1. Container Leasing - Catalyst to Growth
Presented by:
Captain Somesh Batra
Chairman
Marine Container Services (India) Pvt. Ltd. 1

2. Introduction Core Operating Areas What WE do Ship Agency
Container Repairs & Storage Depot Management
Port Representation
Total Freight Solutions & Distribution Systems
Chartering & COAs, Offshore
Ship Manning & Management
Port Captaincy & Cargo Supervision
NVOCC & Multimodal Transportation
Container Leasing

3. World Maritime Container Shipping Snapshot
Total number of container ships: 5,950+
Container capacity of these ships: 18 MN TEUs+
Order book: Ships
Container capacity of these ships: 3.6 MN TEUs+
Growth in %
2013
2014 (p)
GDP
3.2
3.4
Trade Volume
2.92
4.94
Container Shipping Volume
4.77
6.12
Source: Dynamar, IMF, Clarkson

4. Asia China Europe India America World Maritime WORLD 641 MN
Global Container Throughput 2013
WORLD
641 MN
America
Europe
Asia
China
India
Global Container port demand 800 MN TEUs per annum by 2017
Global Container market demand to 6 % per annum in

5. Kandla, Mundra, Pipavav, Hazira New Mangalore, Kochi, Mormugao,
India Maritime
Projected container handling capacity-2020
Total 33 MN TEUs
6.0
Upper West Coast
Upper East Coast
3.0
Kandla, Mundra, Pipavav, Hazira
12.3
1.2
Paradip, Haldia,
Kolkata, Dhamra,
Kulpi
Central West Coast
Mumbai, JNPT,
Dighi & Jaigardh
6.5
4.0
N. Sheva
4.60
Mundra
2.40
Chennai
1.40
Pipavav
0.70
Kolkata
0.60
Others
2.07
Total
11.77
Central East Coast
Vizag, Gangavaram,
and Krishnapatnam
Lower West Coast
Lower East Coast
New Mangalore, Kochi, Mormugao,
Vizhinjam
Chennai, Ennore, Tuticorin

6. India The Growth Drivers FDI - PPP International & Regional Trade
Coastal Shipping - Domestic
Inland Waterways
Exports & Manufacturing
Logistics Parks
Dedicated Freight Corridors
Efficient Food Supply Chain
New Ports & Container Terminals
The Growth Drivers

7. Container Leasing

8. Container Leasing A Necessity
50% of the world container fleet is owned or managed by Lessors
Lessors infuse Capital:
Allowing lessees use their resources for core activity i.e.:
Purchase of assets like Ships, Wagons, Trucks, Terminal, CFS, Infrastructure requirements Etc.
Provides logistics & operational flexibility to Lessees
Lessors assist during seasonal peaks( & troughs) , unplanned moves, additional surge in business & unforeseen Logistics bottlenecks like congestion
Ensure High International Technical, Safety & Maintenance Standards with well trained M&R professionals in Depots Worldwide

9. Container Leasing Classifications of Leases
2 - Major
Classification
(1) Finance Like a hire purchase scheme wherein containers can be ordered to Lessee specifications & ownership transferred to Lessee at the end of a 3 to 10 year term
(2) Operation
Long Term Lease
Master Lease
Minimum Days Lease
Short Term Lease
Round Trip
One Ways
Leases can be tailor-made to Lessee’s requirements

10. Container Leasing Global Container Fleet & Lessors’ Share (MN TEUs)
Source: Dynamar & World Cargo News

11. Container Leasing
Top 10 International Lessors – Inventory in ‘000 TEUs
BOX LESSOR
2011
2012
2013 1
TEXTAINER
2,470
2,775
3,040 2
TRITON
1,855
2,060
2,200 3
TAL
1,625
1,935
2,050 4
FLORENS
1,775
1,900 5
SEA CUBE
930
1,225
1,300 6
SEACO
990
1,095
1,190 7
CAI
1,060
1,150 8
CRONOS
725
810
880 9
DONG FANG
495
485
555 10
TOUX
505
520
500
OTHERS
1,650
1,830
1,985
Lessor Total
13,950
15,650
16,750
Source: Dynamar & World Cargo News

12. Container Leasing Lessor Lessee Aspirations of Lessor & Lessee
Invests finance & capital to build High Quality Container Assets
Anticipate demand & ensure supply - continuous investment
Continuous investments in maintenance & repairs
Maintain younger fleet
Exercises stringent due diligence prior credit approval & lease of containers to Lessees
‘Time is of essence’ not only for payments but for repair approvals, pick ups, redeliveries etc..
Lessee
Expects quality containers for safe carriage & storage
Prompt supply & redelivery
Optimum per diem & costs
Promptness in responses
Excellent Service Quality

