A Project Report on

CONTAINER FREIGHT STATION

Submitted in partial fulfilment of award of

BACHELOR OF SCIENCE
IT & LOGISTICS

By

KISHORE KAVIARASU
B.Sc.(IT & Logistics) 2016-2019
16P26K0008

Dept. of Information Technology & Logistics

BHARATHIAR UNIVERSITY

Indian Institute of Logistics

Chennai
DECLARATION
ACKNOWLEDGEMENT
 CONTENTS
PAGE
CHAPTER NO. TITLE
NUMBER
1
INTRODUCTION

1.1 INDUSTRY PROFILE

1.2 COMPANY PROFILE

1.3 OBJECTIVES OF THE STUDY

1.4 NEED FOR THE STUDY

1.5 STATEMENT OF PROBLEM

1.6 SCOPE OF THE STUDY

2 REVIEW OF LITERATURE

3 RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

3.2 SAMPLING TECHNIQUE

3.3 QUESTIONNAIRE DESIGN

3.4 STATISTICAL/ANALYTICAL TOOLS

3.5 LIMITATIONS OF THE STUDY

4 DATA ANALYSIS AND INTERPRETATION

5 FINDINGS OF THE STUDY

6
RECOMMENDATIONS AND SUGGESTIONS

7 CONCLUSION

8 BIBLIOGRAPHY

9 APPENDIX
APPENDIX
 CHAPTER I
INTRODUCTION:
The current phase of globalization of trade and business, has made logistics development is an
important area. All major developing and developed countries are focusing to improve its logistics
infrastructure to facilitate growing business. Attempts are also being made to bring down the
costs/expenditure on logistics. This project deals with the effectiveness of Container Freight
Stations(CFS) from the perspective of Customs House Agent(CHA). Container freight stations play a
major role in the movement of goods. Container freight is an extension to port facilities to avoid
congestions in ports and helps for speedy movement of goods from ports to customers.
A Container Freight Station (CFS) is a place where containers are stuffed, de-stuffed, and
segregation of import/ export cargo takes places. All the activities related to Customs clearance of
goods for home consumption, warehousing, temporary admissions, re-export, temporary storage for
onward transit and outright export and transshipment take place from such stations.
CFS has been established to speed up export cargo and to specially help small exporters whose
consignments are less than containers loads. The CFS has facilities of modern go down
accommodation under export supervision. Facilities of banking, customs examination, clearance, safe
handling, stuffing, sealing and transportation of containers are available. Both import and export
consignments are handled here. Location of ICDs and CFSs is regulated by the Ministry of the
Commerce of the Government of India.

With the consistent surge in international trade volumes, the onus of port efficiency lies on
expeditious evacuation of containers from the port area. This is so because Indian ports are not
equipped with adequate space and infrastructure to handle the growing volumes. As a result, the ports
have started to manage ship movements, and Container Freight Stations (CFS) have been developed
near the ports to relieve the ports off storage capacity and clearance procedures. Globally, the concept
of a CFS is known as ‘Off Dock Container Yard’ (CY), which as an extended arm of the port.
When containerization gathered initial steam during the mid-80s, the Government of India
conceptualized the CFS business model, with the sole intention of ensuring highest possible security
inside the port and for de-congesting the port in order to increase efficiency. The ports developed
afterwards, such as Nava Sheva, had a dedicated area in the master plan for CFS.
In recent years, many concerns have been raised about the role of CFS in India. These concerns
can be categorized into two: a) the concerns of the trade regarding the functioning of CFS and b) the
concerns of a CFS regarding the dynamics affecting their operations. This policy brief aims at
highlighting both sets of concerns and suggesting measures to overcome the challenges and ensure
that both parties effectively contribute to the process of ease of doing business in India.

1
 The main function of CFS is receipt, dispatch and clearance of Containerized Cargo, up-to-
date inventory control and tracking system to locate containers/cargo. The goods received at ports
are brought to CFS and stacked in CFS after verification of the seal by Customs Officers. In respect
of import consignment, the Steamer Agents/liners/ Importers desiring to take the consignment to
CFS, file Import General Manifests in the port.

The project is based on effectiveness of CFS from the perspective of CHA, The growth of CHA
is increasing every year although with the growth of CHA it should benefit every CFS, but that’s not
the case as there are about 30 CFS in Chennai and at present around 500 CHA in Chennai but based
on the research it was founded that only a handful of CFS are preferred by CHA for doing clearance.
This project is done to identify the basis for CHA in selecting a CFS and what do they expect from the
CFS

DISTINCTION BETWEEN AN ICD and A CFS

Functionally there is no distinction between an in INLAND CONTAINER DEPORT

(ICD)/Container Freight Station (CFS) as both are transit facilities, which offer services for
containerization of break bulk cargo and vice-versa. These could be served by rail and/ or road
transport. An ICD is generally located in the interiors (outside the port towns) of the country away
from the servicing ports. CFS, on the other hand, is an off dock facility located near the servicing ports
which helps in decongesting the port by shifting cargo and Customs related activities outside the port
area. CFSs are largely expected to deal with break-bulk cargo originating/terminating in the immediate
hinterland of a port any may also deal with rail borne traffic to and from inland locations.

Keeping in view the requirements of Customs Act, and need to introduce clarity in nomenclature, all
containers terminal facilities in the hinterland would be designated as "ICDs".

2
THE REQUIREMENT FACTORS OF A CONTAINER FREIGHT STATION

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 equipment.

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

GATE COMPLEX

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

LAND REQUIREMENTS

The minimum area requirement for a CFS would be One Hectare and for ICD Four Hectare.
However, a proposal could also be considered having less area on consideration of technological
upgradating and other peculiar features justifying such a deviation.

3
DESIGN AND LAY-OUT OF ICD/CFS

The design and layout should be the most modern state-of-art equipped with
mechanical/electrical facilities of international standards. Key to a good lay-out is the smooth flow of
containers, cargo and vehicles through the ICD/CFS. The design and layout should take into account
initial volume of business, estimated volume in 10 years’ horizon and the type of facilities exporters
would require. The initial lay out should be capable of adaptation to changing circumstances. The
design broadly should encompass features like (rail) siding, container yard, gate house and security
features, boundary wall (fencing), roads, pavements, office building and public amenities. The track
length and number of tracks should be adequate to handle rakes and for stabling trains where relevant.

The perimeter fencing and lighting must meet the standards required by Customs authorities.
The gate being the focal point of site security should be properly planned.

The administration building is the focal point of production and processing of all
documentation relating to handling of cargo and containers and its size will be determined by the needs
of potential occupants. Fixed provisions should be made for sanitation facilities and possibly a food
service facility. A good communication system and computerization and EDI connectivity is essential.
Following Infrastructure should be available at the ICDs/CFSs


Provision of standard pavement for heavy duty equipment for use in the operational and 
 stacking area of the terminal. In cases where only chassis operation is to be performed,
 The pavement standard could be limited to that of a highway.

 Customs office and a separate block for user agencies equipped
Office building for ICD,
 with basic facilities.

 
Warehousing facility, separately for exports and imports and long term storage of bonded
cargo.
 
 Gate Complex with separate entry and exit.


Adequate parking space for vehicles awaiting entry to the terminal.


Boundary wall according to standards specified by Customs.


Internal roads for service and circulating areas.

Electronic weighbridge.


Computerized processing of documents with capability of being linked to EDI.

4
EQUIPPING THE ICD/CFS

The ICD/CFS would select most modern handling equipment for loading, unloading of
containers from rail flats, chassis, their stacking, movement, cargo handling, stuffing / Destuffing, etc.
Following minimum equipment should be made available at ICDs/CFSs (Reach stacker may not be
mandatory:



Dedicated equipment such as lift truck (front end loader, side loader or reach-stacker), straddle
 carrier, rail mounted yard gantry crane, rubber tyred yard gantry crane, etc. of
reputed make and in good working condition (not more than 5 to 8 years old) and equipped
with a telescopic spreader for handling the 20 ft and 40 ft boxes. The equipment must have a
minimum residual life of 8 years duly certified by the manufacturer or a recognized inspection
agency. An additional unit of equipment should be provided when the throughput exceeds 8000
 TEUs per annum or its multiples for lift truck based operations.


