Transportation and Infrastructure Sector India

Transcription

1 Transportation and Infrastructure Sector India February 2014 Produced by: - 1 -

2 Table of Contents I. Transportation and Infrastructure Sector Overview 1. Transportation Highlights 2. Performance and Share of GDP 3. Indian Transportation Against Global Benchmarks 4. Air Carrier Data 5. Aircraft Movement, Freight Handled by Airports 6. Performance of Indian Ports LPI Index 7. Basic Railway Statistics 8. Road Network 9. Freight, Passenger Movement by Roads and Railways 10.Container Traffic Export, Import at 12 Major Ports 11.Road Transport Contribution to Exchequer 12.FDI in Transport and Infrastructure 13.FDI Regime II. Forecasts 1. Air Passenger and Freight Throughput Forecast 2. Airline and Airport Forecasts 3. Water Transportation and Ports Forecasts 4. Railway Transportation Forecast 5. Railway Transportation Forecast (cont'd) III.Government Policy 1. Civil Aviation Government Policy 2. Civil Aviation Government Policy (cont'd) 3. Railway Transport Government Policy 4. Railway Freight Transport Government Policy 5. Port and Shipbuilding Government Policy 6. Shipbuilding Subsidy 7. Public Port Sector Expenditure Estimates 8. Road Transport Government Policy 9. The National Highway Development Project (HNDP) 10.Government Road Building Programs 11.The Central Road Fund (CRF) II. Air Transport 1. Air Transportation Highlights 2. Aircraft and Freight Movement, Selected Air Transportation Details 4. Aviation Turbine Fuel (ATF) Prices III.Ports, Water Transportation and Inland Waterways (IWT) 1. Port Sector Highlights 2. Freight Traffic 3. Container Traffic at Major Ports 4. Capacity Utilisation of Major Ports 5. Efficiency Indicators of Major Ports - 2 -

3 Table of Contents 6. Number and Type of Vessels Sailed 7. Financial Indicators and Employment at Major Ports 8. Shipbuilding and Ship Repair 9. Shipbuilding Statistics 10.Inland Waterways 11.Inland Waterways (cont'd) VI.Railways 1. Railway Transportation Highlights 2. Railway Passenger Statistics 3. Railway Passenger Statistics (cont'd) 4. Electrification, Data by Gauge 5. Railway Freight Statistics 6. Rolling Stock VII.Road Transportation 1. Road Transportation Highlights 2. National Highways 3. Share of Paved Roads 4. Number of Motor Vehicles 5. Physical Performance of State Passenger Carriers 6. Financial Performance of State Passenger Carriers 7. Road Accidents 8. Road Accidents (cont'd) VIII.Major Players 1. Top M&A Deals in Transportation and Infrastructure 2. Possible M&A Activity in Transportation and Infrastructure 3. Indian Railways 4. Indian Railways (cont'd) 5. Jet Airways India Ltd. 6. Jet Airways India Ltd. (cont'd) 7. Air India Ltd. 8. Air India Ltd. (cont'd) 9. Jawaharlal Nehru Port (JNP) 10.Jawaharlal Nehru Port (JNP) (cont'd) 11.The Shipping Corporation of India Ltd. (SCI) 12.Container Corporation of India Ltd. (CONCOR) 13.Larsen & Toubro (L&T) 14.Larsen & Toubro (L&T) (cont'd) IX.Appendix 1. Financial Performance of Shipyards 2. Road Statistics by State 3. Road Statistics by State (cont'd) 4. List of State Road Transport Undertakings (SRTUs) 5. Table of Terms and Abbreviations - 3 -

