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Container Logistics (CFS & ICD) Market India

February 2015
Executive Summary
Market
Container cargo traffic is expected to grow substantially at a CAGR of a% over the next five years owing to
revival in international trade scenario
CFS contributes to the maximum percentage of revenue in the container logistics market
Container logistics market comprises of Container Haulage, CFS and ICD and Multimodal Transport Operator
Provides various services : Cargo consolidation, distribution as well as custom clearance activities
Drivers
Drivers &
Challenges
Government
Initiatives
Challenges
Growth in International Trade

Growth in Containerized Cargo
Improvement in Custom Clearance Activities
Higher Margins in Comparison with Other
Logistics Activities
Construction of Dedicated Freight Corridor
Poor Infrastructure
Rise in Freight Costs
High Costs Entailed for the Development of
a Facility
Archaic Procedures for the Movement of
Containerized Cargo
FDI Regime Sectors Pertaining to the Logistics Industry

Maritime Agenda Vision 2020
Capacity Expansion and Investment Opportunities along
East Coast Ports
Shipbuilding Subsidy and Investments
Private Investment in Logistics Parks and FTWZs

Container Terminal Privatization
Investment Scenario at Major Ports
Projects in Progress at JN Port
Major Players
Competition
Player 1
Player 2
Player 3
Player 4
Player 5
Player 6
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
Macroeconomic Indicators
Introduction
Market Overview
Development of the Port Sector

Prerequisite and Regulations
Government Initiative
Drivers & Challenges
Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
Macroeconomic Indicators (1/3)
SAMPLE
GDP at Factor Cost: Quarterly

INR tn
c3
b3
a3
d1
c2
b2
a2
c1
b1
a1
Q1
Q2
2011-12
c4
b4
a4
2012-13
2013-14
Q3
2014-15
Q4
Inflation Rate: Monthly

%
p
r
q
t
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
Nov 2013 - Dec 2013

4
Introduction
Market Overview

Key Issues
Trends
Appendix
Logistics market in India has witnessed an exponential

growth rate over the past decade
Logistics Market Overview India
Logistic Market Size and Growth
Text
INR tn
+15.2%
x1
2013
x3
x2
2014e
2015e
x4
2016e
x6
x5
2017e
2018e
Logistics Performance Indicator

LPI score
World Rank(proportion to highest ranking nations)
m
2007
2010
2012
2014
Rising containerization levels for handling break-bulk

commodities have increased Indias share in global markets
Container Traffic Scenario in India
Containerization Levels India vs. Global
Text
% growth
b
USA
China
Europe
India (2012-13)
Container Logistics Segments

Container
Logistics
Container
Haulage
CFS & ICD
Multimodal
Transport
Operator (MTO)
An Inland Container Depot (ICD) & Container Freight Station (CFS) may be defined as a common user facility with public authority status
equipped with fixed installations and offering services for handling and temporary storage of import/export laden and empty containers
carried under customs control
Note: ICD Inland container depot, CFS Container freight station, LCL Less than container load, FCL Full container load
Introduction
Market Overview

Key Issues
Trends
Appendix
Indias container trade is estimated to cross 16 mn TEUs by

2016, with an expected shift in volume to the newer ports
Container Logistics Overview (1/2)
CFS and ICD market is an integral component of the logistics sector infrastructure
Growth in containerized cargo traffic has facilitated the development of container freight stations (CFS) and inland
container depots (ICDs)
CFS is largely unique to India and plays an important role in decongesting container traffic at ports, enhancing ports operating efficiency
ICDs, also known as dry ports, cater to hinterland cargo traffic from various clusters owing to increased industrial activity
The slowdown in Indias trade volume mostly affected the CFS & ICD market in the overall logistics sector mainly due to:
The large debt-funded infrastructure investment made in the sector
Rising competition
However, as predicted by recent economic and commerce scenario, the industry is expected to grow in the next five
years displaying a high single-digit growth rate on account of revival in international trade scenario post 2014-15
CFS and ICD Market Size & Growth (Volume-wise)

Container trade has been severely affected in 2013-14
with a growth of only about b%
mn TEU
X2%
X1%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014e
2015e
2016e
2017e
2018e
Note: Market size corresponds to container cargo traffic at 15 major ports
Export import activities are the major revenue contributors

to the container logistics market
Container Logistics Overview (2/2)
The CFS and ICD market was valued at INR c bn in 2012-13
CFS and ICD generate about their maximum revenue from import operations followed by ground handling and
transportation
The industry is however expected to grow in the next five years with the revival of trade scenario post 2013-14
CFS and ICD Revenue based Segmentation (2012-13)

