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Logistics Track 1 No v ’12 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

DHL lines up ` 7bn investment in India

DHL Supply Chain (DHL) will be investing Euro 100

million or ` 7bn in India to strengthen its logistics

infrastructure in the country. The company will be

setting up multi-client sites in eight Indian cities and

will add five million square feet of warehousing space

in Mumbai, New Delhi and the NCR, Gurgaon,

Bengaluru, Nagpur, Chennai, Kolkata and

Ahmedabad. DHL has also introduced ‘Gurukul’

training centres at its various locations to make sure

it has the required 10,000 people in blue collar jobs

at its locations by 2015. According to Paul Graham,

CEO, Asia Pacific, DHL Supply Chain, India, China and

other emerging markets are expected to be the key

drivers of growth after 2015. With these new

warehouses and our continued investment in people,

DHL was taking another step in the right direction to

pursue its global strategy and support Indian

business and development.

CII-Institute of Logistics partners Hamburg

Chamber of Commerce

Institute of Logistics (CII-IL) inked an MoU with

Hamburg Chamber of Commerce recently. CII – IL

has initiated to set up a Sector Skill Council (SSC) for

Logistics with the support of National Skill

Development Corporation (NSDC). SSC is aimed to

bring in the world class workforce skills to the Indian

Logistics Industry, thereby benefiting the employers,

employees and the country. CII-IL and Hamburg

Chamber of Commerce given their accord to establish

a strategic partnership in the establishment of the

Sector Skills Council of Logistics to the benefit of the

logistics and related sectors in India. The focus areas

for the co-operation include, competency mapping,

quantitative and qualitative studies on the existing

skill gaps, identification of the best technology and

techniques available for skills development and

training of trainers of skill centres.

News of the fortnight 1

Investment Activity 3

News Update 4

Global News Update 7

Stock Market Updates 13

Peer Benchmarking

14

About Four-S Services 15

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

www.research4india.com 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 [email protected] You can also call Ashutosh Sharma at

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

http://www.four-s.com/

mailto:[email protected]

Logistics Track


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

Logistics Track


Railways revenue up by 25% from freight

traffic in 6 months

Railways have posted over 25% growth during

the first six months of the ongoing fiscal from

the freight traffic. It generated ` 398.8bn from

freight traffic during April-September 2012 as

compared to ` 318.0bn during the

corresponding period last year, registering an

increase of 25.43%. The revenue was earned

from carrying 481.45mn tonnes of commodity-

wise freight traffic during this period as

compared to 459.24mn tonnes carried during

the corresponding period last year. In

September alone, the PSU behemoth earned `

60.0bn, out of which ` 25.0bn came from

transportation of 36.10mn tonnes of coal. It

earned ` 5.2bn from transportation of 8.20mn

tonnes of iron ore for exports, steel plants and

for other domestic user, ` 5.8bn from 8.01mn

tonnes of cement and ` 4.9bn from 3.57mn

tonnes of foodgrains.

Food Park, Cold Chain norms may be

relaxed

The government is planning to revamp its

existing schemes of food parks to promote food

processing industries in the country. It plans to

remove restrictions over the number of food

parks and cold chains inviting more

entrepreneurs interested in setting up food

parks and cold chains. According to the

secretary of food processing industries Rakesh

Kacker, In 11th Five-Year plan, the Govt. had

allocated only 30 food parks out of hundreds of

application received. The ministry proposes to

run two parallel schemes in the 12th Five-Year

plan (2012-2017), one for food parks spread

over 50 acres and other for 30-acre parks. The

government is likely to allocate of ` 140bn for

ministry of food processing industries in the

12th Five-year plan with a significant amount

for the development of food parks. It is

planning to reduce the subsidy amount and split

it into capital subsidy and interest subsidy. At

present a subsidy is up to 50% of the project

cost to the maximum of ` 500mn for food parks

and ` 100mn for cold chains.

