2 1 A U G ’ 1 2 – 3 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

Essar Shipping may raise over ` 25bn for

expansion

Essar Shipping, the demerged entity of Essar

Shipping Ports & Logistics, will look to raise more

than ` 25bn through market instruments to fund its

capital expansion plans. According to the sources,

Essar Shipping said that the company would raise $

500mn, or its equivalent, in Indian currency through

issue of securities, GDRs, FCCBs, or any other issue

of security to meet the company’s expansion plans,

including acquisition of various assets, and enhance

its global competitiveness. According to the reports,

the company requires funds for expansion and to

meet its capex plans and investments. To achieve a

significant competitive advantage, the company may

need to issue equity shares or GDR or any form of

securities in international or domestic markets. But

according to senior company officials, the plan to

raise funds from the market is largely aimed at

bringing down the promoter holding in the company

from the existing 84%.

Gati seeks partner for shipping unit

Gati Ltd, an express distribution and supply chain

provider, is looking at benefiting from the recent

restructuring of its business. The company is planning

to rope in a strategic partner in its shipping division,

which was hived off into a separate subsidiary in

March. The company is also planning to set up a pan-

India cold chain network. With supply chain being

company’s core business, Gati is looking at increasing

its fleet capacity by 2015. Gati will increase its

existing fleet of trucks from 165 trucks to 350. As

part of the capital expenditure plan, Gati will invest `

1.85bn for the next three years. Out of the total

investment, ` 1bn will go into setting up a cold

storage network, while the rest will go into fleet

expansion and IT. The company hopes to grow at

20% on an annual basis.

News of the fortnight 1

Investment Activity 3

News Update 4

Global News Update 6

Stock Market Updates 11

Peer Benchmarking

12

About Four-S Services 13

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

MIV invests ` 700mn at Vallarpadam

MIV Logistics Pvt Ltd, a company promoted by

INKEL Ltd in association with MFar Enterprises

Pvt Ltd and VKL Estates Pvt Ltd, is constructing

a container freight station at Vallarpadam at an

estimated cost of ` 700mn. The facility, being

developed on 18.5 acres of land on 30 years of

lease from the Cochin Port Trust, is expected to

be partly operational by December 2012 and

fully operational by October 2013. The station,

when fully commissioned, will have a capacity

to handle 100,000 TEUs (twenty-foot equivalent

units) per annum, both for export and import.

The facility will also have a warehouse of

60,000 square feet capacity. There will be an

open yard of over 500,000 square feet for

storage of containers too. While the permanent

facilities are being owned by MIV, the

equipment and operating personnel will be

provided by the operator - APM Terminals India

Pvt Ltd. All operational expenses will be borne

by APM Terminals and the gross revenue will be

shared between MIV and APM at agreed

proportions.

Japan buys stake in India infrastructure

firm

Japan would buy a major stake in an Indian

company at the centre of a huge infrastructure

building project, marking Tokyo's latest

investment in the South Asian giant. The

government-linked Japan Bank for International

Cooperation would purchase a 26% stake in the

Delhi-Mumbai Industrial Corridor Development

Corp. (DMIC). The Indian firm has been

charged with building massive projects linking

Delhi and Mumbai including a freight railway

between the two Indian cities. Other projects

include industrial parks and power stations that

are expected to be built around the rail line.

Belgian firm Ahlers to set up chemical

warehouse in Gujarat

Belgium-based logistics and maritime service

provider Ahlers plans to set up a chemical

warehousing facility in Gujarat. The warehouse

will handle and store packed chemicals,

including hazardous goods.

Chemical storage in India is still at a nascent

stage, with factories finding it difficult to

transport critical products to their

customers/ports without adequate storage

facility in the supply chain. There is

considerable scope for such investment. Foreign

players like Rhodea have already entered the

chemical storage business in India. Local

players are also active in this trade with their

own brand of chemical warehousing, according

to the MD, Alhers - Pradeep Joseph. Ahlers has,

in Ghent (Belgium), a chemical warehouse

facility to handle all type of chemicals, including

hazardous ones. It also has warehousing

facilities in Russia, the Ukraine, China and

Indonesia for warehousing goods other than

chemicals, such as tobacco. The location of the

Gujarat facility has yet to be finalised. Ahlers

India handled around 20,000 TEUs (twenty-foot

equivalent units) in 2011-12 and about 15,000

tonnes of project cargo, mainly to the Africa

region.

