4 S E P ’ 1 2 – 1 7 S E P ’ 1 2

Logistics Track Research4I nd ia For t n ight l y updat e o n L og is t i c s I ndust ry

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In The Spotlight Contents

Agri ministry pushes for ` 50bn scheme for

post-harvest logistics

The Union Ministry of Agriculture has planned to ask

for a ` 50bn budget during the 12th five-year Plan

(2012-17) for a scheme to allow private companies to

collaborate with farmers to produce, harvest, process,

transport and market various agro products. Officials

said the aim was to ensure availability of farm

produce across the country at affordable prices. Titled

the Public-Private Partnership for Integrated

Agricultural Development, or PPP-IAD, it hopes to

create an efficient supply chain for cereals,

perishables and other high-value produce. The plan

aims to cover a million farmers during the Plan.

Funds are to be leveraged through the flagship

Rashtriya Krishi Vikas Yojana.

A company, it is suggested, could propose a project

targeting a minimum of 10,000 farmers, over three to

five years, covering all aspects from production to

marketing. Average investment per farmer is to be `

100,000 and government assistance will be restricted

to half the overall investment in this regard, within a

ceiling of ` 50,000 per farmer. The ministry says it

already has 33 project proposals from private

companies, sent through the Federation of Indian

Chambers of Commerce and Industry. A project will

involve mobilising farmers into producer groups and

registering as a joint stock producer company or a

co-operative or self-help group. In the process, these

companies could coordinate with the Indian Council of

Agricultural Research for improved varieties of

seeds/seedlings and for sorting credit issues with the

National Bank for Agriculture and Rural Development.

The hope is for infusion of technologies using

precision farming techniques, primary processing,

sorting, grading , washing, packaging and value

addition clusters, development of warehouses, cold

chains, etc. The Small Farmers Agri-Business

Consortium will provide professional support services

to such producer firms.

News of the fortnight 1

Investment Activity 3

News Update 4

Global News Update 7

Stock Market Updates 10

Peer Benchmarking

11

About Four-S Services 12

Four-S India

Logistics Report

2011-12

Our logistics

report is now

available for

purchase. A

100 page, hard

bound word

document,

presented by

Central, this is

India’s most

comprehensive

and rigorous

research report

on Logistics.

To buy the report, or to know

more about it, see Page 2.

Logistics Track

Research4India 2

Central Logistics Intelligence presents

“Four-S India Logistics Report 2011-12”.

This is the first comprehensive, rigorous report on the

logistics sector. It brings a new analytical perspective

to the sector research coverage, which is plagued by

poor research. Incorrect notions like: the Indian

logistics sector is 13-14% of GDP; or there is multiplier

of 2x between logistics growth and GDP growth rate –

abound, and are often quoted by leading logistics

companies, industry associations and sector

consultants.

The report presents original data and analysis on several key

aspects of the sector, including size of various segments and

projections, and highlights investment potential. In the report

we have taken a comprehensive look at all the key segments

of logistics and supply chain.

We find EXIM and agri-logistics areas of great promise. The 3PL/contract logistics

space also has strong potential, which will get a push as and when the long awaited

goods and services tax (GST) reforms are implemented. We expect greater activity

from PE funds and MNCs in this decade compared to 2001-10.

The report includes information about the key players in the Indian logistic sector and its

various segments.

“Four-S India Logistics Report 2011-12” is prepared by the research of Four-S Services

(www.four-s.com), which has covered this sector in detail in India for several years now.

REASONS TO BUY

India’s first comprehensive report on the logistics and supply chain business

The report has original numbers and projections, backed by rigorous analysis, which would

compel you to question some of the established facts floating around about the sector.

Takes a detailed look at all key business segments, and highlights growth potential.

Mentions key listed and unlisted companies in the sector.

FOR WHOM

Companies in the supply chain and logistics business in India, logistics MNCs wanting to enter

India, private equity funds, industry associations, policy makers, independent consultants and

industry researchers

HOW TO BUY

Kindly write to Seema Shukla at seema@four-s.com You can also call Ashutosh Sharma at

0124-425 1442, or Devendra Deole at 022-42153659 to book your copy.

Logistics Track

Research4India 3

PE Deals in 2012

Date Investor Target Stake

(%) Amount ($ mn)

Strategy

6-Jan General Atlantic Foursee Infrastructure Equipments Ltd.

