A PROJECT REPORT

ON
CFS SERVICES of
BALMER LAWRIE & CO. LTD.
(KOLKATA)

Report Submitted to Balmer Lawrie & Co. Ltd., Kolkata

Under the guidance of Dr. Nikhilesh Kumar Gupta
Assistant Professor, School of Management
Adamas University
In partial fulfilment of requirement of degree of
“Masters of Business Administration in Marketing”

Submitted By : Tanmoy Guha.

Roll No. : 012.
Adamas University, Barasat
(2017-2019)
Declaration:-
I Tanmoy Guha, student of Adamas University, Barasat hereby declare this project
is entitled “CFS SERVICES of BALMER LAWRIE & CO. LTD.”, Kolkata is a bonafide
record of work done by me during the course of summer internship project work of MBA
program and all contents and facts are presented by me without any bias. I also declare that
it has not previously been formed on the basis for the aware to me for any degree/diploma
associate ship, fellowship or other similar title, of any Institution/Society.

Date : 29.07.2018

Place : Kolkata
Preface:-
A project is a scientific and systematic study of real issues on a problem with the
application of management concept and skills. The study can deal with small or big issues
in any division of an organization. It can be case study where a problem has been dealt
with, through the process of management. The essential equipment of a project is that, it
should contain scientific collection of data, analysis and interpretation of data leading to
valid conclusion.

Summer Training is an essential part in MBA curriculum. It enables the student to

share the real experience in industry. I have been placed in Balmer Lawrie & Co. Ltd,
Kolkata under the Logistics Services for the period of eight week in Kolkata. I underwent
the project under the title “CFS Services of Balmer Lawrie & Co. Ltd.”, Kolkata.
Acknowledgement:-

It gives me a great pleasure to express my deep sense of gratitude and indebtedness

to Balmer Lawrie & Co. Ltd, Kolkata for allowing me to undergo Summer Project in their
reputed organization.

I would like to express my gratitude to the Branch Head, Mr. Prasant Basu along
with my mentor Mr. Amarjeet Kr. Sonkar (Assistant Manager Sales) and other team
members who helped me in several aspects of active support this project would not been
success.

Thanks and Regards,

Tanmoy Guha
Introduction:-
The three state-of-the-art Container Freight Stations (CFSs) at Kolkata, Mumbai
and Chennai that form part of our SBU: Logistics Infrastructure (LI), besides the
warehousing & distribution facilities at Kolkata & Coimbatore, is testimony to the
Company’s ability to successfully handle a whole range of cargo promptly and safely. Be
it over dimensional, perishable, temperature sensitive or standard cargo, Balmer Lawrie is
wholly equipped for secure handling and on-time delivery of cargo. LI provides an array
of services to the export-import trade.

Balmer Lawrie is amongst the leaders in Logistics infrastructure in the country and
offers the following services to its customers:

1. Transportation of containers to/from Ports

2. Full Container Load (FCL) delivery
3. Destuffing, storage and delivery
4. Handling Over Dimensional and Out of Gauge containers
5. Handling and monitoring Reefer Containers
6. Consolidation and de-consolidation of Less Container Load (LCL)
7. Handling of cargo for exports
8. Covered warehousing facility for storage of EXIM cargo
9. Handling and storing Break Bulk Cargo
10. General & Bonded Warehousing (covered & open)
11. Tracking of Containers using RFID and SMS facility

All our CFSs are accredited with ISO 9001:2008, ISO 14001:2004 and OHSAS
18001:2007. Our CFSs were the first CFSs in India to introduce RFID through GPS &
GPRS technology for container tracking.

SBU LI believes that Quality is never an accident and it is always the result of high
intention, sincere effort, intelligent direction and skillful execution. The SBU team is
highly committed to understanding customers' expectations and continuously strives to
exceed these expectations by delivering on time and defect free services.
 Products of Balmer Lawrie & Co. Ltd (SBU)

Industrial Grease Leather

Packaging & chemicals
Lubricants

Services of Balmer Lawrie & Co. Ltd (SBU)

Travel & Logistics Logistics Refinery & Oil

Vacations & Services Infrastruct Field Services
ure
Major clients from several sectors:-
1. Ports
2. Indian Defense
3. Indian Railway
4. Mining Complex
5. Cement Industry
6. Ship Building Industry
7. Integrated Steel Industry
8. Oil Exploration Companies
9. Heavy Engineering Industry etc..

