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
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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CONTAINER LOGISTICS (CFS & ICD) – INDIA.PPT 8