NA 20.8 Growth

23-Feb IDFC Private Equity StarAgri Warehousing & Collateral Mgmt

NA 30.0 Growth

23-Feb Global Super Angels Chhotu.in (Santa Claus Couriers) NA NA Angel 28-Mar Ambit Pragma Spear Logistics NA 1.7 Growth 30-Mar VenturEast, Zephyr Peacock e2E Rail NA 6.0 Early 26-Apr New Silk Route VRL Logistics NA 33.4 Late 19-Apr KKR, Goldman Sachs TVS Logistics 20.0 55.0 Growth 29-Jun Vertex Venture Holdings, KPCB,

Sherpalo Ventures Reverse Logistics NA NA Growth

25-Jul Ambit Pragma Mehta Frozen Foods Carriers 74.0 NA Early 19-Aug GTI Capital Brattle Foods NA NA Growth

The space saw 10 deals till date raising a total disclosed amount of $185.1mn.

Mergers & Acquisitions in 2012

Date Investor Target Stake

(%) Amount ($ mn)

Business

1-Feb Oil Field Warehousing & Services Raamns Shipping & Logistics NA NA Logistics Services 20-Apr DHL Express (India) Pvt Ltd DHL Lemuir Logistics Pvt Ltd 24.0 NA Logistics Services 15-May DTDC Eurostar Express NA NA Courier Services 18-Jul SG Holdings Sindhu Cargo Services 40.0 NA* Logistics Services 18-Jul SG Holdings Sunlog Services 40.0 NA* Logistics Services

16-Aug Dempo Group Modest Infrastructure NA 140.0 Ship-building & Repair *SG Holdings have invested a total of $18mn in Sindhu Cargo Services and Sunlog Services which are sister concerns

The space saw 6 deals till date but the transaction details were disclosed for one only.

Dempo Group acquired ship-building & repair company Modest Infrastructure for $

140mn in August 2012.

In 2011, there were 11 PE deals in Logistics space worth $278.1mn. The largest among

came from Warburg Pincus which invested $100mn in Continental Warehousing

Corporation for un-disclosed stake.

In the same year, 8 M&A deals in Logistics space. TVS Logistics acquired 100% stake in

US based MESCO for un-disclosed amount. Amongst the disclosed, the largest was 100%

stake by Royal Vopak in CRL Terminals for $61.8mn

Investment Activity

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Research4India 4

DHL to trim Blue Dart stake from 81% to

comply with Sebi norms

Deutsche Post DHL plans to bring down its

stake in Blue Dart Express, held through its

subsidiary DHL Express Singapore, to comply

with minimum public shareholding

requirements. Deutsche Post DHL currently

holds 81 percent in the Mumbai-based express

logistic firm. Future collaboration between Blue

Dart Express and Deutsche Post DHL will not be

affected by this transaction and Deutsche Post

DHL remains fully committed to the domestic

market, said a statement from the German

company. The Euro 53bn Deutsche Post DHL,

which is a world leader in postal and logistics

group, said the move is enable the domestic

company to comply with the new minimum

public shareholding norms, which demands

listed companies to have at least 25% of their

stake with the public by next June.

Sical Logistics to set up JV for coal

washery in Talcher

Chennai based Sical Logistics Ltd, in which

Tanglin Retail Reality Developments has a stake

of 53.12%, is planning to set up a joint venture

to set up a coal washery in Talcher, Orissa, to

execute an integrated contract for the

movement of coal. The company is also

expecting permission from relevant authorities

to use its iron ore terminal in Ennore to handle

alternate cargoes since the terminal could not

be commercialised for iron ore transportation.

The company has sought shareholders’ approval

for giving corporate guarantees or providing

securities or loans or advances, and for making

investments not exceeding ` 4.5bn in its

subsidiary or joint venture companies.

According to an announcement with the BSE,

the investment shall not exceed ` 4.5bn, and

would be used in Sical Iron Ore Terminals Ltd,

which has an iron ore terminal in Ennore Port.

The investment would also be for setting up of

a coal washery at Talcher through a joint

venture.

