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Container Logistics (CFS & ICD) Market India


February 2015

Executive Summary

Market

Container cargo traffic is expected to grow substantially at a CAGR of a% over the next five years owing to
revival in international trade scenario
CFS contributes to the maximum percentage of revenue in the container logistics market
Container logistics market comprises of Container Haulage, CFS and ICD and Multimodal Transport Operator
Provides various services : Cargo consolidation, distribution as well as custom clearance activities

Drivers

Drivers &
Challenges

Government
Initiatives

Challenges

Growth in International Trade


Growth in Containerized Cargo
Improvement in Custom Clearance Activities
Higher Margins in Comparison with Other
Logistics Activities
Construction of Dedicated Freight Corridor

Poor Infrastructure
Rise in Freight Costs
High Costs Entailed for the Development of
a Facility
Archaic Procedures for the Movement of
Containerized Cargo

FDI Regime Sectors Pertaining to the Logistics Industry


Maritime Agenda Vision 2020
Capacity Expansion and Investment Opportunities along
East Coast Ports
Shipbuilding Subsidy and Investments

Private Investment in Logistics Parks and FTWZs


Container Terminal Privatization
Investment Scenario at Major Ports
Projects in Progress at JN Port

Major Players

Competition

Player 1

Player 2

Player 3

Player 4

Player 5

Player 6

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Macroeconomic Indicators (1/3)

SAMPLE

GDP at Factor Cost: Quarterly


INR tn

c3
b3
a3

d1
c2
b2
a2

c1
b1
a1

Q1

Q2
2011-12

c4
b4
a4

2012-13

2013-14

Q3
2014-15

Q4

Inflation Rate: Monthly


%
p

r
q

t
Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Nov 2013 - Dec 2013


4

Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Logistics market in India has witnessed an exponential


growth rate over the past decade
Logistics Market Overview India

Logistic Market Size and Growth

Text

INR tn
+15.2%

x1

2013

x3

x2

2014e

2015e

x4

2016e

x6
x5

2017e

2018e

Logistics Performance Indicator


LPI score
World Rank(proportion to highest ranking nations)
m

2007

2010

2012

2014

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Rising containerization levels for handling break-bulk


commodities have increased Indias share in global markets
Container Traffic Scenario in India

Containerization Levels India vs. Global

Text

% growth
b

USA

China

Europe

India (2012-13)

Container Logistics Segments


Container
Logistics

Container
Haulage

CFS & ICD

Multimodal
Transport
Operator (MTO)

An Inland Container Depot (ICD) & Container Freight Station (CFS) may be defined as a common user facility with public authority status
equipped with fixed installations and offering services for handling and temporary storage of import/export laden and empty containers
carried under customs control
Note: ICD Inland container depot, CFS Container freight station, LCL Less than container load, FCL Full container load

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Indias container trade is estimated to cross 16 mn TEUs by


2016, with an expected shift in volume to the newer ports
Container Logistics Overview (1/2)
CFS and ICD market is an integral component of the logistics sector infrastructure
Growth in containerized cargo traffic has facilitated the development of container freight stations (CFS) and inland
container depots (ICDs)
CFS is largely unique to India and plays an important role in decongesting container traffic at ports, enhancing ports operating efficiency
ICDs, also known as dry ports, cater to hinterland cargo traffic from various clusters owing to increased industrial activity

The slowdown in Indias trade volume mostly affected the CFS & ICD market in the overall logistics sector mainly due to:
The large debt-funded infrastructure investment made in the sector
Rising competition

However, as predicted by recent economic and commerce scenario, the industry is expected to grow in the next five
years displaying a high single-digit growth rate on account of revival in international trade scenario post 2014-15

CFS and ICD Market Size & Growth (Volume-wise)


Container trade has been severely affected in 2013-14
with a growth of only about b%

mn TEU

X2%

X1%

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014e

2015e

2016e

2017e

2018e

Note: Market size corresponds to container cargo traffic at 15 major ports

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Export import activities are the major revenue contributors


to the container logistics market
Container Logistics Overview (2/2)
The CFS and ICD market was valued at INR c bn in 2012-13
CFS and ICD generate about their maximum revenue from import operations followed by ground handling and
transportation
The industry is however expected to grow in the next five years with the revival of trade scenario post 2013-14

