MCC: Enhancing Operational Efficiency Through Technology

Containerization has had a profound impact on international trade by streamlining and standardizing cargo handling processes, and is a driving force behind global trade, informs Tej Contractor, Director, MCC Container Lines.

What challenges does the Container Industry face?

Infrastructure limitations, and port congestions cause delays and inefficiencies in container operations. The operational costs of players in the Container Market are affected by increasing labor costs. Compliance with different regulations and safety requirements adds to the complexity and cost of operations. The industry's growth can be impacted by fluctuating global economic conditions that lead to decreased demand for containerized goods. Disruptions in the global supply chain can cause delays in container shipments, affecting the timely delivery of goods and increasing costs for container operators.

The Container Market is under pressure to reduce its environmental impact, requiring investments in cleaner technologies and compliance with stricter environmental regulations. Technological advancements such as automation, IoT solutions, and digital platforms can improve efficiency and competitiveness but require significant investments and changes in operations.

What is your company’s strategy to meet challenges?

At MCC, we have prioritized two key areas: people and technology. As a service-oriented business, we recognize the importance of our employees and have utilized technology to enhance their productivity and efficiency. We continue to utilize remote work capabilities and virtual meetings to ensure our teams remain productive. Additionally, we have increased communication with our clients to better understand their evolving needs and provide customized solutions. We have also adjusted our business strategies to align with our customers' technological requirements.

Our commitment to providing exceptional service remains steadfast, and we are leveraging digital engagement to achieve this goal. We believe that to remain competitive, companies must continuously innovate, adapt to market dynamics, optimize operations while keeping costs low, and ensure customer satisfaction.

How do ICDs and CFS enhance efficiency in the container industry?

In today’s world of globalization, the container industry serves as a backbone to international trade, ensuring smooth and efficient flow of goods across borders. Two pivotal components in this industry are Inland Container Depots (ICDs) and Container Freight Stations (CFS), which act as vital hubs in the logistics chain, enhancing efficiency, connectivity, and resilience in the container industry. Their strategic use and management can significantly improve the smooth functioning of international trade.

ICDs are strategically located facilities often connected by rail to the respective gateway port, allowing for streamlined transportation of containers from ports to inland areas that offer services for containerization of cargo, leading to increased efficiency in the movement of goods and cutting down on operational redundancy. ICDs are independent customs stations at ports and airports that maintain seamless connectivity in the container industry.

Together, ICDs and CFSs provide backup storage and handling capacity during peak periods or during disruptions. They help reduce congestion at ports, ensuring smoother operations even in challenging times. Furthermore, various services are being implemented at ICDs and CFSs to enhance their efficiency, like Stuffing, Destuffing, Less than Container Load (LCL), and Full Container Load (FCL) operations.

In what ways are government policies shaping the Logistics industry?

The latest Foreign Trade policy aims to make India a $30 trillion economy with a 25% share in exports by investing heavily in infrastructure. In the past two decades, the government has signed various trade agreements to provide preferential treatment to Indian goods and increase opportunities. In fact, the government has taken a comprehensive approach to achieve growth in the Logistics Industry, such as developing infrastructure, and training manpower.

The Prime Minister's AatmaNirbhar Bharat initiative aims to make India self-reliant by providing Rs 20 lakh crore economic package to promote local production. The government has also simplified import regulations and customs procedures to attract investment from within India and overseas. Additionally, the skill sector councils have been established to ensure availability of trained manpower. These policies are expected to create significant opportunities for Indian businesses globally.

How is containerization making logistics more efficient?

Containerization has revolutionized international trade by standardizing the way commodities are transported. Goods can be transported between various modes of transportation without the need for repacking. Containerization has also facilitated the rise in multimodal transport, and brought more efficiency in the movement of goods. This has improved logistics as the goods are moved from the factory to the destination factory or buyers’ premises smoothly and safely. In the future, we will see intelligent containers with tracking, automation and artificial intelligence (AI) in container terminals.