Ship repair facility for CSL

Cochin Shipyard has been given the go-ahead

to set up a ` 7.5bn ship repair and building

facility at Cochin Port. Union shipping minister

G.K. Vasan announced the bid award to Cochin

Shipyard Ltd, which followed Cochin Port’s

floating a tender for building the facility a few

months ago. The project would come up on the

old Rajiv Gandhi Terminal premises. The new

project would benefit the shipyard, which was

on an expansion mode.

RINL sets in motion freight car axle unit in

Jalpaiguri

Rashtriya Ispat Nigam Ltd (RINL) has set in

motion preparatory work for its proposed `

2.8bn railway freight car axle project in West

Bengal. The processes were initiated for a

feasibility study, flotation tenders for the plant

and machinery and the off-take agreement with

the Railways. The RINL unit is to be located on

a 46-acre plot of land at New Jalpaiguri in the

under-industrialised northern part of the State.

A 30-year renewable land lease agreement with

the Railways has already been executed. The

proposed project would have the capacity to

produce 50,000 pieces of axles a year. Each

axle will have the load bearing capacity of

between 22.9 tonnes and 25 tonnes and will be

210 mm in diameter. The new plant will have

the facility of forging and heat treatment. At

present, the Indian Railways depends on

substantial imports of axles. Though the off-

take deal is yet to be signed, it has been agreed

that the Railways would purchase around 70

per cent of the production. The remaining

output would be meant for local and overseas

markets.

CIL plans ` 145bn on rail, to spend ` 245bn

on capex

Battling low production, the world's largest coal

miner CIL today said it has earmarked ` 245bn

capital expenditure over the next five years

mainly to boost capacity and is also looking at

News Update

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Research4India 5

spending another ` 145bn to augment rail

infrastructure. The PSU planned to undertake a

conditional investment of ` 145bn on

augmenting rail infrastructure. According to the

CIL Chairman, S Narsing Rao, the company

intends to spend ` 75bn on rail infrastructure

provided the Railways complete the project on

time. It also intends to spend another ` 70bn

on rail projects for faster transportation of coal

if all goes well.

LifeCell partners with Sequel Logistics

LifeCell International, one of the leading stem

cell storage companies in India has announced

its partnership with Sequel Logistics, a company

that specialises in critical logistics, to offer

'Personalized Shipment Service' of the umbilical

cord blood and tissue samples. The initiative is

critical in healthcare logistics whereby stem

cells of the new born will be shipped through

Sequel’s partner airlines via the next available

flight to LifeCell’s processing and storage facility

in Chennai. It is important for stem cell

preservation since the sample will reach the

laboratory for testing and processing within 24

hours from metro cities and 36 hours from non-

metro cities. StemCell estimates to generate

revenues of more than Rs 1bn in the current

financial year. The current size of stem cell

banking industry is around 40,000 enrolments

per year and the industry has been growing at

30% in the recent past. Currently the industry

is serviced with dedicated cargo handlers who

operate on an overnight hub-and-spoke model.

Global shipping companies hike shipment

rates

International container carriers, ignoring a weak

global economy, have started actively raising

rates for shipments from India and other

regions since the past few months in an effort

to pull the global shipping industry out of

choppy waters. While the move to increase

rates across various routes may breathe life

into the shipping industry, it has affected the

competitiveness of the Indian export sector

according to the exporters. Hapag-Lloyd will

increase rates by $200 per 20-foot container

unit and $400 per 40-foot container unit on all

shipments from India to ports in North Europe

and the Mediterranean. Hapag Lloyd raised

rates on the Japan-Australia and Japan-east

Asia routes, while MSC increased their Europe-

Asia route and Indian subcontinent-Northern

Europe rates. This week, data compiled by the

commerce ministry had said exports slid by

nearly 15% in July, the steepest dive in three

years.

ABC India to consider sale of stake in

Nissin ABC Logistics Pvt. Ltd.

According to announcements, the meeting of

the Board of Directors of ABC India Ltd was

schedules last Saturday to approve sale of 19%

shareholding out of present 24% shareholding

in Nissin ABC Logistics Private Limited.

