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India Freight Transport Report Q2 2012 Published : April 2012

No. of Pages : 69


India's freight transport sector continues to develop rapidly, desperately trying to keep pace with the rapid growth of the country's economy and trade requirements. Trade growth is set to average over 9% between 2012 and 2016. There are obstacles to this, however, as congestion in ports and antiquated infrastructure impose limitations on growth potential. If investment can be assured, one need only look at the strong expansion of the private Gujarati ports to see the potential. Air and rail freight are both also set to grow quickly, with air freight in particular to benefit from India's booming pharmaceutical industry. The sale of Air India's dedicated freighter craft will have been a blow to the home-grown industry, however. Headline Industry Data 2011/12 Port of Kandla tonnage throughput growth forecast is 0.4% and is projected to average 7.6% a year to 2016/2017. 2012 rail freight growth forecast is 4.9% and is projected to average 5.7% to 2016. 2012 air freight tonnes growth forecast is 8.3% and is forecast to average 8.5% to 2016. 2012 total trade real growth forecast at 7.0%, and to average 9.3% to 2016. Key Industry Trends CONCOR To Launch Container Train Services India's state-owned Container Corporation of India (CONCOR) will soon begin operating container train services, which will run from the inland container depot in Madurai, Tamil Nadu to the Karaikal Port, Pondicherry and Delhi. Chief general manager K Raveen Kumar Reddy, said in December 2011 that the company would launch services from Tondiarpet in Chennai to Karaikal and from Madurai to Karaikal and Delhi. Its container handling throughput stood at 2.06mn twenty-foot equivalent units (TEUs) in the first eight months. Pharma Exports To Boost Indian Air Freight Volumes BMI believes that India's rapid growth in the export of pharmaceutical products will be supported by the development of new air cargo hubs with a particular focus on cold chain facilities for the industry. Opening Up Of Indian Market Provides Opportunities For Logistics Firms International retail companies such as Tesco, Walmart and Carrefour will be rubbing their hands at the prospect of greater involvement in the Indian market following the passing of a bill on November 28 2011 which opens its retail sector up to foreign ownership. BMI notes that logistics companies also stand to see massive gains as supply lines are built around the expected new businesses. APMT Looks To Indian Ports Growth BMI believes that further investment by international terminals operator APM Terminals (APMT) in the Indian ports sector would be beneficial to both parties: India will receive APMT's expertise, while APMT can expect volumes to show strong growth in the years to come. We note, however, that the Indian Ministry of Shipping may be wary of the Danish company following the delay to Mumbai's fourth terminal caused by APMT's plea in the Supreme Court. Key Risks To Outlook There are a number of risks to our outlook and these tend largely to the downside. Congestion continues to be a problem in the major state-controlled ports, and if not remedied they will not enjoy the growth we project, losing further ground to the new private facilities. In terms of the overall picture, India's macroeconomic circumstances lend risk, namely the current account deficit the country is building up as exports have declined following July 2011's record expansion and elevated oil prices. Indian Freight Transport Industry Table Of contents Executive Summary SWOT Analysis

India Freight Transport Industry SWOT India Political SWOT India Economic SWOT India Business Environment SWOT Industry Trends And Developments Rail Road Air Logistics Maritime Market Overview Industry Forecast Air Freight Table: Air Freight, 2009-2016 Rail Freight Table: Rail Freight, 2009-2016 Maritime Freight Table: Maritime Freight - Throughput, 2009-2016 ('000 tonnes) Trade Table: Trade Overview, 2009-2016 Table: Key Trade Indicators, 2007-2016 (US$mn and % change y-o-y) Table: India's Main Import Partners, 2002-2009 (US$mn) Table: India's Main Export Partners, 2002-2009 (US$mn) Global Oil Products Price Outlook Political Outlook Long-Term Political Outlook Macroeconomic Outlook Table: India - Economic Activity, 2012-2017 Company Profiles Varun Shipping Mercator Lines Shipping Corporation of India (SCI) Great Eastern Shipping (GE Shipping) Container Corporation of India (Concor) Indian Railways- Freight Air India Cargo Country Snapshot: India Demographic Data Section 1: Population Table: Demographic Indicators, 2005-2030 Table: Rural/Urban Breakdown, 2005-2030 Section 2: Education And Healthcare Table: Education, 2002-2005 Table: Vital Statistics, 2005-2030 Section 3: Labour Market And Spending Power Table: Employment Indicators,1996-2001 Table: Consumer Expenditure, 2000-2012 (US$) Table: Average Annual Manufacturing Wages, 2000-2012 BMI Methodology How We Generate Our Industry Forecasts Transport Industry Sources

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India's freight transport sector continues to develop rapidly, desperately trying to keep pace with the rapid growth of the country's econom...

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