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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
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•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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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•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
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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•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
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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•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
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
Note: MMT: million metric ton
SAMPLE
18
•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
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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)
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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•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
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
• Text
SAMPLE
28
•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
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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)
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
Public: Domestic Company – Player 1 (2/5)
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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
Public: Domestic Company – Player 1 (3/5)
%
2014 2013 2012 2010
India
Europe Far East
America
Mediterranean
Africa
Australia & New Zealand
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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SAMPLE Business Highlights (2/2)
Public: Domestic Company – Player 1 (4/5)
Description News
Extensive Product Portfolio
• Text
Awards and Recognitions • Text
Acquisitions • Text
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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SAMPLE
• Text • Text
• Text
• Text
T O
W S
Public: Domestic Company – Player 1 – SWOT Analysis (5/5)
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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)
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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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
Private: Foreign Company – Player 2 (3/5)
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SAMPLE Business Highlights
Description News
Overview • Text
Awards and Recognitions • Text
Industries Served • Text
Private: Foreign Company – Player 2 (4/5)
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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SAMPLE
• Text • Text
• Text • Text
T O
W S
Private: Foreign Company – Player 2 – SWOT Analysis (5/5)
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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•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
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
•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
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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
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT
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