4 I. Transportation and Infrastructure Sector Overview India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

5 Transportation Highlights Airlines India was the 9th-largest civil aviation market in the world in 2011 and is expected to become third-largest by 2020, after the United States and China. With 0.04 per capita. trips in fiscal 2011, air penetration in the country is among the lowest in the world. India was home to five scheduled airlines, struggling with high operational costs, in FY In September 2012, India's government allowed foreign airlines to buy stakes of up to 49% in local carriers. Jet fuel is some 60% more expensive in India compared to major competing hubs and claims 50% of the total operational costs of airlines. Ports and Water Transport Water transportation accounts for 90% of India's trade by volume, highlighting the significance of ports and the shipping sector for the Indian economy. Ports need infrastructure upgrades to reduce pre-berthing detention of vessels. Mainly major ports have the necessary infrastructure to handle container traffic. In many cases new ports must be considered, as existing port expansion is often limited due to urban development. Shipbuilders saw a decrease in their global market share following the withdrawal of a shipbuilding subsidy in Inland water transportation is underutilised. Railways Indian Railways (IR) is one of the world's largest rail networks under single management. Some 31.39% of the 64,460-route km network were electrified as of March 31, Although IR carried 22.5 million passengers and 2.65 million tonnes of freight each day during FY 2012, railway transportation is less utilised than road transport in both segments. Railway passenger fares are kept purposefully low to make railways accessible to all Indians. In January 2013, the country raised railway passenger fares for the first time since Fares were raised again in October Road Transportation India is home to the world's second-largest road network, which carries some 85% of the country's passenger traffic and 65% of its freight. Nearly half of India's roads are unpaved, and some 60% of the rural population does not have access to all-weather roads. According to the most recent data of 2011, national highways accounted for 1.7% of the country's total road network but carried nearly 40% of the total traffic. Petrol and diesel are sold at subsidised prices but oil marketing companies were allowed to periodically raise them with government approval, in June 2010 and January 2013, respectively

6 Performance and Share of GDP Transport as % of GDP (at constant prices, FY 2005 is base) Growth in Transport and Infrastructure Segments, % 8% 7% 6% 6.7% 6.6% 6.5% 6.4% 6.5% 0.50% 0.40% 0.40% 0.40% 0.40% 0.30% 0.20% 0.20% 0.20% 0.30% 0.2% 0.2% 0.2% 0.2% 0.2% Railway revenueearning freight traffic FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 (Apr- Dec 2011) % 4% Cargo Handled at Major Ports % 4.7% 4.8% 4.7% 4.6% 4.8% Civil Aviation 2% - Export Cargo Handled % - Import Cargo Handled % 1% 1% 1% 1% 1% FY 2008 FY 2009 FY 2010 FY 2011 FY Passengers Handled at International Terminals Railways Water Transport Transport-Related Services Road Transport Air Transport - Passengers Handled at Domestic Terminals Source: Ministry of Road Transport and Highways, Economic Survey of India

7 Indian Transportation Against Global Benchmarks Road Length of Selected Countries, km Total Road Length, km Length of Motorways, km Length of Motorways as % of Total Share of Paved Roads Length of National Highways, km Length of National Highways as % of Total China 3,860,823 (2009) 65, , France 951,260 (2009) 11, , India 4,690,342 (2011) , Japan 1,207,867 (2009) 7, , South Africa 364,131 (2001) , South Korea 104,983 (2009) 3, , UK 419,665 (2009) 3, , USA 6,545,839 (2009) 75, , Country Share of Paved Roads Indian Transportation Sector Vs Global Benchmarks Mode Name of Indicator India Global Road Ports Average speed of truck (km / hr) Average distance covered by a truck in a day (km) Four lane highway length (km) Turnaround time Pre berthing delay (hours) ,500 34,500 (China) 4.67 days (major ports in FY 2011) 55.7 (major ports in FY 2011) 7-10 hrs (Hong Kong) 3-5 (Hong Kong) China 53.50% (2008) France 100% (2009) India 53.83% (2011) Average output per ship berth day (thou tonnes) (Australia) Japan 80.11% (2009) South Africa 17.3% (2001) South Korea 79.25% (2009) UK 100% (2009) USA 100% (2009) Railway Double Line (km) 17,400 26,400 (China) No. of locomotives (nos.) 8,867 18,500 (China) Freight Wagons (nos.) 235, ,000 (China) Source: Ministry of Road Transport & Highways, World Road Statistics, Deloitte Research - 7 -