Joint venture Co. of Balmer Lawrie:-

1. Transafe Services Ltd.
2. AVI-Oil India Pvt. Ltd.
3. Balmer Lawrie (UAE) LLC
4. Balmer Lawrie-Van Leer Ltd.
5. P.T. Balmer Lawrie Indonesia Ltd.
6. Balmer Lawrie Hind Terminal Ltd.
7. Visakhapatnam Port Logistics Park Ltd.
 Competitors of B.L. in CFS business

Major Competitors Minor Competitors

(Private Sectors) (Govt. Sectors)

Phonex Century All Cargo Concor Central Warehouse

CFS CFS CFS CFS Corporation CFS

JJP CFS Sonai CFS

Varieties of Cranes in BL CFS

Lift Tracker Hydra Fork Lift

Crane

Kolkata CFS:-
 CFS, Kolkata established in 1994 and was the first CFS to be set up in the eastern
region. A pioneer in EDI (Electronic Data Interchange) connectivity in the eastern region,
the CFS is connected to Kolkata Dock System & Haldia Dock Complex and has a Merry-
Go-Round facility with dedicated Rail siding with own Rail Flats. Specialized in handling
ODC, CFS, Kolkata is strategically located (2.5 kms from Kolkata Dock), and has modern
facilities to cater to the needs of the customer 24x7.

BL work procedure (import):-

Once container comes to the entrance to the BL either Gate No. 1 or 4, then onwards
activity starts..

1
Customs (Preventive Officer) checks seal is done or not

2
Weighmant done, once Customs gives clearance

Appraisement/Checking done by CFS labors. It is called “Top to Down”

CFS labors breaks container seal for checking infront of Customer Officer

6
Labor will reload goods either in warehouse or cargo/Container

Seal needs to be done by BL

Cargo/Container ready get departed from BL premises

Clients need to pay few charges, so they could use BL premises and those
charges are:-

1. Transportation cost
2. Loading/Unloading charge
3. Seal charge (Break/Un-break)
4. Labor charge
5. Cranes/Fork lifts etc.
6. Customers charges

BL work procedure (export):-

Once container comes for export purpose, then BL works as follows..

CHA arrange container/cargo where exportable goods will get loaded

Weighment done

Need to vacant the container/cargo to load goods after getting clearance from Customs

BL labors will load goods to that container

Seal needs to be done of that container/cargo by BL

6

Loaded container/cargo need to set in track to depart

Clients need to pay few charges, so they could use BL premises and those
charges are:-

1. Weighment charge
2. Labor charge
3. Empty container charge
4. Stuffing charge
5. Container seal charge
6. Fork lifting charge
7. Transport charge

Role of Custom House Agent (CHA):-

"Customs House Agent" means a person licensed under the Customs House Agents
Licensing rules 1960 as amended from time to time, to act as agents for
the transaction of any business relating to the entrance or clearance of any vessel or the
import or export of goods or baggage in any Custom House" Section 146 of the Customs
Act 1962 provides that Customs House Agents should take a license for working as a CHA
in any part of India. The Customs House Agents Licensing Rules 1960 also regulate the
working of the CHAs in India. Section 146 of the Custom Act is the enabling provision,
which allows agents of importers and exporters to act on behalf of importers and exporters.
This is necessitated by the highly involved and technical nature of the work to be done in
connection with clearance of imports into and exports out of country. The importers and
exporters themselves may have neither time nor the requisite knowledge on their own.
Therefore, agents are allowed to act on their behalf. The Custom House Agent licensing
Regulation, 1984 framed under this section read with section 157, governs the work of the
agents. There are certain liabilities fastened on the agent of the importer or exporter under
section 147. Some of these liabilities are in the nature of extension of and exceptions to the
liability of an agent under the Indian Contract Act 1872. Sub-section (1) empowers the
agent to do everything that an importer or an exporter can do. Filing a bill of entry, shipping
bill, submitting supporting documents therewith, helping in examination of goods,
payment of duty on behalf of the principal, warehousing of goods, removal from
warehouse. The common law principle that an agent’s actions bind the principal is given
the status of a legal presumption. The consequences of all actions of a CHA will bind the
importers and exporters on whose behalf they act. An agent who is authorized to act on
behalf of the importer or exporter is treated as the owner of imported or exports goods. In
respect of that particular transaction, a notice could be given to that agent. This does not
normally extend to recovery of duty not paid or short paid by the owner, importer or
exporter of goods. As an exception, this is permissible when the Deputy/Assistant
Commissioner is of the opinion that such recovery from the owner, importer or exporter of
goods is not possible.
Essential features of CHA Licensing Regulations, 1984:-

1. No ceiling for number of CHAs who can be appointed in a Customs House.

2. Issue of regular license is preceded by a period of grant of temporary license.
3. Prescribing criteria of experience and financial soundness for appointment.
4. Grant of regular license is subject to passing examination, satisfying minimum
volume of business and complying with obligations under Regulation No.14.
5. Change in the constitution of partnership or firm not to affect the operations of CHA.
6. Commissioners have been empowered to prescribe fees to prevent excess billing by
the CHAs.

