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Analysis of the river freight market in India

Analysis of the river freight market in India Analysis of the river freight market in India
Release date 23.04.2018
Number of pages 45
Formats DOCX, PDF
Cost 250.000 ₹

The relevance of research

Since the speed of cargo river vessels is 10-20 km / h, mainly goods that do not require fast delivery are transported along inland waterways - building materials (for example, sand), coal, coke, grain, etc. Oil is also transported along rivers and petroleum products. There are also ships carrying trucks along with their cargo and river container ships.


Purpose of the study

Analysis of the state of the river cargo transportation market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market.


Content

Part 1. Overview of the Indian River Freight Market

1.1. Definition and Characteristics of the Indian River Freight Market
1.2. Dynamics of the volume of the Indian market of river cargo transportation, 2013-2017
1.3. Market structure by type of service provided in India
1.4. Structure of the market of river cargo transportation by basins
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity

Part 2: Competitive Analysis in the Indian River Freight Market

2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players

Part 3. Analysis of river freight consumption

3.1. Estimation of consumption of river freight transportation per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis

Part 4. Assessment of factors of investment attractiveness of the market

Part 5. Forecast for the development of the river cargo transportation market until 2022

Part 6. Conclusions on the prospects of the enterprise in the area under study and recommendations to the current market operators


Part 1. Overview of the Indian River Freight Market
1.1. Definition and Characteristics of the Indian River Freight Market
The high importance of the transport and logistics market is associated with the large territory of India (17 km125). The transport system of India is a set of roads and paths:
The most important criteria for cargo transportation are the speed of delivery, its cost and time. 
Due to the specifics of the economy, … accounts for …% of cargo turnover. The next most popular is … – …%. Road transport accounts for …% of freight turnover. For internal water - …%. … modes of transport together occupy …% of freight turnover.
...
Since the speed of cargo river vessels is 10-20 km / h, mainly goods that do not require fast delivery are transported along inland waterways - building materials (for example, sand), coal, coke, grain, etc. Oil is also transported along rivers and petroleum products. There are also ships carrying trucks along with their cargo and river container ships.
Chart 2. Monthly volume of cargo transported by river transport in India, 2016-March 2018
 

The largest cargo river vessels can be over a hundred meters long and carry about 5 tons of cargo. For example, Indian vessels of the Volgo-Don type have a length of 138,7 m, a width of 16,5 m, a draft of 3,5 m and a carrying capacity of 5000 tons.

1.2. Dynamics of the volume of the Indian market of river cargo transportation, 2013-2017
During 2013-2017 the volume of the market of services for cargo transportation by river transport in monetary terms has steadily increased. The volume of the river cargo transportation market in India in 2017 in monetary terms amounted to … billion Rs., having exceeded the level of 2016 by …%. The average annual growth rate of the industry for the study period amounted to …%.
Diagram 3. Dynamics of the volume of the river cargo transportation market in India for the period 2013-2017 in monetary terms, billion Rs.
 

During 2013-2017 the volume of cargo transported by river transport … in 2017, … million tons of cargo was transported by river transport, which is by …% … the value of the indicator in 2013. In January-March 2018, this type of transport transported … million tons of cargo, which is by … % … than for the same period in 2017, when … million tons of cargo was transported.
Diagram 4. Dynamics of the volume of the river cargo transportation market in India in physical terms for 2013-2018 (March), mln tons
 

1.3. Market structure by type of service provided in India 
The structure of cargo transportation by river transport is dominated by transportation in foreign traffic, which accounted for …% of the total traffic volume in March 2018., …% - cargo transportation in domestic traffic. 
Diagram 5. Market structure of river freight transportation services by type, March 2018, %…

1.4. Structure of the market of river cargo transportation by basins
According to Rosmorrechflot, the largest volume of traffic falls on ... - 35,7% of the total indicator of cargo transportation on inland waterways. … accounts for 16,3%, … for 11,6%, … for 8,4%, … for 5,6% and … for 4,2% of the total volume of cargo transportation in GDP.
Diagram 6. Structure of river freight transportation in India by basins, %
 

1.5. Assessment of current trends and development prospects of the studied market
The Indian river transport market is characterized by…