8 Air Carrier Data Indian Domestic market Share by Airline, Mar 2013 Reported and Estimated Financials of Indian Air Carriers Jet Airways Group 23.80% SpiceJet 20.40% IndiGo 27.40% Air India 20.20% GoAir 8.10% FY 2012 Revenue FY 2012 Net Profit FY 2013 Revenue FY 2013 Net Profit Air India USD 2.6 bn (USD 1.4 bn) USD 3.0 bn (USD 950 mn) GoAir USD 278 mn (USD 24 mn) USD mn (USD mn) IndiGo USD 1.0 bn USD 23 mn USD bn USD mn Jet Airways USD 2.7 bn (USD 226 mn) USD 3.0bn (USD 87 mn) Jet Konnect USD 340 mn (USD 33 mn) USD 387 mn (USD 53 mn) Kingfisher USD 1.0 bn (USD 423 mn) USD 91 mn (USD mn) SpiceJet USD 720 mn (USD 109 mn) (USD 1.0 bn) (USD 34 mn) Source: CAPA - Centre for Aviation, CAPA Research and company filings. Note: Data for unlisted carriers Air India, GoAir and IndiGo are CAPA estimates. Final results for these carriers may vary. Industry Debt and Losses As of March 2013, the combined debt of India's airlines grew by some 9% to approximately USD 14.5bn, compared to an average cash position of just USD mn, CAPA reported in May Additional vendorrelated liabilities totaled some USD 2bn. Air India accounted for just over 60% of the debt and full-service carriers combined accounted for close to 90%, although the Jet Airways Group reduced its debt position from USD 2.62bn to USD 2.25bn in FY A key contributor to the overall debt has been the industry's accumulated losses since 2007, which were approaching USD 9.5bn as at March 31, Airlines posted a combined loss of USD 1.65bn in FY 2013 (USD 1.15bn if Kingfisher is excluded), down from USD 2.28bn in the previous year. FDI and Kingfisher Demise In September 2012, the Indian government allowed foreign airlines to invest in Indian carriers, bringing to an end a regulatory anomaly that had existed for 16 years. Up to 49% FDI in the airline sector had been permitted long ago but since 1996 the regulations had completely excluded foreign airlines from the list of eligible foreign investors. In November 2013, Abu Dhabi-based Etihad Airways completed the acquisition of 24% in Jet Airways. All Nippon Airways, Lion Air, Tiger Airways and Singapore Airlines have also expressed interest in the Indian airline sector. Kingfisher Airlines suspended flights in October 2012 and had its license revoked in February Source: CAPA, DGCA - 8 -

9 Aircraft Movement, Freight Handled by Airports (graphs show calendar years) Trend in Aircraft Movement Domestic Passenger Statistics 1,037,677 1,074,324 1,208,939 1,186, , , , , , , (Jan-Sep) (Jan-Oct) Domestic Aircraft Movement, numbers International Aircraft Movement, numbers Passengers Carried on Domestic Flights, All Scheduled Airlines, millions Passenger Km Flown, Domestic Flights, All Scheduled Airlines, billions Domestic Flight Statistics Freight Carried by Scheduled Airlines 811, , , , , , , , , , ,599 27, , , , ,958 24,903 15,377 5, , , , ,007 2, , , , , , , (Jan-Oct) Domestic No. of Flights, All Scheduled Airlines Domestic Aircraft Hours Flown, All Scheduled Airlines Domestic Aircraft Km Flown, All Scheduled Airlines, thousands (Jan-Oct) Total Domestic Mail Carried, All Scheduled Airlines, tonnes Total Other Domestic Freight Carried, All Scheduled Airlines, tonnes Source: CEIC - 9 -

10 Performance of Indian Ports LPI Index List of India's Major Ports Port Name Location (City, State) Port Name Location (City, State) Kochin Port Kochi, Kerala New Mangalore Port Mangalore, Karnataka Chennai Port Chennai, Tamil Nadu Paradip Port Paradip, Odisha Jawaharlal Nehru Port Trust (JNPT), near Mumbai, also known as Nhava Maharashtra Tuticorin Port Tuticorin, Tamil Nadu Sheva Kandla Port Visakhpatnam, Andhra Kutch District, Gujarat Visakhapatnam Port Pradesh Kolkata Port (incl. Port of Haldia) Kolkata, West Bengal Ennore Port Chennai, Tamil Nadu Mormugao Port Mormugao, Goa Port Blair Port Blair, Andaman and Nicobar Islands Mumbai Port Mumbai, Maharashtra State-Wise Number of Non-Major Ports West Coast East Coast State Number of Ports State Number of Ports Gujarat 40 Tamil Nadu 15 Maharashtra 53 Pundicherry 1 Goa 5 Andhra Pradesh 12 Daman & Diu 2 Odisha 2 Karnataka 10 West Bengal 1 Kerala 13 Andaman & Nicobar Islands Lakshadweep Islands 10 Total East Coast 54 Total West Coast 133 Total India World Bank's International Logistics Performance Index (LPI) Global Ranking, 2012 (most recent available) LPI Rank (out of 155) LPI Score (1 is Lowest, 5 is Highest Customs Infrastructure International Shipments Logistics Competence Tracking & Tracing Brazil China Hong Kong, China India Indonesia Japan Russian Federation Singapore United States Although India's performance in the past three years has remained largely unchanged, the country is the top performer in its region and income group, according to the ranking. Timeliness Source: Indian Ports Association, World Bank

