Chennaibest.com speaks to S Sathyanarayanan, Director, Sanco Trans Limited, one of the leading Chennai-based C&F agents. Sanco Trans was started by K. Santhanam Reddiar in 1956, when the transport industry was growing rapidly. He decided to set up support systems for the industry. Sanco today boasts of starting the first private container freight station to be operational in the country. Their other activities include - Air Cargo, Stevedoring, Warehousing and Distribution, Container terminals, Customs Clearance, Freight Forwarding and Civil Engineering.

What is the total amount of freight being cleared from Chennai port?

The total volumes are low, as competition is more. The Government is giving licences indiscriminately. There are too many operators in the industry.

What are the different types of cargo and the complementary vessels?

• Containerised cargo - Containerised vessels
• Bulk movement - Bulk vessels
• Break-bulk cargo - Break-bulk vessels
• Liquid cargo - Liquid vessels

Stevedoring includes coal, iron ore, sulphur, fertilisers, scrap, food grains etc. The volume could be anywhere between 30 to 40 thousand tonnes. According to regulations, if we do not keep up the specified volumes, the licence will be cancelled.

Containers are usually 20 to 40 feet in size. Big industrial electrical equipment, which cannot be containerised, go through break-bulk cargo.

How does Chennai's CFS rate against world standards in terms of equipment, processing time, capacity etc.?

Chennai is certainly keeping up with technology on all these counts. As there are too many players, we have to be on par with international standards. A lot of professionalism has come in. We have to keep the clients posted all the time. The internet and e-mail has come as a boon to this industry. It is easier to keep the client posted about the position of the cargo. The private sector is matching upto international standards. We have other limitations, like the port is very slow.

In terms of transportation infrastructure, is there anything found wanting in the city?

Bad roads, traffic-congestion. The national highway is getting eroded by the sea along the Thiruvattriyur area.

What role does insurance play in ware-housing, distribution and freight?

For ware-housing and distribution, domestic insurance is applicable. Any insurance agency can handle it. But the freight part is done by Lloyds, an international shipping insurance company, which is the governing agency of the shipping industry.

Does the industry require skilled labour? Are trained staff available?

Skilled labour are not available for this industry. All the training is given on job, for air-freight, sea-freight and customs clearance. Subsequently, the employees are asked to take exams.

How has logistics evolved today as compared to when you started of?

There are too many players involved in each operation. Ideally, a client wants door-to-door service. The logistics involved in this type of a set up is phenomenal. Right now, only Multinational Companies are doing door-to-door.

The role of the Government?

For everything in this industry, we need licences from the government. Clearing, forwarding and transportation, everything requires a licence. The Surface Transport Ministry is in-charge of these operations.

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