In recent times, global trade, in line with it the Indian foreign trade has grown phenomenally both in terms of volume and complexities. Infrastructure needs and innovative methods in logistics management are growing hand in hand with the International trade needs. Ports these days mainly act as gateways and cater to the hinterlands of India which are now serviced by the advent of ICDs. ICDs thus generate business opportunities, general employment and global competitiveness of the local industry.
Need for ICDs
Ports and harbors, due to inherent structural and procedural constraints, cannot accommodate the increased traffic in containerized cargo. Such increase in container traffic necessitated ancillary facilities, which could: v Provide a place for speedy evacuation of import containers from the port; v Provide a place where the activities like unitization (standardized packing), stuffing, de-stuffing and regulatory clearances like customs formalities can be undertaken; v Act as a warehouse to ensure safety & security of air and sea cargo during in-transit storage; v Provide a secure place for storage and transport of empty and loaded marine containers.
Similarly international air cargo also needs handling / customs clearing facilities in the hinterland so that airports can service aircrafts and larger aircrafts instead of cargo and more cargo.
This has led to the development of "distribution parks". Globally, distribution parks are referred to as "distriparks", which are typically congregations of warehouses in particular locations. The critical element behind the concept is the provision of extended logistics services given the increasing need for integrated logistics and value-added services.
Such distriparks facilities developed within regulatory framework provide customs clearance facilities and are more popularly known as Container Freight Stations (CFS)