Apeejay Infralogistics kick starts

operations at Haldia Logistics Park

Apeejay Infralogistics Private Limited (AILPL), a

50:50 JV of Apeejay Surrendra Group and UK

based Eredene Capital PLC inaugurated the

Haldia Logistics Park after the completion of

phase I and is now ready to kick start its

container freight station (CFS). The total cost of

the project in the first phase is around Rs 95

crore. Haldia Logistics Park is the only

integrated park in eastern India which will

provide one stop facility for all the dry exim

cargo. The first phase of the Haldia Park is

spread over a working area of 45 acres with 24

acres earmarked for CFS to handle over 4000

containers and includes 60,000 sq ft for exim

bonded warehouse. In addition, the Haldia

facility will have 80,000 sq ft for domestic

warehouse, 240,000 sq ft for open storage and

project cargo and over 30,000 sq ft for other

utilities.

Apart from this, Apeejay Infralogistics is ready

to inaugurate its Kalinganagar's logistics park in

December 2012. The facilities at Kalinganagar

under phase-1 will include 120,000 sq ft for

domestic and contract warehousing and

175,000 sq ft for open storage and project

cargo. The first phase of the project will cost `

250mn. The Kalinganagar complex will have a

capacity to handle over 2500 containers for

Exim and will have covered warehouse of over

250,000 sq ft in addition to hospitality,

commercial and retail space. The facility is

equipped with the state's first fully purpose-

built CFS cum transport hub and warehouse

facility specifically targeting the in-bound and

out-bound cargo of the steel and mineral

industry to provide a truly multi modal solution.

News Update

Logistics Track


Apeejay-Eredene Capital JV to set up nine

logistic parks in India

With its Haldia Logistic Park now thrown open,

Apeejay Infralogistics (AILPL), a 50:50 JV of

Apeejay Surrendra Group and the UK-based PE

fund- Eredene Capital, seems well set to come

up with its second logistic park in the east-

Kalinganagar Logistic Park. The two logistic

parks promise to provide one-stop facility for

dry exim (export-import) cargo and manage

entire supply chain logistics of clients.

The LSE-listed PE fund actually has an

agreement with the Kolkata-headquartered

Apeejay Group to develop nine infrastructure

and logistics projects across the country. The

British PE fund is looking at raising $200-

$300mn from overseas markets to meet its

investment requirement for the Indian

infrastructure sector.

Railways aims at 8-10% YoY revenue

growth

Indian Railways is expecting a year-on-year

revenue growth of 8-10%, according to Union

Minister of State for Railways K.H. Muniyappa.

The Ministerhas said that the need of the hour

was to get aggressive on market-focused

public-private partnership (PPP) models by

engaging rail users in planning process for

tailoring total logistics solutions. The existing

schemes for wagon leasing, sidings, private

freight terminals and container train operations,

and rail connectivity projects will be made more

attractive from rail users’ perspective. This is

because of the limitations of funding support

from the Government and constraints with

regard to internal generation and market

borrowing, he said. The Minister said that the

Railways Vision 2020 estimates the need for

over 5,000 diesel and 4,000 electric

locomotives over the next decade. Stating that

this requires huge investments, he said the role

of private sector and PPP therefore becomes

pivotal.

Tata Capital, Everstone in race for

Transpole Logistics' stake

The Indian logistics sector is turning to be a hot

destination for private equity investors,

following the government's decision to allow

FDI in multi-brand retail. In the latest

development, three PE majors -- Tata Capital,

ChrysCapital and Everstone Capital -- have

joined the race to acquire a significant majority

stake in Delhi-based Transpole Logistics.

Headquartered in New Delhi, ` 5bn Transpole

has a presence across India, China, Hong Kong,

Korea and South East Asia.

According to sources in the know, through the

second round of funding, existing PE investor

Fidelity Growth Partners will make a part exit

from their one-year-old investment in

Transpole. Fidelity had invested about ` 600mn

in April last year by acquiring a significant

minority stake. Through this round of funding,

Transpole is likely to raise about ` 2bn.

Transpole Group was founded by logistics

professionals - Anant Kumar Choudhary, Vivek

Shukla, and Praveen Chand Rai in 2004. The

group had appointed Phillip Ng, ex Managing

Director of Fedex Asia Pacific in 2010 as MD -

Far East, Transpole for driving Asian expansion.

Dimerco, Global Logistics Service Provider,

Operates New India JV

Dimerco Express Group, the global logistics

service provider, announces the official launch

of its India JV - Dimerco Express (India) Pvt.

