Prerequisite for Successful ICD/CFS

Prior Survey

For the ICD/CFS to be successful, reduction in total transport cost is a prime criterion, as there is a possibility of marginal increase in total handling cost per box on origin to destination basis. This underlines the need for sound economic justification for setting up ICD/CFS through a carefully evaluated traffic likely to be handled at the proposed facility.

A survey/feasibility study must precede the setting up of all ICDs/CFSs and copy of the report should invariably accompany the application for setting up such a facility.

Data for carrying out analysis could be from secondary sources and field observations, structured over time and space. The latter is more realistic and truthful. Prior discussions must be held with exporters, shipping lines, freight forwarders, port authorities, concerned Commissioners of Customs/Excise etc., and their point of view fully reflected in the report.

Economic Feasibility

The ICD/CFS facility has to be economically viable for the management and attractive to users, to the railways for full train load movements; to other transport operators; seaports; shipping lines; freight forwarders etc it must have certain minimum amount of traffic.

The prospective entrepreneurs are, therefore, essentially study very carefully the viability of the project from the TEU traffic availability point of view.

In the background of growing international trade, the infrastructure facility may have to proceed the actual generation of demand. This is particularly important as such facilities have a long gestation period for being fully operationalized.

Although it is not proposed to lay down any minimum TEU figures as part of the criteria for approval of ICDs/CFSs, following are suggested indicative norms:-

For ICD – 6,000 TEUs per year (Two way)

For CFS – 1,000 TEUs per year (Two way)

Land

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 upgradation and other peculiar features justifying such a deviation.