DP World brings all Indian arms under one

roof for IPO

DP World, the London Stock Exchange-listed

container terminal operator from Dubai, is

preparing ground for an initial public offering

(IPO) for its Indian subsidiary. The largest

foreign operator in India’s port sector, which

operates five container terminals in the country

through independent special purpose vehicles

(SPVs), is bringing all its operations under one

holding company, as an initial step. According

to the people familiar with the development,

the company's plan stems from its huge

requirement of funds for expansion as well as a

need to cut down the existing debt. The Dubai

company, which was just a marginal player in

India, became a dominant player overnight

after it acquired terminal assets of P&O Ports in

2006 in a mega international takeover. Three

News Update

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Research4India 5

operating terminals at Jawaharlal Nehru Port

(JNPT), Chennai and Mundra went to DP World,

following the acquisition. DP World holds

81.63% stake in India Gateway Terminal, which

operates India’s only transhipment container

terminal at Vallarpadam in Kochi. The company

runs another container terminal in

Visakhapatnam in joint venture with Mumbai-

based United Liner Agencies (ULA), a leading

ship agency, and holds 26 per cent stake. It

also operates container rail freight operations in

India through a wholly-owned company --

Container Rail Road Services. The global

operator of container and marine terminals has

operations in more than 35 countries and

employs over 30,000 people.

GVK Power and Infrastructure to sell stake

in Australian rail and port subsidiaries

GVK Power and Infrastructure, a builder of

power plants and airports, will sell minority

stakes in its Australian rail and port subsidiaries

to raise funds for developing a coal mine in

Queensland. The company, which had acquired

a controlling stake in Australia's Hancock

Prospecting coal mines last year, needs to

invest $10bn to mine and build rail and port

facilities that can transport coal from the mines

to India and other countries. Last year, GVK

Power had acquired 79% in the Alpha Coal and

Alpha West projects and 100% stake in the

Kevin's Corner project in Queensland from

billionaire mining heiress Gina Reinhart for

$1.26bn. It had also acquired 100% stake in a

500 km rail line and a 60-mn-tonne-per-annum

port to boost GVK's plan to export coal to power

plants in India and China.

NTPC to fund coal transport infrastructure

in India

NTPC Limited has devised a way to move coal

from the mines to its power plants. It is

offering Indian Railways the money to set up

the required rail links. The country’s largest

power producer and coal consumer, NTPC,

proposes to recover the investment by setting it

off against freight charges levied by the cash

strapped railways for moving coal. NTPC’s

proposal pertains to the Railways’ Infrastructure

for Industry Initiative which is currently being

discussed at an inter ministerial level and will

be sent to the cabinet for approval. Indian

Railways moves 52% of the coal that is mined

in the country, a share that’s expected to rise

to 58% in 2016 to 2017. India has a power

generation capacity of 205,340 MW of which

56.7%, or 116,333 MW is coal based. With

more than half of India’s total power generation

currently based on coal, the power sector is the

major consumer of the fossil fuel, absorbing

nearly 78% of total domestic production.

Railways PPPs need ` 800bn

According to a report, an estimated ` 800bn of

private investment will be required for

implementation of various PPP (public private

partnership) projects identified by the Railways.

The areas to be covered under PPP will include

an elevated rail corridor, high-speed corridors,

redevelopment of stations, logistics parks,

private freight terminals, port connectivity,

dedicated freight corridor, loco and coach

manufacturing units, energy conservation, etc.