Industry hails Cabotage exemption to

Vallarpadam terminal

The much awaited announcement of relaxation

in the Cabotage rules for the Vallarpadam

terminal is likely to herald a new era in the

container transhipment business from the

region. The fledgling International Container

Transhipment Terminal at Vallarpadam can look

forward to doing more business in

transhipment, now being carried out mainly

through Colombo and Salalah. Colombo Port

handles a transhipment throughput of 2m TEUs

from India. However, the ICTT is currently

doing only a meagre transhipment business of

20,000 TEUs a year. This is expected to go up

significantly with the relaxation of the law.

Indian Railways to get more than ` 4 bn

from RLDA

Rail Land Development Authority (RLDA), a

statutory authority established by Ministry of

Railways for generating non-tariff revenue from

railway land, announced that it is soon going to

restart offering sites for development of Multi

Functional Complexes and railway land for

commercial development. RLDA has now

targeted for earning more than ` 4bn during

current financial year. RLDA has prepared an

action plan for fast tracking the development of

projects and realization of expected revenues.

RLDA has lined up 60 more new MFC sites and

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Research4India 6

8 other standalone sites for which bidding

process is being initiated in phases within a

fortnight. Many real estate consultants like

Knight Frank, IL&FS, PWC, E&Y and JLLM are

advising RLDA in Planning and Marketing the

MFC/Commercial sites.

Railways cut spending on assets

With less money in the kitty, Indian Railways

has cut its spending on asset replacement by

about 15%. The cut is a fallout of the rollback

of passenger fares rises. Investment in the

replacement of aged assets financed from the

depreciation reserve fund (DRF) has been cut

by 18% to ` 75.8bn. Similarly, the railways

have slashed the budget for the development

fund (DF) by 20% to ` 29.9bn and the capital

fund (CF) by 14% to ` 42.7bn. The railways had

targeted to almost double spending to `

199.9bn under four funds, including the Railway

Safety Fund, this year from ` 102bn in 2011-

12. But, with the cut in investment, the

spending is now expected to be around 60%

more than the revised estimate for 2011-12.

The railways operate various funds to meet the

requirement of asset acquisition, construction,

replacement and renewal as well as pension

payments to employees. These funds are fully

or partially financed by railway revenue,

budgetary support by the central government

or market borrowings, if needed.

Titagarh denies joint venture with

FreightCar is over

Kolkata-based wagon manufacturer Titagarh

Wagons has denied that its joint venture with

FreightCar America has been scrapped. Earlier a

newspaper had reported that, FreightCar

America Inc has called off its joint venture with

Titagarh Wagons due to latter’s failure to get

approval from Indian Railways for a prototype

of an aluminium wagon, which the US-based

wagon maker specialises in. But, according to

the official at Titagarh, The joint venture is still

intact, the report that has been published is

false and very soon both the companies will do

a joint press conference in this regard. The joint

venture pact was signed in 2008 between both

the companies and it was formed to develop

high-axle load and low tare-weight aluminium

wagons in which FreightCar holds a majority

stake of 51%, with the remaining 49% owned

by Titagarh Wagons.

Kerala expects boom in logistics sector

With the Union Cabinet’s approval to relax the

Cabotage law facilitating the transshipment of

containers to and from the International

Container Transshipment Terminal (ICTT),

Vallarpadam, the logistics sector in the state is

all set for a giant leap. It is expected that

around 50,000 direct and 100,000 indirect

employment opportunities will be generated

within five years. A massive investment of

about ` 150bn will also be pumped into the

sector. At present, the rail traffic in the state is

almost 25% above the capacity. To tap the

potential of the law relaxation, better road, rail

and water connectivity are crucial. The ICTT will

realise its full potential of one million twenty-

foot equivalent unit (TEU) within a year. Owing

to it, newer opportunities will emerge not only

at the Vallarpadam terminal but at Vizhinjam,

Azheekkal, Beypore and 14 other minor ports.

Areas such as supply chain, logistics, material

handling, storage, information technology,

warehousing and inventory management will

emerge as possible business areas in the state.