Terminals resorting to purely chassis-based operations do not require dedicated box handling
 equipment. However, chassis-based operations should be restricted to CFSs proposed to be
 set up near ports.

 (2 to 5tons) forklifts must be provided for cargo handling operations in all
Small capacity
terminals.

TARIFF

Tariff structure and costing should be worked out along with the feasibility study and
information provided with the application.

GENERAL

The main function of an ICD/CFS being receipt, dispatch and clearance of containerized cargo, the
need for an up-to-date inventory control and tracking system to locate containers / cargo is paramount.
Each functional unit of the facility (e.g. siding, container yard gate, stuffing/de stuffing area, etc.)
should have up-to-date and where possible on-line, real time information about all the containers, etc.,
to meet the requirements of customers, administration, railways etc. As far as possible, these operations
shall be through electronic mode.

5
PROCEDURE FOR APPROVAL OF ICD/CFS AND ITS IMPLEMENTATION

1. Proposals for setting up ICD/CFS will be considered and cleared, on merits, by an Inter-
Ministerial Committee for ICDs/CFSs, which consists of officials of the Ministries of Commerce,
Finance (Department of Revenue), Railways and Shipping. Views of the State Governments as
necessary would be obtained.

2. Application 10 copies in enclosed form should be submitted to the Infrastructure Division in the
Ministry of Commerce, UdyogBhavanNew Delhi. Application must be accompanied by 10 copies of
feasibility reports mentioned in the guidelines.

3. The applicant should also send a separate copy of the application to the jurisdictional
Commissioner of Customs. The Commissioner of Customs will send his comments to the Ministry of
Commerce and the Central Board of Excise and Customs (CBEC) within 30 days. In case, the project
is planned in a port town, a copy of the proposal should also be sent to the concerned Port Authority
who would furnish their comments within 30 days to the Ministry of Surface Transport and the
Ministry of Commerce.

4. The applicants are also requested to familiarize with the statutory Custom requirements in relation
to Bonding, Transit Bond, Security Insurance and other necessary procedural requirements and cost
recovery charges payable before filing the application.

5. On receipt of the proposal, the Ministry of Commerce would take action to obtain the comments
from the jurisdictional Commissioner of Customs and other concerned agencies within 30 days.
Wherever necessary, a copy of the proposal should also be sent to Zonal Railway Manager, under
intimation to the Ministry of Railways One copy of the proposal would also be made available to the
IMC Members for advance action. The decision of the IMC would be taken within six weeks of the
receipt of the proposal under normal circumstances.

6. On acceptance of a proposal, a Letter of Intent will be issued to the applicant, which will enable
it to initiate steps to create infrastructure.

7. The applicant would be required to set up the infrastructure within one year from the date of
approval. The Ministry of Commerce may grant an extension of six months keeping in view the
justification given by the party. Thereafter, a report would be submitted to IMC to consider extension
for a further (final) period of six months. The IMC may consider extension or may submitted to IMC
to withdraw the approval granted.

6
8. The applicant, after receipt of approval, shall send quarterly progress report to Ministry of
Commerce. Three formats (given as annexure I to III) for sending the quarterly/ annual report shall
have to be submitted to Department of Commerce through electronic mode as well as through hard
copy.

9. After the applicant has put up the required infrastructure, met the security standards of the
jurisdictional Commissioner of Customs and provided a bond backed by bank guarantee to the
Customs, final clearance and Customs notification will be issued.

10. The approval will be subject to cancellation in the event of any abuse or violation of the
conditions of approval.

11. The working of the ICD/CFS will be open to review by the Inter Ministerial Committee.

CUSTOMS HOUSE AGENT

Customs house agent means a person who is licensed to act as an agent for transaction of any business
to the entry or departure of conveyances or the Import or Export of goods at any customs station.
Customs house agent plays a very prominent role in clearing the import or the export of the goods. By
definition he is a person who has acquired a license to acts as an agent for transaction of any business
related to departure or entry of transportations or the export or import of goods at any customs station.
Generally the businesses that imports or exports goods don’t have knowledge about the rules and
regulations of the government and neither do they have any time to look into these matters. Hence,
they appoint a agent to act on their behalf. However, all the duties performed by the customs house
agent are administered by a government body known as Customs House Agents Licensing
Regulations. The services rendered by the custom house agent are not merely limited to the clearing
of the import and export consignment. The CHA also renders the service of

 loading/unloading of import or export goods from/at the premises of the exporter/importer,


 The packing, weighment, measurement of the export goods.

 The transportation of the export goods to the customs station or the import goods from the
custom station to the importers premises,

 Carrying out of various statutory and other formalities such as payment of expenses on account
of de-stuffing/ palletisation terminal handling,



7
EXPORT CLEARANCE PROCESS –

 The exporter selects the CHA of their choice based upon their services, performance and
submits declaration and other documents such as, packing list, invoice, L/C etc

 Once the agent receives all the required documents he will submit the details and the cargos’
description to the customs for shipping bill entry. The submission of the shipping bill can be
done through EDI or can be done through E-filing (ICEGATE)

 Based on the goods tariff and the specification, the customs officer will check the details and
gives the shipping bill no. And the same will generate to the CFS’s customs officers’ screen

 The EO in the CFS will receive the details and checks the cargo physically in the presence of
exporter or agent. If there is any discrepancy the goods are detained for the inspection. And if
there is no discrepancy the cargo are sent for the export tax calculation and payment.

 After the CHA pays the tax he receives the shipping bill. The bill is endorsed with LEO and
signs of both officers (EO/AO). Once the CHA receives the bill, the cargos are out from the
CFS. On the basis of the LEO, packing list, invoice, the Bill of Lading is issued by the shipping
company and ready for export to the destination country.

8
IMPORT CLEARANCE PROCESS:
The process in the import goods clearance is much easier than compared to the export
clearance. At the first stage the exporter will decide upon whether to appoint a CHA or to go by
himself. There will a time saving advantage of appointing a CHA. As one of the primary objective of
any company is to save the time and henceforth appoints CHA. The following are the process of a
CHA in the import of goods

1. Importer or the agent will submit all the required import documents for the import customs
clearance procedure. The major documents are the shipping bill, packing list, commercial
invoice etc. These required documents are to be kept ready before the arrival of the cargo.
The CHA should have to track the goods and should be aware of the arrival of the goods
2. Once the goods arrived in the port, IGM, customs declaration and other supporting
documents should be filed with the customs department. It can be filed through
online(ICEGATE) or manually
3. After the required files are submitted to the customs, the customs officer will check all the
documents, the tariff rate and the declaration so as to calculate the duties and the taxes. And
the same will be checked by the CFS customs and decides whether to approve or any
physical examination is required.
4. If the goods found no discrepancy it is ready for release and if there is any discrepancy found
the goods are retained for investigation.
5. After the assessment is done by the customs officer the agent will pay the duty and then the
goods are ready to out from the CFS

9
 1.1 INDUSTRY PROFILE
SHIPPING SECTOR

Over 90% of world trade is carried by the international shipping industry. Without shipping the import
and export of goods on the extent for the present globe would not be possible.
Shipping is a global industry and its prospects are intricately linked to the level of economic activity
in the world. A higher/lower level of industrial activity generally leads to higher/lower demand for
industrial raw materials. This in turn boosts/adversely impacts imports and exports. For instance, a
higher level of economic growth would generally mean higher demand for industrial raw materials,
which in turn will boost imports and exports. The shipping market is recurring in nature and freight
rates generally tend to be highly unstable.
The shipping industry is inter-linked with the state of the global economy. It is complex and
notoriously volatile in nature
Shipping being highly dependent on trade flows across the globe has seen cyclic booms and busts
following the fluctuations in the world’s economy. The recent economic turmoil has resulted in
shrinking container trade as global demand for raw materials and finished goods dived.

There are around 50,000 merchant ships trading internationally, transporting every kind of cargo. The
world fleet is registered in over 150 nations, and manned by over a million seafarers of virtually every
nationality.
Sea trade continues to expand, bringing benefits for consumers across the world through low and
lessening freight costs. Thanks to the growing efficiency of shipping as a mode of transport and
increased economic liberalization, the prospects for the industry’s further growth continue to be strong.