11 Basic Railway Statistics Number of Stations: 7,133 (FY 2011) 7,146 (FY 2012) Length of Railways and Electrification, All India Electrified Total Electrified Total Electrified Total Route Km, thousands 90 Running Track km, thousands FY 2011 FY Total Track Km, thousands Main Sector Indicators Indicator FY 2011 FY 2012 Route Kilometres 64,460 64,600 % Route Kms Electrified 30.42% 31.39% Average Speed of Electric Trains, km/h Number of Passengers, millions 7,651 8,224 Passenger Earnings, INR bn Freight Traffic, thou tonnes 921, ,047 Freight Earnings, INR bn Number of Locomotives Number of Wagons 229, ,200 Seats/Berths, thousands 4,710 4,868 Air-Conditioned Seats/Berths as % of Total 7.47% 7.91% Passenger (l) and Freight (r) Earnings Average Passenger (l) and Freight (r) Rates FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 Total Non-Suburban, INR bn Total Suburban, INR bn Earnings from Carriage of Goods Traffic, INR bn All Classes Non-suburban All Classes Suburban Average freight rate/tonne km. (paise) Source: CEIC, Indian Railways

12 Road Network (slide presents the most recent data available) Total and Surfaced Road Length in India Total Road Length by Categories 5,000 4,000 3,000 2,000 1,000 0 Surfaced Roads as % of Total Roads: % % % % 3, % 1,598 4,690 2, % FY 1951 FY 1971 FY 2001 FY % 400% 300% 200% 100% 0% 4,016, , ,580 4,109, , ,327 4,471, , ,802 4,582, , ,448 4,690, , ,840 Total Length of Roads, thou km Total Length of Surfaced Roads, thou km % y/y change in Surfaced Roads 2,393,488 2,450,559 2,629,165 2,692,535 2,749,805 Road Length by Categories, FY 2011 (most recent available) Rural Roads 59% Other Public Works Dept (PWD) Roads 21% Urban Roads 9% Project Roads 6% National Highways 2% State Highways 3% 835, , , ,414 1,005, , , , , ,522 66,590 66,754 70,548 70,934 70,934 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Project Roads, km Urban Roads, km Rural Roads, km Other Public Works Dept. (PWD) Roads, km State Highways, km National Highways, km Source: Ministry of Road Transport and Highways

13 Freight, Passenger Movement by Roads and Railways Freight Movement by Road Transport and Railways Passenger Movement by Road Transport and Railways 100% 100% 80% 60% 38.0% 37.5% 37.2% 35.7% 35.5% 95% 90% 13.7% 13.9% 14.0% 14.1% 14.1% 40% 20% 62.0% 62.5% 62.8% 64.3% 64.5% 85% 80% 86.3% 86.1% 86.0% 85.9% 85.9% 0% FY 2008 FY 2009 FY 2010 FY 2011 FY % FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Freight Moved by Road Transport, % Freight Moved by Railways, % Passengers Moved by Road Transport, % Passengers Moved by Railways, % Details on Freight Movement Details on Passenger Movement Freight Moved by Road Transport, BTKM Freight Moved by Railways, BTKM Total, BTKM Passengers Moved by Road Transport, BPKM Passengers Moved by Railways, BPKM Total, BPKM FY , FY , FY , , FY , , FY , , BTKM is Billion Tonne-Kilometres FY , , FY , , FY , , FY , , FY , , , BPKM is Billion Passenger-Kilometres Source: Planning Commission

14 Container Traffic Export, Import at 12 Major Ports Container Traffic Export, Import, mn tonnes Container Traffic Export, Import, thou TEUs 140 9, ,000 7,000 6,000 5,000 6,710 6,588 3,287 3,223 6,895 3,396 7,517 3,701 7,779 3, , , ,000 1,000 3,423 3,365 3,499 3,816 3,982 0 FY 2008 FY 2009 FY 2010 FY 2011 FY FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Container Traffic, Export, mn tonnes Container Traffic Import, mn tonnes Container Traffic, Import, thou TEUs Container Traffic, Export, thou TEUs Source: CEIC

15 Road Transport Contribution to Exchequer Road Transport Contribution to Central Govt Revenue - Total Road Transport Contribution to State Revenue - Total FY 2011 FY 2012 FY 2013 Road Transport Contribution to Central Govt. Revenue, INR bn FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 (Revised Estimate) Road Transport Contribution to State Revenue, INR bn FY 2013 (Budget Estimate) Road Transport Contribution to Central Revenue - Details Motor Vehicles and Accessories Import Duty, INR bn Excise Duty, INR bn Source: Directorate of Data Management, Reserve Bank of India Import Duty, INR bn Tyres Excise Duty, INR bn High Speed Diesel Oil (HSD) Import Duty, INR bn Excise Duty, INR bn Motor Spirit (MS) Import Duty, INR bn Excise Duty, INR bn Total INR bn FY FY FY Road Transport Contribution to State Revenue - Details Taxes and Fees on Motor Vehicles, INR bn Sales Tax/VAT on Motor Spirit and Lubricants, INR bn Tax on Passengers and Goods, INR bn Total, INR bn FY FY FY FY FY FY 2012 (Revised Estimate) FY 2013 (Budget Estimate)