Ltd. effective from 1st October 2012, marking a

significant milestone on its network expansion

strategy in emerging countries. The new JV

aims at better serving directly to local

customers, and offering a more complete

service network to assist customers global

strategic network planning. Dimerco continues

to strengthen the organization and its

marketing service network in Asia Pacific,

China, North America, Europe & Oceania whilst

cautiously entering into emerging markets in

countries such as India and Brazil.

The new JV started from agency alliance,

subsequently setting up of Dimerco liaison

offices (2007 to 2011), and finally the opening

of the Dimerco JV Company. With an array of

full functional services from international Air

Logistics Track


and Ocean freight forwarding, warehousing,

distribution to customs brokerage, and with

main office located in Bangalore, Dimerco

Express (India) also serves in Chennai, Delhi,

and another upcoming office to open in

Mumbai.

Cadbury perks up investment in cold chain

Cadbury India is taking steps to increase

investment towards building a cold chain for its

premium chocolate portfolio. After witnessing a

‘worm scare’ in its chocolates a couple of years

ago, it is making sure there are enough visi-

coolers for its premium offerings. In 78,000

stores, cadbury has set up cold chain facilities.

Considering chocolates are more susceptible to

weather conditions and can become a ‘molten

mess’, Cadbury has become more vigilant at its

points of sale.

Logistics, transportation sector require

17.7mn skilled workers, says NSDC

An estimated 17.7mn skilled workforce is

required in the transportation and logistics

sector alone, according to a study by the

National Skill Development Corporation. To

narrow the skill deficit in the sector, the Union

Labour Ministry has floated apprentice training

schemes for mechanics in three trades — two-

and three-wheelers, tractors and motor

vehicles. However, till August 2012, the seats

available in all the three trades had not been

fully utilised. Of the total 532 seats available for

auto mechanic training for two- and three-

wheelers, only 323 were utilised, of the 1,762

seats for tractor mechanic training, only 1,213

were taken, and of the 12,987 seats available

for motor vehicles, only 11,004 had been

utilised, says a Labour Ministry release.

In addition, 133,600 seats are available for a

craftsmen training scheme in 11 trades relating

to transportation and logistics being offered

through Industrial Training Institutes. The

schemes include training in mechanical repairs

and maintenance of various vehicles, such as

marine diesel, heavy and light vehicles, engine

fitters and vessel navigators among others.

However, the Ministry does not have the latest

figures of the number of seats utilised for these

India, Austria sign MoU for shipping, port

infra

India and Austria today signed a memorandum

of understanding (MoU) for technology

cooperation in the shipping and port related

infrastructure, said a government statement.

The MoU was signed by Indian shipping minister

G K Vasan and Doris Bures, Austrian Federal

Minister for Transport, Innovation & Technology

in New Delhi. The MoU is expected to pave way

for sharing appropriate know-how, scientific

knowledge and research and development

capabilities between the two countries. New

technologies for implementation of International

Ship & Port Security code, use of radio

frequency identification in logistics and

transport planning and optical character

recognition in terminals to speed up the

processing of containers in and out are the

areas where Austrian expertise could be utilized

in India, the statement said. Since more than

300 kms of Danube river in Austria is used for

navigation purpose with a well-developed and

regulated inland waterway system their

experience and expertise in the field of inland

water transport would be beneficial to the

development of inland water transport in India,

it said.

Shipping industry to start recovering from

mid-2013: SCI

India’s shipping industry will begin recovering in

the middle of next year as the demand-supply

mismatch of vessels is set to end, said S.

Hajara, chairman and managing director of

Shipping Corp. of India Ltd, the country’s

biggest shipping firm by fleet size. There were

“record deliveries of vessels” in 2010, he said.

But as supply exceeded demand amid a trade

slump, there was a slowdown, said Hajara, who

will step down from his position on 3 December.

He said at the India Shipping Summit that the

demand-supply equilibrium would be restored

by the middle of 2013 and tanker and container

freight will recover fast.

Logistics Track


Poor freight rates across sectors forced Indian

shipping companies to halt or slow plans to buy

ships. Hajara said ships of high value are being

delivered in a market where the level of income

for such vessels is very low. The domestic

financial environment isn’t conducive to the

funding of ship purchases, said Yudhisthir

Khatau, vice-chairman and managing director,

Varun Shipping Co. Ltd. Indian shipping

companies would prefer to own ships registered

overseas considering the cost of funds and

taxes in India, according to him.

