Container depot

From CEOpedia | Management online

Container depot is container which offers servicing of goods during shipping. The most typical is an inland container deport (ICD, called also inland clearance depot, dry port, container freight stations[1]). It is terminal for containers, located in seaports and provides [2]:

Usually they are located near to seaports terminals[3].

Types of handling cargos

Container depot may be used for all types of cargo, including[4]:

  1. containerized,
  2. non-containerized,
  3. break-bulk,
  4. bulk cargoes.

Benefits of inland container depots

Inland container deports is highly advised solutions, as it brings many benefits (especially in big cities) such as [5]:

  • operational improvements,
  • enhancement of capacity,
  • easing pressure strategy,
  • possibilities of expansion of them,
  • fast solution,
  • cost-effective,
  • helps to avoid congestion or reduce it (for trucks, ports, roads),
  • they are attractive for trade purposes,
  • enables to better control transport flows,
  • improved logistics performance,
  • regional development,
  • modal shift,
  • decreased CO2 emissions (especially when sea terminal is combined with rail terminal),
  • keeping distribution centers and users close to each other (port operators, shipping companies, rail companies, real estate companies, logistic service providers),
  • different forms of partnerships available (such as private, public or mix of public-private partnerships),
  • possibility to integrate freight network.

Examples of locations of container depots

Below table presents some locations of highly development shipment hubs, which uses container depots <ref> United Nations Economic and Social Commission for Asia and the Pacific, (2015)<ref>.

Location Characteristics Examples
China 9 intermodal rail hubs (hinterland) Kunming located 1500 km by rail from Shenzhen Port
India 52 rail hubs (hinterland) Tuklakabad (Delhi) located 1510 km by rail from Mumbai ports
Republic of Korea 5 terminals Uiwang located 380 km by road and 410 km by rail from Busan Port
Thailand Lard Krabang Lard Krabang located 118 km by rail from Laem Chabang Port

Author: Jolanta Lesnicka

Limitations of Container depot

Container depots have a few limitations, including:

  • Limited capacity: Container depots usually have limited capacity and can only accommodate a certain number of containers at a time, making it difficult to manage large volumes of cargo and shipments.
  • Limited geographical range: Container depots typically have a limited geographical range, meaning they can only service certain areas and are not suitable for long-distance shipping.
  • High costs: Container depots require a lot of infrastructure, equipment, and personnel to operate, which can lead to high operating costs.
  • Security issues: Container depots require a lot of security to ensure the safety of the cargo and the personnel working in the facility. This can add to the overall costs of using a container depot.

Other approaches related to Container depot

A Container Depot is a terminal for containers located in seaports, providing cargo handling and storage services. There are several other approaches related to this type of facility, such as:

  • Freight Consolidation Centres (FCCs) - These are facilities that consolidate cargo from multiple sources before it is shipped. This approach helps to reduce costs for the customer and makes the handling of the cargo more efficient.
  • Customs Clearance Depots (CCDs) - These are terminals that provide customs clearance services for imported and exported goods. The services provided at these facilities include the inspection of documents, payment of duties, and the collection of taxes.
  • Cross-Docking Centres - These centres are designed to move goods from one location to another quickly and efficiently, eliminating the need for long-term storage.
  • Intermodal Terminals - These terminals provide services for the transfer of cargo between different modes of transportation.

In summary, there are several approaches related to Container Depots, such as Freight Consolidation Centres, Customs Clearance Depots, Cross-Docking Centres and Intermodal Terminals, all of which help to optimize cargo handling and reduce costs.

Footnotes

  1. United Nations Economic and Social Commision for Asia and the Pacific, (2015)
  2. United Nations Publications, (2007), p. 225
  3. Konings R., Thijs R., (2001)
  4. United Nations Economic and Social Commision for Asia and the Pacific, (2015)
  5. Mwemezi J. J., Huang Y. (2012)


Container depotrecommended articles
Multimodal transport systemTransloadingDoor to door servicePublic warehouseBreak bulk cargoContainer leaseAccessorial chargesTypes of transportTransit shipment

References