Sources of Revenue CFS and ICD
ICD
CFS
Sources of Revenue Operations

Handling
Rent
Import
Export
C4%
B1%
C1%
C3%
C2%
B2%
Note: 100% = INR c bn
10
Inland Container Clusters Indian Cities

Major Container Hubs in India Hinterland
SAMPLE
Text
Legend
% contribution
to Exim
Cities
Text
Text
Text
Text
Note: The list is not exhaustive
11
Tapping opportunities in the Indian CFS and ICD market

Text
Exim Container Supply Chain in India Growth Opportunity

Profitability
Market Size
%
a5
b5
a2
b1
a1
a4
b2
a3
Primary Transport
CFS and ICD
b4
b3
Secondary Transport
Ports
Ocean Transport
12
Container Logistics Infrastructure Current Scenario

Opportunity for Investors in Container Logistics across the Exim Supply Chain
Rail/road movement for containers
Customers
text
text
text
Shipping Lines
Scope of business for investors
Estimated Investment Future Scenario

Type of
Infrastructure
Estimated nos./
demand in next 510 years
INR bn
~ INR z bn
investment is
needed for
container logistics
infrastructure
by 2020
ICD/FTWZ
Air Cargo Centres
Agro Warehouses
Integrated
Transport Centres
ICD/FTWZ
Air Cargo
Centres
Agro
Warehouses
Integrated
Transport
Centres
13
India is witnessing a transition from bulk cargo to

containerization of traditionally non containerized cargo
Text
Current Container Scenario in India

Containerization Penetration in India
Containerization Levels
Vessel Traffic, Major Ports (2012-13)
Others
B5%
Container
B4%
B1%
Dry Bulk
Liquid Bulk
Break Bulk
Others
2009
2010
2011
2012
B3%
B2%
2013
14
Introduction
Market Overview

Key Issues
Trends
Appendix
15
Existence of IRS in container shipping industry enforces

competition in upstream and downstream industries
Growing Demand for Container Transport
Text
Reasons contributing to growing CFS and ICD
The
Container
Shipping
Market
Share of Container Traffic in Total Trade (2013-14)
Container
P.O.L
B5%
Iron Ore
Government Initiatives
Schemes to develop new airports in Tier I and Tier II
cities will be launched for implementation through
the Airport Authority of India or the PPP mode
Coal
Others
B4%
B3%
B2%
B1%
Note: Percentage share in tonnage for major ports only
Note: IRS Increasing Returns to Scale
16
Rapid growth of sea freight volumes are a major boost to

the development of CFS and ICD facilities
Development of Sea Freight
Sea Freight Market Size and Growth
Major Ports
Minor Ports
MMT
X%
2005
Text
2006
2007
2008
2009
2010
2011
2012
2013
2014
SAMPLE
Note: MMT: million metric ton
17
Introduction
Market Overview

Key Issues
Trends
Appendix
18
Investment in Logistics Infrastructure (1/3)

FDI Regime Sectors Pertaining to the Logistics Industry
FDI Equity Inflows over the Years
FDI in Logistics Sector
INR mn
INR mn
2008-09 2009-10 2010-11 2011-12 2012-13
2009-10
2010-11
2011-12
2012-13
FDI in Transport and Infrastructure, INR mn

Railway Related Components
Air Freight
Shipbuilding
Air Transport
Sea Transport
Construction of Roads and Highways
100% FDI is allowed

In maritime infrastructure such
as ports, terminals, jetties,
harbors and merchant
shipbuilding
Support infrastructure like
warehousing, CFS and ICD, roads,
inland water transport (IWT) and
other logistics components
Jan - Sep, 2013

19
Rail and road connectivity projects to ports will provide a

rapid boost to container freight handling
Shipbuilding Subsidy and Investments
Text
SAMPLE
Ports
Phase I (2010-12)
Phase II (2012-17e)
Phase III (2017-20e)
Total Investment (INR bn)
Chennai
Kolkata
V.O. Chidambaranar
Ennore
Cochin
Vishakapatnam
JNPT
Paradip
Mumbai
Kandla
New Mangalore
Mormugao
Total (INR bn)
20
Planned Investment on Projects JN Port (2010-2020)

Deepening of
Channel /
berths
Projects till 2020
Construction/
Reconstruction of
Berths / Jetties
Procurement
of Equipment
Rail / Road
Connectivity
Works
Other
Works
Total
No. of Project
Ongoing Projects
Estimated
Cost.
(INR bn)
No. of Project
Phase I (2010-2012)
Estimated
Cost.
(INR bn)
No. of Project
Phase I (2012-2017)
Estimated
Cost.
(INR bn)
No. of Project
Phase I (2017-2020)
Estimated
Cost.
(INR bn)
No. of Project
Total Projects (Ongoing
+ New)
Estimated
Cost.
(INR bn)
Note : Estimated Cost is for the projects proposed to be taken up /under execution during that period
21
Investment Scenario at Major Ports (1/4)

