market research report : container logistics (cfs & icd) market in india 2015 - sample

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

4

SAMPLE Macroeconomic Indicators (1/3)

INR tn

c4

Q4

a4

Q3

b4

b2

c3

b1 c1

d1

Q1

c2

a2 a1

b3

Q2

a3

2014-15 2013-14 2012-13 2011-12

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

Oct 2013 - Nov 2013

t

%

Nov 2013 - Dec 2013 Aug 2013 - Sep 2013

q

Jul 2013 - Aug 2013

p s

Sep 2013 - Oct 2013

r


5


•Introduction

•Market Overview





•Key Issues

•Trends





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

d b

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





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%

2018e 2007 2017e 2016e 2013 2014e 2009 2011 2012 2008

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%

Rent Handling 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

b4 a4

Secondary Transport

b3

b1

a3

CFS and ICD

b2

a2

Primary Transport

a1

Market Size Profitability


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)

2013 2012 2011 2010 2009

Containerization Levels Others

B1%

B3% B2%

B5% B4%

Dry Bulk

Container

Liquid Bulk

Others

Break Bulk


15


•Introduction

•Market Overview





•Key Issues

•Trends





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%

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Minor Ports Major Ports


Note: MMT: million metric ton

SAMPLE

18


•Introduction

•Market Overview





•Key Issues

•Trends





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

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

INR mn

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

INR mn

FDI in Transport and Infrastructure, INR mn

Jan - Sep, 2013

Railway Related Components

Air Transport Construction of Roads and Highways Sea 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





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%

2013-14 2012-13 2011-12 2010-11 2009-10

X2%

2013-14 2012-13 2011-12 2010-11 2009-10

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 Cargo Containers Coal Iron Ore POL


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





29

SAMPLE Porter’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

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3)

Competitive Benchmarking (2/5)

b2 a2

Player 1

c1

b1 a1

a3

Player 2

b3

c2

%

Player 3

c3

Net Margin Operating Margin Gross 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

SAMPLE Financial 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 increase of -% over FY 2013

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/Loss Total 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

SAMPLE Key Business Segments Key Geographic Segments

Business Highlights (1/2)

Description News

Overview • Text

%

2014 2013 2012 2010

Others

Multimodal Transport Operations

Project & Engineering Solutions

Container Freight Stations


%

2014 2013 2012 2010

India

Europe Far 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

T O

W S

Public: Domestic Company – Player 1 – SWOT Analysis (5/5)


36

SAMPLE Private: 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

SAMPLE Ownership 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

SAMPLE Financial 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 increase of -% over FY 2012

• 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/Loss Total Income

INR mn INR mn

2013

p4

r4

2012

p3

r3

2011

p2

r2

2010

p1

r1



39

SAMPLE Business Highlights

Description News

Overview • Text

Awards and Recognitions • Text

Industries Served • Text



40

SAMPLE

• Text • Text

• Text • Text

T O

W S

Private: Foreign Company – Player 2 – SWOT Analysis (5/5)


41


•Introduction

•Market Overview





•Key Issues

•Trends





42

SAMPLE Direct 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





44

SAMPLE Strategic Recommendation (3/3)

Improving Efficiency of Container Ports

Text Text Text Port Throughput

(TEU) Text

Efficiency Specific Variables for Ports

Resultant Output of Container Traffic

Text Text Text Port Throughput

(TEU) Text

Efficiency Specific Variables for Terminals

Resultant Output of Container Traffic

Text

• Text


45

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market research report : container logistics (cfs & icd) market in india 2015 - sample

Documents

container haulage

logistics parks

investment opportunities

international trade

cargo consolidation

investments private

port sector prerequisite

exponential growth rate