The projects identified include the ` 200bn

Mumbai-Ahmedabad high-speed corridor, the `

200bn elevated rail corridor between

Churchgate and Virar in Mumbai, ` 100bn for

redevelopment of stations, the ` 100bn

dedicated freight corridor between Sonnagar

(Bihar) and Dankuni (Bengal), ` 60bn for

energy projects, ` 50bn for port connectivity

projects, ` 30bn loco and coach manufacturing

units, ` 30bn logistics parks and ` 28.15bn

private freight terminals and other freight

schemes. A modified outlay of ` 5.48tn has

been proposed for the 12th Five Year Plan by

the Ministry to Planning Commission for

meeting the requirements of expansion,

modernisation and safety. For financing this

outlay, gross budgetary support, successful

implementation of PPP in identified areas and

mobilisation of internal resources through

conventional and non-conventional means

would be necessary. Indian Railways, it is

learnt, is open to foreign direct investment

(FDI) in PPP projects within the overall FDI

policy framework.

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Research4India 6

Demand for logistics spaces increase in H1

2012

According to the findings of CBRE's latest report

titled "India Logistics Market View", India

witnessed an increased market activity in H1

2012. Demand for logistic and warehousing

spaces was not only limited to leading cities

such as NCR (National Capital Region), Mumbai

and Bangalore, but was also spread across the

leading tier II cities. E-tailers invested heavily

into strategically located assets, and have been

taking up quality warehousing space across

India, primarily in NCR, Mumbai and Bangalore.

However, availability of large land parcels at

relatively low cost, connectivity to multiple

markets across states and industrial clusters,

has led to the emergence of some tier-II and

tier-III cities as favoured destinations for the

development of logistics parks and warehouses.

FMCG majors, white goods and consumer

electronics firms are also on an expansion spree

and are steadily increasing their footprint

across the country. Built-to-suit options have

been the preferred mode of expansion for most

occupiers, with large sized transactions of

around 10,000 -15,000 sq ft of warehousing

space being reported in the first half of 2012.

Industrial corridor planned along NH-33

The state industry department of Jharkhand has

plans to develop an industrial corridor along the

Koderma-Bahragora four-lane NH-33. According

to sources in the department the plan to

develop a special industrial corridor on either

side of the NH was mooted to end the

connectivity problem faced by industries due to

lack of basic infrastructure in most places to

handle heavy vehicles carrying load of over 30-

35 tonne. Adityapur Industrial Area, one of the

biggest hubs of the country, has been facing

problem due to poor road and power supply for

over a decade now. The corridor will cover a

25-km stretch on either side of the 400-km-

long NH-33 that passes through Ranchi and

Jamshedpur. The highway touches Bihar on one

side and Odisha and West Bengal on the other.

The corridor will be equipped with an array of

infrastructural support such as power facilities,

rail connectivity, industrial estates, special

economic zones and cluster with top-of-tine line

infrastructure.

Rail corridors’ MoU by Sept

The Chhattisgarh Government will develop two

special purpose vehicles (SPVs) with South

Eastern Coalfields Ltd and IRCON (public sector

unit of Indian Railways) for development of rail

corridors. The memorandum of understanding

for this will be signed by September 30. The

State Government, IRCON and SECL will be

shareholders in the SPVs. The 180-km East

Corridor and -km East-West corridor are

proposed to be developed in Chhattisgarh to

facilitate transportation of goods and increase

the passenger facility. Other companies and

industrial houses also can use this facility by

paying. The East Rail Corridor is proposed to be

constructed from Bhupdeopur-Gharghora-

Dharamjaigarh to Korba whereas East-West

Corridor is proposed to be developed between

Gevra Road-Dipika-Kathghora- Sindurgarh-

Pasan and Pendra Road. The two rail corridor

will not only increase rail density but also

facilitate industrialisation in this mineral rich

territory.

Horticulture Express loses steam

Despite its successful trial run, the Horticulture

Express, which is jointly run by the National

Horticulture Board (NHB) and Container

Corporation Limited (Concor), has been

grounded in Concor terminals in North

according to the officials from Concor. The train

has not operated since its trial run on June 18.

To promote horticulture crops, the NHB had

launched a unique initiative in the form of a

'horticulture train'. The first of its kind in the

country, it was built to carry fruits and

vegetables of all types during all seasons in

specially designed containers to ensure proper

ventilation for better shelf life of the produce.

