- Catalyst to Growth Presented by: Captain Somesh Batra Chairman Marine Container Services (India) Pvt. Ltd.
Introduction What WE do Container Leasing NVOCC & Multimodal Transportation Ship Agency Container Repairs & Storage Depot Management Core Operating Areas Port Representation Total Freight Solutions & Distribution Systems Port Captaincy & Cargo Supervision Ship Manning & Management Chartering & COAs, Offshore
World Maritime Container Shipping Snapshot Total number of container ships: 5,950+ Container capacity of these ships: Order book: Container capacity of these ships: 18 MN TEUs+ 483 Ships 3.6 MN TEUs+ Growth in % 2013 2014 (p) GDP Trade Volume Container Shipping Volume 3.2 3.4 2.92 4.94 4.77 6.12 Source: Dynamar, IMF, Clarkson
World Maritime Global Container Throughput 2013 Asia China Europe India America WORLD 641 MN Global Container port demand 800 MN TEUs per annum by 2017 Global Container market demand to grow @ 6 % per annum in 2014-2016
India Maritime Projected container handling capacity-2020 Total 33 MN TEUs Upper West Coast Upper East Coast Kandla, Mundra, Pipavav, Hazira Central West Coast Mumbai, JNPT, Dighi & Jaigardh 12.3 Paradip, Haldia, Kolkata, Dhamra, Kulpi 2012-13 N. Sheva 4.60 Mundra 2.40 Chennai 1.40 Pipavav 0.70 Kolkata 0.60 Others 2.07 Total 11.77 Lower West Coast New Mangalore, Kochi, Mormugao, Vizhinjam Central East Coast Lower East Coast Vizag, Gangavaram, and Krishnapatnam Chennai, Ennore, Tuticorin
India The Growth Drivers FDI - PPP International & Regional Trade Coastal Shipping - Domestic Inland Waterways Exports & Manufacturing Logistics Parks Dedicated Freight Corridors Efficient Food Supply Chain New Ports & Container Terminals
A Necessity 50% of the world container fleet is owned or managed by Lessors Lessors infuse Capital: Allowing lessees use their resources for core activity i.e.: Purchase of assets like Ships, Wagons, Trucks, Terminal, CFS, Infrastructure requirements Etc. Provides logistics & operational flexibility to Lessees Lessors assist during seasonal peaks( & troughs), unplanned moves, additional surge in business & unforeseen Logistics bottlenecks like congestion Ensure High International Technical, Safety & Maintenance Standards with well trained M&R professionals in Depots Worldwide
Container Leasing Classifications of Leases 2 - Major Classification (1) Finance (2) Operation Like a hire purchase scheme wherein containers can be ordered to Lessee specifications & ownership transferred to Lessee at the end of a 3 to 10 year term Long Term Lease Master Lease Minimum Days Lease Short Term Lease Round Trip One Ways Leases can be tailor-made to Lessee s requirements
Global Container Fleet & Lessors Share (MN TEUs) 40 35 31.25 32.9 34.35 30 25 20 15 45 % 48 % 49 % 16.75 15.65 13.95 10 5 0 2011 2012 2014 Container Fleet Lessors Share Source: Dynamar & World Cargo News
Top 10 International Lessors Inventory in 000 TEUs BOX LESSOR 2011 2012 2013 1 TEXTAINER 2,470 2,775 3,040 2 TRITON 1,855 2,060 2,200 3 TAL 1,625 1,935 2,050 4 FLORENS 1,775 1,855 1,900 5 SEA CUBE 930 1,225 1,300 6 SEACO 990 1,095 1,190 7 CAI 930 1,060 1,150 8 CRONOS 725 810 880 9 DONG FANG 495 485 555 10 TOUX 505 520 500 OTHERS 1,650 1,830 1,985 Lessor Total 13,950 15,650 16,750 Source: Dynamar & World Cargo News
Aspirations of Lessor & Lessee Lessor Invests finance & capital to build High Quality Container Assets Anticipate demand & ensure supply - continuous investment Continuous investments in maintenance & repairs Lessee Expects quality containers for safe carriage & storage Prompt supply & redelivery Optimum per diem & costs Promptness in responses Maintain younger fleet Excellent Service Quality Exercises stringent due diligence prior credit approval & lease of containers to Lessees Time is of essence not only for payments but for repair approvals, pick ups, redeliveries etc..
