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Transportation Opportunities & Challenges 3 rd Annual India Trade Conference David Noe – VP Sales, Marketing & Customer Support.

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Presentation on theme: "Transportation Opportunities & Challenges 3 rd Annual India Trade Conference David Noe – VP Sales, Marketing & Customer Support."— Presentation transcript:

1 Transportation Opportunities & Challenges 3 rd Annual India Trade Conference David Noe – VP Sales, Marketing & Customer Support

2 Brief India Overview India Growth Sectors APL India Overview India Ports, CFS and ICD locations Innovation: Questions & Answers Presentation Overview

3 Indias 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 - High Level Points of Interest

4 Welcome to India Chennai New Delhi Mumbai Kolkata Lotus Temple Taj Mahal 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 Indias 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.

5 3rd Largest Economy in the World by 2032 In terms of GDP, India will overtake: Italy by 2016 France by2019 UK by 2022 Germany by2023 Japan by 2032 SOURCE IMA

6 India – Growth Sectors & Industries

7 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

8 Automobiles & Auto Parts Source : SIAM

9 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

10 10 APL India Overview 10

11 Mumbai Nagpur Marmagoa Mangalore Cochin Ahmedabad Kandla New Delhi Ludhiana Jaipur Jodhpur Loni Kathmandu Kanpur Indore Veraval Kolkatta Pune Vizag Hyderabad Bangalore Tuticorin APL OFFICES IN INDIA

12 Global Perspective – APL Network 5 th largest export country in 2010 3 rd largest import country in 2010 Exports in FEUs Country2,0082,009YTD P5,2010 USA422,736360,925166,415 N. CHINA357,300325,219158,090 S. CHINA307,867285,429140,411 JAPAN126,640106,16361,035 INDIA119,350105,44153,450 Total2,461,3812,287,9711,126,127 Imports in FEUs Country2,0082,009YTD P5,2010 USA562,385492,376242,647 INDIA119,077125,62456,748 JAPAN120,310120,14665,924 UAE126,059113,94351,410 N. CHINA83,73694,43954,088 Total2,461,3812,287,9711,126,127

13 13 Ports & Inland ICD 13

14 Indian Port Overview Haldia JNPT Chennai Mumbai Murmagao New Mangalore Cochin Tuticorin Mundra Kolkatta Vishakapatnam Kandla MUMBAI/NHAVASHEVA 4,163 CHENNAI1,187 MUNDRA 840 TUTICORIN 455 MUMBAI 219 COCHIN 185 KANDLA 181 KOLKATTA 308 HALDIA 147 PIPAVAV 195 VISHAKAPATNAM 65 MURMAGOA 10 NEW MANGALORE 25 Volumes in thousands of TEUs for 2008

15 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.

16 Nhavasheva Jodhpur Ludhiana Moradabad Kanpur Delhi Jaipur Panipat LONI - Location - Ports North India ICD locations Mundra

17 Colombo Tirupur Bangalore Hyderabad Vishakapatnam Chennai Mangalore Cochin Tuticorin - Location - Ports South India ICD locations

18 Biratnagar Birganj Kathmandu Kolkata Haldia - Location - Ports East India ICD locations Guwahti

19 Operational and Financial Summary 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

20 20 INDIALINX : Overview on Rail service 20

21 Why APL Developed Extension of APLs 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.

22 Rail Movement Critical for north-Indian Hinterland Ports on the west coast handle around 70% of Indias 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. Tuticorin VIZAG Nava Sheva Mundra Pipavav

23 Future Network and volumes (2015): Organic Growth Tuticorin VIZAG Nava Sheva Mundra Pipavav LONI ACTL LUDHIANA RUDRAPUR NAGPUR HYDERABAD Kalamboli KOLKATA INDORE CHENNAI COCHIN Kandla PANIPAT Trains : 23 Rail Volumes: 217,000 Teus International : 88% Domestic: 12%

24 APL IndiaLinx – A New Industry Standard for Many Carriers Hapag-Lloyd NYK OOCL Evergreen HMM UASC MOL Emirates K-Line Yang Ming

25 Thank You!

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