However, the trial runs of the Banana train from

Bhusawal and the Onion train from Kherwadi,

Nashik, failed to fetch goods on their return

journey from the places they were sent to and

hence, no schedules for the rake were drawn

thereafter. As of now, the rake is grounded. The

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Research4India 7

first horticulture train carrying onions from

Kherwadi to Kolkata embarked on its journey

on June 18 this year. The rake had 90

ventilated containers, each carrying about 16

tonnes of onions. The response was good as rail

transport was much cheaper and faster than

transportation by road- which took 120 hours

for the 1,800 km journey at a cost of ` 40,000

per container. Train worked out to be ` 32,000

per container with the distance covered in 36

hours. The response to the first journey was

very encouraging as the produce arrived earlier

and in a much better condition which added to

the value of the product. The officials said that

the hitch with the train was the reluctance of

Banana traders to load the train from Bhusawal.

India may miss target of developing 20 km

a day

India's ambitious target of developing 20 km a

day seems to be an uphill task in the face

financial, regulatory, execution, project

planning and policy challenges faced by the

segment, says Ernst & Young-FICCI report titled

accelerating implementation of infrastructure

projects. As per the report, land acquisition is

one such issue that requires immediate action

for the objectives of the Twelfth Plan being

achieved. Around 70% of the build operate and

transfer (BOT) road projects are facing

inordinate delays in implementation due to

issues related to acquisition of land from the

relevant authorities. There are around 78

projects delayed in road & transport sector

followed by power with 47 and oil & gas with

31.

Currently, country has a road network spanning

41.09mn km and ranks among the largest in

the world. Although, India has a large road

network, in comparison with other countries

(142), it stands at a low rank of 85 in terms of

the quality of its roads. The National Highways

only constitute around 1.7% of the road

network, but carry 40% of the total road traffic.

Yet only 24% of the National Highways are

four-lane and meet international standards.

Railways earnings fall by ` 6.68bn from

April-June target

Despite a hike in freight charges and a partial

increase in upper class fares, the Railways'

earnings have fallen short of the target for the

first quarter of the current fiscal by ` 6.68bn.

Though the Railways earnings have gone up,

they have fallen short of the target for April-

June this year. The Railways earned ` 296.1bn

during the period this year against a target of `

302.7bn. Railways earned ` 242bn in April-June

2011 as compared to ` 296.1bn in the same

period this year, registering 22% growth.

MoFPI has approved 28 cold chain projects

worth ` 6.2bn

According to the statement by Dr Charan Das

Mahant, the Minister of State, Food Processing

Industries(MoFPI), the ministry has approved

28 cold chain projects worth ` 6.18bn. The

MoFPI implements the Scheme of Integrated

Cold Chain, Value Addition & Preservation

Infrastructure (part of scheme of infrastructure

development) and under which it provides

financial assistance in the form of grant-in-aid

at 50% of the total cost of plant and machinery

and technical civil works in general areas, and

at 75% of the total cost of plant and machinery

and technical civil works in difficult areas

including north-eastern states subject to a

maximum of ` 100mn for strengthening and

value addition of cold chain infrastructure.

Indian supremacy in ship-breaking put to

test

The resurgence that one saw in Indian ship-

breaking activities could be short-lived as the

industry in the region is entering another phase

of development, impacted largely by legislative

initiatives of local governments as well as by

market forces. Even though the Indian industry

could recapture the title it lost to Bangladesh as

the largest ship-breaking nation in the world by

recycling 415 ships during 2011-12 , it was not

a profitable year on record. The industry, with

an estimated annual turnover of about ` 100bn,

reportedly lost almost ` 8-10bn during the year

due to rupee depreciation against US dollar. As

the industry is dominated by cash deals,

weakening rupee saw industry profits turning

into losses, since October 2011. Though

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Research4India 8

Pakistan had emerged as the number two ship-

breaking country last year followed by

Bangladesh and China, the ranking is set to

change this year with the resumption of ship-

breaking activities in full form in Bangladesh

from the beginning of the year.