16 FDI in Transport and Infrastructure (graphs show calendar years) FDI in Transport and Infrastructure, (Jan-Sep) Total FDI in India, USD mn Air Freight is a component of Air Transport. Shipbuilding and Shipping are components of Sea Transport. 35,000 33, % 80% 2, ,000 27,044 27,576 60% Railway Related Components, USD mn Construction of Roads and Highways, USD mn Maintenance and Repairs of Airports, USD mn Air Transport, USD mn Air Freight, USD mn Sea Transport, USD mn Shipbuilding, USD mn 25,000 20,000 21, % 22,789 16,854 40% 20% FDI in Transport and Infrastructure, Jan-Sep , Air Freight is a component of Air Transport. Shipbuilding and Shipping are components of Sea Transport. 10,000 0% Railway Related Components, USD mn Construction of Roads and Highways, USD mn Air Transport, USD mn Air Freight, USD mn Sea Transport, USD mn Shipbuilding, USD mn 5, % -22.3% -17.4% -26.0% (Jan- Sept) Total FDI in India, USD mn % y/y change -20% -40% Source: CEIC

17 FDI Regime Airlines In September 2012, the Indian government allowed both foreign direct and foreign institutional investment (FII) to buy stakes of up to 49% in local carriers, in a move to provide a lifeline to the country's debt-laden airlines. Previously only foreign non-airline companies were allowed to own up to 49% in local carriers. The FDI cap for foreign airlines was limited to 24%. The government had been urged to raise the cap to 26%, which would allow foreign investors veto rights in board decisions.. Ports and Shipping The Indian government allows 100% FDI in maritime infrastructure like ports, terminals, jetties, harbours and merchant shipbuilding. 100% FDI is also allowed in shipping and support infrastructure like warehousing, roads, Inland Water Transport (IWT) and other logistics components. However, as many as nine shipping companies reportedly left India in the period. According to local industry experts, the key issues affecting FDI inflows in the sector include structural reforms like taxation policy and labor laws. FDI Regime FDI in laying railway tracks and running trains is not allowed in India. The Ministry of Railways allows FDI (through the automatic route) only in private companies manufacturing components for the railway network. In an effort to reduce the shortage of rail connectivity to coal and iron ore mines, in August 2012, the Ministry proposed to the government to allow FDI through the approval route to build dedicated lines for industry corridors. The government will soon invite foreign businesses to help expand its railways, the Economic Times of India reported on January 9, Railways 100% FDI in construction of roads and highways is allowed under the automatic route. In terms of FDI, construction of roads and highways is the best-performing of all observed segments, accounting for 1.42% of the total FDI India attracted between 2008 and September The private sector is expected to contribute a total 51.5% of the funding needed for national highway construction and upgrades under the National Highway Development Programme (NHDP) in the XII Plan (up to FY 2017). Road Building Source: National Conclave on Shipping, Deloitte, Mantrana Maritime Advisory, steelguru.com, Planning Commission, Local media

18 II. Forecasts India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

19 Air Passenger and Freight Throughput Forecast Domestic Passenger Throughput, FY 2017 International Passenger Throughput, FY % % % FY 2002 FY 2007 FY 2011 FY 2017 (F) 200% 150% 100% 50% 0% % % % 14 FY 2002 FY 2007 FY 2011 FY 2017 (F) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Domestic Passenger Throughput, millions % change International Passenger Throughput, millions % change Domestic Freight Traffic, FY 2017 International Freight Traffic, FY ,800 1,600 1,400 1,200 1, % 80.3% 60.8% 1, FY 2002 FY 2007 FY 2011 FY 2017 (F) 120% 100% 80% 60% 40% 20% 0% 3,000 2,500 2,000 1,500 1, % 77.1% 46.5% 2,650 1,496 1, FY 2002 FY 2007 FY 2011 FY 2017 (F) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Domestic Cargo Traffic, thou tonnes % change International Cargo Traffic, thou tonnes % change Source: Planning Commission Report on Civil Aviation for the XII Plan

