CONCOR stationed there. Luckily, I got a permission in the first attempt – probably yet another example of ICD TKD’s professionalism.

Inside the premises of the custom bonded area the depot, at any given point in time, has nearly 10,000 employees working. There are separate gates for entry and exit of container carriers. The facility has a customs area, which has two separate sheds for imports and exports. The infrastructure also includes a warehouse of 6,000 square meters for import cargo. The export warehouse has been allocated a larger space of nearly 10,000 square meters. There is also an open space to stack over 12,000 loaded, as well as 2,000 empty containers. It also has a separate parking area for stacking of over 10,000 empty TEUs. There is a reserved space of about 1,500 square meters for Less-than Container Load (LCL) consolidation, as well as six hectares of parking area to keep 400 trailers.

Besides these facilities, ICD TKD also offers fully computerised import and export documentation. Close to the customs area are four railway lines on which CONCOR runs its daily train services – nearly 11 – from ICD TKD to three primary ports, JNPT in Mumbai and Mundra Port and Pipavav Port in Gujarat. The depot also has an ambulance permanently stationed inside, in case of emergencies. It primarily handles commodities such as chemicals, lifestyle goods, wood & wooden material, plastic, copper rods & wires and aluminum foils on the import side, while export goods include leather & readymade garments, machinery and agricultural products.

Buckling under pressure

But if I thought that it’s all rosy with ICD TKD, I was in for a surprise. India’s largest ICD is clogged at all times. This leads to delays and thus, adversely impacts the businesses of those who use it. “There is a lot of traffic at this ICD. Vehicles hardly move and it takes nearly three days to load/unload containers. This delay hampers our business. For instance, we had recently imported a consignment from overseas. The consignment reached Pipavav Port on the July 18 and it was booked in an ICD TKD-bound train on July 22. However, it reached ICD TKD only on August 13 – nearly 20 days later! It took another couple of days for the goods to be loaded into trucks and finally reach our warehouse,” Yogesh Gujral, Import Manager with a high-end lifestyle retail chain, told The Dollar Business.

 

Sharing a similar sentiment, Ajay Sahai, President of Federation of Indian Export Organisations (FIEO), said that the association holds a meeting with exporters every month, wherein this issue of delays is almost every time raised. “We have received several complaints regarding delays by customs authorities. I believe ever since commercial activities increased around Tughlakabad, movement of containers has become a challenge. I think sooner or later this issue needs to be addressed,” Sahai added.

Dikshit, on the other hand, thinks the delays are a function of Delhi’s infrastructural shortcomings. “In Delhi, there is a huge ICD to cater to the needs of traders, but there is no separate corridor for the movement of vehicles to and from the depot. Trucks aren’t allowed to leave the premises during the day in order to avoid disruption to city traffic. This is one of the primary reasons for delays,” he added. Another challenge that traders have been facing is pilferage of goods. Gupta of Oak Shipping says that his company has been receiving several complaints of pilferage. “My clients keep complaining about parts of consignments being stolen,” he said and added that, “I believe this is done by the ground workers involved in container handling.”

Susant Das, an importer of tableware products from Bangladesh, recalls a similar experience. “Last year during Diwali, which is peak time for lifestyle players, my company had imported a large consignment from Dhaka. After receiving the goods, we realised that some top-end products were missing. Filing a complaint would have further worsened the situation as our goods would not have been released until after the investigation was over, thereby further hampering our business,” he told The Dollar Business.

Dikshit too admits to pilferage but quickly adds that this problem is not rampant. “Cases of pilferage are negligible at ICD TKD,” he said, sounding a bit defensive.