Caravel Logistics Launches India-Mideast

Feeder Link

Caravel Logistics has launched a feeder link

between India and the Middle East. From Port

Pipavav on India’s west coast, the service feeds

into global hub services available at Jebel Ali

port in Dubai. This service from Port Pipavav

would help the company to introduce a new

trade lane and reach out to a larger number of

customers in Gujarat according to Saju Chacko,

MD, Caravel.

Texmaco keen on logistics hub near

Kolkata

Texmaco Infrastructure & Holdings Ltd has

sought permission from the West Bengal

Government for setting up a logistics hub and

food processing park at Sankrail - 10 km west

of the city. Texmaco possesses 141 acres of

land there. The combined project cost for the

logistics hub and food processing park should

be at around ` 4bn. Texmaco Infra has also

planned to raise the capacity of the existing 3

MW mini hydro power project at Neora in

Darjeeling district to 9 MW.

VRL’s Vijay Sankeshwar Bags Transport

Personality Of The Year Award

VRL Logistics Limited, a leading road transport

company, has bagged two national awards in

the recently held CEAT ‘India Road

Transportation Awards-2012’ (IRTA)

presentation ceremony at Mumbai. CEAT India

Road Transportation Awards seeks to reward

excellence and innovative thinking in the

various aspects of road transportation. The

Hubli headquartered VRL Logistics Limited has

been selected for ‘The Best Customer

experience in HTV category’ in the Southern

region. And the Chairman and Managing

Director of VRL Logistics Limited Mr Vijay

Sankeshwar has been honoured with ‘Transport

Personality of the year 2012’ award in recently

held glittering ceremony.

China's rail link to hit Indian exports

The $707mn Yuxi-Mengzi rail line, linking

Kunming in southwest China to Singapore in

southeast Asia, will become operational by the

end of this year, posing a threat to Indian

exporters competing for market space with

China. The rail line, originating in China's

Yunnan province, will traverse through

Vietnam, Laos, Thailand and Singapore,

completing a course of over 2,000km. China

also plans to build rail routes linking Kunming

to Myanmar and, eventually, Bangladesh. On

completion, it will create a grand alliance of

Asian markets supporting each other, while

expanding China's markets. The line will

provide an impetus to trade which has slumped

due to cancellation of purchase contracts by

recession hit West.

Ceva Logistics signs ocean freight

agreement

Ceva Logistics has signed a five-year

agreement with the H. J. Heinz Co. to handle a

large amount of its ocean freight, according to a

news release. The contract represents the first

time that a shipper with an annual volume of

60,000 20-foot-equivalent units has entrusted a

single logistics provider with the exclusive

management of its ocean freight. The benefits

for Heinz (NYSE: HNZ), a global food producer,

include making the supply chain simpler, more

visible and less expensive.

Barloworld intensifies Middle East growth

plans

Barloworld Logistics, a provider of logistics and

supply chain management solutions, has

announced that it is intensifying its growth

plans in the Middle East as the region’s contract

logistics services market expects to sustain a

6.9% compound annual growth rate (CAGR)

from 2011 to 2015, according to a study by

Transport Intelligence. The UAE, Qatar and the

Global News Update

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Research4India 9

Kingdom of Saudi Arabia will remain key growth

catalysts for the contract logistics market in the

Middle East, which is expected to reach a value

of around $3.7bn in 2015, increasing from $3

bn in 2011. Barloworld Logistics predicts that

market conditions will continue to improve in

light of the projected positive growth rates for

the region. GCC countries have posted the

biggest gains in the Middle East contract

logistics market, driven by high levels of

investment, consumer spending and fast

economic growth. Qatar’s contract logistics

market achieved the strongest growth rate in

the Middle East in 2011, expanding by 23.1% to

reach $ 118mn. Saudi Arabia and the UAE, on

the other hand, posted growth rates of 9.1%

and 11.9% respectively during the same period

and remain the region’s largest markets with a

value of $ 630mn and $ 451mn, respectively, in

2011.

Gibson Energy Inc. and GT Logistics, L.L.C.