20 Airline and Airport Forecasts (tables, charts show Indian fiscal years) Aviation Turbine Fuel (ATF) Demand Forecast, thou tonnes Expected Investments in Airports in XII Plan 6,009 6,587 7,202 7,849 8,540 9,263 10,022 10,829 11,673 12,517 Investor Investment Category INR bn Airports Authority of India Airport Projects 175 From Airport Operators XII Plan XIII Plan Aviation Turbine Fuel (ATF) Demand Forecast, thou MT Expected Fleet Expansion of Indian Air Carriers Name of Airline No. of Aircraft To Be Added by 2017 Estimated Value of Aircraft To Be Added, INR bn Air India GoAir Jet Airways JetLite SpiceJet IndiGo Total 298 1,179 Private Investments By Others (Concessionaires, Third Party, etc.) No. of Employees To Be Required by Domestic Carriers 100 Subtotal 500 Total ,000 36,000 11,500 20,600 10,000 4,600 9,200 FY ,000 65,200 22,000 FY2017 (F) Pilots Cabin Crew Aircraft Engineers and Technicians Other Staff Source: Petroleum Planning and Analysis Cell (PPAC), EMIS Insight, Planning Commission Report on Civil Aviation, KPMG

21 Water Transportation and Ports Forecast Port Capacity Under the Maritime Agenda of the Shipping Ministry, the capacity at the country's 13 major ports is likely to increase to 1, mn tonnes, while that at non-major ports is expected to reach 1, mn tonnes by This will enable local ports to provide berthing facilities upon the arrival of ships, thus achieving zero pre-berthing detention of the vessels. Port capacity investment will total INR 2,770bn, consisting of INR 1,090bn for major ports and INR 1,680bn for non-major ports. Liquid and bulk cargo traffic are expected to rise in the future due to India's increasing reliance on imported fossil fuels (crude oil and coal). In addition, the country is a global top 5 iron ore exporter. More Ports Needed India has a huge landlocked hinterland depending on coastal infrastructure for imports. Some 90% of India's trade by volume takes place through water transport. At the same time, cities have grown around existing government-owned ports, restricting their expansion possibilities. In order to handle larger new-generation ships, ports need to have longer drafts and other upgraded infrastructure. According to accounting firm Deloitte, the transport sector in India as a whole, and ports in particular, are currently undergoing regulatory and policy changes. This will present opportunities for large-scale private participation and greenfield projects. Container Traffic According to estimates cited by Deloitte, global container throughput will nearly double from current levels to 1.0 billion TEUs by Growth will be primarily due to the economic development of emerging Asian and African countries. In India, container traffic mostly belongs to major ports. Only a few non-major ports have the necessary infrastructure to handle containers. According to the Mantrana Maritime Advisory, the rise in India's per capita income would lead to a higher consumption of finished goods, which would consequently result in more containerised cargo. The rise in export-oriented manufacturing in the country is another factor to contribute to higher containerisation in the future. Shipbuilding As of March 2012, Indian shipbuilding accounted for 0.01% of the global market as a result of the withdrawal of the shipping subsidy in Between 2002 and 2007, when the subsidy was applicable, domestic shipbuilding was about 1% of the global business. In its Maritime Agenda 2020, the Shipping Ministry expressed plans to bring the country's share to 5% of global shipbuilding in a decade. Rising oil prices will result in more exploration activities and, consequently, in a higher demand for offshore vessels (OSV) in which India specialises

22 Railway Transportation Forecast Number of Passengers Forecast, millions Freight Load Forecast, Selected Commodities, million tonnes 8,868 4,323 9,506 4,651 10,190 5,005 10,924 5,385 11,711 5,793 Commodity FY 2014 FY 2015 FY 2016 FY 2017 Share, % Total Coal % Total Iron & Steel % 4,545 4,855 5,186 5,540 5,917 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Iron Ore for Export Domestic Iron Ore % % Suburban Passengers, millions Non-Suburban Passengers, millions Cement % Lead (Trip) Distance of Non-Suburban Passengers Foodgrains % 3, , , , , Fertilizers % Petroleum, Oil and Lubricants % , FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Distance of Less Than 300 Km (Millions Passengers Travelling) 301-1,050 Km (Millions Passengers Travelling) Distance of More Than 1,050 Km (Millions Passengers Travelling) Containers for Export Domestic Containers Total Containers % % % Source: Planning Commission Report on the Railway Sector, XII Plan