Sri Lanka keen to invest in Indian port

projects

Sri Lanka Ports Authority (SLPA), controlled by

the Sri Lankan government, is in talks with

Indian port companies to form consortiums to

invest in Indian port projects. Some officials of

the Sri Lankan port authority say the company

has already identified projects to invest in India

and is looking to bid for a number of upcoming

projects. This is also the first time that Sri

Lanka has shown willingness to invest in Indian

projects. Industry experts and shipping ministry

officials, however, fear that getting security

clearance for the projects will be tough and

there could be an element of suspicion that Sri

Lanka might try to hamper the growth of the

Indian port sector. Industry experts say that

the move to invest in India should not be seen

as something positive since Sri Lanka remains

India's biggest competitor in the Indian sub-

continent region. According to the existing

policy, the government allows 100% FDI in port

sector, but has barred Chinese companies from

bidding for port projects in the country. Sri

Lanka's port sector, which remains an envy for

Indian ports after the Colombo port emerged as

the largest transshipment hub in the south East

Asian region, was earlier looking for Indian

companies to invest in Sri Lanka. India is

currently Sri Lanka's biggest trading partner,

but China is its biggest donor.

Gautam Chatterjee is DG shipping

In a minor shuffle in the state bureaucracy,

Housing Secretary Gautam Chatterjee will take

over as Director General, Ministry of Shipping,

on central deputation. The Appointments

Committee of the Cabinet approved the

appointment of the 1982 batch IAS officer.

COSCO, China Shipping to jointly operate

trade routes to Fujian

CHINA'S top two shipping giants, COSCO and

China Shipping, will join forces in a move that is

a first for the domestic coastal container

shipping industry and which is aimed at

weathering a severe market downturn. China

Shipping Container Lines Co has said it had

agreed with COSCO Container Lines Co, a unit

of China COSCO Holdings Co, to jointly operate

trade routes from north and northeast China to

Fujian Province and Shantou in south China's

Guangdong Province from mid-October. The

two shippers, with a combined market share of

80% in the domestic coastal container trade,

would each deploy ships to jointly operate the

routes.

China to set off on tanker buying spree for

new shipping venture

State-owned China Shipping is planning to

order up to 20 new supertankers for the fleet of

a joint venture aimed at giving Beijing more

control over its energy supply chain but which

will add to the vessel glut in the struggling

freight market. A Chinese ship buying spree

would provide much needed business to the

domestic shipbuilding market, the world’s

second largest. Hundreds of small to mid-sized

shipyards are teetering on the brink of

bankruptcy as foreign orders dwindle and

domestic lenders slash credit. But any new

vessels will add to an already oversupplied

global shipping market which is struggling with

dwindling clients and falling rates.

Phoenix Petroleum completes acquisition

of ship firm

Publicly listed Phoenix Petroleum Philippines

Inc. has finally completed the acquisition of

Chelsea Shipping Corp. after concluding a

Global News Update

Logistics Track


share-for-share swap agreement with the

shareholders of the shipping company. Under

the agreement, Phoenix Petroleum acquired

6.3mn common shares, or 100 percent of the

outstanding capital stock, of Chelsea Shipping,

in exchange for 171mn common shares of

Phoenix Petroleum.

In effect, Phoenix Petroleum issued 30 shares

for every piece of Chelsea’s, the oil company

said in a disclosure to the Philippine Stock

Exchange. Both parties did not disclose the total

purchase price, but earlier disclosures placed

the value of the 171mn shares issued by

Phoenix Petroleum at about P1.4 bn. Phoenix

Petroleum earlier explained that 90% of the

quoted purchase price would be paid to the

shareholders of Chelsea Shipping through the

issuance of 171mn new common shares from

the oil company’s unissued authorized capital

stock while the 10% would be paid in cash. As

of end-June this year, the company had a

network of 255 retail stations

EU looks to extend emissions tax to

international shipping

Less than two weeks after the Senate voted

unanimously to pass a bill that shielded U.S.

airlines from paying a European Union

emissions tax imposed on European flights, the

EU is looking to extend emissions taxes to

shipping. European Commission issued a

statement saying they were moving forward

with an effort to reduce greenhouse gas

emissions from international shipping.

