The container logistics market in India, which includes container freight stations (CFS) and inland container depots (ICD), was estimated to be worth XX billion INR in 2008 and is projected to reach YY billion INR by 2013. CFS facilities handle b% of containerized cargo while ICDs handle a%. These facilities provide consolidation and distribution of cargo as well as customs clearance. Their development has benefited importers/exporters through lower inventory costs and port authorities through increased productivity. However, the high initial costs required and outdated procedures present challenges to growth.

1. Container Logistics (CFS & ICD) – India
March 2009

2. Executive Summary
Estimated worth INR XX bn in 2008 & INR YY bn in 2013
Market ICD: Handles a% of containerized cargo
CFS: Handles b% of containerized cargo
Provides various services : Cargo consolidation, distribution as well as custom clearance activities
LE
ICD/CFS facilities are beneficial for importers/exporters as well as for port authorities
Benefits &
Inter-Ministerial Committee (IMC) is the regulatory authority monitoring the growth of CFS/ICD
Set-up
Requirements
MP
All the proposals are considered by the Inter-Ministerial Committee
Proposals submitted should include feasibility report, Land requirements, Design and lay-out,
Drivers &
A
Equipping the facility
S
Drivers: Growth in port traffic, custom clearance activities, high profit margins in comparison to
other activities in the value chain, and the construction of dedicated freight corridor
Challenges Challenges: High costs entailed for the development of a facility, archaic procedures for the
movement of containerized cargo
X is the largest player in the market and is a government owned establishment
The number of private players entering the market has been rising due to the market scenario
Competition –Y
–Z
CONTAINER LOGISTICS (CFS & ICD) – INDIA.PPT 2

3. •Market Overview
•ICD/CFS - Functions and Benefits
•Set-up Requirements
•Drivers & Challenges
•Competition
•Key Developments
CONTAINER LOGISTICS (CFS & ICD) – INDIA.PPT 3

4. Demand for ICD/CFS facilities increasing with the rising
international trade scenario
ICD and CFS Market Size
•ICD/CFS market estimated worth INR XX bn in INR bn
2008 150 a% Z
•ICD/CFS facilities have been rising due to X
Y
increase in port traffic and containerization level 100 V W
LE
U
in India
50
MP
•CFS accounts for b% of the container load while
ICD accounts for a% 0
2008 2009 2010 2011 2012 2013
A
•ICD/CFS act as transit facilities
exported S
•It offers handling and temporary storage services
for containerized cargo being imported and
Less than container load – Cargo arriving from
Difference between ICD and CFS
ICD
Location
CFS
In the interiors, away It is an off dock facility located near
different consignors; has to be stuffed/de-stuffed from the servicing ports the servicing ports
into/from containers
Function
Full container load – Containers that are stuffed in
Largely deals with full Deals with break-bulk cargo
factories and are ready to be shipped container load which is originating/terminating in the
•These establishments also act as a custom aggregated for onward immediate hinterland of a port;
movement to or from the also serves as a destination for
clearance hub ports custom related activities
Source:
CONTAINER LOGISTICS (CFS & ICD) – INDIA.PPT 4

5. The development of ICD/CFS has benefited players in the
industry, importers and exporters as well as port authorities
Port authority receiving ready-
to-load containers hiking ports
productivity and profitability
Allows exporters and Linkage to the port by rail
importers to lower inventory resulting in quick transit and
costs Exporter/Importer, low transportation cost
Custom house
agent, shipping
companies use
ICD/CFS facilities
Owned and operated by a public
Consolidation of cargo has made
or private company, provides
it a logistics hub for LCL cargo
services at competitive rates
CONTAINER LOGISTICS (CFS & ICD) – INDIA.PPT 5

6. Drivers & Challenges
Drivers Challenges
Growth in Port Traffic High costs for the development of a
facility
Custom clearance activities in ICD/CFS Archaic procedures for the movement
of cargo
Higher margins in comparison with
other logistics activities
Construction of dedicated freight
corridor
CONTAINER LOGISTICS (CFS & ICD) – INDIA.PPT 6

7. Company Snapshot : A (1/2)
Corporate Information Financial Performance
Headquarters B Revenue Revenue Profit
INR mn Profit / Loss INR mn
Employees C
4,000 X 600
Services MTO, cargo handling, airfreight, V
3,000
LE
transport logistics, equipment hiring, U W 400
oil rig & supply vessels management 2,000
P
200
Key People • U (Chairman &MD) 1,000
M
• V ( Executive Director) 0 0
2004-05 05-06 06-07 07-08
Business Highlights
• In 20-- vis-à-vis 20--
CFS throughput increased by a% SA
CFS margins expanded to b% led by an increase in dwell
Revenue breakdown
b% CFS
c% Others
time at A and B port
CFS division registered a growth of c% due to increased MTO
traffic in B and C port
• CFS segment accounts for <x% of sales but
contributes ~y% of EBIT
• Heavy operating expenses in the MTO segment, high a%
employee costs due to recent acquisitions has led to
lower EBIT margins
Source:
CONTAINER LOGISTICS (CFS & ICD) – INDIA.PPT 7

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