Container shipping was first introduced in the 1950s and since the late 1960s has become the most
common method for transporting many industrial and consumer products by sea. Container shipping
is performed by container shipping companies that operate frequent scheduled or liner services, similar
to a passenger airline, with pre-determined port calls, using a number of owned or chartered vessels of
a particular size in each service to achieve an appropriate frequency and utilization level.

10
SHIPPING SECTOR GLOBAL SCENARIO
The report by BIMCO, the world’s largest international shipping association, shows that demand
has seen an uptick for most liner companies.

This has resulted in higher rates in early January 2018, despite the market experiencing falling
freight rates from August to December in 2017.

In terms of supply, the containership fleet has already expanded by 1.2% in the first month of 2018
— equal to the entire fleet expansion of 2016, with a flurry of new ships delivered in January.

CHART 1 CONTAINER SHIP FLEET GROWTH

BIMCO said the last time such a massive inflow of capacity took place in one month — 254,173
TEU — was July 2010.

This includes five ultra-large 20,000-plus TEU ships.

The report said that while 250,000 TEU will leave the fleet as the year progresses, fleet growth is set
to reach 3.9% as the new built delivery is forecast to reach 1.05 million TEU.

In 2018, the focus will be on the deployment of ultra-large containerships.

There are 53 ships larger than 13,500 TEU are scheduled for delivery, with new orders being placed
at an increasing pace.

11
In terms of future outlook, an upward trend, despite slow demand growth towards the end of 2017, has
resulted in two peaks in time charter rates for April/May and around mid-September 2017.

BIMCO projected that overall demand growth is expected to be lower than in 2017, but still high
enough to improve the fundamental market balance, with demand expected to grow by 4%-4.5%
against a fleet growth of 3.9% in 2018.

As was recorded in BIMCO’s Macroeconomic Outlook report, the International Monetary Fund’s
(IMF) January 2018 update of its World Economic Outlook significantly lifted its expected GDP
growth in advanced economies for 2018 and 2019.

Growth in advanced economies is generally good for container shipping demand, and in particular the
report points to North America as an area set for inbound container increases in 2018.

While it took the industry a while to embrace the expanded Panama Canal locks, trade coming through
South America will show the full impact of their use in future reports.

According to BIMCO, this will mean that 2018 is likely to be the year where many container line
networks calling the US East Coast will become fully up-scaled by deploying ultra-large container
ships.

SHIPPING SECTOR- INDIAN SCENARIO

According to the Ministry of Shipping, around 95 per cent of India's trading by volume and 70 per
cent by value is done through maritime transport.
India has 12 major and 200 notified minor and intermediate ports. Cargo traffic, which recorded 1,052
Million Metric Tonnes (MMT) in 2015, is expected to reach 1,758 MMT by 2017. The Indian ports
and shipping industry plays a vital role in sustaining growth in the country’s trade and commerce.
India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 km.
The Indian Government plays an important role in supporting the ports sector. It has allowed Foreign
Direct Investment (FDI) of up to 100 per cent under the automatic route for port and harbor
construction and maintenance projects. It has also facilitated a 10-year tax holiday to enterprises that
develop, maintain and operate ports, inland waterways and inland ports.
Since ports handle almost 95 per cent of trade volumes in India, the rising trade has contributed
significantly to the country’s cargo traffic. To support the growing demand, cargo capacity in India is
expected to increase to 2,493.1 MMT by 2017. Likewise, cargo traffic at major ports and non-major
ports is also expected to increase to 943.1 MMT and 815.2 MMT by FY17. Given the positive outlook,
proposed investments in major ports are expected to total US$ 18.6 billion by 2020, while
12
those in non-major ports would be US$ 28.5 billion.
As on November 2016, Ministry of Shipping has sanctioned sum of US$ 1.49 million to Gujarat
Maritime Board for capacity building and safety training of workers involved in ship recycling
activities under SAGARMALA.

PORTS OF INDIA

India has a coastline spanning 7516.6 kilometers, forming one of the biggest peninsulas in the world.
According to the Ministry of Shipping, around 95 per cent of India's trading by volume and 70 per
cent by value is done through maritime transport. It is serviced by 13 major ports, 200 notified minor
and intermediate ports. The total 200 non-major ports are in the following States:-

  Maharashtra - 48 ports 
  Gujarat - 42 ports 

  Tamil Nadu - 15 ports 

  Karnataka - 10 ports 

  Kerala - 17 ports 

  Andhra Pradesh - 12 ports 

  Goa – 5 ports 

  West Bengal – 1 port 

  Daman and Diu – 2 ports

  Lakshadweep - 10 ports 

  Pondicherry - 2 ports 

  Andaman & Nicobar - 23 ports 
 
SHIPPING SCENARIO IN TAMILNADU

 Gross state domestic product (GSDP) of Tamil Nadu grew at a CAGR of 11.68% between 2004-
05 and 2015-16, reaching US$ 175.33 billion in 2015-16(latest report). 

 Per capita GSDP of US$ 2,430.54 (at current prices) is nearly 1.75 times higher than the
national average of US$ 1,389.6. 


 The cumulative FDI inflows1 in the state during April 2000 to March 2016 amounted to US$
21.54 billion, witnessing growth of 18.6% between 2014-15 and 2015-16. 


 Tamil Nadu is a major exporter of a variety of goods such as automobiles, auto components,
black granite, engineering goods, textiles and garments, tobacco, handicrafts, yarn, spices,
coffee, tea and leather products. 


 Tirupur and Erode are the country's largest exporters of knitwear. The state’s exports totalled
US$ 27.9 billion in 2014- 15. 

 Application software accounts for a majority share in the software exports from Tamil Nadu.
Over the last 3 years software exports from the state have grown phenomenally. 


13
  According to the industrial policy released in 2014, the state plans to double its exports from
the current level by 2016. 


 Exports of floriculture products from the state were recorded to be US$ 32.86 million during
 2015-16 whereas value exports of fruits and vegetables seeds reached US$ 
1.79 million, during the same period.

  Onion exports from the state increased from US$ 40.13 million in 2014-15 to US$ 

48.66 million during 2015-16. Moreover, exports of pulses from the state were recorded at
around US$ 11.82 million during 2015-16.

FACTS ABOUT CONTAINER FREIGHT STATION IN CHENNAI

There are thirty (30) Container Freight Station (CFS) in Chennai. The list of CFS IN Chennai is as
follow

TABLE 1.2.1 FACTS ABOUT CONTAINER FREIGHT STATION IN CHENNAI

NAME OF THE CFS

1. ALL CARGO

2. BALMER LAWRIE

3. COCOR

4. C.W.C(VIRUGAMBAKKAM)

5 .C.W.C (MADHAVARAM)

6 .C.W.C (ROYAPURAM)

7 .C.W.C (THIRUVOTTRIYUR)

8. CONTINENTAL WAREHOUSING CORPORATION

9. CHANDRA CFS

10. D.R.LOGISTICS

11 .ENNORE CARGO CONTAINER TERMINAL

12 .GERMAN EXPRESS

13 .GATEWAY

14. INDIAN CORPORATE BUSINESS CENTRE

15. KAILASH CFS

14
16 .A.S.SHIPPING

17. SANCO TRANS

18. SATTVA CFS

19. SATTVA LOGISTICS

20 .SICAL CWT

21. VISTRUTHA CFS

22. TRIWAY CFS

23. MAERSK CFS

24 .CHENNAI CONTAINER TERMINAL (C.C.T.L)

25. THIRUVANI

26. HAPAG LLOYD

27 .GLOVIS

28. ENNORE CARGO CONTAINER TERMIMAL

29 .BINNY CFS

30 .P.S.T.S CFS


those twenty seven deals with
There are thirty Container Freight Station in Chennai, out of
 both Exports and Imports and three deals with Exports only.



There are nine (CFS) which has been started recentlyin 5 years. There is (CFS) which is
 existing for more than twenty years in EXIM business.



 3000
The handling of TEU’s in each Container Freight Station, eight CFS handle more than
 TEU’s in a month. More than 7000 TEU’s and 5000 TEU’s are handled equally by 7
Container Freight Station’s.

