Presentation on theme: "Transportation Opportunities & Challenges 3rd Annual India Trade Conference David Noe – VP Sales, Marketing & Customer Support This slide deck is a template."— Presentation transcript:
1Transportation Opportunities & Challenges 3rd Annual India Trade Conference David Noe – VP Sales, Marketing & Customer SupportThis slide deck is a template for presenting to customers and prospects. Please edit and remove slides based on needs and requirements of the meeting and the audience.
2India Ports, CFS and ICD locations Innovation: Questions & Answers Presentation OverviewBrief India OverviewIndia Growth SectorsAPL India OverviewIndia Ports, CFS and ICD locationsInnovation:Questions & Answers
3High Level Points of Interest India’s power as a major international player in services, manufacturing and exports continues to growWith improved per capita Gross Domestic Product, the consumer markets in India continue to expand dramaticallyOpportunities for importers and exporters continue to diversify – and the ocean carrier and logistics community is well positioned to greet the expansionAPL has had a presence in India for decades and we are a major service innovator -
4Welcome to India Second fastest growing economy in the world. KolkataLotus TempleTaj MahalChennaiNew DelhiMumbaiSecond 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.
53rd Largest Economy in the World by 2032 In terms of GDP, India will overtake: Italy by France by UK by Germany by Japan by 2032SOURCE IMA
7Textiles/GarmentsContributes US$21 billion – 12% of exports and 14% of industrial productionEmploys over 35 million and targeted to create 15 million new jobs by 2015Projected investment in next 5 years is US$30B and India allows 100% FDI in textilesGarment exports to USA at US$2.8B while to EU zone at US$6BYuan appreciation to benefit Indian exportersSources: AEPC, FICCI
9White Goods/Home Appliances Estimated market size of $40 Billion and projected average growth rate of 20% through 2012Replacement cycle of 9-12 years is now down to 4-5 yearsDirect Tax Code expected to spur consumer demandRural market accounts for 40% and growing faster than Urban demandForeign brands dominate over 70% of Indian Home Appliances market – huge import/export opportunitySource : Assocham, IBEF
11APL OFFICES IN INDIA Ludhiana Loni New Delhi Kathmandu Jaipur Kanpur JodhpurIndoreKandlaVeravalAhmedabadKolkattaNagpurMumbaiPuneVizagHyderabadMarmagoaMangaloreBangaloreCochinTuticorinAPL OFFICES IN INDIA
12Global Perspective – APL Network Exports in FEUsCountry2,0082,009YTD P5,2010USA422,736360,925166,415N. CHINA357,300325,219158,090S. CHINA307,867285,429140,411JAPAN126,640106,16361,035INDIA119,350105,44153,450Total2,461,3812,287,9711,126,127Imports in FEUs562,385492,376242,647119,077125,62456,748120,310120,14665,924UAE126,059113,94351,41083,73694,43954,0885th largest export country in 20103rd largest import country in 2010
14Indian Port Overview Volumes in thousands of TEUs for 2008 MUMBAI/NHAVASHEVA 4,163CHENNAI 1,187MUNDRATUTICORINMUMBAICOCHINKANDLAKOLKATTAHALDIAPIPAVAVVISHAKAPATNAMMURMAGOANEW MANGALOREHaldiaJNPTChennaiMumbaiMurmagaoNew MangaloreCochinTuticorinMundraKolkattaVishakapatnamKandlaVolumes in thousands of TEUs for 2008
15ICDs & CFSsAn 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/CFSsReceipt and dispatch/delivery of cargoStuffing and stripping of containersCustoms clearanceTransit operations by rail/road to and from gateway portsConsolidation and desegregation of LCL cargo.Temporary storage of cargo and containersReworking of containersMaintenance and repair of container units.
16North India ICD locations JodhpurLudhianaMoradabadKanpurDelhiJaipurPanipatLONIMundra- Location- PortsNhavasheva
17South India ICD locations ColomboTirupurBangaloreHyderabadVishakapatnamChennaiMangaloreCochinTuticorin- Location- Ports
18East India ICD locations BiratnagarBirganjKathmanduKolkataHaldia- Location- PortsEast India ICD locationsGuwahti
19Operational and Financial Summary CFS (Port)CFS nominated by APLCtr moved by CFS to depotCustoms Clearance at CFSStorage and LoLo charged direct to consignee by CFSContinued growth expected as the Indian economy expandsICD (Inland)Movement by rail controlled by APL for Imports. For exports can be either APL or shipper. Tax implications.Customs Clearance at ICDStorage and LoLo charged direct to consignee by ICDEven more impressive growth as the network expands to meet demand
21Why APL DevelopedExtension 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.
22Rail 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.MundraPipavavVIZAGNava ShevaTuticorin