Ports
Recent and Emerging

Opportunities
Estimated
Cost
(INR mn)
Capacity
(MTPA)
Investments Undertaken
Estimated
Cost
(INR mn)
Capacity
(MTPA)
JNPT
Mumbai
Port
Mormugao
Port
Cochin Port
Note : Estimated Cost is for the projects proposed to be taken up /under execution during that period
22
Introduction
Market Overview

Key Issues
Trends
Appendix
23
Growth in international trade is the most vital driving factor

for the container logistics market
Growth in International Trade (1/2)
Impact
Text
SAMPLE
Indias Total Export
Indias Total Import

Government of India
plans to double Indias
exports of goods and
services by 2014-15
INR tn
X1%
INR tn
X2%
Imports into India are

also expected to grow
further, particularly of oil
and capital good
2009-10 2010-11 2011-12 2012-13 2013-14
2009-10 2010-11 2011-12 2012-13 2013-14
24
The rise in containerized cargo traffic has led to the growth

in CFSs and ICDs
Growth in Containerized Cargo (1/2)
Impact
Text
SAMPLE
Container Traffic Projection for All Indian Ports
mn tons
a4
X%
a3
a2
a1
2016-17e
2021-22e
2026-27e
2031-32e
25
Cargo handling capacity should be 30% more than projected

traffic to minimize pre berthing detention of ships
Growth in Containerized Cargo (2/2)
Text
SAMPLE
Cargo Capacity Creation Projection for All Indian Ports
mn tons
POL
Iron Ore
Coal
Containers
Other Cargo
a4
a3
a2
a1
2016-17e
2021-22e
2026-27e
2031-32e
26
Large set up costs and cumbersome procedures for transporting

containerized cargo are the major barriers
High Costs Entailed for the Development of a Facility
Impact
Text
SAMPLE
Commodity-wise Capital Cost Incurred for Capacity Addition
INR mn per ton

a5
a2
a1
POL
Iron Ore
a3
a4
Fertilizers
Coal
a6
Containers
Other General Cargo
27
Introduction
Market Overview

Key Issues
Trends
Appendix
28
Porters Five Forces Analysis
SAMPLE
Impact
Low
Threat of New Entrants

Text
Impact
Medium
to High
Impact
Medium
Impact
Medium
to High
Competitive Rivalry
Bargaining Power of Buyers
Bargaining Power of Suppliers

Text
Text
Text
Impact
Low
Threat of Substitutes
Text
29
Competitive Benchmarking (2/5)
SAMPLE
Key Ratios of Top 3 Companies Operational Basis (FY 2014) (1/3)

Gross Margin
Operating Margin
Net Margin
c3
c2
c1
a1
a2
b2
a3
b3
b1
Player 1
Player 2
Player 3
Text
30
SAMPLE
Public: Domestic Company Player 1 (1/5)

Company Information
Offices and Centres India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
Ticker Symbol
Stock Exchange
Products and Services

Category
Products/Services
Key People
Name
Designation
Sectors (EPC)
31
SAMPLE

Financial Snapshot
Key Ratios
Total Income
Net Profit/Loss
Particulars
INR mn
INR mn
p1
p2
p4
p3
r4
r1
r2
r3
2011
2012
2013
2014
Financial Summary
The company earned a net profit of INR - mn in FY 2014, as compared to
net profit of INR - mn in FY 2013
The company reported total income of INR - mn in FY 2014, registering an
increase of -% over FY 2013
The company earned an operating margin of -% in FY 2014, a decrease of m
percentage points over FY 2013
The company reported debt to equity ratio of - in FY 2014, registering an
Key Financial Performance Indicators

Indicators
Value (11/27/2014)
y-o-y change
(2014-13)
2014
2013
2012
2011
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Market Capitalization (INR mn)

Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Note : This company has had a fiscal year change on Dec-31, 2011
Improved
Decline
32
SAMPLE

Key Business Segments
Key Geographic Segments
Container Freight Stations
Multimodal Transport Operations
Project & Engineering Solutions
Others
Australia & New Zealand
Mediterranean
Far East
Africa
America
India
Europe
2010
2012
2013
2014
2010
2012
2013
2014
Business Highlights (1/2)