Announce Joint Venture Discussions

Gibson Energy Inc. (GEI.TO) and GT Logistics,

L.L.C., have announced that they are currently

in discussions the formation of a joint venture

to develop, construct and operate a storage

terminal, to be combined with GTL's recently

completed rail transloading facility with barge

loading capability, for natural gas liquids, crude

oil and other related products. Gibson is one of

the largest independent midstream energy

companies in Canada and a major participant in

the crude oil transportation business in the

United States. GT Logistics LLC is the designer,

developer and operator of the GT OmniPort in

Port Arthur, Texas.

OneLogix eyes niche logistics firms

South Africa based Logistics company OneLogix

Group [JSE:OLG] plans to acquire “small

entrepreneurial businesses” to strengthen its

own operations and give those companies a

growth platform. OneLogix would look at

acquiring “niche logistics” companies. According

to the company a number of its subsidiaries

exceeded targets despite general margin

squeeze from rising input costs and intense

competition. OneLogix reported a 16% rise in

headline earnings per share to 22.1c for the

year to May helped solely by organic growth.

OneLogix’s specialised transport division‚ which

includes its auto logistics businesses‚ reported a

30% rise in revenue to R768.4m. Operating

profit grew 18% to R87m for the period.

China State Shipbuilding Corporation

enters logistics business

One of the largest shipbuilding conglomerates

of China, China State Shipbuilding Corporation

has set up a fully owned logistics subsidiary in

Shanghai. The new operation, CSSC Logistics

Co, is an extension of its purchasing

department, and has been set up with

registered funds of 320mn yuan ($50mn) to

focus on expanding business in sectors

including steel, coal and iron ore, according to

CSSC. The new company is expected to achieve

annual revenues of 70bn yuan by the end of

2015.

Shenzhen Huapengfei Modern Logistics

raises 205.86M Yuan in IPO

Shenzhen Huapengfei Modern Logistics Co., Ltd.

(300350) successfully completed its initial

public offering of 21.67mn A-shares of common

stock at a price of 9.5 yuan per share,

according to filings. The company raised 205.86

mn yuan through the issuance. The shares are

traded on the ChiNext Board of the Shenzhen

Stock Exchange. Shenzhen Huapengfei Modern

Logistics Co., Ltd provides logistics services for

enterprises in the electronic information

industry with its logistics network covering the

major cities across China. The company

provides integrated and customized logistics

services including logistics plan design,

transportation, storage, loading and unloading,

processing, distribution and information

processing. The company has built long-term

business relations with many famous electronic

information enterprises include Lenovo, ZTE,

Foxconn, Huawei, Skyworth, Founder, Toshiba

and Haier.

Logistics Track

Research4India 10

Damco And EBL Create World First

Logistics Hub In Panama

A partnership to promote imports and re-

exports of apparel and fashion between Asia,

the Colon Free Zone (CFZ) and Latin American

destinations was signed by the Panamanian

company Exclusive Brands Logistics Corp (EBL)

and Damco Panama. The logistics deal is the

first of its nature for the fashion industry in

Panama. The hub will handle approx. 35,000

cubic meters of goods per year. EBL is a leading

provider of value-added services, including

packing and labelling, to the fashion and

apparel industry in the CFZ, the commercial

distribution centre located at the Atlantic

gateway of the Panama Canal. Under the

agreement, EBL will provide specialized services

for luxury fashion brands while Damco, the

logistics arm of A.P. Moller–Maersk Group and

one of the world’s leading 3PLs, will provide

supply chain, transportation and freight

forwarding services from source to final

destination.

DHL launches new services to Sweden, UK

Logistics firm DHL Global Forwarding, the air

and ocean freight division of Deutsche Post

DHL, has launched two new services connecting

India with Sweden for exports and with the UK

for imports. According to the company release,

these are strategic countries catering to a large

segment of trade with India. The new direct LCL

services reduce transit time and total carbon

emissions, efficiently bringing wider business

opportunities to India-based customers and

Indian SMEs. These are strategic countries

catering to a large segment of trade with India.

The new direct LCL (Less than Container Load)

services reduce transit time and total carbon

emissions, efficiently bringing wider business

opportunities to India-based customers and

Indian SMEs.

