India Container Logistics Market Overview 2015

Insert Cover Image using Slide Master View
Do not distort
Container Logistics (CFS & ICD) Market – India
February 2015

2
Executive Summary
Market
Competition
 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
Major Players
Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
Drivers &
Challenges
Drivers
 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
Challenges
 Poor Infrastructure
 Rise in Freight Costs
 High Costs Entailed for the Development of
a Facility
 Archaic Procedures for the Movement of
Containerized Cargo
Government
Initiatives
 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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

3
•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

4
SAMPLE
Macroeconomic Indicators (1/3)
INR tn
c4
Q4
a4
Q3
b4
b2
c3
b1
c1
d1
Q1
c2
a2a1
b3
Q2
a3
2014-152013-142012-132011-12
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
Oct 2013 - Nov 2013
t
%
Nov 2013 - Dec 2013Aug 2013 - Sep 2013
q
Jul 2013 - Aug 2013
p s
Sep 2013 - Oct 2013
r

5
•Introduction
•Market Overview
•Key Issues
•Trends
•Appendix

6
Logistics market in India has witnessed an exponential
growth rate over the past decade
• Text
Logistics Market Overview – India Logistic Market Size and Growth
Logistics Performance Indicator
2015e
x3
2014e
x2
2013
x1
2018e
x6
2016e
+15.2%
2017e
x4
x5
INR tn
2007
w
m o
2010
x
n
2014
z
p
2012
y
World Rank(proportion to highest ranking nations)
LPI score

7
Rising containerization levels for handling break-bulk
commodities have increased India’s share in global markets
• Text
Container Traffic Scenario in India Containerization Levels – India vs. Global
Container Logistics Segments
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
Container
Logistics
Container
Haulage
CFS & ICD
Multimodal
Transport
Operator (MTO)
China
c
USA
db
India (2012-13)
a
Europe
% growth
Note: ICD – Inland container depot, CFS – Container freight station, LCL – Less than container load, FCL – Full container load

8
•Introduction
•Market Overview
•Key Issues
•Trends
•Appendix

9
India’s 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)
Note: Market size corresponds to container cargo traffic at 15 major ports
• 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 India’s 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)
2005 2010 2015e
X1%
2006
X2%
2018e2007 2017e2016e2013 2014e2009 2011 20122008
Container trade has been severely affected in 2013-14
with a growth of only about b%mn TEU

10
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)
B2%
B1%
ICD CFS
Sources of Revenue – CFS and ICD Sources of Revenue – Operations
C2%
C1%
C3%
C4%
RentHandling Import Export
Note: 100% = INR c bn

11
SAMPLE
Inland Container Clusters – Indian Cities
Major Container Hubs in India – Hinterland
• Text
Legend
% contribution
to Exim
Cities
a Text
b Text
c Text
d Text
Note: The list is not exhaustive

12
Tapping opportunities in the Indian CFS and ICD market
• Text
Exim Container Supply Chain in India – Growth Opportunity
b5
%
Ocean Transport
a5
Ports
b4a4
Secondary Transport
b3
b1
a3
CFS and ICD
b2
a2
Primary Transport
a1
Market SizeProfitability

13
Container Logistics Infrastructure – Current Scenario
Estimated Investment – Future Scenario
Type of
Infrastructure
Estimated nos./
demand in next 5-
10 years
ICD/FTWZ
Air Cargo Centres
Agro Warehouses
Integrated
Transport Centres
Agro
Warehouses
INR bn
Integrated
Transport
Centres
Air Cargo
Centres
ICD/FTWZ
~ INR z bn
investment is
needed for
container logistics
infrastructure
by 2020
Opportunity for Investors in Container Logistics across the Exim Supply Chain
Customers text text text Shipping Lines
Scope of business for investors
Rail/road movement for containers

14
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 Vessel Traffic, Major Ports (2012-13)
20132012201120102009
Containerization Levels Others
B1%
B3%
B2%
B5%
B4%
Dry Bulk
Container
Liquid Bulk
Others
Break Bulk

15
•Introduction
•Market Overview
•Key Issues
•Trends
•Appendix

16
Existence of IRS in container shipping industry enforces
competition in upstream and downstream industries
• Text
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
The
Container
Shipping
Market
Reasons contributing to growing CFS and ICD Share of Container Traffic in Total Trade (2013-14)
Growing Demand for Container Transport
B1%
B3%
B2%
B4%
B5%P.O.L
Container
Coal
Others
Iron Ore
Note: IRS – Increasing Returns to Scale
Note: Percentage share in tonnage for major ports only

17
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
• Text
MMT
X%
2014201320122011201020092008200720062005
Minor PortsMajor Ports
Note: MMT: million metric ton
SAMPLE

18
•Introduction
•Market Overview
•Key Issues
•Trends
•Appendix

19
Investment in Logistics Infrastructure (1/3)
FDI Regime – Sectors Pertaining to the Logistics Industry
FDI Equity Inflows over the Years FDI in Logistics Sector
2012-132011-122010-112009-102008-09
INR mn
2012-132011-122010-112009-10
INR mn
FDI in Transport and Infrastructure, INR mn
Jan - Sep, 2013
Railway Related Components
Air Transport Construction of Roads and HighwaysSea Transport
Air Freight Shipbuilding
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

20
SAMPLE
Rail and road connectivity projects to ports will provide a
rapid boost to container freight handling
Shipbuilding Subsidy and Investments
• Text
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)

