Centre Issues Guidelines to Formalize Operation of Empty Container Depots (ECDs)

The Centre has introduced guidelines to formalize the operation of Empty Container Depots (ECDs) in India, aiming to improve their efficiency and streamline their role in the supply chain. The guidelines emphasize the need for ECDs to be registered under the Shops and Establishment Act in the respective States or Union Territories.

There are approximately 1,500 ECDs across the country, handling around 17 million twenty-foot equivalent units (TEUs) annually, with 20-30% being empty containers in circulation. The highest concentrations of these depots are found in Mumbai and Chennai.

To enhance operational transparency, the guidelines suggest that ECDs should be recognized as commercial establishments and registered with state authorities. This formalization will promote fair trade practices among shipping lines, clearly define contracts, and help reduce shipping costs. It will also encourage ECDs to develop the necessary infrastructure to support the trucking community.

Key recommendations include ECDs must register with State authorities and facilitate online payments, with GST compliance. The operations of ECDs should be transparent, with standardized infrastructure and facilities and digitalization of processes and transactions will improve uniformity and efficiency.

Shipping lines and associated parties should prioritize contracts with registered ECDs that offer specific services, such as storage, cleaning, repair, and inspection of empty containers. Furthermore, the guidelines recommend that ECDs install RFIDs for better management of vehicle movements, reducing delays. Port and customs authorities will oversee the implementation of these guidelines, ensuring proper establishment and operations of ECDs across the country.