CFS and ICD Revenue based Segmentation (2012-13)


Sources of Revenue CFS and ICD
ICD

CFS

Sources of Revenue Operations


Handling

Rent

Import

Export

C4%

B1%

C1%

C3%
C2%

B2%
Note: 100% = INR c bn
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

10

Inland Container Clusters Indian Cities


Major Container Hubs in India Hinterland

SAMPLE

Text

Legend

% contribution
to Exim

Cities

Text

Text

Text

Text

Note: The list is not exhaustive

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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Tapping opportunities in the Indian CFS and ICD market


Text

Exim Container Supply Chain in India Growth Opportunity


Profitability

Market Size

%
a5

b5

a2
b1
a1

a4

b2
a3

Primary Transport

CFS and ICD

b4

b3

Secondary Transport

Ports

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Ocean Transport
12

Container Logistics Infrastructure Current Scenario


Opportunity for Investors in Container Logistics across the Exim Supply Chain
Rail/road movement for containers

Customers

text

text

text

Shipping Lines

Scope of business for investors

Estimated Investment Future Scenario


Type of
Infrastructure

Estimated nos./
demand in next 510 years

INR bn
~ INR z bn
investment is
needed for
container logistics
infrastructure
by 2020

ICD/FTWZ
Air Cargo Centres
Agro Warehouses
Integrated
Transport Centres

ICD/FTWZ

Air Cargo
Centres

Agro
Warehouses

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Integrated
Transport
Centres
13

India is witnessing a transition from bulk cargo to


containerization of traditionally non containerized cargo
Text

Current Container Scenario in India


Containerization Penetration in India
Containerization Levels

Vessel Traffic, Major Ports (2012-13)

Others
B5%
Container

B4%

B1%

Dry Bulk
Liquid Bulk
Break Bulk
Others
2009

2010

2011

2012

B3%

B2%

2013

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

14

Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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Existence of IRS in container shipping industry enforces


competition in upstream and downstream industries
Growing Demand for Container Transport
Text

Reasons contributing to growing CFS and ICD

The
Container
Shipping
Market

Share of Container Traffic in Total Trade (2013-14)

Container
P.O.L

B5%

Iron Ore

Government Initiatives
Schemes to develop new airports in Tier I and Tier II
cities will be launched for implementation through
the Airport Authority of India or the PPP mode

Coal
Others

B4%
B3%
B2%

B1%

Note: Percentage share in tonnage for major ports only

Note: IRS Increasing Returns to Scale

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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Rapid growth of sea freight volumes are a major boost to


the development of CFS and ICD facilities
Development of Sea Freight
Sea Freight Market Size and Growth
Major Ports

Minor Ports

MMT
X%

2005

Text

2006

2007

2008

2009

2010

2011

2012

2013

2014

SAMPLE

Note: MMT: million metric ton

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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Investment in Logistics Infrastructure (1/3)


FDI Regime Sectors Pertaining to the Logistics Industry
FDI Equity Inflows over the Years

FDI in Logistics Sector

INR mn

INR mn

2008-09 2009-10 2010-11 2011-12 2012-13

2009-10

2010-11

2011-12

2012-13

FDI in Transport and Infrastructure, INR mn


Railway Related Components

Air Freight

Shipbuilding

Air Transport

Sea Transport

Construction of Roads and Highways

100% FDI is allowed


In maritime infrastructure such
as ports, terminals, jetties,
harbors and merchant
shipbuilding
Support infrastructure like
warehousing, CFS and ICD, roads,
inland water transport (IWT) and
other logistics components

Jan - Sep, 2013


CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

19

Rail and road connectivity projects to ports will provide a


rapid boost to container freight handling
Shipbuilding Subsidy and Investments
Text

SAMPLE
Ports

Phase I (2010-12)

Phase II (2012-17e)

Phase III (2017-20e)

Total Investment (INR bn)

Chennai
Kolkata
V.O. Chidambaranar
Ennore
Cochin
Vishakapatnam
JNPT
Paradip
Mumbai
Kandla
New Mangalore
Mormugao
Total (INR bn)
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

20

Planned Investment on Projects JN Port (2010-2020)