Yusen Logistics set up company in Turkey

Yusen Logistics recently set up a new company

in Turkey to offer air and ocean forwarding as

well as inland logistics including road transport

and warehousing. It is focusing particularly on

the motor industry and retail market. Yugen

Logistics Turkey will commence operations from

1 October. Yusen also sees opportunities to act

as a hub for the developing business networks

in the Black Sea, Mediterranean, Central Asia,

and the Middle East. Amid steady economy,

individual consumption in Turkey is rising and in

the nation’s major industries of automobile

production and electronics, Japanese, US and

European companies are actively operating local

production facilities, gaining from its

geographical advantages. The company will also

tap local geographical characteristics to meet

customers’ needs in rising economies, acting as

a hub for the developing business networks in

the Black Sea, Mediterranean, Central Asia, and

the Middle East.

DHL opens new global logistics hub in

Busan

DHL Global Forwarding, the air and ocean

freight operator of Deutsche Post DHL has

opened a global logistics hub in Korea’s

southern port city of Busan ― the eighth of its

kind globally and first in Northeast Asia. The

Bonn, Germany-based company has injected

500,000 euros ($627,000) in completing the

Busan Multinational Gateway that will reduce

transit times by up to seven days through new

13 direct services. According to some industry

reports, trade between Asia and North America

will grow almost 5 percent in 2013 and over 5%

in 2014. The Busan launch puts us in prime

position to take advantage of the growth

potential. In the coming year, the company also

plans to launch another 20 services to cover

more shipments and regions.

Logistics Track

Research4India 11

Stock Market Update

Share Price Performance

Baltic Dry Index

Road Freight Index

U

As on 31st August 2012 Market Cap Price

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

Container Corporation of India 121,722 936.45 -1.5% -0.9% 6.3% -3.8% 0.2%

Blue Dart 46,964 1,979.25 -0.3% 0.8% 0.4% 3.8% 21.6%

Great Eastern Shipping 38,331 251.70 -2.5% -3.3% 2.1% 4.3% 5.6%

Essar Ports Ltd. 37,226 87.00 -6.5% -11.2% -2.1% 37.6% 23.2%

Shipping Corporation of India 23,779 51.05 -4.4% -6.8% -0.4% -27.1% -40.5%

Allcargo Logistics 16,701 131.00 0.9% -3.3% 12.3% -4.4% -12.2%

Gateway Distriparks 14,755 136.10 2.9% -4.1% -3.8% -10.4% 0.6%

Arshiya International 6,865 117.60 -6.9% -5.0% -12.2% -19.6% -9.8%

Mercator Ltd. 4,653 19.00 -6.2% 0.5% 12.8% -34.4% -22.6%

Transport Corporation of India 4,624 63.50 0.0% -1.0% 14.1% -6.1% -22.6%

Aegis Logistics 3,975 119.00 -1.2% 5.7% -11.5% -26.0% -36.8%

Sical Logistics 3,725 67.00 0.0% -0.1% -0.5% -2.2% -8.6%

Gati 3,147 36.35 -5.5% -2.3% -4.5% 0.7% -36.5%

SEAMEC Ltd. 2,888 85.20 -2.1% 2.6% 5.9% -9.8% -14.5%

Aqua Logistics 2,775 9.25 -4.6% -11.5% -5.6% -23.2% -36.2%

Varun Shipping 2,198 14.65 -3.6% -4.9% -7.0% -22.7% -27.1%

NSE Nifty - 5,258.50 -2.4% 0.6% 6.8% -2.4% 5.2%

BSE Sensex - 17,429.56 -2.0% 1.1% 7.5% -1.8% 4.5%

ET Logistics Index - 16,493.68 -0.8% -2.8% 4.4% -3.1% -3.7%

ET Shipping Index - 6,168.28 1.2% -2.4% -5.7% -14.1% -19.1%

Baltic Dry Index (BDIY:IND) - 703.00 -2.0% -21.6% -23.8% -6.3% -56.6%

Percentage Change (%)

Source: Baltic Exchange

Source: Transport Corporation of India

Logistics Track

Research4India 12

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 13

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