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Introduction

The dry port concept is based on a seaport directly connected with inland

intermodalterminals, where goods in intermodal loading units can be turned in

as if directly to the seaport. Between the seaport and the inland terminals, here

denoted dry ports, relatively large goods in intermodal loading units can be

turned in as if the terminal was positioned directly to the seaport. In such dry

ports large goods flows can shift freight volumes from road to more energy

efficient traffic modes that are less harmful to the environment. In addition a dry

port can relieve seaport cities from some of the congestion, make goods

handling more efficient and facilitate improved logistics solutions for shippersin the ports.

A dry port (sometimes inland port) is an inland intermodal terminal directly

connected by road or rail to a seaport and operating as a centre for the

transshipment of sea cargo to inland destinations.

In addition to their role in cargo transshipment, dry ports may also include

facilities for storage and consolidation of goods, maintenance for road or rail

cargo carriers and customs clearance services. The location of these facilities at

a dry port relieves competition for storage and customs space at the seaport

itself.

The dry port concept

Intermodal terminal

Situated inland

Rail connection to a seaport

Offers service that are available at seaports (customs clearance,

maintenance of containers, storage, forwarding, etc.)

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How they make import and export easier, and increase

trade.

Better customs checking/clearance/easier collection of taxes/revenue

Better Hinterland Connectivity

Better transport links/easier and cheaper transport to the associated sea port

Container (stuffing and stripping) facilities

Better management

Storage in sheds and open areas

Refrigeration available (in case of reefer container terminals)

Quicker processing/less time lost/avoid delays at associated sea port

Less congestion at associated sea port/eases pressure at associated sea port.

Background

This project report was planned in regards to the need for facilitating transport

operators in their practical international networks and multilateral cooperation.

Close co-operation between transport and logistics companies within an

organized network creates opportunity to plan international transport and

optimise the use of transport equipment and resources. An important feature is

the networks facilitation of cooperation nationally and internationally, which

hereby creates efficient transport chains and network solutions for optimal cargo

flow and distribution.

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Another motivation for investigating networks is, that experience shows, that

the networks can offer the local/regional productive system the best solutions in

terms of logistics, transport and warehousing activities. This implies to control

both the transport cost increase and the industrial productivity competitiveness.

As such a dry port does not necessarily need to be built from scratch. An inland

terminal can easily be developed to also encompass dry p ort facilities. If an

inland terminal fulfils the following three conditions it can in theory obtain

status as a dry port:

y The terminal should have direct connection to a seaport either by rail or

by road

y The terminal should have a high capacity traffic mo de

y The terminal should offer the same types of facilities as can be found in a

seaport.

In order to obtain these conditions it should for instance be possible to make the

customs clearance in the dry port. In this way the goods for overseas travel can

be made ready already in the dry port and in this way save time and money,

because the ITU can be loaded directly onto the ship. When the capacity of a

seaport is increased because of the extra available areas at the dry port, it can

also have the positive consequence that larger ships can call the port and in this

way increase the productivity.

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Dry Port functions.

To ensure an effective Dry Port there are two general objectives:

y Consolidation of maritime goods in intermodal short- and long distance

transport flows;

y Collecting and distribution of local, regional and international transports.

To achieve these two objectives it is necessary for the terminal to

carry out the following functions:

y Management of container flows to different ports;

y Consolidation of individual container flows;

y Reduction of pre- and end haulage with road transport and expansion of

rail transport;

y Offering special- and extra services;

y Reduction of transport costs;

y Increase the firms of ship owners and the port influence to ensure an

intensification of the Transport Chains effectiveness.

To achieve these functions it is required to consider the following

measures:

y To offer centrally placed areas;

y Offer the choice: Reloading or shunting;

y Offer co-ordination between different operators;

y Organisation of pre- and end haulage;

y Using advanced or existing technology;

y Offer an integrated flow of information on railway-, Dry Port-, road- and

rail.

y Maritime related data.

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Benefits from a dry port

Increases seaport capacity

Increases seaport productivity Reduces congestion at seaports

Reduces congestion in seaport cities

Reduces risk for road accidents

Reduces road maintenance cost

Lowers environmental impact

May serve as a depot

Improves seaports access to areas outside its traditional hinterland.