According to the EU Commission, they are

considering possible action in 2012 in regards

to including shipping emissions into the EU’s

greenhouse gas emission reduction

commitment. Countries like China and India

have already come out in opposition to the EU

unilaterally imposing an emissions tax on

shipping.

ADB offers loan to China's logistics

industry

The Asian Development Bank announced on

Monday it will loan $24mn to a Chinese logistics

company, its first involvement in China's

logistics sector. The receiver of the loan, Tianjin

Binhai Teda Logistics, will use the funding for a

cold-chain logistics project in Tianjin, a port city

in North China, according to the announcement.

With a total investment of 600mn yuan

($95mn), the main business of the cold-chain

logistics center, located in the Tianjin port area,

includes refrigerated storage, a domestic

shipping and container yard services.

ATI Gets Global Logistics Partner

To deliver optimal and more competitive end-

to-end cargo handling services, Asian Terminals

Inc. (ATI) and global logistics firm CJ GLS

Philippines Inc. (CJ GLS) have recently sealed a

strategic partnership which paves the way for

the collaboration and complementation of their

ports and logistics expertise. Under the MoU, CJ

GLS would tap ATI’s Manila South Harbor and

the Port of Batangas as preferred gateway ports

for the import and export requirements of its

logistics clients. ATI will provide the necessary

logistics support to CJ GLS through its strategic

ports in Manila and Batangas as well as the

Inland Clearance Depot in Laguna. Present in

12 countries, CJ GLS is Korea’s largest global

logistics enterprise for air and sea

transportation, bulk transportation, project

cargo, and express business as well as

import/export, transport, customs, and

warehousing. ATI provides ports, logistics and

other ancillary services through the Manila

South Harbor, Batangas Port, Batangas

Container Terminal, Inland Clearance Depot and

the Sta. Mesa Container Yard in Manila. ATI is

also a strategic partner at the South Cotabato

Integrated Port in General Santos City.

Etihad Rail signs MoU with Global Shipping

& Logistics (GSL), the Dubai-based third

party logistics provider

Etihad Rail – the master developer and operator

of the UAE’s national railway network has

announced the signing of a Memorandum of

Understanding (MoU) with Dubai-based Global

Shipping & Logistics LLC (GSL), a subsidiary of

the Al Shirawi Group of companies and a

Logistics Track


leading third party logistics provider. The

agreement will see GSL use the Etihad Rail

network for cold chain – a temperature-

controlled supply chain – for which rail brings

many benefits. The agreement will offer GSL’s

clients a lower risk cold chain,particularly over

long distances, and with a safer, more efficient,

and more environmentally-friendly mode of

transport than trucks.

Damco buys PacNet to grow presence in

China

Damco, the logistics arm of the Danish shipping

conglomerate AP Moller-Maersk Group, has

agreed to buy the Australian global logistics

company Pacific Network Global Logistics, a

leading freight forwarder in China and Australia

markets, for an undisclosed amount. Damco

said the current PacNet senior management

team will join Damco and the existing

operations will be run by largely the same

people. The move is expected to enhance its

network and forwarding capabilities in Australia

and China and help it gain market leadership

positions in retail and lifestyle sectors in

Australia while further strengthening its position

in airfreight from China to Australia. Damco has

been expanding its presence in the Chinese

market in recent years. In March, the company

said it plans to set up five new offices in West

China, in addition to its existing 19 on the

Chinese mainland. In 2011, Damco increased

its airfreight services through the acquisition of

NTS International Transport Services Co Ltd in

China. In the same year, it also set up a

customer service center in Chengdu, West

China.

Accel-KKR Makes Majority Equity

Investment in Accellos

Accel-KKR, a technology-focused private equity

investment firm, has announced that it has

made a majority equity investment in Accellos,

Inc., the leading supply chain execution

software company focused on the SMB

segment. Accel-KKR is a technology-focused

private equity firm with over $2.3 billion in

assets under management. The firm invests

primarily in software and IT-enabled businesses

well positioned for top-line and bottom-line

growth. Accellos is a global provider of software

solutions specifically designed for the unique

needs of logistics service providers and

midsized businesses. Over 3,000 companies

trust Accellos to be the technology backbone of

their global supply chains. Accellos provides

solutions for warehouse management systems

(WMS), third party logistics (3PL), fleet

management, transportation management

systems (TMS), trading partner integration

(EDI), automated barcode data collection,

parcel shipping, transportation optimization and

supply chain business intelligence.