1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand for river freight transportation.
Social (demographic)
During 2011-2017 India's population is on the rise. The increase in the population in 2014 occurred not only due to migration and natural increase, but also due to the formation of two new states of the Federation - the Republic of Crimea and the city of Sevastopol. At the same time, since 2013, there has been a positive natural increase in the population. However, according to the results of 2017, natural growth has a negative value. Population growth increases the potential present and future demand for river freight transport services. Positive influence of factors.
Chart 7. Population change in India, 2013-2017
 

The industry is negatively affected by the shortage of workers in certain specialties and blue-collar professions, relatively high staff turnover, aging and retirement of experienced workers of industry organizations, lagging of the material base (training, laboratory, training) of industry educational institutions from international requirements.  
Economic
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used. It is the main, most complete official indicator of public welfare. The absolute and relative values ​​of GDP give an idea of ​​the general material well-being of the nation and the dynamics of its growth / decrease, since the higher the level of production, the higher the welfare of the country.
Diagram 8. Dynamics of India's GDP, 2013-2017, % to the previous year
 

As shown in Diagram 8, for the period 2013-2016. there was a decrease in the annual GDP growth rate, and in 2015 the GDP dynamics turned into a negative zone. But in 2017, there was an increase in the indicator by 1,5% compared to the same period in 2016. The positive impact of the factor.
Exchange Rates. In January 2017, the US dollar depreciated significantly compared to the same period in 2015 and 2016, however, there has been an increase in the US dollar since April 2017 and in July 2017 it reached 59,7 Rs. In August-October 2017, the dollar depreciated to 57,7 Rs., and in November the value of this currency increased to 58,9 Rs. Thus, in 2017, the oscillatory nature of the US dollar exchange rate was observed. Since January 2018, the US dollar has been growing. On April 20, 2018, it reached 60,2 Rs. Negative influence of the factor.
Chart 9. Dynamics of the US dollar against the rupee, Jan. 2015-April 2018, Rs. for 1 US dollar
 

1.7. Analysis of sectoral indicators of financial and economic activity
Profit from the sale of services
Industry profit in 2013-2017 steadily increased. In 2014, growth rates slowed down to …%. In 2017, the profit from the sale of river freight transport services amounted to … billion Rs., having increased by …% compared to 2016.   
Diagram 14. Profit from the sale of river transport services for freight traffic, 2013-2017, million Rs.
 

Part 2: Competitive Analysis in the Indian River Freight Market
2.1. Major players in the market 
The largest players in the market of services for cargo transportation by river transport in 2016-2017. are LLC ""VF Tanker"", LLC ""..."", OJSC ""..."", JSC ""Yenisei River Shipping Company"", JSC ""..."", JSC ""..."", OJSC ""..."". Together, these companies account for about …% of the market.…
2.2. Market shares of the largest competitors
As of 2017, LLC ""…"" remains the largest operator of the river cargo transportation market in India, occupying …% of the market. The second place is occupied by OOO ""…"" - …% of the market, the third one - by OJSC ""…"" (…%). JSC ""…"" and JSC ""…"" occupy …% and …% of the market, respectively. JSC ""…"" accounts for …% of the market, JSC ""…"" - …%. Other companies account for 60,7% of the market for river freight transportation services.
...

2.3. Profiles of major players
The company ""V.F. Tanker was founded in 2000 and is part of the shipping division VBTH of the international transport group UCL Holding, which consolidates a number of Indian shipping, rail, stevedoring and logistics companies. 
As shown in Diagram 16, the revenue of the TOP-5 largest operators of the river cargo transportation market during 2013-2017. …. The largest increase in total revenue was noted in 2015, when this figure increased by …%. LLC ""…"" was the permanent leader in the market. 
Diagram 16. Dynamics of the total revenue of the largest operators of the river cargo transportation market (TOP-5) in India, 2013-2017
 

Part 3. Analysis of river freight consumption
3.1. Estimation of consumption of river freight transportation per capita
During 2013-2014 the volume of consumption of services for cargo transportation by river transport per capita increased. In 2015, there was a slight decrease in the value of the indicator by …%, when the volume of consumption of services per capita amounted to … Rs./person. 
Diagram 17. Volume of consumption of services for cargo transportation by river transport per capita, 2013-2017, Rs./person
 

3.2. Market Saturation and Estimated Market Potential in India
At present, the operated network of inland waterways in India is … thousand km. Most of these routes have a developed infrastructure for the organization and maintenance of navigation. 
...

