Container Logistics (CFS & ICD) - India

The Container logistics industry comprising of Inland Container Depot (ICD) and Container Freight Stations (CFS) is among the fastest growing segments in the Indian logistics sector. Growth in international trade coupled with the rise in containerization levels in India are the major factors driving demand for CFS and ICDs. The market is valued at approximately INR 65 bn is expected to grow strongly due to the constant demand generated by importers and exporters for specialized services.

The report begins with an overview of the industry indicating market size, growth prospects and containerized cargo levels reflecting on the opportunity in the market. The positioning of the industry in the logistics value chain and the major activities executed at these facilities has been discussed. A detailed analysis of various functions of ICD/CFS as well as set-up formalities that need to be catered to has been highlighted in order to assist investors.

An analysis of the drivers explains factors contributing to the huge potential based on the growth in port traffic, custom clearance activities performed by these institutions, high profit margins in comparison to other logistics activities and government impetus through dedicated freight corridor. The key challenges identified include the high cost of developing a facility and procedural issues with movement of cargo.

The major private and public players have been profiled. This section contains a snapshot of their geographic presence, future investment outlook as well as their financial performance, providing an insight into the existing competitive scenario.