Logistics developer looks to fund £250m

warehouse portfolio

PointPark Properties (P3) hopes to raise

£250mn through a flotation on the London

Stock Exchange. The proceeds will contribute

towards buying the Arcapita portfolio. The

€760m portfolio is predominantly in West

Europe, mainly in France and Germany, and is

already managed by P3. The deal will also fund

new development in Poland, Czech Republic,

Bulgaria and Slovakia.

APL Logistics to Acquire Chinese Joint

Venture

APL Logistics has signed an agreement with

Legend Holdings Co., Ltd., and Beijing Willway

Information Technology Co., Ltd., to acquire

their shares in APLL-Zhiqin Group, a Chinese

joint venture partnership among the three

parties, by the end of 2012. The third-party

logistics provider expects the deal to speed up

its plans to expand its logistics hub

management and domestic distribution

capabilities in China, as the joint venture’s

transportation and distribution network covers

more than 2,000 locations there, including

third- and fourth-tier cities. After the

acquisition, APL will offer a service network of

78 offices and facilities across China.

Universal Buys Logistics Firm for $335

Million

Logistics Track


Universal Truckload Services said it has

completed the purchase of third-party logistics

firm LINC Logistics for $335 million. LINC

primarily serves the automotive and

manufacturing industries and provides

truckload, expedited and freight forwarding

services. Universal’s announcement said the

acquisition would add at least 20% to its 2013

earnings. The plan for Universal to acquire LINC

was announced on July 26. Universal Truckload

is ranked No. 39 on the Transport Topics 100

listing of U.S. and Canadian for-hire carriers.

Henderson raises 90mn euros for German

Logistics Fund

Henderson Global Investors has raised €90

million for its German Logistics Fund - a

partnership between Henderson's German

Property Business and Palmira Capital Partner -

giving it €150 million (including gearing) of

firepower to deploy in the German logistics

market. It remains open to further institutional

investors with an eventual target size of €250

million GAV. Current investors comprise

predominantly German insurance companies

and pension funds, together with an Austrian

institutional investor. The fund -Henderson's

second 'Spezialfonds', which will focus

exclusively on existing, good quality logistic

assets in top locations throughout Germany has

already got a number of assets in due diligence,

under exclusivity and hopes to complete on 3-4

acquisitions before the end of the year totalling

€50 million. Its target return is 8.5% with a

40% gearing provision.

Hellmann announces partnership with H.

Essers

One of the leading logistics providers, Hellman

Worldwide Logistics UK, has announced a new

road freight partnership with H. Essers,

Belgium’s leading groupage logistics company.

From September 1st, Hellmann and H. Essers

will launch a new daily shuttle system servicing

both the UK and Belgium. The new network

partnership will be provided in accordance with

System Alliance standards and will link Belgium

and the industrial regions of the UK with a 48-

hour door-to-door service.

Northern France woos India for

investments in rail, logistics

Northern France has invited Indian

businessmen to invest in rail, automotive,

logistics, health, IT and multimedia projects to

take advantage of its strategic location and

proximity to key commercial centres. A

business delegation led by Nord France Invest,

which is the investment promotion agency for

Northern France, during its India visit asked

Indian investors to set up their business there

which is situated in a strategic geographical

location with the key business centres in the

Europe. The region, also known as Lille Region,

already has presence of corporates including

Tata Steel, Titagarh Wagons, ArcelorMittal,

Accord Healthcare, Horizon AI and Blue

Stamping Forging. In 2010, India's leading

wagon maker, Titagarh Wagons had acquired

the assets and business of the financially

stressed French wagons and rolling stock

manufacturer Arbel Fauvet Rail based in Lille

Region. This acquisition is expected to provide

Titagarh Wagons with an additional production

capacity of up to 5,000 wagons per year and in

turn initiate its expansion into European and

global markets. Apart from India, Lille Region is

eyeing to attract investments from countries in

Asia-Pacific region, including Japan, which has

been its historical partner, and China as well as

South Korea.

England Logistics acquires certain assets

of Kampstra

England Logistics, one of the nation’s largest

freight brokerage firms and third-party logistics

(3PL) companies, has announced the acquisition

of certain assets of Portland OR-based

Kampstra Transportation and Logistics LLC.