15
 1.2 COMPANY PROFILE
SATTVA Vichoor CFS (Container Freight Station) near Chennai in the southern State of Tamil Nadu
is a profitable container logistics business providing a full range of services, including bonded
warehousing, secured and paved stacking areas, on-site assembly, computer-driven tracking systems
and office facilities. The Eredene Group's first investment with the Sattva Business Group, it
progressed from greenfield site to paying its first dividend in less than two years, and in 2011 it paid
a dividend for the third consecutive year. Eredene originally invested £ 0.9m for a 49% stake in the
CFS and through its subsidiary it sold 10% of its holding to Sattva Business Group in January 2012
for £1.1m, representing a return multiple on the original investment of 5.9 times.It is in pursuit of
excellence that the Group has carved a niche for itself, earning the respect of a growing list of clients
for dependability and integrity.

With activities and representation that are diverse and versatile, the Group has, while evolving for
itself an inimitable corporate image, served the varied and specific interests of corporate and individual
entities and is hailed as one of the most significant contributions to the growth and development of the
market.

Projects completed and commissioned:

 The Company has obtained approval from the Ministry of Commerce, Government of India
 for setting up of the following projects, which have been commissioned in April 2000:
 Inland Container Depot with Public Bonded Warehouse at Pondicherry for handling
 Import/Export/Bonded cargo - Inaugurated on 10 April 2000.
 Container Freight Station with Public Bonded Warehouse at Tiruvottiyur, Chennai for
 handling Import and Export and Bonded Cargo - Inaugurated on 16 April, 2000.

 Inland Container Depot / Public Bonded Warehouse with railway siding at Melpakkam near
 Arakkonam Junction for handling Import and Export and Bonded Cargo.

 M/S Sattva Logistics Private Limited has acquired a property at Thondamanatham village to
 the extent of 1.25 acres

  Operation and Management of Container Freight Stations for a Public Sector Company.
 Operation and Management of Public Bonded Warehouse for a leading Public Limited
 Company.
  Development, Management and Creation of First Rail based Inland Container Depot.

 Undertaking of feasible study, for Coal movement from Southern Ports to Mettur Dam for a
leading Manufacturing Company.

16
COMPANY BUSINESS STRUCTURE

core business

Engineering and
logistics service Agro processing IT service
construction

Factory Buildings Cfs

Power Station warehouse

Ware House ICD

water and
sewage railway siding
treatment plants

commerical
buildings
17
AWARDS AND RECOGNITION

 Best Regional Distributor/ Reseller award for 10 consecutive years by Compaq Computers,
USA (presently HP India) starting from 1994 to 2003 in providing IT services.

 Best CFS Custodian Award Presented to us by the Customs Division, Cuddalore, for 2006.

 "Top CFS of the year" award from DP World, 2008, for our best performance inside the
Port.

 Maritime and Logistics Award 2008 - handed over by the Chairman, Chennai Port Trust.

 Top CFS 2011 - EXIM Achievement Award presented by the TAMIL CHAMBER OF
COMMERCE.

 Life Time Achievement Award presented to our Chairman Mr. S. Santhanam, on the
occasion of the 3RD SOUTH EAST CEO CONCLAVE & AWARDS 2011 - presented by
the Chairman, Visakhapatnam Port Trust and Ex-Chairman, Mormugao Port Trust.

18
1.3 OBJECTIVES OF STUDY

PRIMARY OBJECTIVE
 To study the effectiveness of Container Freight Station from the perspective of Customs
House Agent.

SECONDARY OBJECTIVES

 To identify the factors that makes the Customs House Agent to choose a Container Freight
Station.

 To examine the satisfaction level with the infrastructure facility provided by the Container
Freight Station.

 To examine the services provided by Container Freight Station to Customs House Agent.

1.4 NEED FOR THE STUDY

Customs House agent (CHA) look into several factors in terms of service rendered by CFS
before choosing one particulars CFS satisfaction of the CHA plays a major role in selection. Other
facilities available with CFS like infrastructure, technology etc are also consider being important.
The study was undertaken because it is vital for any CFS to understand the parameters up on which
CHA evaluate and choose any CFS
Thus infrastructure facility plays a crucial rule in selecting a CFS so the study is done on
infrastructure facility that is required by the CHA and customer satisfaction is one of the major
concern to be satisfied by the CFS so the study is done to find service satisfaction level for the
CHA given by the CFS. And the study also helps to gain knowledge about operations of CFS and
to know about customs formalities involved in clearance of EXIM.

19
HYPOTHESIS OF THE STUDY

Ho There is no association between number of years in business and criteria to choose
a CFS

Ho There is no relationship between number of shipping bills and the satisfaction
 towards infrastructure facility
 
 Ho There is no association between problems faced by cha and criteria to choose a CFS

Ho 
There is no relationship between number of years in service and satisfaction and
 infrastructure facility.


1.5 STATEMENT OF PROBLEM
The problem of the study is whether the CFS provides adequate infrastructure facility required by
the CHA and does the CFS satisfies all the requirements of the CHA and whether CFS provide
quality service to the CHA and the study helps to know about the problems in CFS

1.6 SCOPE OF THE STUDY

The main purpose of this project is to understand the effectiveness of CFS and the criteria for
choosing a CFS by CHA. The project aims to determine the facilities offered by the CFS like
infrastructure, equipments, labour, warehouse space, container yard and through this study the
performance of CFS will be evaluated and the results would help to overcome the problems that
are faced by the CFS.This study results leads to overcome those barriers and would lead to increase
in customer satisfaction.

20
 CHAPTER II
REVIEW OF LITERATURE

21
22
23
.

24
25
 CHAPTER III

RESEARCH METHODOLOGY

INTRODUCTION

Research Methodology is a way to find out the result of a given problem on a specific matter that
is also referred as research problem. In Methodology, researcher uses different criteria for
solving/searching the given research problem. Different sources use different type of methods for
solving the problem. If we think about the word “Methodology”, it is the way of searching or
solving the research problem.
3.1 RESEARCH DESIGN
Descriptive research is a study designed to depict the participants in an accurate way. More simply
put, descriptive research is all about describing people who take part in the study.

There are three ways a researcher can go about doing a descriptive research project, and they are:

 Observational, defined as a method of viewing and recording the participants


 Case study, defined as an in-depth study of an individual or group of individuals

 Survey, defined as a brief interview or discussion with an individual about a specific topic

3.2 SAMPLING TECHNIQUE

The sampling technique used to collect the data from different respondents is convenience
sampling. When population elements are selected for inclusion in the sample based on the ease of
access, it can be called convenience sampling.

SAMPLING
Collecting data about each and every unit of the population is called census method. The
approach, where only a few units of population under study are considered for analysis is called
sampling method. There are two main categories under which various sampling method can be
put. The two categories are
1. Probability sampling
2. Non-probability sampling

26
The sampling method adopted for the study is convenience sampling under non-probability
sampling.
NON-PROBABILITY SAMPLING
In non-probability sampling, the chance of any particular unit in the population being
selected is unknown, since randomness is not involved in the selection process. But this does not
mean that the findings obtained from non-probability sampling are of questionable value. If
properly conducted their findings can be accurate as those obtained from probability sampling.
The three frequencies used non-probability designs are
1. Judgment sampling
2. Convenience sampling
3. Quota sampling
3.3 SAMPLE DESIGN

The sampling design used in this project is Convenience sampling. It is a type of sampling
where the first available primary data source will be used for the research without additional
requirements. In other words, this sampling method involves getting participants wherever you
can find them and typically wherever is convenient. In convenience sampling no inclusion criteria
identified prior to the selection of subjects.
SAMPLE SIZE
The sample size chosen for the survey is 40
DATA COLLECTION METHODS:
Primary data

1. Questionnaire
2. Personal interview
3. Observation
Secondary data

1. Various sites
2. Books
3. Previous project report

27
3.4 QUESTIONNAIRE STRUCTURE

A questionnaire is a group or sequence of questions designed to know information from an

informant or respondent when asked by an interviewer or completed unaided by the respondent.
When an interviewer is involved, the questionnaire is sometimes referred to as an interview.