Description
News
Overview
Text
33
SAMPLE

Business Highlights (2/2)
Description
News
Extensive Product
Portfolio
Text
Awards and Recognitions
Text
Acquisitions
Text
34
SAMPLE
Public: Domestic Company Player 1 SWOT Analysis (5/5)
Text
Text
Text
T
Text
35
SAMPLE
Private: Foreign Company Player 2 (1/5)

Company Information
Offices and Centres India
Corporate
Headquarter
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
Products and Services

Category
Sectors (EPC)
Products/Services
Key People
Name
Designation
36
SAMPLE

Shareholders of the Company
Ownership Structure
Foreign Holdings
Name
No. of Shares held
Total
100.0%
100%
Ownership structure corresponds to Date of AGM: 31/03/2012
37
SAMPLE

Financial Snapshot
Total Income
Key Ratios
Net Profit/Loss
Particulars
INR mn
INR mn
p3
p4
r2
r3
r4
2011
2012
2013
p2
p1
r1
2010
Financial Summary
The company earned a net profit of INR - mn in FY 2013, as compared to
net profit of INR - mn in FY 2012
The company reported total income of INR - mn in FY 2013, registering an
The company earned an operating margin of -% in FY 2013, an increase of k
percentage points over FY 2012
The company reported debt to equity ratio of q in FY 2013, an increase of % over FY 2012
y-o-y change
(2013-12)
2013
2012
2011
2010
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved
Decline
38
SAMPLE

Business Highlights
Description
News
Overview
Text
Awards and Recognitions
Text
Industries Served
Text
39
SAMPLE
Private: Foreign Company Player 2 SWOT Analysis (5/5)
Text
Text
Text
T
Text
40
Introduction
Market Overview

Key Issues
Trends
Appendix
41
SAMPLE
Direct Investments Player 5
Overall Investments Geography-wise
Total Investments Sector-wise
C1%
B1%
Industrials
Financials
Asia Pacific Emerging Markets
B2%
C2%
Industrial Investments Segment-wise
Asia Pacific Developed Markets
Investment Snapshot
Text
A1%
A2%
A3%
100%
Capital Goods
Commercial and Proffessional Services
Transportation
42
Introduction
Market Overview

Key Issues
Trends
Appendix
43
SAMPLE
Strategic Recommendation (3/3)
Improving Efficiency of Container Ports
Text
Text
Text
Text
Efficiency Specific Variables

for Ports
Text
Text
Port Throughput
(TEU)
Resultant Output of
Container Traffic
Text
Text
Efficiency Specific Variables

for Terminals
Text
Port Throughput
(TEU)
Resultant Output of
Container Traffic
Text
44
Thank you for the attention

Container Logistics (CFS & ICD) Market India 2015 report is part of Netscribes Automotive
and Logistics Series.
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Insert Cover Image using Slide Master View

Container Logistics (CFS & ICD) Market India

Growth in International Trade

FDI Regime Sectors Pertaining to the Logistics Industry

Private Investment in Logistics Parks and FTWZs

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Development of the Port Sector

Macroeconomic Indicators (1/3)

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Nov 2013 - Dec 2013

Development of the Port Sector

Logistics market in India has witnessed an exponential

Logistic Market Size and Growth

Logistics Performance Indicator

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Rising containerization levels for handling break-bulk

Containerization Levels India vs. Global

Container Logistics Segments

CFS & ICD

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Development of the Port Sector

Indias container trade is estimated to cross 16 mn TEUs by

CFS and ICD Market Size & Growth (Volume-wise)

Note: Market size corresponds to container cargo traffic at 15 major ports

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Export import activities are the major revenue contributors

CFS and ICD Revenue based Segmentation (2012-13)

Sources of Revenue Operations

Inland Container Clusters Indian Cities

Note: The list is not exhaustive

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Tapping opportunities in the Indian CFS and ICD market

Exim Container Supply Chain in India Growth Opportunity

CFS and ICD

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Container Logistics Infrastructure Current Scenario

Scope of business for investors

Estimated Investment Future Scenario

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

India is witnessing a transition from bulk cargo to

Current Container Scenario in India

Vessel Traffic, Major Ports (2012-13)

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Development of the Port Sector

Existence of IRS in container shipping industry enforces

Reasons contributing to growing CFS and ICD

Share of Container Traffic in Total Trade (2013-14)

Note: Percentage share in tonnage for major ports only

Note: IRS Increasing Returns to Scale

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Rapid growth of sea freight volumes are a major boost to

Note: MMT: million metric ton

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Development of the Port Sector

Investment in Logistics Infrastructure (1/3)

FDI in Logistics Sector

2008-09 2009-10 2010-11 2011-12 2012-13

FDI in Transport and Infrastructure, INR mn