3.3. Description of consumer preferences 
The need to study consumer behavior and the factors that determine it in relation to the transport market is due to the development of competition in the field of freight and passenger transportation ...
In the freight transportation market, the positive reaction of the cargo owner to a reduction in price or an increase in the quality of transportation is determined solely by the effect obtained in this case ...

3.4. Price analysis
Tariffs for river transport are regulated by local governments, in each region of India individually. In the general case, the cost and time of river transportation is determined by the following points: ...

Part 4. Assessment of factors of investment attractiveness of the market
...

Part 5. Forecast for the development of the river cargo transportation market until 2022
...

Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators 
Due to the specifics of the economy, pipeline transport accounts for …


Diagrams

Diagram 1. Freight turnover structure by modes of transport in India, 2017, % 
Diagram 2. Monthly volume of cargo transported by river transport in India, 2016-March 2018 
Diagram 3. Dynamics of the market volume of river cargo transportation in India for the period 2013-2017 in monetary terms, billion Rs.
Diagram 4. Dynamics of the market volume of river cargo transportation in India in physical terms for 2013-2018 (March), million tons 
Diagram 5. Market structure of river freight transportation services by type, March 2018, % 
Diagram 6. Structure of river freight transportation in India by basins, % 
Diagram 7. Population change in India, 2013-2017 
Diagram 8. Dynamics of India's GDP, 2013-2017, % to the previous year
Diagram 9. The dynamics of the US dollar against the rupee, Jan. 2015-April 2018, Rs. for 1 US dollar 
Diagram 10. Changes in the inflation rate in India, 2013-March 2018 
Diagram 11. Dynamics of real income of the population of India, 2013-2017 
Diagram 12. The volume of paid services to the population in India, trillion Rs., 2013-2017 
Diagram 13. Dynamics of the average interest rate on loans to legal entities, 2013-2017 
Diagram 14. Profit from the sale of river transport services for freight traffic, 2013-2017, million Rs. 
Diagram 15. Shares of the largest competitors in the market of river cargo transportation services in India in 2017, in % 
Diagram 16. Dynamics of the total revenue of the largest operators of the river cargo transportation market (TOP-5) in India, 2013-2017 
Diagram 17. The volume of consumption of services for cargo transportation by river transport per capita, 2013-2017, Rs./person 
Diagram 18. Most trusted transport service providers, %
Diagram 19. Carrier selection criteria, % 
Diagram 20. Forecast of the volume of the market for cargo transportation services by river transport in 2018-2022, billion Rs.


Tables 

Table 1. Comparative characteristics of the types of transport used to provide transport services 
Table 2. Industrial production index by Indian states (in % of the previous year), 2013-2018 (March) 
Table 3. The dynamics of the US dollar against the rupee, Jan. 2015-April 2018, Rs. for 1 US dollar 
Table 4. Dynamics of the inflation rate, the refinancing rate of the Central Bank of India and the key rate of the Central Bank of India, 2011-Feb. 2018
Table 5. Weighted average interest rates of credit institutions on credit operations in rupees (% per annum), 2013-2017 
Table 6. STEP-analysis of factors influencing the market of river cargo transportation
Table 7. Gross profitability of the river freight industry in comparison with all sectors of the Indian economy, 2013-2017, %
Table 8. Profitability of profit before tax (profit of the reporting period) in the field of river cargo transportation in comparison with all sectors of the Indian economy, 2013-2017, % 
Table 9. Current liquidity (total coverage) in the field of river cargo transportation for 2013-2017, times 
Table 10. Absolute liquidity in the field of river cargo transportation in comparison with all sectors of the Indian economy, 2013-2017, times 
Table 11. Business activity (average term of receivables turnover) in the field of river cargo transportation, for 2013-2017, days days
Table 12. Financial stability (security of own working capital) in the field of river cargo transportation, in comparison with all sectors of the Indian economy, 2013-2017, % 
Table 13. The main companies participating in the market of services for cargo transportation by river transport, 2017
Table 14. Consumer price indices for river cargo transportation in India in 2013-March 2018, %
Table 15. Assessment of factors of investment attractiveness of the market of services for cargo transportation by river transport 


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