Type of questionnaire

An Open-ended question is one in which possible responses are not supplied in advance.
Each respondent’s statements should be recorded as fully as possible and, in the respondent’s, own
words. Open-ended questions are very useful for exploring sensitive issues and investigating topics
concerning beliefs, attitudes, and practices.

A close ended question usually provides a set of responses or options from which a respondent
indicates his/her choice. Where the study topic concerns factual issues or is a familiar one with a
limited range of responses, close-ended questions are particularly useful.

28
3.5 STATISTICAL TOOLS

MANOVA

Multivariate analysis of variance (MANOVA) is an extension of the univariate analysis of

variance (ANOVA). The MANOVA extends this analysis by taking into account multiple
continuous dependent variables, and bundles them together into a weighted linear combination or
composite variable. The MANOVA will compare whether or not the newly created combination
differs by the different groups, or levels, of the independent variable.

VARIABLE: Multivariate analysis generally used for observation and analysis of more than one
statistical outcome variable at a time. In this study shipping bill, locations, quick clearance, safety
are multivariable’s used in the statistical tool.

CORRELATION

Correlation is a statistical measure that indicates the extent to which two or

more variables fluctuate together. A positive correlation indicates the extent to which those
variables increase or decrease in parallel; a negative correlation indicates the extent to which one
variable increases as the other decreases. A correlation coefficient is a statistical measure of the
degree to which changes to the value of one variable predict change to the value of another. When
the fluctuation of one variable reliably predicts a similar fluctuation in another variable, there’s
often a tendency to think that means that the change in one causes the change in the other.
However, correlation does not imply causation. There may be, for example, an unknown factor
that influences both variables similarly.

VARIABLE: Correlation is a technique used to investigate relationship between two quantitative

continuous variables and measure the strength of the association between the two variables. In this
study correlation coefficient association between the problems in the CFS and satisfaction.

29
RANKING

A ranking is a relationship between a set of items such that, for any two items, the first is either
'ranked higher than', 'ranked lower than' or 'ranked equal to' the second. In mathematics, this is
known as a weak order or total preorder of objects. It is not necessarily a total order of objects
because two different objects can have the same ranking. The rankings themselves are totally
ordered. For example, materials are totally preordered by hardness, while degrees of hardness are
totally ordered. If two items are the same in rank it is considered a tie.

VARIABLE: Ranking refers to the data transformation in which numerical are ordinal values are
replaced by their rank when the data are sorting In this study ,ranking analysis is done for Criteria
factors from shippers point of view on equipment’s, problems prevailing in CFS and performance
of SATTVA

ONE WAY ANOVA

The one-way analysis of variance (ANOVA) is used to determine whether there are any
statistically significant differences between the means of two or more independent (unrelated)
groups (although you tend to only see it used when there are a minimum of three, rather than two
groups).

VARIABLE: One way analysis statistical tool used to analyze significant difference between
means of two or more independent groups. The two independent groups are importer satisfaction
and exporter satisfaction are analyzed in this study.

PERCENTAGE ANALYSIS

This is the statistical tool which is used for analysis purpose. For multiple-choice question this
analysis is most appropriate one. The percentage analysis is the analysis of ratio of a current value
to based value either the result multiplied by 100. The main objective of the percentage analysis is
comparison of data for the analysis. In this study percentage analysis is done for no of years in
business, Agent for importer or exporter, number of bills of entry, number of shipping bills, CFS
preferred location, opinion on increase of CFS business, time taken for customs clearance, most
preferred CFS by the CHA for regular clearance .

30
3.6 LIMITATIONS OF THE STUDY

For anything there should be some limitation like that my project also have certain limitations.
The following are some limitations what I faced

 The staff were busy due to the heavy workload so couldn’t able to get a proper guidance
from them

 Due to some security purpose the company didn’t revealed any matters related to the
sales turnover, the cost involves in any transaction etc.

 Certain monetary values were not revealed by the organization

 There may be some errors due to respondent’s basis.

31
 CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

1. NO OF YEARS IN BUSINESS

Table 4.1

YEARS NO.OF.COMAPNIES PERCENTAGE

0-5 2 5%
5-10 16 40%
10-15 9 22.5%
15-20 4 10%
MORE THSN 20YEARS 9 22.5%
TOTAL 40 100%

CHART 2 NO OF YEARS IN BUSINESS

5% 0-5
23%
10-May

40% 15-Oct
10%
15-20
22% MORE THAN 20Yrs

INFERENCE-

It is inferred from the above table that 40% of the CHA’s have been in the business for 5-10
years,22.5% have been in the business for 10-15 years and 10% have been in business for 15-20
years and 22.5 have been business for more than 20 years and 5% have been in business for 0-5
years

32
2.AGENT FOR IMPORTER OR EXPORTER

TABLE 4.2

AGENCIES NO OF RESPONDENTS PERCENTAGE

IMPORTER 20 50

EXPORTER 20 50

TOTAL 40 100

CHART 3 AGENT FOR IMPORTER OR EXPORTER

IMPORTER OR EXPORTER

50 50

IMPORTER EXPORTER

INFERENCE

It is known from the above table is that 50% are the agent of exporter and 50% are the agent of
importer

33
3.: NUMBER OF BILLS OF ENTRY FILED PER MONTH BY IMPORTER (ON AN
AVERAGE)
TABLE 4.3

NO OF
NUMBER OF BILLS FILED RESPONDENTS
BELOW 50 5

50-100 7

100-200 3
MORE THAN 200 5

Total 20

CHART 4 BILLS OF ENTRY FILED PER MONTH BY IMPORTER

7 7

5 5
5

4
3
3

0
BELOW 50 50-100 100-200 MORE THAN 200

INFERENCE

It is inferred from the above table that 5 respondents file bill of entry below 50 and 7 respondents
file bill of entry from 50-100 and 3 respondents file bill of entry from 100-200 and 5 respondents
file bill of entry above 200.

34
4. NUMBER OF SHIPPING BILL FILED PER MONTH BY
EXPORTER (ON AN AVERAGE)

TABLE 4.4
NO OF

NUMBER OF BILLS FILED RESPONDENTS

BELOW 50 4

50-100 6

100-200 6

MORE THAN 200 4

Total 20

CHART 5 SHIPPING BILL FILED PER MONTH BY EXPORTER

0
BELOW 50 50-100 100-200 MORE THAN 200

INFERENCE

It is inferred from the above table that 4 respondents file shipping bill below 50 and 6 respondents
file shipping bill from 50-100 and 6 respondents file shipping bill from 100-200 and 4 respondents
file shipping bill above 200

35
5. MOST PREFERRED CFS LOCATION

TABLE 4.5

LOCATIONS RESPONSES PERCENTAGE

Ennore 1 2.5%

Manali 12 30%

Thiruvottriyur 17 42.5%

Madhavaram 6 15%

Minjur 2 5%

Virugambakam 2 5%

TOTAL 40 100%

CHART 6 MOST PREFERRED CFS LOCATION

45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

INFERENCE
This table and chart shows that Thiruvottriyur location is the most preferred location for CHA .

36
6. OPINION ON INCREASE IN BUSINESS OF CFS

TABLE 4.6

SCALES RESPONSES PERCENTAGE

AGREE 29 72.5

NEUTRAL 1 2.5%

DISAGREE 10 25%

CHART 7 OPINION ON INCREASE IN BUSINESS OF CFS

80

70
72.5
60

50

40

30

20 25

10
2.50%
0
AGREE NEUTRAL DISAGREE

INFERENCE

It reveals that 72% of the C.H.A agree that KATTUPALLI PORT will increase the CFS
business in the nearby surroundings.