Kerala plans cargo movement through

coastal shipping

The Kerala government plans to decongest the

state roads, diverting at least 20% of the cargo

traffic through coastal shipping by 2015 and

40% by 2020. The state is planning to do this

through a three-pronged strategy comprising

building of infrastructure and institutions and

providing incentives. The State will create a `

3bn fund to finance the incentive. To oversee

the development of the maritime sector, Kerala

will also set up a State Maritime Board on the

lines that exist in other maritime States such as

Gujarat and Maharashtra. The coastal traffic

potential through non-major ports of the state

is estimated to be 4.64mn tonnes during 2012-

14 and 7mn tonnes by 2019-20. Among the

infrastructure development initiatives in the

port sector, Vizhinjam International Container

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Research4India 7

Trans-shipment Terminal is the prime project of

the state. This project is proposed to follow

landlord model, where dredging, reclamation,

construction of breakwater, quay wall and

external infrastructure like power, water, road

and rail connectivity are done by the Vizhinjam

International Seaport Ltd. The building of

terminal superstructure and its operation for 30

years is proposed to be done by the private

operator on PPP (public-private-partnership)

model. Kollam, Alappuzha, Kodungallore,

Ponnani, Beypore and Azheekkal ports are also

earmarked for development.

Ministry moots infrastructure status for

coastal shipping

In order to promote coastal shipping, the

shipping ministry has moved a note for the

Cabinet Committee on Infrastructure (CCI) to

secure infrastructure status for the sector.

The status would help the sector make good

use of various benefits such as easier credit at

cheaper rates and faster regulatory clearances.

The move would also help in promoting trade

along India's coastline of 5,560km, having

access to the sea on three sides with 11 major

and 168 minor and intermediate ports. It would

also increase private investment in the sector

and encourage infra-focussed funds to pump in

money. The Cabinet Committee on

Infrastructure has outlined six characteristics

for a sector to qualify for infra status. These

include sector involving natural monopoly, high-

sunk costs and asset specificity, non-tradability

of output, non-rivalness in consumption,

possibility of price exclusion, and presence of

externalities. Besides, three other factors are

kept in mind while granting infra status. These

are the sector's importance to the scheme of

economic development, its ability to contribute

to human capital and the specific circumstances

under which it has developed in India.

Shipping ministry alters plan on SPV

The shipping ministry has altered its plan to set

up a special purpose vehicle (SPV) for investing

in overseas port assets to include local ports as

well. To reflect this change, the ministry has

rechristened the SPV to Indian Ports Ltd from

the earlier Indian Ports Global. India plans to

spend as much as `3tn on its ports in the

decade ending 2020 to triple its cargo-handling

capacity to 3.2bn tonnes, according to the

maritime agenda for the decade announced by

the shipping ministry in January 2011. Indian

Ports Ltd is structured on the lines of DP World,

which is majority owned by the Dubai

government and PSA International Pte Ltd, a

wholly owned unit of Temasek Holdings (Pvt.)

Ltd, the sovereign wealth fund of Singapore.

The proposed SPV will have 50% equity

participation from ports controlled by the Union

government with financial institutions holding

the balance.

C.H. Robinson to acquire Apreo Logistics

C.H. Robinson Worldwide has agreed to acquire

Apreo Logistics S.A. (“Apreo”), a leading freight

forwarder based in Warsaw, Poland. Founded in

June of 2007, Apreo provides truckload services

including dry van and temperature controlled

and liquid and dry bulk capabilities. To

complement their truckload offering, the

company also offers additional warehouse, air

and ocean services. Apreo has shown significant

growth over the past several years, with

current gross revenues over $100mn while

servicing more than 2,000 customers. The

company has over 300 employees in 21 offices

in Poland and one office in Germany. This

acquisition will expand C.H. Robinson's

presence in Europe. Founded in 1905, C.H.

Robinson Worldwide, Inc., is a global provider

of multimodal logistics services, fresh produce

sourcing, and information services to 37,000

customers through a network of more than 230

offices and over 8,700 employees around the

world. The company works with 53,000

transportation providers worldwide. C.H.

Robinson is a Fortune 500 company and had

annual revenues of $10.3bn in 2011.

Donnelley acquires XPO to expand

operations

Global News Update

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Research4India 8

R.R. Donnelley & Sons Co (RRD) has acquired

privately-held outbound mailing services

provider Express Postal Options International.

The financial terms of the deal were not

announced. The acquisition of Express Postal

Options International or XPO is expected to

strengthen Donnelley's logistics business

segment and expand its operations in more

than 150 countries. Donnelley has been

experiencing strong growth in the logistics

segment. In the last concluded quarter, this

segment reported an 11.3% jump in revenue.

