Business Standard

Rajkot ICD future bleak

The depot has shut down in less than three years from its initiation

Image

Himanshu Bhayani Rajkot
Inland Container Depot (ICD), that was inaugurated in the year 2000 at Rajkot has shut down in less than three years from initiation of its operations despite the export-import potential scaling upward from Saurashtra region.
 
"At the time when we made presentations in year 1994-95 to the Ministry of Commerce for giving ICD to Rajkot there was an estimated traffic of 2,400 containers [TEUs] from this region itself, which has scaled marginally today "� but unfortunately there is no ICD to cater this requirement," claims Sunil Lakhani, President of Exim Club.
 
He was Chairman of Export Committee at Rajkot Chamber of Commerce and Industries and on board of directors of Rajkot Engineering Association when providing ICD facility to Rajkot was voiced.
 
"We got approval from Ministry of Commerce on 10 March 1997 regarding installing ICD facility at Rajkot, which started its operation in year 2000 basically to cater the requirements of Importers and Exporters from this region especially from Rajkot, Junagadh, Bhavnagar, Amreli and Porbandar districts who could very well avail Dry Port Facilities at ICD Rajkot by shipping their consignments directly here," sad Sunil.
 
Container Corporation of India Limited (CONCOR) and Central Warehousing Corporation (CWC) jointly operated ICD Rajkot. CONCOR being a Government of India undertaking vide ministry of railways was set up to facilitate ICD with rail connectivity for mobilising containers to the sea port of origin as desired by the shipper.
 
"Instead of working out facility of rail-connectivity at ICD Rajkot, within three months of initiation of the ICD, suddenly CONCOR backed out," alleges Dhansukh Vora, Secretary "� Rajkot Greater Chamber of Commerce & Industries.
 
He was Secretary of Rajkot Chamber of Commerce and Industries when presentations for bringing ICD to Rajkot were made by them at top level in Ministry of Commerce.
 
However, ICD Rajkot did not take off because industry suggested appointment of Tariff Committee to monitor the cost-effectiveness of shipping containers through ICD.
 
This was not accepted either by CONCOR or by CWC and finally the ICD Rajkot shut-down its operations in year 2003, added Vora.Not even more than 100 containers might have been shipped from ICD Rajkot while it was operational, The key requisite was the rail-connectivity as most of the ICDs have excellent rail-connectivity, making it feasible for exporter or importer to ship consignments through the ICD bu this never happened at ICD Rajkot.
 
Secondly cost of shipping container from ICD was at least Rs.2,500 on a higher side if shipped from ICD Rajkot.
 
For authenticating invoice with Customs Department shipper had to go to Jamnagar which is atleast 120 kilometres away from Rajkot.
 
"Important basic amenities like fork-lifter required to lift the empty and stuffed container was also not made available at ICD Rajkot, so why should we opt for ICD Rajkot?" said Swapan Sinha, who worked as Exim Manager with an export firm in Rajkot till year 2002.
 
Kamal Jain, chief manager, Indian Railway Traffic Service and Concor, and R N Meena, regional manager of CWC, were present in a dialogue programme on facilities and services for international trade in Gujarat in city.
 
In an open house, when the question regarding revival of dead ICD Project at Rajkot was raised, Jain said, "We did not receive good response from the trade community in Rajkot because to provide rail connectivity we require at least 90 containers - so we were compelled to withdraw it".
 
If appropriate presentations are made with latest statistics and feasibility details from respective chamber of commerce, Concor may once again think about the revival of the ICD at Rajkot.
 
Keeping in view the present trade scenario in international circuit from Saurashtra region, Sunil said, "Every month at least 3,500 to 3,600 containers are shipped as engineering, agro commodities and textile sectors boom across the region".
 
If facilities were guaranteed, response from trade would be good, he claimed.
 
"But there are no clear-cut signs and signals of reviving ICD Project at Rajkot", alleged Sunil.

 
 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 07 2005 | 12:00 AM IST

Explore News