23 Railway Transportation Forecast (cont'd) Anticipated Requirement of Rolling Stock Planned Capacity Increases in Production Units in XII Plan Coaches Diesel Locomotives Electric Locomotives Wagons FY , ,659 FY , ,197 FY , ,020 FY , ,043 FY , ,740 Name of Production Unit (PU) Diesel Locomotive Works (DLW) Chittaranjan Locomotive Works (CLW) Integral Coach Factory (ICF) Rail Coach Factory (RCF Diesel Locomotive Modernisation Works (DMW) Planned Capacity Increase per Year diesel locomotives per year electric locomotives per year 1,500-1,700 coaches per year 1,500-1,700 coaches per year Assembly of 100 Diesel Locomotives per year Railway Sector Financial Requirements in the XII Plan Parcel Traffic Forecast Source of Funding Amount, INR bn Gross Budgetary Support 3, Railway Safety Fund 168 Internal Resources 2, Extra Budgetary Resources 1,470 Total 7,197 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Projected Tonnage (million tonnes) Projected Earnings (INR bn) Source: Planning Commission Report on the Railway Sector, XII Plan

24 III. Government Policy India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

25 Civil Aviation Government Policy Key Bodies The Civil Aviation Sector is structured into three functional branches - regulatory, operational and infrastructural. The safety and security functions are performed by the Directorate General of Civil Aviation (DGCA) and the Bureau of Civil Aviation Security (BCAS). Operational functions are carried out by flag carrier Air India, government-owned helicopter carrier Pawan Hans Helicopters Ltd. and the other scheduled and non-scheduled airline operators. Infrastructural facilities are provided by the Airports Authority of India (AAI) and private airport developers. The Ministry of Civil Aviation (MoCA) is the key body in charge of developing national aviation policies and overseeing the three functional branches. The Airport Economic Regulatory Authority (AERA) was set up in 2008 as a tariff setting and planning body as well as an airport infrastructure regulator. The Association of Private Airport Operators (APAO) is an organisation established in 2009 to represent the interests of the major private airports in India. Scheduled Airlines A total five scheduled airlines, flying under eight brands, operated in India in These are: Air India (brands: Air India, Alliance Air and Air India Express); Jet Airways (brands: Jet Airways and JetKonnect); IndiGo, SpiceJet and GoAir. Kingfisher Airlines (brands: Kingfisher Airlines and Kingfisher Red) suspended flights in October 2012 and had its license revoked in February A scheduled domestic airline is a carrier which operates with a minimum of five aircraft and on a fixed schedule. Many unscheduled airlines also operate in the country. To allow carriers to operate on international routes, the government requires them to have at least five years of experience and a minimum of 20-aircraft fleet. This rule has constantly faced industry criticism and news reports have been claiming the government may soon review it. Within India, scheduled airlines are required to provide services along routes falling into each of the categories I (profit-generating), II (loss-generating) and III (all other routes), as per the national Route Dispersal Guidelines (RDG). However, the route requirements have largely failed to ensure sufficient connectivity of several regions in India. Regional Connectivity Category I routes, connecting large metropolitan areas, cross-subsidize losses generated from Category II routes, which connect airports in the North-Eastern region, Jammu and Kashmir and the Andaman & Nicobar and Lakshadweep islands. According to the Planning Commission s conclusions, air connectivity along strategically important but commercially unviable routes has largely been confined to state capitals, leaving island airports behind. The commission concluded that innovative mechanisms were needed to achieve maximum impact of the RDG connectivity objectives. The commission suggested revisiting an earlier government expert report that recommended the setting up of an Essential Air Services Fund (EASF) in charge of managing a government airline subsidy to be awarded under a competitive bidding process. Separately, the need to achieve low air fares, change the popular perception of air travel as an elite mode of transportation and adopt a "no-frills" airport model was highlighted. Source: Planning Commission Report on Civil Aviation for the XII Plan