Strong growth in the logistics space along with

volume increase in certain office products

restricted the decline in revenues to 3.6% on a

year-over-year basis. Donnelley is focusing on

acquisitions to expand and enhance its offering

to its current customers, as well as to expand

the customer base. The company's continued

focus on acquisitions will also spur its already

dominant market position and drive long-term

growth.

China's Alibaba to lift investment in

logistics network

Chinese E-commerce giant, Alibaba Group, is

looking to put $100mn ($AU96.7mn) towards

parcel-delivery and warehouse operations.

According to the reports, the investment will

add to the 10bn yuan ($AU1.53bn) already

committed to in 2011 for improving the

company's logistics. Alibaba's group chief

strategy officer Zeng Meng said the company

was under pressure from underdeveloped

logistics infrastructure throughout China. Mr

Zeng acknowledged a growing Chinese appetite

for online shopping was fueling activity on

Alibaba's popular shopping websites Taobao

and Tmall.

China grants FedEx, UPS operating

licenses for some Chinese cities

Package delivery companies FedEx Corp and

United Parcel Service Inc have received

approval to provide express-package services in

some cities of China on their own, according to

the country's State Postal Bureau (SPB). The

approval gives FedEx access to eight cities

while UPS was given access to five cities. FedEx

already provides services in Chinese cities

through joint ventures with local companies

while UPS doesn't have partnerships with

Chinese companies. FedEx can now operate in

the cities of Shanghai, Guangzhou, Shenzhen,

Hangzhou, Tianjin, Dalian, Zhengzhou and

Chengdu. UPS was given a license for the cities

of Shanghai, Guangzhou, Shenzhen, Tianjin and

Xi'an. The authorization comes four months

after Chinese regulators approved a $1.6bn

initial public offering by state-owned China

Postal Express & Logistics, one of the largest

courier companies in the Chinese domestic

market.

GLP, Haier Group to develop logistics

network in China

Singapore-listed Global Logistic Properties

(GLP) has said it is partnering Chinese home

appliance maker Haier Group to develop a

logistics network in China. As per the news

release, the move is for the distribution of

Haier's household appliances across China.

Under the agreement, Haier will manage the

industrial facilities resources of the group

through its arm Qingdao Haier Industrial

Development Co. GLP and Haier are expected to

collaborate and integrate resources like capital

land sourcing and management expertise to

meet Haier's logistics requirements in China.

Survey shows Turkey will be next big

logistics location

According to the survey by Jones Lang LaSalle -

a multinational financial and professional

services company specialising in real estate,

Turkey tops European supply chain managers

list as emerging logistics market over the next

five-years. Poland and Romania follow in

second and third spots. It says, Turkey offers

all attributes required to become an emerging

logistics market. Its geographic location

bridging Europe with Middle Eastern, Asian and

African countries is ideal to make it an

international logistics hub its economy is

growing strongly based on a stable political

framework, there have been and are still

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Research4India 9

significant investments in infrastructure.

Despite its significant retail market and trade

volumes, the Turkish logistics market is

currently underdeveloped and dominated by

local players and small family businesses.

Abu Dhabi JV eyes $1bn Japan investment

Abu Dhabi Investment Council has partnered

with an Australian real estate company to

develop more than $1bn worth of logistics

facilities in Japan. The deal with the Goodman

Group, which owns, develops and manages real

estate including warehouses, business parks

and offices globally, sees the establishment of

the Goodman Japan Development Partnership

(GJDP). The agreement is a 50/50 venture

between Goodman and the Abu Dhabi

Investment Council. A combined $500mn of

equity has been allocated to the partnership,

with its leverage capability allowing for an initial

investment target in excess of $1bn. GJDP said

it has a strategy to develop modern logistics

facilities in the major logistics markets of Japan.

Japan’s distribution centers are drawing

investors as the market rebounds from record-

high vacancies about two years ago.

Myanmar gets loan for highway

construction

India has extended a $ 500mn concessional

Line of Credit to the Government of Myanmar.

The Line of Credit is at an interest rate of

1.75% per annum and repayment period of 15

years inclusive of 5 years moratorium. "The

Line of Credit will be utilised in the

infrastructure development projects, including

in the fields of Agriculture and Irrigation, Rail

Transportation and Power in Myanmar. EXIM

Bank of India releases and monitors funds

sanctioned under Government Lines of Credit.

