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PRESENTATION ON LOGISTICS K.U.THANKACHEN CONTAINER CORPORATION OF INDIA LTD.

INDIA- SOME BASIC FACTS Land Area: 3,287,590 sq.km Population :1.23 billion (2 nd highest); Median Age 27 years World’s largest democracy GDP nominal : 1.84 trillion USD Ranked fourth in terms of GDP Purchasing Power Parity (USD trillion) GDP per capita : USD 3800 Services contribute to two-third (65%) of India’s GDP 3

INDIA-FOREIGN TRADE EXPORTS- USD 302 BILLION Petroleum products Precious stones Textiles Agricultural Products Chemicals Vehicles Engineering Goods IMPORTS- USD 503 BILLION Crude Oil Precious stones Machinery Fertilisers Iron & Steel Chemicals 4

INDIAN ECONOMY  Average Growth Rate of 7%. GDP growth rate declined to 5% in as against 10.5% in  Nominal GDP growth of 9% expected- to grow from current USD 1.8 trillion to USD 3.6 trillion by  Huge upsurge predicted in crude steel production,cement,agricultural output, textiles, organiized retail,energy consumption, etc.  Logistics costs high- 13% of GDP  Critical need felt for upgradation of logistics infrastructure 5

KEY TRENDS IN ECONOMY India is moving towards a manufacturing and services led economy Growing migration towards urban centres New industrial clusters under development Enhanced sophistication in warehousing, distribution and logistics Increasingly skewed modal mix 6

MAJOR LOGISTICS ELEMENTS AIR CARGO RAIL ROAD PORTS INLAND WATERWAYS COASTAL SHIPPING 7

AIR CARGO Constitutes 1% of total trade, but accounts for 29% in terms of trade value Open sky policy adopted by GOI in 1990s, wherein domestic and foreign carriers can operate scheduled / nonscheduled cargo services between all airports Indian airports handled 2.7 MMT of air cargo in Delhi and Mumbai airports collectively handle 50% of Air Cargo CAGR of 11.5% in past 5 years. Forecasted CAGR of 10.3% upto

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AIR CARGO PROSPECTS Growth drivers – Increasing domestic demand, Low cost airlines, enhanced connectivity Emergence of air cargo centres in Tier II cities- Nagpur, Amritsar, Jaipur Attractive for third party logistics (3PL) service providers Attractive for freight forwarders Scope for enhanced air cargo infrastructure at airports Increasing privatisation of airports 10

PORTS India has a long coastline spanning over 7,500 kms. Has 13 major ports and 176 non-major ports Indian ports account for 90% by volume and 70% by value of India’s external trade Growth in port traffic from 368 MMT in to 898 MMT in with CAGR of 8.5% Cargo traffic expected to grow at 8%; 2500 MMT expected by 2020 Maritime Agenda aims to enhance investment in port sector. GOI has plans to invest INR 2,870 billion in port sector 11

TRAFFIC PROJECTIONS- INDIAN PORTS 12

CONTAINERISATION Containerisation levels in India still low at 51% in comparison to developed countries (70-80 per cent) CAGR of 12% in EXIM container traffic in India in the past 5 years Growth in container traffic projected on account of : Containerisation of bulk commodities (steel, cement, rice, sugar) Development of dedicated freight corridor and Delhi-Mumbai Industrial corridor Healthy growth prospects for commodities carried in containers Development of new container terminals and logistics parks 13

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RAIL Largest rail network in Asia and the second largest in the world (behind U.S) Rail network spans 64,456 kms. & more than 7,133 railway stations Indian Railways operates 19,000 trains daily, transporting 2.65 MMTs of freight and 23 million passengers across the country Rail freight growing at 7% annually, crossing 1 billion ton mark in Share in total freight movement vis-à-vis road is 31% only as against 89% in

RAIL FREIGHT TRAFFIC 17

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RAIL- Dedicated Freight Corridor 19

ROADS Network spread over 4.7 million kms. National Highways constitute only 2% Roads account for 60% of total freight movement in the country Road freight growing by 9.14% annually,touching 1,250 billion tonne kms. In Expected to grow by CAGR of 9.6% Under National Highways Development Programme, 50,000 kms of Highways being developed in seven phases at investment of INR 3000 billion. Unorganised transport sector 20

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WAREHOUSING Warehousing market size expected to grow at CAGR of 16-18%. Demand for modern industrial warehousing expected to grow exponentially Drivers: –Rising domestic and EXIM freight volumes –Increased outsourcing to 3 PL players –Strengthened investment in infrastructure –Organised retail –Implementation of Goods and Services Tax (GST) 22

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CONTAINER CORPORATION OF INDIA LTD. Leading multimodal logistics professionals in India Incorporated in March, 1988 as a Public Sector Undertaking under the Ministry of Railways Large network of 63 container terminals across India for handling international and domestic cargoes Operates primarily as a carrier, terminal operator and warehouse operator for containerised cargoes

CONCOR’s MISSION “Our mission is to join with our community partners and stake holders to make CONCOR a company of outstanding quality. We do this by providing responsive, cost effective, efficient and reliable logistics solutions to our customers through synergy with our community partners and ensuring profitability and growth. We strive to be the first choice for our customers. We will be firmly committed to our social responsibility and prove worthy of trust reposed in us.” 25

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27 CONCOR’s FUNCTIONS Logistics support to EXIM & Domestic Industry Designs, Constructs, and operates Dry Ports (ICDs) & Domestic Terminals – currently operating 63 terminals including 48 ICDs/Dry Ports Coordinates pan India Containerized Rail Movements with first-last mile road bridging Over 30 million tonnes moved by rail over an avg lead of 1000 kms, cuts down CO 2 emissions by over One Million tonnes per annum Operates Port terminals in collaboration with International Port Operators.

28 SERVICES PROVIDED AT CONCOR TERMINALS Train Handling Container Handling and Storage Single Window facility hosting all agencies such as Customs, Shipping Lines, Customs House Agents, Freight Forwarders, Transporters under one roof Warehousing of cargo (Transit, Bonded, LCL etc) Associated Value Added Services – Palletisation, Fumigation Door to Door Solutions Also handle railway wagons in select locations

Rail yard- Operations (ICD-Tughlakabad)

Container Stack Yard (ICD-Dadri) 30

Warehouse (ICD-Dadri) 31

Warehouse – Inside View 32

33 TRENDS IN BUSINESS HANDLING OF CONTAINERS IN TWENTY FEET EQUIVALENT UNITS (TEUS)

34 CONCOR’s REVENUES

35 DETAILS OF MOVABLE ASSETS No of Container Rakes ~ 270 No of Containers (Domestic) ~ No of Gantry Cranes – 14 No Reach Stackers – 53 Company is procuring around 1300 High Speed wagons from IR workshops every year We are also in the process of acquiring five Gantry Cranes and special purpose containers

DIVERSIFIED PORTFOLIO Air Cargo Services Cold Chain- Contolled Atmosphere Stores Transportation of Reefer containers Auto Car Logistics Multimodal Logistics Parks Participation in Port Projects Private Freight Terminals Perishable Cargo Centres Third Party Logistics 36

MULTIMODAL LOGISTICS PARKS (MMLPs) MMLPs being established for Rail access for container trains for movement in both EXIM and Domestic sectors. Access to Indian Railway freight wagons for loading/unloading of bulk cargo under the PFT policy. MMLPs to have Inland Container Depot – Dry Port Domestic Container Terminal facilities Railway Goods shed facilties incl Railside Warehousing Specialised Warehousing –Transit –Bonded –Cold Chain etc

38 THANK YOU