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Transportation Opportunities & Challenges 3 rd Annual India Trade Conference David Noe – VP Sales, Marketing & Customer Support. Presentation Overview. Brief India Overview India Growth Sectors APL India Overview India Ports, CFS and ICD locations Innovation: Questions & Answers.
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Transportation Opportunities & Challenges3rd Annual India Trade ConferenceDavid Noe – VP Sales, Marketing & Customer Support
Presentation Overview • Brief India Overview • India Growth Sectors • APL India Overview • India Ports, CFS and ICD locations • Innovation: • Questions & Answers
High Level Points of Interest • India’s power as a major international player in services, manufacturing and exports continues to grow • With improved per capita Gross Domestic Product, the consumer markets in India continue to expand dramatically • Opportunities for importers and exporters continue to diversify – and the ocean carrier and logistics community is well positioned to greet the expansion • APL has had a presence in India for decades and we are a major service innovator -
Welcome to India Taj Mahal Chennai Mumbai New Delhi Kolkata Lotus Temple Second fastest growing economy in the world. GDP growth has consistently been close to 9% over the last 3 years and even during the current crisis still managed a healthy 6% growth. Large domestic market and is less dependent on export markets which form less than 15% of India’s GDP. APL was the pioneer in introducing containerisation in India way back in 1973. We continue to be a leading carrier in the Transpacific and Intra Asia trades to and from India.
3rd Largest Economy in the World by 2032 In terms of GDP, India will overtake: Italy by 2016 France by 2019 UK by 2022 Germany by 2023 Japan by 2032 SOURCE IMA
Textiles/Garments • Contributes US$21 billion – 12% of exports and 14% of industrial production • Employs over 35 million and targeted to create 15 million new jobs by 2015 • Projected investment in next 5 years is US$30B and India allows 100% FDI in textiles • Garment exports to USA at US$2.8B while to EU zone at US$6B • Yuan appreciation to benefit Indian exporters Sources: AEPC, FICCI
Automobiles & Auto Parts Source : SIAM
White Goods/Home Appliances • Estimated market size of $40 Billion and projected average growth rate of 20% through 2012 • Replacement cycle of 9-12 years is now down to 4-5 years • Direct Tax Code expected to spur consumer demand • Rural market accounts for 40% and growing faster than Urban demand • Foreign brands dominate over 70% of Indian Home Appliances market – huge import/export opportunity Source : Assocham, IBEF
APL India Overview 10 10
Ludhiana Loni New Delhi Kathmandu Jaipur Kanpur Jodhpur Indore Kandla Veraval Ahmedabad Kolkatta Mumbai Pune Nagpur Vizag Marmagoa Hyderabad Mangalore Bangalore Cochin Tuticorin APL OFFICES IN INDIA
Global Perspective – APL Network • 5th largest export country in 2010 • 3rd largest import country in 2010
Ports & Inland ICD 13 13
MUMBAI/NHAVASHEVA 4,163 CHENNAI 1,187 MUNDRA 840 TUTICORIN 455 MUMBAI 219 COCHIN 185 KANDLA 181 KOLKATTA 308 HALDIA 147 PIPAVAV 195 VISHAKAPATNAM 65 MURMAGOA 10 NEW MANGALORE 25 • Kandla • Mundra • Kolkatta • Haldia • Mumbai • JNPT • Vishakapatnam • Murmagao • New Mangalore • Chennai • Cochin • Tuticorin Indian Port Overview Volumes in thousands of TEUs for 2008
ICDs & CFSs • An ICD (Inland Container Depot) or CFS (Container Freight Station) may be defined as a common user facility offering services for handling and temporary storage of import/export laden and empty containers carried under Customs control and with Customs and other Agencies competent to clear goods. Generally: • An ICD is located in the interior of the country away from the gateway port, whereas, • A CFS is an off dock facility located near the gateway port which helps in decongesting the port by shifting cargo and customs related activities outside the port area. • The inbound containers need to move from ports to CFSs from where they are delivered. • Customs permit direct delivery from port CY, only to ACP (Accredited Customer Programme) customers. • FUNCTIONS OF ICDs/CFSs • Receipt and dispatch/delivery of cargo • Stuffing and stripping of containers • Customs clearance • Transit operations by rail/road to and from gateway ports • Consolidation and desegregation of LCL cargo. • Temporary storage of cargo and containers • Reworking of containers • Maintenance and repair of container units.
North India ICD locations - Location - Ports Ludhiana Moradabad LONI Delhi Jaipur Jodhpur Kanpur Nhavasheva Panipat • Mundra
- Location - Ports Vishakapatnam Hyderabad Bangalore Chennai Mangalore Tirupur Cochin Tuticorin Colombo South India ICD locations
- Location East India ICD locations - Ports Kolkata Kathmandu Haldia Birganj Biratnagar Guwahti
CFS (Port) CFS nominated by APL Ctr moved by CFS to depot Customs Clearance at CFS Storage and LoLo charged direct to consignee by CFS Continued growth expected as the Indian economy expands ICD (Inland) Movement by rail controlled by APL for Imports. For exports can be either APL or shipper. Tax implications. Customs Clearance at ICD Storage and LoLo charged direct to consignee by ICD Even more impressive growth as the network expands to meet demand Operational and Financial Summary
Why APL Developed • Extension of APL’s Liner service: Given the infrastructural constraints in India, it is critical to have control over choke points to ensure delivery certainties. • Improved Reliability for our Customers: APL has greater asset and operational control – making customers better able to plan and work their supply chains including Indian manufacturing capabilities.
Rail Movement Critical for north-Indian Hinterland • Ports on the west coast handle around 70% of India’s container traffic. • North Indian hinterland contributes to about 75% of the containers moving through Indian ports. • Avg. distance covered by a container on the north-west corridor is 1300 km. • Transportation by rail expected to grow to from current level of 1.8 million to 5 million TEUs by 2015. Mundra Pipavav VIZAG Nava Sheva Tuticorin
Trains : 23 Rail Volumes: 217,000 Teus International : 88% Domestic: 12% Future Network and volumes (2015): Organic Growth LUDHIANA LONI PANIPAT ACTL RUDRAPUR INDORE Kandla KOLKATA • Mundra NAGPUR • Pipavav Kalamboli • VIZAG • Nava Sheva HYDERABAD CHENNAI COCHIN • Tuticorin
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