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Executive Summary : The attached report provides an overview of the target market

for the coastal shipping service proposed to be commenced in 2008. Based on the

vessel deployment and costs per TEU provided by Capt Stanley Jesudason this report

covers the target industries for the Southbound voyages only.

Whilst we are focussing on a niche market, in order to grow the coastal shipping

business, it is imperative that we also focus on bulk transportation – dry bulk + pol

which forms a large percentage of the total coastal shipping volumes.

(Refer to TCS report submitted to DG Shipping, Ministry of Shipping in 2003-

http://www.dgshipping.com/dgship/final/tcsrep/1intro.htm )

Assumtpions: Size of Vessel – 450 TEUS – Option 1

900 TEUS – Option 2

Deadweight Available - 6,300 metric tonnes - Option 1

12,600 metric tonnes – Option 2

Frequency Fortnightly

Port Rotation Mundra – Cochin – Chennai – Cochin – Mundra

Need to consider : Tuticorin

Container Fleet 20’ GP and 40’ GP & High Cube Containers

40’ Flat Rack Containers

Targeted Commodities 1) Cars , 2 Wheelers and other Containerizable

Automobiles (Primary Target)

2) Filler Cargo in containers.

Targeted Customers Private Rail Operators 1. Gateway Rail Freight Ltd

2. Adani Logistics

3. Boxtrans

4. DP World

5. Indialinx (APL)

CONCOR

National Transport Companies

Whilst all the PRO’s have indicated their interest, most of them are awaiting

deliveries of their targeted complement of rakes which will be completed by March

2008. They are also constrained by not having a dedicated fleet of their own

containers currently but all propose to place orders in 2008. Gateway Rail has placed

their first order in China of 400 TEUS ( Only 20’ Side Opening Containers) for

carriage of bulk Commodities – foodgrains, steel, iron ore.

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As Rail Operators also need to target higher tonnages, only focussing on the

Automobile sector for a Rail Operator is not viable. We need to arrive at a

judicious mix of weight and TEUS .

Rail & Road Connectivity Road Connectivity for distances < 500kms from Origin

Rail Connectivity for distances > 500kms from Origin

All Customers have so far said that in order to provide a seamless service, they should

be able to provide a rail-road connectivity at origin and destination. Except for

CONCOR, none of the PRO’s have their own Rail/CY Terminal in Southern India.

During our earlier meetings, we had decided to let each Customer take care of

the origin / destination intermodal connectivity, but if we need to expedite the

commencement of the coastal service, we will need to get involved as well.

CONTAINER FLEET: We should consider having our own dedicated fleet of

containers in order to ensure we can jump start the

service. Lease or Purchase Options need to be

considered. 20’, 40’ and Flat Racks ( Used &

Domesticated)

Weights per Container Target Market: (incl. Tare Wt) 4 Passenger Cars in 40’ High Cube - 12 mt

50 Two Wheelers in 40’ High Cube – 10 mt

10 x 35 HP Tractors in 40’ FR Contrs- 30 mt

Filler Cargo: Chemicals in 20’ GP Containers - 30 mt

Food Grains in 20’ GP Containers - 22 mt

Cermaic Tiles in 20’ GP Containers – 27 mt

Sanitaryware in 40’ GP Contianers - 22 mt

Bentonite in 20’ GP Containers 22 mt

Auto Spares in 20’ GP Containers 20 mt

Marble in 20’ GP Containers 30 mt

( Container Utilization of Tractors and 2 wheelers need to be verified)

ORIGIN MARKETS : ( All Commodities)

Group A - National Capital Region of Delhi – Rail Head will be

Patli, Garhi, TKD(Dom); Loni

Group B - Amritsar, Jallandar, Bhatinda, Chandigarh, Ludhiana

Rail Head will be Ludhiana (DDL)

Group C- Kishangarh, Jaipur, Jodhpur – Rail Head in Rajasthan

Group D- Local Guajarat (Mundra) Cargo – Receive at Port CY

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Group E Halol, Ahmedabad, Baroda,Surat,Vapi

DESTINATIONS

Group A via Cochin

Cochin, Allepey, Kannur, Trichur, Pallakad,

Trivandrum, Calicut ,Mangalore,

Group B via Chennai

Chennai, Coimbatore,Hosur,Salem,

Erode,Trichy,Madurai ,Pondicherry

Bangalore, Hubli, Mysore, Bellary,Bijapur

COMMODITY WISE VOLUMES (MARKET SIZE FOR SOUTH INDIA)

Commodity Annual

Volumes in

TEU’s

FEU Monthly Volumes

in TEUS

(Rounded)

Passenger Cars 83,000 41,500 7,000

2 Wheeler 41,600 20,800 3,500

Targeted Fortnightly Volumes (per sailing)

450 TEUS Vessel

Commodity TEUS Deadweight

(mt)

No of

Containers

No of

Trains

Customers

Passenger

Cars

300 1800 150 3.3 trains

(90 TEUS

per rake)

Adani &

Gateway

Rail

2 Wheelers 150 750 75 1.7 Rakes Gateway

Rail

900 TEUS Vessel

Commodity TEUS Deadweight

(mt)

No of

Containers

No of

Trains

Customers

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Passenger

Cars

600 3600 300 6.6 trains Adani &

Gateway

Rail

2 Wheelers 300 1500 150 3.4 trains Gateway

Rail

Breakup by POD has to be studied as match back of containers has to be considered

to avoid empty repositioning of containers.

