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Executive Summary : The attached report provides an overview of the target market for the coastal shipping service

proposed to be commenced in 2008. Based on the vessel deployment and costs per TEU provided by Capt Stanley Jesudason this report covers the target industries for the Southbound voyages only. Whilst we are focussing on a niche market, in order to grow the coastal shipping business, it is imperative that we also focus on bulk transportation – dry bulk + pol which forms a large percentage of the total coastal shipping volumes. (Refer to TCS report submitted to DG Shipping, Ministry of Shipping in 2003http://www.dgshipping.com/dgship/final/tcsrep/1intro.htm ) Assumtpions: Size of Vessel

450 TEUS – Option 1 900 TEUS – Option 2 6,300 metric tonnes - Option 1 12,600 metric tonnes – Option 2

Deadweight Available -

Frequency Port Rotation

Fortnightly Mundra – Cochin – Chennai – Cochin – Mundra Need to consider : Tuticorin 20’ GP and 40’ GP & High Cube Containers 40’ Flat Rack Containers 1) Cars , 2 Wheelers and other Containerizable Automobiles (Primary Target) 2) Filler Cargo in containers.

Container Fleet

Targeted Commodities

Targeted Customers

Private Rail Operators 1. Gateway Rail Freight Ltd 2. Adani Logistics 3. Boxtrans 4. DP World 5. Indialinx (APL) CONCOR National Transport Companies

Whilst all the PRO’s have indicated their interest, most of them are awaiting deliveries of their targeted complement of rakes which will be completed by March 2008. They are also constrained by not having a dedicated fleet of their own containers currently but all propose to place orders in 2008. Gateway Rail has placed their first order in China of 400 TEUS ( Only 20’ Side Opening Containers) for carriage of bulk Commodities – foodgrains, steel, iron ore.

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we had decided to let each Customer take care of the origin / destination intermodal connectivity. only focussing on the Automobile sector for a Rail Operator is not viable. TKD(Dom). Except for CONCOR.12 mt 50 Two Wheelers in 40’ High Cube – 10 mt 10 x 35 HP Tractors in 40’ FR Contrs. Jodhpur – Rail Head in Rajasthan Group B - Group C- Group D- Local Guajarat (Mundra) Cargo – Receive at Port CY Page 2 of 15 .As Rail Operators also need to target higher tonnages. Jaipur. but if we need to expedite the commencement of the coastal service. none of the PRO’s have their own Rail/CY Terminal in Southern India.30 mt Filler Cargo: Chemicals in 20’ GP Containers . During our earlier meetings. We need to arrive at a judicious mix of weight and TEUS . they should be able to provide a rail-road connectivity at origin and destination. Garhi.22 mt Cermaic Tiles in 20’ GP Containers – 27 mt Sanitaryware in 40’ GP Contianers . 20’. Lease or Purchase Options need to be considered. Jallandar. Bhatinda. CONTAINER FLEET: We should consider having our own dedicated fleet of containers in order to ensure we can jump start the service.22 mt Bentonite in 20’ GP Containers 22 mt Auto Spares in 20’ GP Containers 20 mt Marble in 20’ GP Containers 30 mt ( Container Utilization of Tractors and 2 wheelers need to be verified) ORIGIN MARKETS : ( All Commodities) Group A National Capital Region of Delhi – Rail Head will be Patli. we will need to get involved as well. Chandigarh. Ludhiana Rail Head will be Ludhiana (DDL) Kishangarh. Tare Wt) Target Market: 4 Passenger Cars in 40’ High Cube . 40’ and Flat Racks ( Used & Domesticated) Weights per Container (incl.30 mt Food Grains in 20’ GP Containers . Loni Amritsar. Rail & Road Connectivity Road Connectivity for distances < 500kms from Origin Rail Connectivity for distances > 500kms from Origin All Customers have so far said that in order to provide a seamless service.

500 Passenger Cars 2 Wheeler 41. Allepey. Pallakad. Calicut .Bijapur Group B COMMODITY WISE VOLUMES (MARKET SIZE FOR SOUTH INDIA) Commodity Annual Volumes in TEU’s 83.Trichy. Ahmedabad. Baroda. Bellary.Hosur.500 20. Coimbatore.Group E Halol. Hubli.7 Rakes Customers Adani & Gateway Rail Gateway Rail 900 TEUS Vessel Commodity TEUS Deadweight No of No of (mt) Containers Trains Page 3 of 15 Customers .000 3.Madurai .Pondicherry Bangalore.Surat.3 trains (90 TEUS per rake) 750 75 1.000 41. Trivandrum.600 FEU Monthly Volumes in TEUS (Rounded) 7.800 Targeted Fortnightly Volumes 450 TEUS Vessel Commodity TEUS Passenger Cars 2 Wheelers 300 (per sailing) 150 Deadweight No of No of (mt) Containers Trains 1800 150 3.Mangalore. Trichur. Erode.Salem.Vapi DESTINATIONS Group A via Cochin Cochin. Kannur. Mysore. via Chennai Chennai.