More in the fray

While ICD TKD enjoyed the first mover’s advantage and ruled the roost for over two decades, new players are emerging in the vicinity and are threatening to steal its thunder. Consider this: ICD Dadri, CONCOR’s second largest ICD and a decade younger to ICD TKD, caters to both EXIM and domestic trade in the northern region of the country and has been designed to handle 5,00,000 TEUs per annum. Being a relatively new ICD, it also has four railway lines for easy transportation of goods from and to the ports. It is connected with all the three ports that ICD TKD currently caters to. “A few of my clients in Delhi-NCR, who are all exporters, have shifted to ICD Dadri because of its smoother operations, which saves a lot of time. Since the ICD is relatively new, it has lesser traffic, which makes it easier for my clients to transport goods through it,” Mohinder Singh Malik of American Express Shipping Line told The Dollar Business.

Apart from ICD Dadri, Associated Container Terminal Limited (ICTL) in Faridabad, a private ICD operated by the R. R. Joshi Group has also emerged as a strong player in the area. Commissioned in 1997 it now also offers logistics support services such as freight forwarding, container repairing and in-house workshops. In fact, in September 2008, ACTL launched dedicated rail sidings and became the first private ICD to have rail lines. It, too, caters to JNPT, Mundra Port and Pipavav Port.

Similarly, Adani Group’s ICD in Gurgaon is also among the preferred ICDs in North India. The Adani Logistics Park (ALP) at Patli (Gurgaon) is spread over 73 acres of land and is technologically much more advanced as compared to all the other ICDs in the North. It has two railway sidings, with one engine escape line. It has a capacity to handle 2,00,000 TEUs annually and has been witnessing substantial growth in traffic in recent years.
Commenting on this trend, Sahai of FIEO said the rise of private players in the ICD sector is great news for the exporting community. “We personally feel competition in the market is good and will ultimately, benefit exporters,” he added. He also said that increased competition has led to very competitive tariffs. “If a private player is coming up with an ICD and is investing on its infrastructure, then it will ensure competitive tariffs so that business does not go to other dry ports,” he added.

The road ahead

Interestingly, while some industry players continue to complain about ICD TKD’s services, pilferage and delays, no one is ready to write it off yet. “It is the oldest, largest dry port in India with established operations. Competition will only improve the quality of its services and I do not see it losing business in the near future,” said Raj Kaushal, Director of Shreeji Shipping India. That the serpentine queue, which I had seen while going to ICD TKD, had added a few more lengths to it by the time I returned, confirmed this and cleared up all doubts that had cropped up in my mind.

 

“The USP of ICD TKD is that it lies in the heart of Delhi”

One of the main objectives for setting up an ICD is to provide almost doorstep service of customs clearance and to reduce congestion at gateway ports. So, the Customs Commissioner of ICD Tuglakabad has the unique responsibility of not only being in charge of Customs related work, but also liason with about 16 kinds of stakeholders thus, literally managing this dry port. During our visit to ICD TKD, we caught up with its Customs Commissioner Atul Dikshit, who told us what it takes to manage India’s largest inland container depot.

TDB: You took over as the customs commissioner at Inland Container Depot Tughlakabad (ICD TKD) last year. What challenges have you faced during this stint?

Atul Dikshit (AD): I took charge of customs at ICD Tughlakabad last July. My previous stint was in the Directorate of Systems, where I was in charge of ICEGATE project and thus responsible for e-commerce and messaging with all stakeholders for 122 customs locations covering the entire country. I would say that my job at ICD Tughlakabad has been a challenge of different kind, in terms of the volume of cargo this port handles about 4.5 lakh containers per annum, as also and the kind of public interactions that are necessary. Depending on the situation, we act. For instance, last September, we faced a major crisis immediately after I took charge. We had an accident in the premises in which a worker came under a cargo handling equipment in the custom bonded area. While we had to rush him to the hospital and take care of other necessities, all the unions came together and started protesting. They pelted stones and damaged the depot’s property, which brought operations to a halt for almost a week. I had to intervene and pacify the agitating unions as agitators refused to talk to the custodian (CONCOR). After this incident, we took measures with the help of custodian to prevent such accidents and also stationed an ambulance permanently. Also, since work had suffered, we had to take several measures to quickly clear the backlog by working over time and on closed holidays and also by judiciously relaxing the stringent guidelines for examination of goods among others. So, we have to act as per the situation, which is extremely challenging.