Dry Ports in the Transport Chain.

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Dry Port advantages :

Consequently Dry Ports advantages and disadvantages are those actual inland

terminals advantages and disadvantages.

In the report the following dry port advantages are taken into consideration:

Reducing total transport expenses;

Shift from road to rail transport, which is more environmental friendly. 2

Connecting cargo handling from the port with other types of cargo at one

common transport centre;

Strengthening the ports in transport chains;

Strengthening multi-modal solutions;

Reducing the use of expensive, centrally located areas in the port;

The seaport get a larger hinterland and can therefore obtain a competitive

advantage, because the seaport now can store a larger amount of ITUs

Possibly avoiding traffic bottlenecks, which give less congestion on the roadsnear the harbour area, due to the fact that a modal change has happened.

Reducing local environmental problems in the cities;

Integrating port areas with the cities.

Especially in Less Developed Countries (LDCs) the development of the

hinterland can be beneficiary for an area in form of creation of jobs in the

affected area.

The possibility of speeding up the customs clearanc e process for goods

transferred overseas can be gained by establishing dry ports with the right to

conduct customs clearance.

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Inland container depot of Bangalore

The need for Inland Containers arose when it had become difficult for importers

to clear their goods which arrive by sea for which the importer was required to

go to the port of receipt of the goods for clearing the same. Inland Container

Depot Bangalore is a dry port wherein facility to clear goods of imports

received in containers by sea to Chennai & Cochin is facilitated. These

containers arrive by Rail orRoad and are custom bonded by the Custodians i.e.

M/s. Container Corporation of India, a public SectorOrganisation under the

Ministry of Railways. ICD. Bangalore incidentally is India's first dry port.

Started in 1981 was working from Bangalore Cantonment Railway Station.

Later in 1993 it was shifted to Whitefield, Bangalore 66. The ICD startedfunctioning at Whitefield, Bangalore with effect from 1.4.93. M/s. Air France &

M/s. Lemuire have started bonding facility from Feb 2000.Recently the

Government has allowed consolidation of LCC Cargo in respect of shipping lines.

This will help small importers / exporters who deal with cargo which is small in volume.

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Facilities:-

Government has specified the Customs area in respect of ICD, Whitefield,

Bangalore. The ICD extends over an area of 54 hectares of which 27720 Sq

Mtrs is fully protected and allotted for stacking of International Containers. This

ICD is capable of handling 50,000 TEUs (Twenty feet Equivalent Units) per

annum. There are two container stacking yard one the international yard and

another the domestic yard which has a handling capacity of 1000 containers.

The containers come in by rail from Chennai and Coc hin and there are three rail

lines capable of reception and dispatch of these containers. This ICD also has

sophisticated handling equipment like Top lift trucks, Terminals, Tractors and

fork lifts for complete smooth operations of the stuffing and de -stuffing of

Cargo. There is a 2x2 lane gate/inspection complex for the Customs to examine

the goods and ensure smooth clearance of the goods. There is a pitless weigh

bridge with a capacity of 60 Tonnes.

Bonded Warehouse:-

There are 6 Bonded warehouses with an area of about 14,000 Sq. Mtrs., for

warehousing export and import cargo. There is one warehouse specially for

storing of Export Coffee Beans which is one of the main items of export. Of

late, even bonded trucking has started from Chennai, whereby goo ds that

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come by flight up to Chennai are brought by Road to Bangalore and then

bonded at ICD, Bangalore. Goods From 73 containers in 1981, ICD, Bangalore is

presently handling approximately about 21000 loaded containers per annum

and 12500 empty containers per annum. The Customs Revenue through this

formation has also shown a steep increase over the years starting from a meager

Rs. 12.5 lakhs in 1981 to 345.27 Crores (in 2000 - 2001). The sections are

separately formed like the Admission Section, Assessment Section, Bonds

section and Pre - Audit Section etc.

Brief on TR:

What is TR?

TR means Transfer ofResidence. The term "TR" under the Baggage Rules,

1998 is used with reference to a person/persons returning from abroad on a

bonafide transfer of residence to India.