FILLER CARGO :

TOTAL MARKET SIZE

Commodity Origin TEUS per

month

Deadweight

Chemicals Gujarat 2000 50,000

Ceramic Tiles Gujarat 2000 60,000

Sanitaryware.

Misc Comm

All

Origins

2000 50,000

NEXT STEPS:

SALES AND MARKETING:

a) Doing a Cost-Benefit Analysis of Road versus Rail versus Rail+Road-Ocean –

Road.

b) Devloping our own USP ?

c) Developing our Marketing Strategy

d) How do we operationalize / execute our plans ?

e) Doing a SWOT Anaylsis –

COMPANY FORMATION AND FINANCES:

Company Formation

Paid Up Capital

Working Capital

Hiring Staff

New Offices

OPERATIONS:

a) Bills of Lading

b) MULTI MODAL Document ?

c) Liability Insurance

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MARKETS CONSIDERED:

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2 WHEELER INDUSTRY

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DOMESTIC AUTO INDUSTRY

Automobile Domestic Sales Trends (Number of

Vehicles)

Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Passenger Cars 509088 541491 696153 820179 882208 1076408

Utility Vehicles 104253 113620 146388 176360 194502 220199

MPVs 61775 52087 59555 65033 66366 83091

Total Passenger Vehicles 675116 707198 902096 1061572 1143076 1379698

M&HCVs 89999 115711 161395 198506 207472 275600

LCVs 56672 74971 98719 119924 143569 192282

Total Commercial

Vehicles

146671 190682 260114 318430 351041 467882

Three Wheelers 200276 231529 284078 307862 359920 403909

Scooters 908268 825648 886295 922428 909051 940673

Motorcycles 2887194 3647493 4170445 4964753 5810599 6553664

Mopeds 408263 338985 307509 322584 332741 355870

Electrict Two Wheelers - - - - - 7341

Total Two Wheelers 4203725 4812126 5364249 6209765 7052391 7857548

Grand Total 5225788 5941535 6810537 7897629 8906428 10109037

PASSENGER CAR FACTORIES IN NORTH / WEST INDIA

COMPANY FACTORY

LOCN

ANNUAL

SALES

(PCU)

SOUTH

INDIA (PCU)

TEUS

(Annual)

(4 per 40’ )

GM HALOL,GUJ 65000 13000 6500 (3250FEU)

HONDA SIEL NOIDA,UP 65000 13000 6500(3250FEU)

MARUTI GURGAON,HR 700000 140000 70000(35000FEU)

SKODA AURANGABAD 12000 2200 1100 (550FEU)

2 WHEELER FACTORIES

COMPANY FACTORY

LOCN

ANNUAL

SALES (PCU)

SOUTH

INDIA

TEUS

(50 per 40’)

HERO

HONDA

Gurgaon 31,00,000 600000 24000(12000FEU)

Suzuki Gurgaon 12,00,000 240000 9600 (4800FEU)

HMSIL Gurgaon 10,00,000 2,00,000 8000 ((4000FEU)

NB : 2 Wheelers in modified 40’ Containers – Double Stack

South India = Tamil Nadu, Kerala, Karnataka only – Estimated at 20% of Annual

Sales and need to be verified from each Company or other sources like dealers etc.

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CERAMIC TILE MARKET IN GUJARAT 50 Million Sq meters per annum

@750 sq meters per TEU

Total Containerized Vol is apprx 70,000

TEUS per annum

Or 6000 TEUS per month

Expected Southern India Volumes 1200 -2000 TEUS per month

Some Prominent Target Customers

Asian Granito - Has Showrooms/Depots in Kochi, Chennai and Bangalore -5 million

sq m per annum – 30% production sold in South India or 2000 TEUS per annum

RAK Ceramics –

Anant Raj Industries Ltd. Gurgaon

Antique Granito Pvt. Ltd. Morbi, Gujarat

Asian Granito (India) Ltd. Dalpur, Sabarkantha Dist,Gujarat

City Tiles Ltd. Himatnagar, Gujarat

Century Tiles Ltd. Himatnagar,Gujarat

Deco Lights Ceramics Ltd. Morbi, Gujarat

Euro Ceramics Pvt. Ltd. Bhachau,Kutch,Gujarat

H. & R. Johnson (India) Ltd. Dewaas, Pen, Karaikal, Kunigal

Jalaram Ceramics Ltd. Baroda, Gujarata

Kajaria Ceramics Ltd. www.kajariaceramics.com

Murudeshwar Ceramics Ltd. www.naveenceramics.com

Oracle Granito Ltd. www.oraclegranito.com

Orient Ceramics And

Industries Ltd. www.orienttiles.com

RAK Ceramics India Pvt. Ltd.www.rakceram.com

Regent Granito (India) Ltd. www.regentgranito.com

Restile Ceramics Ltd. www.restile.com

Sentini Cermica Pvt. Ltd. www.sentinicermica.com

Sogo Ceramics Pvt. Ltd. www.sogovitrified.com

SPL Ltd. www.somanytiles.com

Varmora Granito (P) Ltd. www.varmora.com

Vrundavan Ceramics Ltd. www.vrundawanceramic.c

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CHEMICAL INDUSTRY:

TATA CHEMICALS – MITHAPUR.GUJARAT

SODA ASH - 2400 tonnes per day

SALT – 1500 tonnes per day (Consumer Packs) √

Soda Bicarbonate – 5000 tonnes per month

CHLORO-CAUSTIC GROUP-

CEMENT –

Target Commodities in Containers:

Salt

Soda bicarbonate

Cooking Soda

Total Volumes to South India – approx 2000 TEUS per month