Top 20 shipping lines add 844,000 TEU to

fleet over 12-month period

The top 20 ocean liners had added over the last

12 months 844,000 TEU in capacity to their

fleet amid a loss-making period. The two

largest carriers, Maersk and MSC, account for

more than half the added capacity, having put

on 232,000 and 218,000 TEU respectively since

July 2011, Alphaliner reports. As of July 1, the

total liner capacity has reached 16.53mn TEU,

of which 16.05mn TEU is made up of container

ships, an increase of 6.5% in the last 12

months. It said that only two carriers, CSAV

and Zim, removed capacity during the period.

Cash-strapped CSAV's capacity has halved

during the last 12 months, down from 544,000

TEU to 269,000 TEU. During the same period,

Zim removed 10,700 TEU from its fleet amid a

drive to return to financial health.

CSAV accumulated net losses of $1.5bn since

the beginning of 2011, while Zim's losses have

hit $559mn in the same period.

Freight Forwarding and Logistics Group

Ventures Further into Supply Chain

Management

Freight forwarding and logistics company

Uniserve announced that it has acquired finance

and management consultants Portall Solutions

Ltd.- A 4PL company. Uniserve says the

acquisition signals its intention to redefine

supply chain management services and to raise

current standards of industry capability with a

new concept of Global Trade Management

(GTM). According to the statement, the

acquisition of Portall will give Universe a

significant addition to its range of capabilities.

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Research4India 10

Stock Market Update

Share Price Performance

Baltic Dry Index

Road Freight Index

U

As on 14th September 2012 Market Cap Price

(In ` mn) (In `) 1W 1M 3M 6M 12M

Container Corporation of India 125,212 963.30 3.1% 1.4% 12.0% 10.2% 5.3%

Blue Dart 40,415 1,703.25 -0.7% -15.6% -13.8% -12.5% 2.5%

Great Eastern Shipping 37,943 249.15 -0.2% -12.6% -2.8% 13.9% 22.8%

Essar Ports Ltd. 36,991 86.45 0.6% -10.8% -2.8% 16.5% 27.5%

Shipping Corporation of India 24,874 53.40 4.9% -1.5% 0.7% -25.1% -37.2%

Allcargo Logistics 16,617 130.35 -5.0% -5.4% 8.5% -8.6% -12.6%

Gateway Distriparks 15,378 141.85 4.1% 3.1% 5.6% -6.1% 3.0%

Arshiya International 7,578 129.80 12.4% 3.9% 4.5% -13.7% 1.0%

Mercator Ltd. 5,265 21.50 -6.2% 0.5% 12.8% -34.4% -22.6%

Transport Corporation of India 4,340 59.60 -0.8% -5.9% -0.7% -8.4% -29.1%

Aegis Logistics 4,248 127.20 8.4% 8.4% 0.6% -21.4% -33.9%

Sical Logistics 3,684 66.25 -1.2% -1.2% -2.7% -1.9% -8.2%

Gati 3,199 36.95 -2.3% -3.2% 9.5% 7.3% -33.4%

SEAMEC Ltd. 2,917 86.05 2.6% -2.1% 4.9% -9.9% -15.8%

Aqua Logistics 2,985 9.95 -2.5% -2.0% 14.4% -32.1% -28.9%

Varun Shipping 2,168 14.45 0.7% -4.0% -4.3% -23.5% -29.0%

NSE Nifty - 5,610.00 4.4% 3.7% 10.3% 2.1% 11.3%

BSE Sensex - 18,021.16 3.9% 2.2% 6.8% 1.2% 9.4%

ET Logistics Index - 16,573.49 2.9% -1.2% 6.0% 1.6% -0.4%

ET Shipping Index - 6,307.42 0.6% -1.4% -3.0% -9.4% -18.0%

Baltic Dry Index (BDIY:IND) - 662.00 -1.0% -11.7% -27.4% -22.6% -65.6%

Percentage Change (%)