The provisions relating to Transfer ofResidence are covered underRule 8 of

the Baggage Rules, 1998 read with A ppendix - "F" appended to the said rule

and also read with Notification No. 137/90 Customs dated 20.3.90 as amended. The

provisions relating to unaccompanied baggage are covered underRule 9 of the Baggage

Rules, 1998.

The conditions stipulated to avail TR are as follows:

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1The person / persons should have been stayed abroad for a minimum period of

two years immediately preceding the date of his arrival on TR.

2 The total stay in India on short visit during the two preceding years should not

exceed 6 months and the person has not availed this concession in the preceding

three years.

The following relaxations have also been provided in relation to above

conditions.

(a) For condition (1) above, short fall of up to 2 months his stay abroad can be

condoned by Asst. Commissioner of Customs if the early return is on account

of (i) terminal leave or vacation being availed of by the passenger or (ii) any

other special circumstances.

(b) For condition (2) above, Commissioner of Customs may condone short

visits in excess of 6 months in deserving cases.

(c) No relaxation has been provided for condition no. For condition (3) above,

Further, the person should also give a declaration to the effect that the goods

have been in his possession abroad or the goods are purchased by such person at

the time of his arrival, but before clearance from customs, from the duty free

shop located in the arrival hall of the international airport.

The passengers returning on a bonafide transfer of residence can import used

personal and household articles free of duty. However, a concessional duty of

25% adv has been prescribed vide Not. No. 137/90 customs dated 20.3.90 as

amended for certain electronic goods specified in the Table annexed to said not.

This concessional duty is applicable for one unit of each item per families and

the person claiming the benefit of this notification affirms by a declarat ion that

no other member of the family had availed of or would avail of, the benefit of

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the said notification in respect of that item and the total aggregate value of such

goods shall not exceed rupees one lakh fifty thousand The goods brought in

excess of the perishable units under Not. No. 137/90 will be charged at the

baggage rates of 50% advelorem prescribed vide Not. No. 136/90 customs dated

20.3.90 as amended.

Foreign nationals can also avail the facility of TR. In addition to the above

conditions / requests they are required to produce valid Visa and residential

permit for stay issued by the Police Authorities.

For more details please refer rule 8 and 9 of Baggage rules 1998, read with Not.

No. 136/90 & 137/90 both customs dated 20.3.90 as amended.

The passengers returning on a bonafide transfer of residence can import used

personal and household articles free of duty. However, a concessional duty of

25% adv has been prescribed vide Not. No. 137/90 customs dated 20.3.90 as

amended for certain electronic goods specified in the Table annexed to said not.

This concessional duty is applicable for one unit of each item per families and

the person claiming the benefit of this notification affirms by a declaration that

no other member of the family had availed of or would avail of, the benefit of

the said notification in respect of that item and the total aggregate value of such

goods shall not exceed rupees one lakh fifty thousand The goods brought in

excess of the perishable units under Not. No. 137/9 0 will be charged at thebaggage rates of 50% advelorem prescribed vide Not. No. 136/90 customs dated

20.3.90 as amended.

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Foreign nationals can also avail the facility of TR. In addition to the above

conditions / requests they are required to produce va lid Visa and residential

permit for stay issued by the Police Authorities.

For more details please refer rule 8 and 9 of Baggage rules 1998, read with Not. No.

136/90 & 137/90 both customs dated 20.3.9TOP TEN COMMODITIES AT ICD

Sl.No. Commodity Chapter

(Rs. In Crores)

2006-07

Upto

Dec2006

Upto Dec

2007

1 Electrical Machinery 85 2724.35 2079.41 2117.86

2 Machinery Items 84 595.37 418.88 491.65

3 Garments 62 564.93 423.18 442.65

4 Coffee 9 351.28 253.58 246.95

5 Articles of Stones 68 338.65 254.84 223.4

6 Articles of Irons & Steel 73 210.03 154.47 141.297 Motor Vehicles & Parts 87 190.62 134.94 158.92

8Pharmaceutical

Products 30 190.52 131.69 162.39

9 Silk 50 164.02 119.91 107.18

10Organic

Chemicals/Products 29 123.04 85.56 89.28

Total 5452.81 4056.46 4181.57

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0 as amended