13. Container Leasing India - International Lease
Leases for Exim business or International boxes are for exclusive use in international waters
The lease rentals are payable in US Dollars
Shipping Lines, Logistic Companies & NVOCCs are active

14. Container Leasing

15. Container Leasing

16. Container Leasing

17. Container Leasing India - Domestic Lease or Domesticated Boxes
Customs Act:
Containers used for domestic transportation must be Customs Duty paid
“Bonded”, “in-transit” containers for use in the Domestic Tariff Area is prohibited by Law
Such usage could entail penal actions & payment of duties if discovered and is avoidable

18. Container Leasing COA IMO ISO WCO BIC CSC IICL
International Safety & Standards to be enforced fully
IICL
The Institute of International Container Lessors
COA
Container Owners Association
IMO
International Maritime Organization
ISO
International Organization for Standardization
WCO
World Customs Organization
BIC
Bureau International des Containers et du Transport Intermodal
CSC
Convention on Safety of Containers

19. Container Leasing
International Safety & Standards to be enforced fully
Implementation of International Conventions – CSC, & amendments thereto ( ACEP)
Ensuring only plated containers are used in intermodal supply chains to preserve safety of life & property
Ensuring Over The Road (OTR) restrictions & axle-limits are enforced
Enforcing Central Motor Vehicles Rule (CMVR) overall dimension limits on roadways

20. Container Leasing
International Safety & Standards to be enforced fully

21. Container Leasing
Challenge - Grey market ? ?
Be Warned…

22. Multiple Usages 22 22

23. Container Leasing..
Dry Vans Flat Racks
Open Top Reefers

24. Container Leasing Specials: Open Tops & Flat Racks
Over Dimensional Cargoes like Engineering Goods, Project Cargoes, Machinery, Glass Sheets etc. are carried in Specials
Defence Sector, Logistics players & Manufacturers can operate DOMESTICATED Special Containers for storage & transport…

25. Container Leasing
Reefers: Food Supply Chain

26. Container Leasing Tanks: for Liquids
Liquid Cargoes like Chemicals, Oil, Alcohol, Wine, Gas etc.. can be carried in Tank Containers
Chemical Manufacturers, Liquid Cargo Operators, Logistics Carriers
DOMESTICATED Tank Containers available for storage & transport while scarce capital can be used for other operational requirements

27. Container Leasing
Project accommodation offsite (factories, highways, SEZs)

28. Container Leasing
Accommodation/storage in CRZ, Hill areas & Ports/Airports

29. Container Leasing
Accommodation/storage in CRZ, Hill areas & Ports/Airports

30. Container Leasing
Storage & distribution of food-grains

31. Container Leasing
Accommodation units

32. Container Leasing
Accommodation units

33. Container Leasing
Food Stalls

34. Container Leasing
Food Stalls

35. Container Leasing
Food Stalls

36. Container Leasing
Reefer Storage

37. Container Leasing
Small Data Centers

38. Container Leasing
Moving Barges

39. Container Leasing
Counters

40. Container Leasing
Lunch Room

41. Container Leasing
Remote hospitals

42. Container Leasing
Bus Stops

43. Container Leasing
Mobile Washrooms – Swach Bharat

44. Container Leasing SCOPE & Potential for Domestic Movements
Coastal & Inland Waterways
New routes
Rail
Existing plus DMRC, Double Stack Trains
Road
New expressways & highways
Static Storage
Raw Materials, Finished Products
CFS
Transfer from Liner boxes into Domestic
Food Supply
Storage & Transport including cold & perishables in Reefer
Defence Sector
Carriage, Transport, Site Offices, Camps, Rapid Transport, Strategic Storage
Portable office
Portable Training Centre
Rooms/Shelters
Lunch Room / Electrical Room / Rest Room
Small Data Centre
ATMs & Banks in remote areas
Storage Rooms
Warehousing

45. … And many more
Opportunities!

46. Container Leasing - Catalyst to Growth
In a Nutshell
Containers can be used for a variety of purposes not just storage and transport
Example: Grain harvested directly into containers could be stored up to ‘5’ years, if the original moisture content is 12% or less. The containers prevent entry of moisture and insects and therefore the grain leaves the container in the same condition in which it was originally. *
Container Leasing stimulates growth and adds value
Shift of 5% cargo movement from road to coastal will save 1,300 crore rupees in fuel subsidy
The scope is as vast as one can imagine and implement!
Source:

47. THANK YOU Captain Somesh Batra someshbatra@seahorsegroup.co.in 47