Through this action, England Logistics will

provide greater service to its brokerage

customers in the Northwest and throughout the

United States. England Logistics is a full-service

transportation and logistics provider with offices

in North America and mainland China. It

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provides a complete line of transportation

modes including full truckload, less-than-

truckload, intermodal, freight forwarding, and

supply chain management.

DB Schenker opens logistics academy in

China

DB Schenker has opened an academy to train

employees in China. Dr. Thomas Lieb, chairman

of the management board and chief executive

of Schenker has said that by establishing the

DB Schenker Logistics Academy China, the

company was aiming to develop employees

over the long term and keep them at DB

Schenker. DB Schenker has some 5,000

employees in 60 cities in China. The training

programme is geared toward operational

management in contract logistics. Modules

range from logistics concepts and continuous

quality improvement to logistics controlling,

project management and conflict resolution.

Delek Logistics set to raise $160m on

NYSE

Delek Logistics Partners LP, a subsidiary of

Delek Group Ltd. (TASE: DLEKG), controlled by

Yitzhak Tshuva, will seek to raise a gross $152-

168 million in an offering of eight million shares

at $19-21 per share on the New York Stock

Exchange. The company value for the offering

is $456-504mn, after money, with the midpoint

market value of $480 million. Delek Logistics, a

unit of unit Delek Group subsidiary Delek US

Holdings Inc. (NYSE:DK), was established

earlier this year to own Delek US's crude oil and

refined products logistics assets in US

southeast. The company had $888 million in

sales in the twelve months through June 2012.

Delek Logistics will use the proceeds as follows:

$57.8mn will be distributed as a dividend,

$50.9mn will be used to repay bank debts, and

$35mn will be invested in working capital. After

the offering, Delek Group will indirectly own

67.3% of Delek Logistics.

OHL Sells Turbo to XPO Logistics

Third-party logistics provider OHL has sold the

operating assets of freight brokerage division

Turbo Logistics to XPO Logistics. The sale,

valued at $50 million in cash, was OHL's second

this year as part of a strategy to focus on its

core business. In April, it sold off Lanter

Refrigeration Distribution. OHL said it used the

proceeds from the transaction to pay down

long-term debt. CEO Randall E. Curran added

that the move provides “clarity and confidence”

for the company’s stakeholders.

U.S. logistics industry to post 1.1mn jobs

by 2016, report says

The U.S. logistics industry will have nearly

1.1mn job openings between 2013 and 2016

just to keep pace with projected industry

growth during that period, according to a soon-

to-be-released study by a state advocacy

group. The report found that only 75,000

logistics workers are being trained, degreed, or

certified each year to fill what will be more than

270,000 annual job openings through 2016.

Unless the trends change, the nation would be

short about 800,000 qualified logistics workers

by the end of 2016, meaning that nearly 70%

of available job openings would go unfilled.

According to the report, the warehousing and

distribution industry will have more than

125,000 job openings per year over the four-

year period. That is followed by trucking, with

more than 115,000 job openings a year;

industrial engineering, with about 12,000

openings; logistics operations and management

positions at 12,660 per year; and freight rail at

4,530 positions.

IVG raises EUR 120m for logistics fund

Germany's IVG has said that it has raised a

total of EUR 120mn in equity from institutional

investors from Germany and Austria for its IVG

Garbe Logistik fund, launched in March 2012.

By the beginning of next year, IVG and Garbe

Logistic intend to collect more funds and then

close the fund with up to EUR 200 mn in equity

as planned. In total, the fund has a target

investment volume of up to EUR 400 mn and is

expected to be fully invested by the end of

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2014 at the latest. The first properties will be

acquired this year. Asset management for the

portfolio is performed by Garbe Logistic and

fund management by IVG. Both companies are

also operating as co-investors.

LeSaint acquires Chemical Logistics' assets

LeSaint Logistics has acquired the assets of

Chemical Logistics, a 3PL specialist in

warehousing and distribution of hazmat and

non-hazmat chemicals. The asset acquisition

not only expands LeSaint into the chemical

markets, but also increases quality service

offerings available to customers of both

companies. The two new facilities, which will be

an integral part of LeSaint's supply chain

offerings, will operate under the name of

LeSaint Chemical Logistics. Both the companies

have operations in the USA.