Functions of CHA:-
1. Preparation of various kinds of bill of entry and shipping bill.
2. Arrival entry and clearance of vessels.
3. Tariff classification and rates of duty.
4. Determination of value for assessment.
5. Conversion of currency.
6. Nature and description of documents to be filled with various kinds of bills of entry
and shipping bill.
7. Procedures for assessment and payment of duty.
8. Examination of merchandise at the Customs stations.
9. Provisions of the Trade and Merchandise Marks Act, 1958.
10. Prohibitions on imports and exports.
11. Bonding procedure and clearance from bond.
12. Re-importation and conditions for free re-entry.
13. Drawback.
14. Offences under the Act.
15. Provisions of allied Acts including Customs Tariff Act1975, Foreign Trade
Development and Regulation) Act 1992,Foreign Exchange Regulation Act,1973,
Indian Explosives Act 1884, Arms Act 1959, Opium Act 1878, Drugs and
Cosmetics Act 1940, Destructive Insects and Pests Acts 1914, Dangerous Drugs
Act 1930 in so far as they relate to the clearance of the goods through Customs.
16. Refund procedures, appeals and revision petitions.

Data Analysis:-
For data analysis, Microsoft Excel has been used by converting each questions into
a code to draw a meaning from them.
 Findings and interpretations:-

BL CFS Operation Survey Report

Any other ideas to boost the CFS
CHA to Importers/Exporters perception about B.L.
X factors for BL rather than Other Competitors
Complaint/Problem resolution TAT
Container movement time during Export from CFS to Port
Behavious of B.L. Staffs/Officers at CFS
Safety Measures in CFS
Water, Canteen & Cleaning of CFS
Operating sdupport for Stuffing/De-Stuffing & Appraisement
Warehouse Facility & Allied Services
Labour & Equipement Issue
Time taken for TopDown of Containers
Time taken in Cash Counter/Payment
Time taken Billing Counter
Time taken for File Preparation in CFS
Time taken for Job No.
Issue during Onload/Offload of Cargo/Cantainer
Time consumption during Weightment in CFS
Response & Behavior of Security Personnel
Port to CFS movement time
0 10 20 30 40 50
NA Worst Bad Average Good Excellent

Interpretation:-

From the above graph, it is analyzed that majority of BL CFS service getting
affected due to few major issues like Lack of Labor, lack of Equipment, Manual
documentation process which is time consuming, Cash Counter people (Subhash
Chakraborty), behaves rude and Customs policy is not flexible etc.
 Labour & Equipement Issue
Excellent
Worst 16%
60%

Good
14%

Average
4%
Poor
6%

Interpretation:-

From the above pie chart, it is found that more than 60% CHA is not at all happy
due to lack of labors and equipment. Majority of the CHA doing business with us more
than 10-15 years and they are getting well facilities in other CFS. So if we could be able to
arrange labors and equipment then going forward BL Kolkata CFS will definitely do well.
 Time taken for File Preparation in CFS
Worst
30% Excellent
24%

Poor
2%

Average
4% Good
40%

Interpretation:-

From the above pie chart, it is found that more than 30% CHA is not satisfied due
to manual paper work, which is too much time consuming, and for the same they need to
spend lots of time in BL CFS. If could start computerized documentation process then
entire manual work load will get reduced and it will become less time consuming and our
CHA will be satisfied with us like other CFS.
 Port to CFS movement time
Wors
t

Excellent
Poor 44%
4%

Average
10%

Good
20%

Interpretation:-

From the above pie chart, it is found that more than 20% of CHAs are not happy
due to worst transportation system, cause there are many rotten items are coming through
out a day, if those item are getting spoiled due to inferior transport system then BL CFS
will get affected in terms of business. As that part does not comes under BL premises, that
part is of Port Authority. So what we can do, we can have words with BL CFS higher
authority, so we could do something, as we are losing our CHAs due to the same.
 Time taken in Cash Counter/Payment
Worst
28%