Deepening of
Channel /
berths

Projects till 2020

Construction/
Reconstruction of
Berths / Jetties

Procurement
of Equipment

Rail / Road
Connectivity
Works

Other
Works

Total

No. of Project
Ongoing Projects

Estimated
Cost.
(INR bn)
No. of Project

Phase I (2010-2012)

Estimated
Cost.
(INR bn)
No. of Project

Phase I (2012-2017)

Estimated
Cost.
(INR bn)
No. of Project

Phase I (2017-2020)

Estimated
Cost.
(INR bn)

No. of Project
Total Projects (Ongoing
+ New)

Estimated
Cost.
(INR bn)

Note : Estimated Cost is for the projects proposed to be taken up /under execution during that period

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

21

Investment Scenario at Major Ports (1/4)


Ports

Recent and Emerging


Opportunities

Estimated
Cost
(INR mn)

Capacity
(MTPA)

Investments Undertaken

Estimated
Cost
(INR mn)

Capacity
(MTPA)

JNPT

Mumbai
Port

Mormugao
Port

Cochin Port

Note : Estimated Cost is for the projects proposed to be taken up /under execution during that period

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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Growth in international trade is the most vital driving factor


for the container logistics market
Growth in International Trade (1/2)

Impact

Text

SAMPLE
Indias Total Export

Indias Total Import


Government of India
plans to double Indias
exports of goods and
services by 2014-15

INR tn
X1%

INR tn

X2%

Imports into India are


also expected to grow
further, particularly of oil
and capital good

2009-10 2010-11 2011-12 2012-13 2013-14

2009-10 2010-11 2011-12 2012-13 2013-14

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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The rise in containerized cargo traffic has led to the growth


in CFSs and ICDs
Growth in Containerized Cargo (1/2)

Impact

Text

SAMPLE
Container Traffic Projection for All Indian Ports
mn tons
a4

X%
a3
a2
a1

2016-17e

2021-22e

2026-27e

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

2031-32e
25

Cargo handling capacity should be 30% more than projected


traffic to minimize pre berthing detention of ships
Growth in Containerized Cargo (2/2)
Text

SAMPLE
Cargo Capacity Creation Projection for All Indian Ports
mn tons

POL

Iron Ore

Coal

Containers

Other Cargo

a4

a3
a2
a1

2016-17e

2021-22e

2026-27e

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

2031-32e
26

Large set up costs and cumbersome procedures for transporting


containerized cargo are the major barriers
High Costs Entailed for the Development of a Facility

Impact

Text

SAMPLE
Commodity-wise Capital Cost Incurred for Capacity Addition

INR mn per ton


a5

a2
a1

POL

Iron Ore

a3

a4

Fertilizers

Coal

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

a6

Containers

Other General Cargo

27

Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

28

Porters Five Forces Analysis

SAMPLE
Impact
Low

Threat of New Entrants


Text

Impact
Medium
to High

Impact
Medium
Impact
Medium
to High
Competitive Rivalry

Bargaining Power of Buyers

Bargaining Power of Suppliers


Text

Text

Text

Impact
Low
Threat of Substitutes
Text

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

29

Competitive Benchmarking (2/5)

SAMPLE

Key Ratios of Top 3 Companies Operational Basis (FY 2014) (1/3)


Gross Margin

Operating Margin

Net Margin
c3
c2

c1

a1

a2

b2

a3

b3

b1
Player 1

Player 2

Player 3

Text

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

30

SAMPLE

Public: Domestic Company Player 1 (1/5)


Company Information

Offices and Centres India

Corporate Address

Tel No.
Fax No.
Website
Year of Incorporation

Head Office

Ticker Symbol
Stock Exchange

Products and Services


Category

Products/Services

Key People
Name

Designation

Sectors (EPC)

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

31

SAMPLE

Public: Domestic Company Player 1 (2/5)


Financial Snapshot

Key Ratios

Total Income

Net Profit/Loss

Particulars

INR mn

INR mn
p1

p2

p4
p3
r4

r1

r2

r3

2011

2012

2013

2014

Financial Summary
The company earned a net profit of INR - mn in FY 2014, as compared to
net profit of INR - mn in FY 2013
The company reported total income of INR - mn in FY 2014, registering an
increase of -% over FY 2013
The company earned an operating margin of -% in FY 2014, a decrease of m
percentage points over FY 2013
The company reported debt to equity ratio of - in FY 2014, registering an
increase of -% over FY 2013