DHL Express launches its $175mn Asia

logistics hub

DHL has opened its biggest express hub in Asia

– the $175m DHL Express North Asia Hub at

the Shanghai Pudong International Airport.

Covering a land area of 88,000 square meters,

the facility is designed to process up to 20,000

documents and 20,000 parcels an hour. The

logistics company also announced plans to

further invest $132m to add eight dedicated

aircraft to service high demand routes between

Shanghai and North Asia, Europe and the US,

by 2014. Stressing its green credentials, DHL

revealed that the hub has energy efficient T5

lighting and a solar-powered system for hot

water. The hub’s sortation system is also

designed to automatically detect components

that are not in use and switches them to an

energy-saving ’sleep’ mode until they are

needed again. The completion of the North Asia

hub adds to DHL Express’s four existing hubs in

Asia Pacific – Shanghai, Hong Kong, Bangkok

and Singapore. DHL said it further plans to

increase capacity on routes between the DHL

Express North Asia Hub and other cities in

China and Taiwan. Over the next few months,

the company will add direct connections to

Incheon, Taipei and Chinese cities such as

Dalian and Qingdao, with Beijing and Xiamen

likely to come on stream in 2013.

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Stock Market Update

Share Price Performance

Baltic Dry Index

Road Freight Index

As on 26th October 2012 Market Cap Price

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

Container Corporation of India 130,506 1,004.05 -0.1% 7.7% 13.3% 16.6% 4.9%

Essar Ports Ltd. 41,989 102.30 -3.1% 10.1% 5.1% 12.1% 10.7%

Blue Dart 41,348 1,742.45 -0.4% 1.8% -8.5% -11.8% 10.8%

Great Eastern Shipping 39,144 257.05 0.1% 3.3% -3.7% -1.2% 10.1%

Shipping Corporation of India 23,593 50.65 -7.5% -13.3% 0.3% -15.9% -28.4%

Allcargo Logistics 17,233 132.00 1.0% -2.4% -6.5% 7.7% -8.2%

Gateway Distriparks 15,511 143.05 2.1% -3.3% 0.9% -5.3% -4.4%

Arshiya International 7,479 127.20 -4.8% -1.7% 11.5% -13.1% -21.1%

Aegis Logistics 5,576 166.95 -5.5% 4.8% 50.2% 10.7% -7.1%

Mercator Ltd. 4,812 19.65 -5.5% -8.8% 6.5% -7.3% -23.1%

Transport Corporation of India 4,588 63.15 3.1% 4.2% 6.2% 8.5% -15.1%

Sical Logistics 3,614 65.00 -0.1% 0.2% -3.6% -4.7% -8.0%

Gati 3,074 35.50 -10.7% -13.5% -1.3% 0.1% -36.1%

SEAMEC Ltd. 3,063 90.35 -0.9% -4.1% 6.3% 1.2% -14.2%

Aqua Logistics 2,805 9.35 0.0% 0.0% -4.4% -19.2% -30.7%

Varun Shipping 2,400 16.00 -3.5% 3.8% 8.2% -6.3% -12.3%

NSE Nifty - 5,684.25 -0.4% 0.1% 12.1% 8.9% 8.1%

BSE Sensex - 18,625.34 -0.3% 0.0% 11.9% 8.7% 7.7%

ET Logistics Index - 17,502.18 -0.4% 5.1% 6.0% 7.1% -1.6%

ET Shipping Index - 6,753.89 0.1% 1.7% 9.9% -2.7% -14.0%

Baltic Dry Index (BDIY:IND) - 1,049.00 3.9% 39.5% 9.5% -8.6% -51.1%

Percentage Change (%)

Source: Baltic Exchange

Source: Transport Corporation of India

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Financial Benchmarking

Quarterly Results – Q2 FY ’13, ending 30th September, 2012

Figures in Rs.`mn

Annual Results - FY‘12

Figures in Rs.`mn

Q2 FY'13

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

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 9,980 8,827 -12% (288) (443) - (193) 370 - - 4%

Gati 3,212 2,983 -7% 401 171 - 45 (78) - - -

Essar Ports 2,740 3,440 26% 2,256 2,828 25% 408 805 - 82% 23%

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% 2%

SEAMEC Ltd 460 737 60% 127 138 - 86 137 59% - -

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

PAT Margins Q1 FY’13Company Revenue EBITDA

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