Present technologies of locking and monitoring the cargo do not provide effective solution for the situation. A little corruption among the employees can easily deceive whole security system. Since the cargo contains materials of high value and in high quantity, these containers are more prone to the pilferage and hence to protect the material we need a sound technique which minimizes the loss due to involvement of the corrupt employees. The technical work undertaken here aims at providing a sound mechanism to prevent pilferage in the cargo containers by implying an electronic lock and having series of basic security check like swapping the RFID card provided to the customer, biometric sensor and by entering the password which is sent at the time of delivery to the customer. Therefore it minimizes the human interference security of the cargo containers. This paper proposes a cost effective method of tracking cargo mobility using GPS. The system gives current vehicle location whenever needed with reliable accuracy. The system uses GSM and GPS Technology, helping in efficient monitoring of the desired vehicles. The paper also discusses the proposed GPS based vehicle Tracking System using GSM technology in which the coordinates are forwarded to Central monitoring system. The position of the vehicle can be traced on Google / Local maps. The paper gives functional, Technical description and Software implementation for the GPS and GSM based Vehicle Tracking System. Index