37
7. OPINION ON TIME TAKEN FOR CUSTOMS CLEARANCE
TABLE 4.7

NO OF

OPINION RESPONDENTS PERCENTAGE

STROGLY DISAGREE 9 22.5

DISAGREE 4 10

NEUTRAL 13 32.5

AGREE 11 27.5

STRONGLY AGREE 3 7.5

Total 40 100

CHART 8 OPINION ON TIME TAKEN FOR CUSTOMS CLEARANCE

CUSTOMS CLEARANCE IS TIME CONSUMING

32.5
27.5
22.5

10
7.5

STROGLYDISAGREENEUTRALSTRONGLYAGREEDISAGREEAGREE

INFERENCE-
22.5% respondents say they strongly disagree and 10% say they agree and 32.5% stand with
neutral and 27.5 say that they agree customs clearance is time consuming and difficult task and
7.5% say strongly agre

38
8.MOST PREFERED CFS BY THE C.H.A FOR REGULAR CLEARANCE

TABLE 4.8

NAME OF THE CFS RESPONSES

SATTVA CFS 22

GERMAN EXPRESS 20

TRIWAY 16

CONCOR 15

ALL CARGO 13

C.W.C(VandM) 13

SANCO 13

A.S.SHIPPING 12

CHART 9 MOST PREFERED CFS BY THE C.H.A FOR REGULAR

CLEARANCE

25

20 22
20

15
16
15
13 13 13
10 12

39
9. MOST PREFERRED CFS
TABLE 4.9
S.NO NAME OF THE CFS RESPONSES

1 ALL CARGO 4

2 CONCOR 3

3 GERMAN EXPRESS 28

4 GATEWAY 2

5 A.S.SHIPPING 6

6 SATTVA CFS 2

7 TRIWAY CFS 3

8 MAERSK CFS 9

CHART 10 MOST PREFERRED CFS

1.ALL CARGO
7%
16% 5% 2.CONCOR
3.GERMAN EXPRESS
5%
4% 4.GATEWAY
5.A.S.SHIPPING
11%
6.SATTVA CFS
3% 49%
7.TRIWAY CFS
8.MAERSK CFS

40
 H10: There exists no significant effect of the number of shipping bills on
location, safety and quick clearance.

TABLE 4.10 RELATIONSHIP BETWEEN NUMBER OF SHIPPING

BILLS ,LOCATION, SAFETY AND QUICK CLEARANCE

Effect Value F Hypothesis Error df Sig. Noncent. Observed

df Parameter Powerd

.961 274.371 3.000 33.000 .000 823.113 1.000

Pillai's Trace
b

.039 274.371 3.000 33.000 .000 823.113 1.000

Wilks' Lambda
b

Intercept
24.943 274.371 3.000 33.000 .000 823.113 1.000
Hotelling's Trace
b

Roy's Largest 24.943 274.371 3.000 33.000 .000 823.113 1.000

b
Root

Pillai's Trace .989 4.306 12.000 105.000 .000 51.674 .999

Wilks' Lambda .247 5.076 12.000 87.601 .000 51.934 .999

Number of shipping bills

Hotelling's Trace 2.151 5.675 12.000 95.000 .000 68.103 1.000

Roy's Largest 1.685 14.746c 4.000 35.000 .000 58.983 1.000

Root

41
TABLE 4.11, Multivariate analysis of number of shipping bills and criteria
for selecting CFS

Source Dependent Type III df Mean F Sig. Noncent. Observed

Variable Sum of Square Parameter Powerd

Squares

location 22.192a 4 5.548 3.750 .012 14.999 .840

Corrected Model safety 35.183b 4 8.796 7.344 .000 29.378 .991

Quick clearance 24.783c 4 6.196 8.634 .000 34.536 .997

297.714 1 297.714 201.22 .000 201.223 1.000
location
3
336.863 1 336.863 281.27 .000 281.277 1.000
Intercept safety
7
382.581 1 382.581 533.12 .000 533.126 1.000
Quick clearance
6
location 22.192 4 5.548 3.750 .012 14.999 .840
Number of
safety 35.183 4 8.796 7.344 .000 29.378 .991
shipping bills
Quick clearance 24.783 4 6.196 8.634 .000 34.536 .997
location 51.783 35 1.480
Error safety 41.917 35 1.198
Quick clearance 25.117 35 .718
location 571.000 40
Total safety 610.000 40
Quick clearance 674.000 40
location 73.975 39

Corrected Total safety 77.100 39

Quick clearance 49.900 39

MANOVA is a multivariate analysis done to study the data that consists of more than two
dependent variables. SPSS 21 is used to perform this analysis. Multivariate analysis is done to
analyse the significant effect of the number of shipping bills on the criteria such as location, safety
and quick clearance. We can see from the above table that the p<0.05 and WilksLamada is 0.247.
This proves that there exists a statistical significant difference in the location, safety and quick
clearance aspects based on the number of shipping bills. The number of shipping bills has
significant effect on location with F(4,35)=3.750, p<0.0005, safety with F(4,35)=7.344,p<0.0005,
quick clearance with F(4,35)=8.634, p<0.0005.

42
H20: There exists no significant relationship between the problems in the CFS
and satisfaction.

TABLE 4.12
RELEATIONSHIP BETWEEN PROBLEMS IN
CFS AND SATISFACTION
Problems in cfs satisfaction
Pearson Correlation 1 -.642**
Problems in cfs Sig. (2-tailed) .000
N 40 40
Pearson Correlation -.642** 1
satisfaction Sig. (2-tailed) .000
N 40 40
**. Correlation is significant at the 0.01 level (2-tailed).

Pearson correlation is done to analyse the above hypothesis. The above table suggests that there
exists a significant correlation between the problems in the CFS and the customer satisfaction as
p-value is significant(p<0.05). Since the coefficient is negative, there exists a negative association
between the problems incurred and satisfaction. The strength of association between the variable
is r=-0.642. The more the problems, the less is the satisfaction. Also, we can suggest that
40%(0.6422) variation in the satisfaction is explained by the problems in the CFS.

H30: There exists no significant difference among importer and exporter

on satisfaction.

TABLE 4.13 DIFFERENCE AMONG IMPORTER AND EXPORTER ON

SATISFACTION
N Mean Std. Std. 95% Confidence Interval Minimu Maximu
Deviation Error for Mean m m
Lower Upper
Bound Bound
import 20 3.2500 1.37171 .30672 2.6080 3.8920 1.00 5.00
er
exporte 20 4.3000 .80131 .17918 3.9250 4.6750 3.00 5.00
r
Total 40 3.7750 1.22971 .19443 3.3817 4.1683 1.00 5.00

43
TABLE 4.14

DIFFERENCE BETWEEN IMPORTER AND EXPORTER ON

SATISFACTION.
Sum of df Mean F Sig.
Squares Square
Between 11.025 1 11.025 8.737 .005
Groups
Within Groups 47.950 38 1.262
Total 58.975 39

One- way Anova is done to find if there exists a significant difference among the importer and
exporter on satisfaction. From the above table we can see that the value of p value is 0.005 which
is less than 0.05 and hence it is significant. So, the null hypothesis is rejected and hence there exists
a significant difference among the importers and exporters on the satisfaction factor.

RANKING OF CRITERIA FACTORS

TABLE 4.15 RANKING OF CRITERIA FACTORS FROM

SHIPPERS POINT OF VIEW ON EQUIPMENT’S
N Minimum Maximum Mean Std. Deviation
location 40 1.00 5.00 3.5250 1.37724
Modern equipment’s 40 1.00 5.00 3.6500 1.33109
customs 40 1.00 5.00 2.7750 1.29075
Safety 40 1.00 5.00 3.6500 1.40603
Quick clearance 40 1.00 5.00 3.9500 1.13114
Valid N (listwise) 40

The shippers consider the quick clearance as the most important criteria as this criterion has the
highest mean, followed by the safety of the goods criteria and the availability of the modern
equipment’s to speed the process. And the least important criteria from the shipper’s point of view
is the favourable by customs criteria. This analysis would help the CFS provide better service by
improving these criteria that would better satisfy the shipper’s need.

44
Ranking of problems prevailing in the CFS
Table 4.16 RANKING OF PROBLEMS PREVAILING IN THE
CFS
N Minimu Maximu Mean Std.
m m Deviation
Theft 40 1.00 5.00 2.2250 1.22971
damages 40 1.00 5.00 3.7500 1.27601
delay in transit 40 1.00 5.00 2.9750 1.04973
lack of proper facilities 40 1.00 5.00 2.2500 1.21423
in cfs
Valid N (listwise) 40

According to the shippers, the most prevailing problem in the CFS is damage to the cargo, the
next is the delay in the transit which might be due to the poor knowledge of the staff, lack of
proper scheduling of consignments which in turn would increase the demurrage and other
charges to the shipper. Also, the lack of proper facilities in the CFS would also be a reason for
the delay and would incur a huge cost on the shipper. The theft problem can be reduced by fixing
more number of modern surveillance cameras. CFS can provide better service by eliminating
these problems.

