1. Transportation Opportunities & Challenges 3rd Annual India Trade Conference David Noe – VP Sales, Marketing & Customer Support
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2. India Ports, CFS and ICD locations Innovation: Questions & Answers
Presentation Overview
Brief India Overview
India Growth Sectors
APL India Overview
India Ports, CFS and ICD locations
Innovation:
Questions & Answers

3. High Level Points of Interest
India’s power as a major international player in services, manufacturing and exports continues to grow
With improved per capita Gross Domestic Product, the consumer markets in India continue to expand dramatically
Opportunities for importers and exporters continue to diversify – and the ocean carrier and logistics community is well positioned to greet the expansion
APL has had a presence in India for decades and we are a major service innovator -

4. Welcome to India Second fastest growing economy in the world.
Kolkata
Lotus Temple
Taj Mahal
Chennai
New Delhi
Mumbai
Second fastest growing economy in the world.
GDP growth has consistently been close to 9% over the last 3 years and even during the current crisis still managed a healthy 6% growth.
Large domestic market and is less dependent on export markets which form less than 15% of India’s GDP.
APL was the pioneer in introducing containerisation in India way back in 1973.
We continue to be a leading carrier in the Transpacific and Intra Asia trades to and from India.

5. 3rd Largest Economy in the World by 2032
In terms of GDP, India will overtake: Italy by France by UK by Germany by Japan by 2032
SOURCE IMA

6. India – Growth Sectors & Industries

7. Textiles/Garments
Contributes US$21 billion – 12% of exports and 14% of industrial production
Employs over 35 million and targeted to create 15 million new jobs by 2015
Projected investment in next 5 years is US$30B and India allows 100% FDI in textiles
Garment exports to USA at US$2.8B while to EU zone at US$6B
Yuan appreciation to benefit Indian exporters
Sources: AEPC, FICCI

8. Automobiles & Auto Parts
Source : SIAM

9. White Goods/Home Appliances
Estimated market size of $40 Billion and projected average growth rate of 20% through 2012
Replacement cycle of 9-12 years is now down to 4-5 years
Direct Tax Code expected to spur consumer demand
Rural market accounts for 40% and growing faster than Urban demand
Foreign brands dominate over 70% of Indian Home Appliances market – huge import/export opportunity
Source : Assocham, IBEF

10. APL India Overview 10 10

11. APL OFFICES IN INDIA Ludhiana Loni New Delhi Kathmandu Jaipur Kanpur
Jodhpur
Indore
Kandla
Veraval
Ahmedabad
Kolkatta
Nagpur
Mumbai
Pune
Vizag
Hyderabad
Marmagoa
Mangalore
Bangalore
Cochin
Tuticorin
APL OFFICES IN INDIA

12. Global Perspective – APL Network
Exports in FEUs
Country
2,008
2,009
YTD P5,2010
USA
422,736
360,925
166,415
N. CHINA
357,300
325,219
158,090
S. CHINA
307,867
285,429
140,411
JAPAN
126,640
106,163
61,035
INDIA
119,350
105,441
53,450
Total
2,461,381
2,287,971
1,126,127
Imports in FEUs
562,385
492,376
242,647
119,077
125,624
56,748
120,310
120,146
65,924
UAE
126,059
113,943
51,410
83,736
94,439
54,088
5th largest export country in 2010
3rd largest import country in 2010

13. Ports & Inland ICD 13 13

14. Indian Port Overview Volumes in thousands of TEUs for 2008
MUMBAI/NHAVASHEVA 4,163
CHENNAI 1,187
MUNDRA
TUTICORIN
MUMBAI
COCHIN
KANDLA
KOLKATTA
HALDIA
PIPAVAV
VISHAKAPATNAM
MURMAGOA
NEW MANGALORE
Haldia
JNPT
Chennai
Mumbai
Murmagao
New Mangalore
Cochin
Tuticorin
Mundra
Kolkatta
Vishakapatnam
Kandla
Volumes in thousands of TEUs for 2008

15. ICDs & CFSs
An ICD (Inland Container Depot) or CFS (Container Freight Station) may be defined as a common user facility offering services for handling and temporary storage of import/export laden and empty containers carried under Customs control and with Customs and other Agencies competent to clear goods. Generally:
An ICD is located in the interior of the country away from the gateway port, whereas,
A CFS is an off dock facility located near the gateway port which helps in decongesting the port by shifting cargo and customs related activities outside the port area.
The inbound containers need to move from ports to CFSs from where they are delivered.
Customs permit direct delivery from port CY, only to ACP (Accredited Customer Programme) customers.
FUNCTIONS OF ICDs/CFSs
Receipt and dispatch/delivery of cargo
Stuffing and stripping of containers
Customs clearance
Transit operations by rail/road to and from gateway ports
Consolidation and desegregation of LCL cargo.
Temporary storage of cargo and containers
Reworking of containers
Maintenance and repair of container units.

16. North India ICD locations
Jodhpur
Ludhiana
Moradabad
Kanpur
Delhi
Jaipur
Panipat
LONI
Mundra
- Location
- Ports
Nhavasheva

17. South India ICD locations
Colombo
Tirupur
Bangalore
Hyderabad
Vishakapatnam
Chennai
Mangalore
Cochin
Tuticorin
- Location
- Ports

18. East India ICD locations
Biratnagar
Birganj
Kathmandu
Kolkata
Haldia
- Location
- Ports
East India ICD locations
Guwahti

19. Operational and Financial Summary
CFS (Port)
CFS nominated by APL
Ctr moved by CFS to depot
Customs Clearance at CFS
Storage and LoLo charged direct to consignee by CFS
Continued growth expected as the Indian economy expands
ICD (Inland)
Movement by rail controlled by APL for Imports. For exports can be either APL or shipper. Tax implications.
Customs Clearance at ICD
Storage and LoLo charged direct to consignee by ICD
Even more impressive growth as the network expands to meet demand

20. INDIALINX : Overview on Rail service20 20

21. Why APL Developed
Extension of APL’s Liner service: Given the infrastructural constraints in India, it is critical to have control over choke points to ensure delivery certainties.
Improved Reliability for our Customers: APL has greater asset and operational control – making customers better able to plan and work their supply chains including Indian manufacturing capabilities.

22. Rail Movement Critical for north-Indian Hinterland
Ports on the west coast handle around 70% of India’s container traffic.
North Indian hinterland contributes to about 75% of the containers moving through Indian ports.
Avg. distance covered by a container on the north-west corridor is 1300 km.
Transportation by rail expected to grow to from current level of 1.8 million to 5 million TEUs by 2015.
Mundra
Pipavav
VIZAG
Nava Sheva
Tuticorin

23. Future Network and volumes (2015): Organic Growth
Trains : 23
Rail Volumes: 217,000 Teus
International : 88%
Domestic: 12%
LUDHIANA
PANIPAT
LONI
ACTL
RUDRAPUR
Kandla
INDORE
KOLKATA
Mundra
NAGPUR
Pipavav
Kalamboli
Nava Sheva
VIZAG
HYDERABAD
CHENNAI
COCHIN
Tuticorin

24. APL IndiaLinx – A New Industry Standard for Many Carriers
Hapag-Lloyd
NYK
OOCL
Evergreen
HMM
UASC
MOL
Emirates
K-Line
Yang Ming

25. Thank You!