6 trains 300 1500 150 3.000 50.4 trains Adani & Gateway Rail Gateway Rail Breakup by POD has to be studied as match back of containers has to be considered to avoid empty repositioning of containers. All 2000 Misc Comm Origins NEXT STEPS: SALES AND MARKETING: a) Doing a Cost-Benefit Analysis of Road versus Rail versus Rail+Road-Ocean – Road.000 60. b) Devloping our own USP ? c) Developing our Marketing Strategy d) How do we operationalize / execute our plans ? e) Doing a SWOT Anaylsis – COMPANY FORMATION AND FINANCES: Company Formation Paid Up Capital Working Capital Hiring Staff New Offices OPERATIONS: a) Bills of Lading b) MULTI MODAL Document ? c) Liability Insurance Origin Deadweight 50.000 Page 4 of 15 . FILLER CARGO : TOTAL MARKET SIZE Commodity TEUS per month Chemicals Gujarat 2000 Ceramic Tiles Gujarat 2000 Sanitaryware.Passenger Cars 2 Wheelers 600 3600 300 6.

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MARKETS CONSIDERED: Page 6 of 15 .

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2 WHEELER INDUSTRY Page 11 of 15 .

000 10. Kerala.000 SOUTH INDIA 600000 240000 2.00.00. Page 12 of 15 .UP 65000 MARUTI GURGAON.000 TEUS (50 per 40’) 24000(12000FEU) 9600 (4800FEU) 8000 ((4000FEU) FACTORY LOCN SOUTH INDIA (PCU) 13000 13000 140000 2200 TEUS (Annual) (4 per 40’ ) 6500 (3250FEU) 6500(3250FEU) 70000(35000FEU) 1100 (550FEU) NB : 2 Wheelers in modified 40’ Containers – Double Stack South India = Tamil Nadu.HR 700000 SKODA AURANGABAD 12000 2 WHEELER FACTORIES COMPANY HERO HONDA Suzuki HMSIL FACTORY LOCN Gurgaon Gurgaon Gurgaon ANNUAL SALES (PCU) 31.DOMESTIC AUTO INDUSTRY Automobile Domestic Sales Trends Category Passenger Cars Utility Vehicles MPVs Total Passenger Vehicles M&HCVs LCVs Total Commercial Vehicles Three Wheelers Scooters Motorcycles Mopeds Electrict Two Wheelers Total Two Wheelers Grand Total 2001-02 509088 104253 61775 675116 89999 56672 146671 200276 908268 2887194 408263 4203725 5225788 2002-03 541491 113620 52087 707198 115711 74971 190682 231529 825648 3647493 338985 4812126 5941535 2003-04 696153 146388 59555 902096 161395 98719 260114 284078 886295 4170445 307509 5364249 6810537 2004-05 820179 176360 65033 1061572 198506 119924 318430 307862 922428 4964753 322584 6209765 7897629 2005-06 882208 194502 66366 1143076 207472 143569 351041 359920 909051 5810599 332741 7052391 8906428 (Number of Vehicles) 2006-07 1076408 220199 83091 1379698 275600 192282 467882 403909 940673 6553664 355870 7341 7857548 10109037 PASSENGER CAR FACTORIES IN NORTH / WEST INDIA COMPANY ANNUAL SALES (PCU) GM HALOL.00. Karnataka only – Estimated at 20% of Annual Sales and need to be verified from each Company or other sources like dealers etc.GUJ 65000 HONDA SIEL NOIDA.00.000 12.

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Himatnagar. www. Dalpur. Gujarata Kajaria Ceramics Ltd.com SPL Ltd.varmora. www. Gujarat Euro Ceramics Pvt. Gurgaon Antique Granito Pvt.CERAMIC TILE MARKET IN GUJARAT 50 Million Sq meters per annum @750 sq meters per TEU Total Containerized Vol is apprx 70.com Sogo Ceramics Pvt.naveenceramics. Pen. Kunigal Jalaram Ceramics Ltd.c Page 14 of 15 . Himatnagar. Gujarat Asian Granito (India) Ltd. www. www.sentinicermica.orienttiles.000 TEUS per annum Or 6000 TEUS per month Expected Southern India Volumes 1200 -2000 TEUS per month Some Prominent Target Customers Asian Granito . Morbi. Morbi. Sabarkantha Dist. Gujarat Century Tiles Ltd. Bhachau.oraclegranito.com Restile Ceramics Ltd. www. www. Johnson (India) Ltd. www. Ltd. Ltd.com Sentini Cermica Pvt.rakceram. Karaikal.com Orient Ceramics And www.com Murudeshwar Ceramics Ltd.Has Showrooms/Depots in Kochi.www. www. Ltd.Gujarat H.com Industries Ltd.com Varmora Granito (P) Ltd.com Regent Granito (India) Ltd. Ltd. www.Gujarat City Tiles Ltd. Ltd.restile.com Oracle Granito Ltd. Baroda.com Vrundavan Ceramics Ltd.regentgranito. RAK Ceramics India Pvt.somanytiles.Gujarat Deco Lights Ceramics Ltd. Dewaas.sogovitrified. www. Chennai and Bangalore -5 million sq m per annum – 30% production sold in South India or 2000 TEUS per annum RAK Ceramics – Anant Raj Industries Ltd.vrundawanceramic. & R.kajariaceramics.Kutch.

GUJARAT SODA ASH .CHEMICAL INDUSTRY: TATA CHEMICALS – MITHAPUR.2400 tonnes per day SALT – 1500 tonnes per day (Consumer Packs) Soda Bicarbonate – 5000 tonnes per month CHLORO-CAUSTIC GROUPCEMENT – Target Commodities in Containers: Salt Soda bicarbonate Cooking Soda Total Volumes to South India – approx 2000 TEUS per month √ Page 15 of 15 .