45
H40: There is no significant relationship between types of problems in
CFS and satisfaction

TABLE 4.17 RELATIONSHIP BETWEEN TYPES OF PROBLEMS IN

CFS AND SATISFACTION
theft damage delay in lack of satisfacti
s transit proper on
infrastructu
re facilities
in cfs

Pearson 1 -.535** .084 .631** -.491**

Correlation
.000 .607 .000 .001
Theft Sig. (2-tailed)

40 40 40 40 40
N

Pearson -.535** 1 .033 -.488** .323*

Correlation
.000 .837 .001 .042
damages Sig. (2-tailed)
40 40 40 40 40
N
Pearson .084 .033 1 -.035 -.243
Correlation
.607 .837 .829 .131
delay in transit Sig. (2-tailed)
40 40 40 40 40
N

lack of proper Pearson .631** -.488** -.035 1 -.768**

Correlation
infrastructure
Sig. (2-tailed) .000 .001 .829 .000
facilities in cfs
N 40 40 40 40 40
** *
Pearson -.491 .323 -.243 -.768** 1
Correlation
satisfaction
Sig. (2-tailed) .001 .042 .131 .000
N 40 40 40 40 40
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

46
The above table states that the lack of proper infrastructure facilities in the CFS is highly associated
with the Satisfaction. The negative sign states that the strength of association is negative.
Moreover, it states that the lack of infrastructure facility is more associated with Satisfaction than
the other problems prevalent in the CFS. Even though the most prevalent problem in the CFS is
damage to the cargo, it is not associated with the satisfaction. Improving the infrastructure facilities
would enhance the satisfaction. The strength of association between the Infrastructure facilities
and satisfaction is 58.9%, theft and satisfaction is 24%, delay in transit and satisfaction is 5%,
damages and satisfaction is 10%.

H40: There is no significant relationship between lack of infrastructure

facilities in CFS and satisfaction

TABLE 4.18 RELATIONSHIP BETWEEN LACK OF

INFRASTRUCTURE FACILITIES IN CFS
lack of proper satisfaction
infrastructure
facilities in cfs

Pearson Correlation 1 -.768**

lack of proper infrastructure
facilities in cfs Sig. (2-tailed) .000
N 40 40
Pearson Correlation -.768** 1
Satisfaction Sig. (2-tailed) .000
N 40 40
**. Correlation is significant at the 0.01 level (2-tailed).

The above table states that the lack of proper infrastructure facilities in the CFS is highly associated
with the Satisfaction as p-value is less than 0.05 and the correlation coefficient is 0.768. The
negative sign states that there is a negative association between lack of infrastructure facilities and
satisfaction. The strength of association is 58.9%. In order to increase the satisfaction of the
shipper, it is very much necessary for the CFS to improve their infrastructure facilities.

47
RANKING OF PERFORMANCE OF THE SATTVA LOGISTICS

Table 4.19: RANKING OF PERFORMANCE OF THE SATTVA

LOGISTICS
N Minimum Maximum Mean Std. Deviation
Truck availability 40 1.00 5.00 3.9000 1.10477
Well-equipped cargo 40 1.00 5.00 3.5750 1.41217
equipment
Space availability 40 1.00 5.00 3.8000 1.24447
Safety 40 1.00 5.00 4.0250 1.12061
Cost 40 1.00 5.00 3.7500 1.17124
handling of cargo 40 1.00 5.00 2.5750 1.44803
Valid N (listwise) 40

The above table states that SATVA Company is very good at providing safety to the cargo,
providing trucks, space. The next better performance is the cost factor, SATVA Company provides
service at a reasonable cost. It must improve on equipping the CFS, handling of cargo with latest
cargo handling equipment’s which would enhance the cargo handling process by increasing the
speed of handling tonnes of cargoes. The cargo handling equipment’s would increase the number
of tonnes handled by a person in an hour which in turn would increase the efficiency of staff at the
CFS.

48
 CHAPTER V
FINDINGS OF THE STUDY
 The study reveals that out of total respondents 40% of C.H.A have come in to existence in
5-10 yrs, and 22% of C.H.A have started their business in 10-15 yrs and 10% of started
have started their business in 15-20 and 22% have been in business above 20% and 5%
have started business in for 0-5 yrs

 The study shows that 50% are the agent of exporter and 50% are the agent of importer

 The study reveals that 25 % of respondents file bill of entry below 50 and 35 % of
respondents file bill of entry from 50-100 and 15% respondents file bill of entry from 100-
200 and 25% respondents file bill of entry above 200

 The study reveals that 20% of respondents file shipping bill below 50 and 30% respondents
file shipping bill from 50-100 and 30% respondents file shipping bill from 100-200 and
20% respondents shipping bill above 200.

 It is observed that C.H.A prefer Thiruvotriyur location for clearance as they feel its
congestion free

 Report verifies that almost 72% of the C.H.A reveals that kattupalli port will increase the
CFS business in the nearby surrounding

 Majority of the CHA felt customs clearance as the delayed activity during the Export
Import process

 The study shows that shippers consider the quick clearance as the most important criteria
as this criterion has the highest mean, followed by the safety of the goods criteria and the
availability of the modern equipment’s to speed the process. And the least important
criteria from the shipper’s point of view is the favorable by customs criteria. This analysis
would help the CFS provide better service by improving these criteria that would better
satisfy the shipper’s need.

 The study reveals that according to the shippers, the most prevailing problem in the CFS
is damage to the cargo, the next is the delay in the transit which might be due to the poor
knowledge of the staff, lack of proper scheduling of consignments which in turn would
increase the demurrage and other charges to the shipper. Also, the lack of proper facilities
in the CFS would also be a reason for the delay and would incur a huge cost on the

49
 shipper. The theft problem can be reduced by fixing more number of modern surveillance
cameras. CFS can provide better service by eliminating these problems.

 The study shows that the lack of proper infrastructure facilities in the CFS is highly
associated with the Satisfaction, Moreover, it states that the lack of infrastructure facility
is more associated with Satisfaction than the other problems prevalent in the CFS. Even
though the most prevalent problem in the CFS is damage to the cargo, it is not associated
with the satisfaction. Improving the infrastructure facilities would enhance the satisfaction.
The strength of association between the Infrastructure facilities and satisfaction is 58.9%,
theft and satisfaction is 24%, delay in transit and satisfaction is 5%, damages and
satisfaction is 10%.

 The study shows that the lack of proper infrastructure facilities in the CFS is highly
associated with the Satisfaction as p-value is less than 0.05 and the correlation coefficient
is 0.768. The negative sign states that there is a negative association between lack of
infrastructure facilities and satisfaction. The strength of association is 58.9%. In order to
increase the satisfaction of the shipper, it is very much necessary for the CFS to improve
their infrastructure facilities.

 The study reveals that SATVA company is very good at providing safety to the cargo,
providing trucks, space. The next better performance is the cost factor, SATVA company
provides service at a reasonable cost. It must improve on equipping the CFS, handling of
cargo with latest cargo handling equipment’s which would enhance the cargo handling
process by increasing the speed of handling tonnes of cargoes. The cargo handling
equipment’s would increase the number of tonnes handled by a person in an hour which in
turn would increase the efficiency of staff at the CFS.

50
 CHAPTER VI

SUGGESTIONS

 The CHA faces problems in CFS like damages, lack of proper facilities and handling of
the cargo. They should introduce some modern material handling techniques like automatic
identification and data collection etc and automate the process instead of doing it in manual.
It is suggested for the SATTVA CFS to improve on these segments

 Most of the CHA feel that most prevailing problems in CFS is damage to cargo and delay
in transit so certain measures must be taken to reduce the damage of cargoes by giving
more knowledge to employees and proper scheduling of consignments must be done.