Key Financial Performance Indicators


Indicators

Value (11/27/2014)

y-o-y change
(2014-13)

2014

2013

2012

2011

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover

Market Capitalization (INR mn)


Total Enterprise Value (INR mn)
EPS (INR)

PE Ratio (Absolute)
Note : This company has had a fiscal year change on Dec-31, 2011

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Improved

Decline

32

SAMPLE

Public: Domestic Company Player 1 (3/5)


Key Business Segments

Key Geographic Segments

Container Freight Stations

Multimodal Transport Operations

Project & Engineering Solutions

Others

Australia & New Zealand

Mediterranean

Far East

Africa

America

India

Europe

2010

2012

2013

2014

2010

2012

2013

2014

Business Highlights (1/2)


Description

News

Overview

Text

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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SAMPLE

Public: Domestic Company Player 1 (4/5)


Business Highlights (2/2)
Description

News

Extensive Product
Portfolio

Text

Awards and Recognitions

Text

Acquisitions

Text

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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SAMPLE

Public: Domestic Company Player 1 SWOT Analysis (5/5)

Text

Text

Text

T
Text

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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SAMPLE

Private: Foreign Company Player 2 (1/5)


Company Information

Offices and Centres India

Corporate
Headquarter

Tel No.

Fax No.
Website
Year of Incorporation
Head Office

Products and Services


Category

Sectors (EPC)

Products/Services

Key People
Name

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Designation

36

SAMPLE

Private: Foreign Company Player 2 (2/5)


Shareholders of the Company

Ownership Structure
Foreign Holdings

Name

No. of Shares held

Total
100.0%
100%

Ownership structure corresponds to Date of AGM: 31/03/2012

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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SAMPLE

Private: Foreign Company Player 2 (3/5)


Financial Snapshot
Total Income

Key Ratios
Net Profit/Loss

Particulars

INR mn

INR mn
p3

p4

r2

r3

r4

2011

2012

2013

p2
p1

r1

2010

Financial Summary
The company earned a net profit of INR - mn in FY 2013, as compared to
net profit of INR - mn in FY 2012
The company reported total income of INR - mn in FY 2013, registering an
increase of -% over FY 2012
The company earned an operating margin of -% in FY 2013, an increase of k
percentage points over FY 2012
The company reported debt to equity ratio of q in FY 2013, an increase of % over FY 2012

y-o-y change
(2013-12)

2013

2012

2011

2010

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

Decline

38

SAMPLE

Private: Foreign Company Player 2 (4/5)


Business Highlights
Description

News

Overview

Text

Awards and Recognitions

Text

Industries Served

Text

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

39

SAMPLE

Private: Foreign Company Player 2 SWOT Analysis (5/5)

Text

Text

Text

T
Text

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

40

Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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SAMPLE

Direct Investments Player 5

Overall Investments Geography-wise

Total Investments Sector-wise

C1%

B1%
Industrials
Financials

Asia Pacific Emerging Markets

B2%

C2%

Industrial Investments Segment-wise

Asia Pacific Developed Markets

Investment Snapshot
Text

A1%

A2%

A3%

100%

Capital Goods
Commercial and Proffessional Services
Transportation
42

Macroeconomic Indicators
Introduction
Market Overview

Development of the Port Sector


Prerequisite and Regulations
Government Initiative
Drivers & Challenges

Key Issues
Trends
Competitive Landscape
Direct Investment Scenario
Strategic Recommendation
Appendix
CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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SAMPLE

Strategic Recommendation (3/3)

Improving Efficiency of Container Ports

Text

Text

Text

Text

Efficiency Specific Variables


for Ports

Text

Text

Port Throughput
(TEU)

Resultant Output of
Container Traffic

Text

Text

Efficiency Specific Variables


for Terminals

Text

Port Throughput
(TEU)

Resultant Output of
Container Traffic

Text

CONTAINER LOGISTICS (CFS & ICD) MARKET IN INDIA 2015.PPT

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Thank you for the attention


Container Logistics (CFS & ICD) Market India 2015 report is part of Netscribes Automotive
and Logistics Series.
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