India - International Lease Leases for Exim business or International boxes are for exclusive use in international waters The lease rentals are payable in US Dollars Shipping Lines, Logistic Companies & NVOCCs are active
India - Domestic Lease or Domesticated Boxes Customs Act: Containers used for domestic transportation must be Customs Duty paid Bonded, in-transit containers for use in the Domestic Tariff Area is prohibited by Law Such usage could entail penal actions & payment of duties if discovered and is avoidable
International Safety & Standards to be enforced fully IICL The Institute of International Container Lessors COA Container Owners Association IMO International Maritime Organization ISO International Organization for Standardization WCO World Customs Organization BIC Bureau International des Containers et du Transport Intermodal CSC Convention on Safety of Containers
International Safety & Standards to be enforced fully Implementation of International Conventions CSC, & amendments thereto ( ACEP) Ensuring only plated containers are used in intermodal supply chains to preserve safety of life & property Ensuring Over The Road (OTR) restrictions & axle-limits are enforced Enforcing Central Motor Vehicles Rule (CMVR) overall dimension limits on roadways
International Safety & Standards to be enforced fully
Challenge - Grey market? Be Warned
Multiple Usages
.. Dry Vans Flat Racks Open Top Reefers
Specials: Open Tops & Flat Racks Over Dimensional Cargoes like Engineering Goods, Project Cargoes, Machinery, Glass Sheets etc. are carried in Specials Defence Sector, Logistics players & Manufacturers can operate DOMESTICATED Special Containers for storage & transport
Reefers: Food Supply Chain
Tanks: for Liquids Liquid Cargoes like Chemicals, Oil, Alcohol, Wine, Gas etc.. can be carried in Tank Containers Chemical Manufacturers, Liquid Cargo Operators, Logistics Carriers DOMESTICATED Tank Containers available for storage & transport while scarce capital can be used for other operational requirements
Project accommodation offsite (factories, highways, SEZs)
Accommodation/storage in CRZ, Hill areas & Ports/Airports
Accommodation/storage in CRZ, Hill areas & Ports/Airports
Storage & distribution of food-grains
Accommodation units
Accommodation units
Food Stalls
Food Stalls
Food Stalls
Reefer Storage
Small Data Centers
Moving Barges
Counters
Lunch Room
Remote hospitals
Bus Stops
Mobile Washrooms Swach Bharat
SCOPE & Potential for Domestic Movements Coastal & Inland Waterways New routes Rail Existing plus DMRC, Double Stack Trains Road New expressways & highways Defence Sector Carriage, Transport, Site Offices, Camps, Rapid Transport, Strategic Storage Static Storage Raw Materials, Finished Products CFS Transfer from Liner boxes into Domestic Portable office Portable Training Centre Food Supply Storage & Transport including cold & perishables in Reefer Rooms/Shelters Lunch Room / Electrical Room / Rest Room Small Data Centre ATMs & Banks in remote areas Storage Rooms Warehousing
And many more Opportunities!
- Catalyst to Growth In a Nutshell Containers can be used for a variety of purposes not just storage and transport Example: Grain harvested directly into containers could be stored up to 5 years, if the original moisture content is 12% or less. The containers prevent entry of moisture and insects and therefore the grain leaves the container in the same condition in which it was originally. * Container Leasing stimulates growth and adds value Shift of 5% cargo movement from road to coastal will save 1,300 crore rupees in fuel subsidy The scope is as vast as one can imagine and implement! Source: www.ams.usda.gov
THANK YOU Captain Somesh Batra someshbatra@seahorsegroup.co.in someshbatra@yml.in