Transcript APL India Overview - Quanta Consulting Inc

Transportation Opportunities & Challenges
3rd Annual India Trade Conference
David Noe – VP Sales, Marketing & Customer Support
Presentation Overview
 Brief India Overview
 India Growth Sectors
 APL India Overview
 India Ports, CFS and ICD locations
 Innovation:
 Questions & Answers
High Level Points of Interest
 India’s 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 -
Welcome to India
Second fastest growing economy in the world.
Mumbai
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.
Kolkata
Large domestic market and is less dependent on
export markets which form less than 15% of India’s
GDP.
Taj Mahal
New Delhi
APL was the pioneer in introducing containerisation
in India way back in 1973.
Chennai
We continue to be a leading carrier in the
Transpacific and Intra Asia trades to and from India.
Lotus Temple
3rd Largest Economy in the World by 2032
India's GDP
GDP
30
27
(In US$ trillion)
25
20
15
10
10
6
5
0.7
1
2
3
0
2005
2011
2020
2025
2032
2038
2050
Year
In terms of GDP, India will overtake:
Italy by
2016
France by
2019
UK by
2022
Germany by
2023
Japan by
2032
SOURCE IMA
India – Growth Sectors & Industries
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
Automobiles & Auto Parts
Source : SIAM
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
APL India Overview
10
Ludhiana
Loni
New Delhi
Kathmandu
Jaipur
Kanpur
Jodhpur
Indore
Kandla
Veraval
Ahmedabad
Kolkatta
Mumbai
Pune
Nagpur
Vizag
Marmagoa
Hyderabad
Mangalore
Bangalore
Cochin
Tuticorin
APL OFFICES IN INDIA
Global Perspective – APL Network
Exports in FEUs
Country
2,008
2,009
YTD P5,2010
USA
422,736
360,925
166,415
N. CHINA
357,300
325,219
158,090
S. CHINA
307,867
285,429
140,411
JAPAN
126,640
106,163
61,035
INDIA
119,350
105,441
53,450
2,461,381
2,287,971
1,126,127
2,008
2,009
YTD P5,2010
USA
562,385
492,376
242,647
INDIA
119,077
125,624
56,748
JAPAN
120,310
120,146
65,924
UAE
126,059
113,943
51,410
83,736
94,439
54,088
2,461,381
2,287,971
1,126,127
Total
Imports in FEUs
Country
N. CHINA
Total
• 5th largest export country in 2010
• 3rd largest import country in 2010
Ports & Inland ICD
13
Indian Port Overview
•Kandla
•Mundra
•Kolkatta
•Haldia
•Mumbai
•JNPT
•Murmagao
•Vishakapatnam
•New Mangalore
•Cochin
•Chennai
•Tuticorin
Volumes in thousands of TEUs for 2008
MUMBAI/NHAVASHEVA
4,163
CHENNAI
1,187
MUNDRA
840
TUTICORIN
455
MUMBAI
219
COCHIN
185
KANDLA
181
KOLKATTA
308
HALDIA
147
PIPAVAV
195
VISHAKAPATNAM
65
MURMAGOA
10
NEW MANGALORE
25
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.
North India ICD locations
Ludhiana
LONI
Panipat
Moradabad
Delhi
Jaipur
Jodhpur
Kanpur
•Mundra
Nhavasheva
- Location
- Ports
South India ICD locations
Vishakapatnam
Hyderabad
Bangalore
Mangalore
Chennai
Tirupur
Cochin
Tuticorin
Colombo
- Location
- Ports
East India ICD locations
Kathmandu
Birganj
Biratnagar
Guwahti
Kolkata
Haldia
- Location
- Ports
Operational and Financial Summary
 CFS (Port)
 ICD (Inland)
 CFS nominated by APL
 Movement by rail controlled
by APL for Imports. For
exports can be either APL or
shipper. Tax implications.
 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
 Customs Clearance at ICD
 Storage and LoLo charged
direct to consignee by ICD
 Even more impressive
growth as the network
expands to meet demand
INDIALINX : Overview on Rail service
20
Why APL Developed
 Extension 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.
Rail 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 northwest corridor is 1300 km.
Mundra
Pipavav
VIZAG
Nava Sheva
Tuticorin
• Transportation by rail
expected to grow to from
current level of 1.8 million
to 5 million TEUs by 2015.
Future Network and volumes (2015): Organic Growth
LUDHIANA
PANIPAT
LONI
ACTL
 Trains : 23
RUDRAPUR
INDORE
Kandla
KOLKATA
•Mundra
NAGPUR
•Pipavav
Kalamboli
•Nava Sheva
HYDERABAD
CHENNAI
COCHIN
•Tuticorin
•VIZAG
 Rail Volumes:
217,000 Teus
 International : 88%
 Domestic: 12%
APL IndiaLinx – A New Industry Standard for Many Carriers
 Hapag-Lloyd
 NYK
 OOCL
 Evergreen
 HMM
 UASC
 MOL
 Emirates
 K-Line
 Yang Ming
Thank You!