 The study shows that the lack of proper infrastructure facilities in the CFS is high and it is
highly associated with customer satisfaction. So steps have to be taken to improve the
infrastructure facilities in the CFS.

 The study reveals that SATVA company must improve on equipping the CFS, handling of
cargo with latest cargo handling equipment’s which would enhance the cargo handling
process by increasing the speed of handling tonnes of cargoes. The cargo handling
equipment’s would increase the number of tonnes handled by a person in an hour which in
turn would increase the efficiency of staff at the CFS.

 Most of the CHA feels that identification of their container during the customs clearance
process is difficult, So the CFS has to provide a single window dedicated for location
identification for containers

 Majority of the exporters face problem of documentation during customs clearance.
Problems like over invoicing, under invoicing, misdeclaration of the cargo, customs
assessment delay are normally faced during clearance. Hence care must be taken by the
exporters’, importers’ and also the agents’ in preparing the documents should improve the
processing speeds in documentation.

 Modern material handling system should be implemented. Full container tracking facility
should be implemented to prevent smuggling and to reduce the time in inspection

51
 CHAPTER VII

CONCLUSION
Container freight stations play a vitally important role in both importing and exporting. They create
a centralized location for suppliers to send the products that have been ordered. They also act as a
staging area before massive, often multi-million dollar shipments are transported. In present phase
of globalization of trade and business, logistics development is an important area. All major
developing and developed countries are focusing to improve its logistics infrastructure to facilitate
growing business. Attempts are also being made to bring down the costs/expenditure on logistics.
This project deals with the effectiveness of container freight stations from the perspective of CHA.

The objective of this study is to discuss about the effectiveness of Container freight station and the
facilities offered by the CFS and to determine the factors that make CHA to choose a CFS, And
the study is done on infrastructure facility that is required by the CHA and customer satisfaction
plays a major concern to be satisfied by the CFS so the study is done to find service satisfaction
level for the CHA given by the CFS.
This study reveals about the infrastructure facility and service provided by the CFS to the CHA.
Logistics is evolving rapidly and it is the interplay of infrastructure and technology. The new types
of service providers in the market attract their customers by providing low cost but effective
services. It has also been noted that most of the CHA prefer faster clearance, modern infrastructure,
better service from CFS. Hence, it could be concluded that CFS should provide all these factors to
CHA for selecting a CFS.





52
 BIBLIOGRAPHY

 Brijesh Ghelan,November 10, 2009. article on “How to Evaluate the Best Container
Freight Station”

 The Hindu business line article “Better infrastructure can boost can boost productivity
at container freight stations”, by Raja simhan dated on April 1, 2012

 Kothari. C.R, ‘Research methodology’, 8th edition.

 Dr. S.P Gupta. And Dr. M.P. Gupta. (2008) ‘Statics for management’, 15th edition.
 Mike W. Peng, Anne S. York, Behind Intermediary Performance in Export Trade:
Transactions, Agents and Resources, Journal of International Business Studies, 32(2):
2001, pp.326-347. 


 Svensson, G., Supply Chain Management the Re-Integration of Marketing Issues in
Logistics Theory and Practice, European Business Review, 14(6): 2002, pp.426-436. 


 Shmeera, V.L., A Study on the Role Played By Clearing and Forwarding Agents with
Reference to Clearship Forwarders Pvt. Ltd, 2003. 


 Sanoj R. Mohanan., A Study on Logistics Service with Reference to Prasanna
Express Cargo, 2003 


 Shankar, K., A Study on Exporters Preference towards Custom and Forwarding
Agents in Tirupur, 2003. 


 Lummus, R.R., Duclos, L.K., and Vokurka, R.J., The Impact of Marketing Initiatives
 on the Supply Chain’, Supply Chain Management, An International Journal 8(4): 
2003, pp.317-323. 


 Chapman, R.L, Soosay, C., and Kandampully, M., Innovation in Logistics Services
and the New Business Model, International Journal of Physical Distribution and
Logistics Management’, 33(7): 2003, pp.630-650. 


 Siju Joseph., A Case Study on Container Movement from Cochin Port to European
Sector and the Role of Shipping and Forwarding Agent, 2002. 


53
  Melnyk, S., Stewart, D.M., Swink, M., Metrics and Performance Measurement in
 Operations Management; Dealing with the Metrics Maze’, Journal of Operations
Management, Vol 22, 2004, pp.209-217.


 Aneesh, P.K., An Analytical Study on Customer Satisfaction towards Service
rendered by Freight Forwarders, 2004.

 Grant, D., Lambert, D., Stock, J., and Eltram, L., Fundamentals of Logistics
Management; McGraw Hill Higher Education; European Ed edition, 2006. 


 Mishra, et al., Problems, Challenges and Opportunities of Logistics with Special
Reference to Indian Economy, 2006.

 Lei Wang., International Journal of Business and Management 6(3): March 2011. 


 Lars Erik Gadde., Marianne Jahre, GoranPersson and HelgeVirum, Third Party
Logistics and Logistics Alliances - Outsourcing of Activities or “Insourcing” of
resources 

  Sreenath, M.N., A Study on Role of IATA in Freight Forwarding with Reference to 
SHAAN’S Cargo, Cochin, 2005. 

Websites:
 http://ezishipping.com.au/role-of-customs-house-agent 


 http://www.howtoexportimport.com/Is-Customs-House-Agents-CHA-required-to-be-
appoint-139.aspx 

 https://en.wikipedia.org/wiki/Customs_house_agent 

 http://customsmangalore.gov.in/faq/faq-cha.htm 


 http://www.eximguru.com/exim/guides/how-to-
import/ch_19_custom_clearance_of_imported_goods.aspx 

  http://www.dov.gov.in/newsite3/clearance_procedure.asp 
 
www.chennaicustoms.gov.in
 cfsinchennai.blogspot.com

54
 APPENDIX

 QUESTIONNAIRE

NAME OF THE C.H.A: --------------

1. No. of years in business

0-5 yrs 5-10 yrs 10-15 yrs1 5-20 Above 20 yrs

2. Are you agent for importer or exporter

- Importer
- Exporter
- Both

3. Number of bills of entry you file per month(on an average)

- Below 50
- 50-100
- 100-200
- Above 200
4. Number of shipping bill you file per month (on an average)

- Below 50
- 50-100
- 100-200
- Above 200

55
5 Criteria to choose a CFS

QUESTIONS STRONGLY AGREE NEITHER DISAGREE STRONGLY

AGREE NOR DISAGREE
AGREE
DISAGREE

The CFS is located

near my place

The CFS has modern

equipment’s

The CFS is viewed

favorable to customs

The CFS ensures

safety of goods

The CFS gives quick

and fast clearance

6. Which C.F.S location is mostly preferred by you?

Ennore Manali Thiruvotriyur Madhavaram Minjur

Virugambakam

7. Do you think that KATTUPALLI port will increase the C.F.S business in the nearby
surrounding?

Agree Neutral Disagree

56
8. Rate/rank the performance of the company (SATTVA) based on the performance and the
service they offer
PARTICULARS EXCELLENT GOOD AVERAGE POOR VERY
POOR

5 4 3 2 1
Truck availability
Well-equipped
cargo equipment
Space availability
Safety
Cost
Handling of cargo

9. Satisfaction with the SATTVA CFS

- Highly Satisfied
- Satisfied
- Neutral
- Dissatisfied
- Highly Dissatisfied

10. Rate the following problems faced by CHA IN SATTVA

PARTICULARS VERY HIGH MODERATE LOW VERY LOW

HIGH

1
5 4 3 2
Theft
Damages
Delay in transit
Lack of proper
facilities in CFS

57
11. Customs clearance is a time consuming and difficult task

- Strongly disagree
- Disagree
- Neutral
- Agree
- Strongly agree

12. Suggestions to improve the facility of C.F.S in Chennai in order to have smooth EXIM
(Export & Import) Clearance?

______________________________________________________________________________
______________________________________________________

13. List any 5 C.F.S where you regularly do the clearance.

a.___________________________

b.___________________________

c.___________________________

d.___________________________

e.____________________________

14 Mention a list of CFS’s do you think they are at the Par in terms of , faster processing,
well organized structure, efficient handling &security?

__________________________________________________________________

58