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

22
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

23
•Introduction
•Market Overview
•Key Issues
•Trends
•Appendix

24
Growth in international trade is the most vital driving factor
for the container logistics market
India’s Total Export India’s Total Import
Government of India
plans to double India’s
exports of goods and
services by 2014-15
Imports into India are
also expected to grow
further, particularly of oil
and capital good
• Text
Growth in International Trade (1/2) Impact
INR tn
X1%
2013-142012-132011-122010-112009-10
X2%
2013-142012-132011-122010-112009-10
INR tn
SAMPLE

25
The rise in containerized cargo traffic has led to the growth
in CFSs and ICDs
• Text
Growth in Containerized Cargo (1/2) Impact
2026-27e
mn tons
a3
a4
2031-32e
X%
a1
2016-17e
a2
2021-22e
Container Traffic Projection for All Indian Ports
SAMPLE

26
Cargo handling capacity should be 30% more than projected
traffic to minimize pre berthing detention of ships
• Text
Growth in Containerized Cargo (2/2)
Cargo Capacity Creation Projection for All Indian Ports
2031-32e
a4
2026-27e
a3
2021-22e
a2
2016-17e
a1
mn tons Other CargoContainersCoalIron OrePOL
SAMPLE

27
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
Commodity-wise Capital Cost Incurred for Capacity Addition
INR mn per ton
Coal
a5
Containers
a6
Other General Cargo
a4
Fertilizers
a3
Iron Ore
a2
POL
a1
• Text
SAMPLE

28
•Introduction
•Market Overview
•Key Issues
•Trends
•Appendix

29
SAMPLEPorter’s Five Forces Analysis
Competitive Rivalry
• Text
Bargaining Power of Suppliers
• Text
Bargaining Power of Buyers
• Text
Threat of Substitutes
• Text
Threat of New Entrants
• Text
Impact
Medium
Impact
Medium
to High
Impact
Medium
to High
Impact
Low
Impact
Low

30
SAMPLEKey Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3)
Competitive Benchmarking (2/5)
b2a2
Player 1
c1
b1a1
a3
Player 2
b3
c2
%
Player 3
c3
Net MarginOperating MarginGross Margin
• Text

31
SAMPLE
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category Products/Services
Sectors (EPC)
Name Designation
Head Office
Public: Domestic Company – Player 1 (1/5)

32
SAMPLEFinancial Snapshot Key Ratios
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)
Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Improved Decline
Net Profit/LossTotal Income
INR mn INR mn
2014
p4
r4
2013
p3
r3
2012
p2
r2
2011
p1
r1
Particulars
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
Note : This company has had a fiscal year change on Dec-31, 2011

33
SAMPLEKey Business Segments Key Geographic Segments
Business Highlights (1/2)
Description News
Overview • Text
%
2014201320122010
Others
Multimodal Transport Operations
Project & Engineering Solutions
Container Freight Stations
%
2014201320122010
India
EuropeFar East
America
Mediterranean
Africa
Australia & New Zealand

34
SAMPLE
Business Highlights (2/2)
Description News
Extensive Product
Portfolio
• Text
Awards and Recognitions • Text
Acquisitions • Text

35
SAMPLE
• Text • Text
• Text
• Text
TO
WS
Public: Domestic Company – Player 1 – SWOT Analysis (5/5)

36
SAMPLEPrivate: Foreign Company – Player 2 (1/5)
Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Sectors (EPC)
Name Designation
Corporate
Headquarter
Tel No.
Fax No.
Website
Year of Incorporation
Head Office

37
SAMPLEOwnership Structure
Name No. of Shares held
Total
Ownership structure corresponds to Date of AGM: 31/03/2012
Shareholders of the Company
100%100.0%
Foreign Holdings
Private: Foreign Company – Player 2 (2/5)

38
SAMPLEFinancial Snapshot Key Ratios
Particulars
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
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
Net Profit/LossTotal Income
INR mn INR mn
2013
p4
r4
2012
p3
r3
2011
p2
r2
2010
p1
r1

39
SAMPLEBusiness Highlights
Description News
Overview • Text
Awards and Recognitions • Text
Industries Served • Text

40
SAMPLE
• Text • Text
• Text• Text
TO
WS
Private: Foreign Company – Player 2 – SWOT Analysis (5/5)

41
•Introduction
•Market Overview
•Key Issues
•Trends
•Appendix

42
SAMPLEDirect Investments – Player 5
B1%
B2%
Total Investments – Sector-wise Overall Investments – Geography-wise
Financials
Industrials
Industrial Investments – Segment-wise
100%A1% A2% A3%
C1%
C2% Asia Pacific Developed Markets
Asia Pacific Emerging Markets
Commercial and Proffessional Services
Transportation
Capital Goods
Investment Snapshot
•Text

43
•Introduction
•Market Overview
•Key Issues
•Trends
•Appendix

44
SAMPLEStrategic Recommendation (3/3)
Improving Efficiency of Container Ports
Text TextText
Port Throughput
(TEU)
Text
Efficiency Specific Variables
for Ports
Resultant Output of
Container Traffic
Text TextText
Port Throughput
(TEU)
Text
Efficiency Specific Variables
for Terminals
Resultant Output of
Container Traffic
Text
• Text

45
Thank you for the attention
About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &
business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true
value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth
objectives.
Container Logistics (CFS & ICD) Market – India 2015 report is part of Netscribes’ Automotive
and Logistics Series.
For any queries or customized research requirements please contact:
Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is
not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior
permission is required for guidelines on reproduction.
Phone: +91 33 4064 6214
E-Mail: sales@netscribes.com

India Container Logistics Market Overview 2015

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie India Container Logistics Market Overview 2015

Ähnlich wie India Container Logistics Market Overview 2015 (20)

Mehr von Netscribes, Inc.

Mehr von Netscribes, Inc. (20)

India Container Logistics Market Overview 2015