Source: Baltic Exchange

Source: Transport Corporation of India

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Research4India 11

Financial Benchmarking

Quarterly Results – Q1 FY ’13, ending 30th June, 2012

Figures in Rs.`mn

Annual Results - FY‘12

Figures in Rs.`mn

Q1 FY’12 Q1 FY’13 YoY Q1 FY’12 Q1 FY’13 YoY Q1 FY’12 Q1 FY’13 YoY EBITDA NPM

Aegis Logistics 8,304 14,843 79% 274 (244) - 161 48 -70% - 0%

Shipping Corp. of Ind. 9,727 12,200 25% 1,181 1,624 38% (59) (549) - - -

Mercator Lines 7,992 10,952 37% 1,513 1,750 16% 147 171 16% 16% 2%

CONCOR 9,490 10,369 9% 2,597 2,671 3% 2,342 2,451 5% 26% 24%

Allcargo 8,541 9,752 14% 1,022 1,135 11% 664 556 -16% 12% 6%

GE Shipping 7,280 8,070 11% 3,183 2,879 -10% 1,626 1,810 11% 36% 22%

TCI 4,159 4,574 10% 344 370 8% 134 136 1% 8% 3%

Blue Dart 3,721 4,317 16% 510 574 13% 340 406 19% 13% 9%

Arshiya 2,226 3,418 54% 539 934 73% 236 346 47% 27% 10%

Gateway Distri. 1,978 2,320 17% 635 660 4% 334 352 6% 28% 15%

Sical Logistics 2,058 1,753 -15% 202 220 - 21 14 -34% 13% 1%

Varun Shipping 1,327 1,538 16% 345 937 172% (353) 1,452 - 61% -

Patel Integrated 1,130 1,191 5% 47 45 -3% 12 9 -25% 4% 1%

Aqua Logistics 1,107 773 -30% 91 63 -31% 42 15 -64% 8% -

SEAMEC Ltd 460 737 60% 127 138 - 86 137 - - -

Shreyas Shipping 319 462 45% 21 70 240% (14) 43 - 15% 9%

Gati 2,253 159 -93% 241 (62) - 38 638 1593% - 402%

Essar Ports 70 84 20% 33 12 -63% (213) (179) - 14% -

Company Revenue EBITDA PAT Margins Q1 FY’13

FY'11 FY’12 YoY FY'11 FY’12 YoY FY'11 FY’12 YoY EBITDA NPM

Aegis Logistics 18,129 44,725 147% 833 49 -94% 467 197 -58% 0.1% 0.4%

Shipping Corp. of Ind. 35,434 43,086 22% 7,098 4,644 -35% 5,674 (4,282) - 11% -

CONCOR 38,266 40,609 6% 10,226 10,237 0% 8,301 8,779 6% 25% 22%

Mercator Lines 28,289 36,999 31% 6,385 5,829 -9% 468 206 -56% 16% 1%

GE Shipping 25,580 29,555 16% 9,945 10,804 9% 4,687 3,166 -32% 37% 11%

TCI 18,527 19,553 6% 1,400 1,580 13% 501 595 19% 8% 3%

Blue Dart 11,507 14,954 30% 1,556 1,799 16% 947 1,242 31% 12% 8%

Gati 9,330 12,093 30% 870 988 14% 95 141 48% 8% 1%

Essar Ports 19,408 11,088 -43% 7,667 8,910 16% 702 639 -9% 80% 6%

Arshiya 8,215 10,547 28% 1,580 2,701 71% 820 1,176 43% 26% 11%

Allcargo 6,998 8,263 18% 1,679 2,481 48% 1,211 1,513 25% 30% 18%

Gateway Distri. 6,034 8,235 36% 1,640 2,504 53% 968 1,320 36% 30% 16%

Sical Logistics 5,384 5,015 -7% (45) 341 - 108 133 24% - -

Patel Integrated 4,284 4,524 6% 139 166 20% 32 29 -8% 4% 1%

Aqua Logistics 5,165 3,683 -29% 497 233 -53% 288 83 -71% 6% 2%

Varun Shipping 8,368 3,645 -56% 3,670 888 -76% 147 92 -38% 24% 3%

Shreyas Shipping 1,904 2,708 42% 308 245 -21% 183 56 -69% 9% 2%

SEAMEC Ltd 1,024 1,818 78% (551) 94 - (672) (132) - - -

Company Revenue EBITDA PAT Margins FY’12

Logistics Track

Research4India 12

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