TDB: What initiatives have the ICD taken to deal with traffic at the port?

AD: There is a symbiotic relationship between the custodian and the Customs as well as all the other 16 stakeholders. Customs however takes a lead position in the entire process of customs clearance. Unless the Custom Department gives a clearance to the cargo, it cannot be moved by the custodian. So, to make the custom procedures faster, we have introduced a new initiative called Document Management System (DMS). We have to understand that not all documents are filed electronically. The documents that are submitted manually, are required by the customs officials for post clearance audits. However, due to the volume of cargo handled by ICD Tughlakabad, most of the time, these documents would reach the concerned custom official late. This would further delay the audit processes at IICD Tughlakabad. So, for speedy processes, today once the cargo is cleared, all documents are scanned and saved as a file on our system. Hence, a scanned copy is readily available either for post clearance audits or court related purposes, as the case might be. The DMS was implemented on April 1, 2014. Along with the DMS, we have also launched a mobile application. The application allows an examining officer to take pictures and give feedback on the cargo being examined and also upload the same and save it with the scanned documents pertaining to that particular cargo. So, this application enables us to keep all the details about a particular cargo even when it has gone. It is a unique measure and has not been implemented at any other ICD in India.  

TDB: ICD Tughlakabad is the oldest and largest ICD in the country. What is the USP of this dry port?

AD: I believe the USP of ICD TKD, which has allowed it to survive all odds, is that it lies in the heart of the city. If we see the trade in North India, we realise that it is gravitating towards Delhi only. The network of roads are good here and since it is the oldest dry port in India, the working flow here is already established. This makes it a lot easier for the stakeholders to work with us than with any other ICD. Moreover, other ICDs do not have a skilled workforce like us.

TDB: From our interactions with exporters and other stakeholders at ICD Tughlakabad, we found some sort of a transporters’ monopoly here. What do you have to say about this?

AD: Well, there is no monopoly as such. We have to understand that containers do not move on ordinary truck. They require long trailers. The truckers who are operating in this area, get the business because they have established themselves, are equipped to handle these kind of cargo and more importantly, don’t do any other business. Besides, I believe an ordinary truck when it lands up here, finds itself totally lost. But I would not agree that anyone has a monopoly here.

TDB: There have been instances of cargo pilferage despite the CISF manning the area. What measures have been taken to address this issue?

AD: Physical security of cargo is the responsibility of the custodian. But I do admit that there have been some instances of cargo pilferage. Say for instance, if we handle 1,50,000 TEUs/annum, there might be some pilferage in about 50 cases, which is a minuscule percentage. But the custodian has taken some steps such as installing cameras, 24/7 CISF patrolling and safe storage of the cargo. Besides, we interact with the custodian on a regular basis to ensure minimum pilferage, because if goods are stolen then I don’t get my duty.

TDB: A decade ago, some unexploded bombs were seized from ICD Tughlakabad. What steps have you taken to prevent such incidences in the future?

AD: At the time of the incident in 2004, I was here as an Additional Commissioner and it was me who detected the unexploded bomb after the infamous blast at Bhushan Steel’s factory in Ghaziabad. We had seized over 31 metric tonne of unexploded bombs from the cargoes. This happened because earlier, ICD Tughlakabad handled metal scraps too, which were imported from Iraq or Iran. But now, these metal scraps are not brought to ICD Tughlakabad anymore.

TDB: A lot of private players are now setting up ICDs. How do you think will ICD Tughlakabad be affected by increased competition?

AD: Personally, I believe competition will only be good for ICD Tughlakabad. It is always clogged and operates well above peak capacity. So, it would be better if some traffic is diverted to other ICDs around the city.