Excellent
40%

Poor
8%

Average
4% Good
20%

Interpretation:-

From the above pie chart, it is found that more than 28% CHA is not satisfied due
to miss behave/rude behave of the cash counter people and they have major and crucial
complain against Subhash Chakraborty. If he or rest of the employee from the cash counter
could be able to change their attitude/behavior then we can bring some improvement in our
CFS business.
BL CFS doing well:-

When BL CFS, Kolkata is compromising their CFS business in several aspects, on

the other hand we are also doing well in other aspects as well where our CHAs are very
happy on those parameters.

Response & Behavior of Security

Average Personnel Worst
0%
2%
Poor
0%

Excellent
46%
Good
52%

Interpretation:-

From the above pie chart, it is found that more than 46% of CHA saying that out
Gate no.1 & 4, security people are very much well-mannered and well behaved which make
differences from other CFAs. Behavior is an important characteristic of a Human Being,
which makes difference from others. We have to carry on with this.
 Time consumption during Weighment in
Worst
Poor
4%
CFS 6%
Average
6%

Good Excellent
26% 58%

Interpretation:-

From the above pie chart, it is found that more than 58% of CHA saying that we are
doing very fast weighment rather than any other CFS. That also an advantage of our CFS.
We know that we cannot be good or better in each section, but at least we can be best in
major sections that will help our CFS Service to build better carrier.
 Issue during Onload/Offload of
Cargo/Cantainer
Worst
11%

Poor
4%

Average Excellent
6% 48%

Good
31%

Interpretation:-

From the above pie chart, it is found that more than 48% CHA are satisfied, as they
are getting very fast service from us during On-Load and Off-Load of Cargo/Container. It
also a very good sign for our business.
Observations:-

Balmer Lawrie is one of the most reputed and reliable CFS organization of Govt. of
India. On that point of view, Balmer Lawrie has many competitors in several aspects of
CFS business. Somewhere there are giving strong competitions and somewhere Balmer
Lawrie also doing good business rather than them. So we have to take some tough calls to
improve our revenue figures and this the idol time for the same. Those decisions and not
too tough, we just have to implement some ideas and have to manage our employees, to
bring improvement in our business. Those list of ides are mentioned below:-

1. Labor : (Plans will be implemented as per CFS POLICIES)

a. We can seat with them to know their job challenges and need to do
according to that.
b. We can roll out some lucrative incentive plan where labors have to meet
few certain targets on daily basis to get it.
c. We can announce some incentive plans for best performance from labors.
d. If any labor gets consecutive 7/8 months “Best Employer Award”, then
we also can refer his name for “Promotion”.
e. We can implement some labor division policy, so our labors does not feel
monotonous with their same type of job responsibilities.
f. We can appoint few Supervisor to supervise our labors.

2. Cashiers:
a) We can educate cashier job role to few other employees where we can
alternate our existing cashier with new one.
b) We have to speak one to one with that cashier along with HR and verbal
feedback can be given.

3. File Preparation:
a) We can stop doing manual work process and can bring computerized
work policy to save time in CFS.
b) Labor division policy should be implemented. If file stuck into any
department, immediately that department’s concern employee have to
escalate the issue to the concern authority. So it could get resolved as soon
as possible.SO the work flow does not get affected.
c) We can implement “Best Employee Award” policy over here as well, to
encourage our dedicated employees.
d) CFS being service provider, we have to go to the CFS to solve/resolve
their concerns. Here scenarios are opposite. We have change this scenario
with an immediate effect, and then only we can bring some positive
changes in our CFS business.
 4. Rest of the areas:
a) Rest in every areas we are doing good, so if we could bring some massive
changes, then we can compete our rest of the competitors with smiling
face and CHAs will be continuing their business with us without any
doubts. They will never prefer other CFS except Balmer Lawrie.

Conclusion:-

So except these few challenges we are do well rather than any other CFS. We
should be CHA centric to be best among all competitors. We are doing we in terms of
Employees behavior with CHA, Issue resolving TAT is good, even lots of CHA given
appreciation to Mr. Amarjeet Sonkar as he is being too much CHA centric. If any CHA
face any trouble in the plan, many times he visits with CHA to resolve the concern then
and there. We can make it as habit as Mr. Sonkar, at least this way we can make them
understand that we are always beside of them to provide better service.

Thank You