26 Civil Aviation Government Policy (cont'd) General Aviation and Ground Handling According to the Planning Commission, the ground handling business in India generated a turnover of some INR 20 bn in FY Under a new ground handling policy the Civil Aviation Ministry announced in 2011, only three ground handlers would be allowed at each of the six metro airports in India. One would be a subsidiary of national flag carrier Air India, while the other two can be selected by airport operators through competitive bidding. In the General Aviation (GA) segment, the following issues have been highlighted as policy priorities until 2017 to review the regulatory framework regarding takeoff and landing clearances, as the current preference given to scheduled flights in terms of landings and departures discourages investment in GA fleet expansion; to promote investment in airport support infrastructure in Tier II and III cities; to upgrade non-operational air strips and create a database of all airports, airstrips and helipads not in general use to promote safety; and to consider the development of a PPP helicopter policy for servicing areas that cannot have runways because of financial or terrain-related considerations. Freight Handling Infrastructure According to the Planning Commission, the perception of Indian exports abroad are affected by freight handling infrastructure at domestic airports. Current infrastructure is rated as poor and is claimed to result in spoilage, pilferage, high turnaround times and quality degradation of the goods to be exported. Therefore, up to 2017, emphasis will be placed on higher efficiency and automation of cargo handling. Another segment to be developed is trans-shipment as India s location allows it to aspire to become an international freight hub. The development of dedicated trans-shipment infrastructure and more clarity in related procedures will be a focus of the XII Plan air freight policy. Other plans include dwell time reduction, the setting up of 24/7 customs operations and establishing Air Freight Stations (AFS) in the hinterland. Maintenance, Repair and Overhaul Indian Maintenance, Repair and Overhaul (MRO) companies have to pay taxes some 40% higher than those payable by their foreign counterparts. The additional tax burden consists of import duties on spare parts, Value Added Tax (VAT) and Service Tax. High import duties stops domestic companies from maintaining sufficient levels of inventory, which keeps planes to be repaired grounded for a longer period of time. This results in Indian carriers having their aircraft repaired at foreign MRO locations such as Dubai, Singapore and Malaysia. To boost the development of the Indian MRO segment, the Planning Commission suggested that import duties for spare parts be abolished and that the domestic manufacturing of spare parts be treated as import substitution and, as such, be tax-free. Other ways to help develop the domestic MRO segment include simplifying MRO licensing procedures and encouraging airlines to set up their own MRO hubs under three-way joint ventures with MRO service providers and airport companies. Source: Planning Commission Report on Civil Aviation for the XII Plan

27 Railway Transport Government Policy Key Bodies and Legislation The Ministry of Railways is in charge of drafting India s railway policy and managing railway operator Indian Railways (IR). Key legislation is the Railways Act of In its report on the XII Plan, the Planning Commission recommended the setting up of a Rail Tariff Regulatory Authority to rationalize railway tariffs, help improve IR performance and reduce productivity losses, while keeping railway transport affordable to citizens. Currently full powers for tariff fixation are vested with the Ministry of Railways. The Railway Safety Fund is a source of railway sector funding, collects its resources from diesel cess transfers from the Central Road Fund. Transfers currently total come INR 10bn a year but according to the Planning Commission, they have to increase to at least INR 33bn per year to meet railway funding requirements. Bullet Train and Monorail In July 2012, the Indian government set up a company called High Speed Rail Corporation of India (HSRC Ltd.) to build the country's first bullet train network from Mumbai to Ahmedabad. The high-speed train is expected to reduce travel time between the two financial hubs to two hours from the current eight hours. The network is expected to cost some INR 600bn and take ten years to complete. On July 21, 2013, India's first monorail made its maiden journey with passengers in Mumbai. The Mumbai Metropolitan Region Development Authority awarded the 19.5-km stretch, worth some INR 24.6bn, to a consortium of Indian civil engineering major Larsen & Toubro and Malaysian Scomi Engineering Bhd. Suburban railway services are available in Mumbai, Kolkata, Pune, Chennai, Delhi and Hyderabad. Subway networks are currently operational in Kolkata, Chennai, Delhi and Namma; and are under construction in seven metropolitan areas across the country. Rail Fares In January 2013, India raised railway passenger fares for the first time since 2004 in an effort to curb losses and help improve the sector's financial situation. The fare increase was expected to help generate INR 66bn, according to Railways Minister Pawan Kumar Bansal. The government gave up a previous attempt to raise fares in March 2011 and fired the then railways minister following protests by a key political ally. In October 2013, Indian Railways again raised passenger and freight fares by some 2% for all classes and by 1.7%, respectively, in an effort to deal with rising diesel and electricity costs. In the six months to October 2013, electricity and diesel costs went up by 15.5% and 7.3%, respectively. Following the October fare increase, the ticket price for bottom-rung, sleeperclass passengers travelling from Delhi to Mumbai, some 1,400 km apart, jumped by 21% to some INR 400, roughly equivalent to USD 7.3. Source: Local media, Indian Railways Annual Report , Planning Commission Report on Railways in the XII Plan

28 Railway Freight Transport Government Policy Private Capital for Industrial Rail Connectivity In November 2012, the Indian government allowed private companies to build new rail lines for last-mile connectivity. The move is expected to lower transportation costs and quicken the evacuation of commodities such as minerals, coal and finished products from their places of manufacture or origin, the Times of India newspaper reported. Under the new policy, private companies will be allowed to lay tracks under a Build-Operate-Transfer (BOT) arrangement. Lines can also be assigned via competitive bidding for concession periods raging between 15 and 20 years, the daily added. Privately-built connections to ports and mines will be declared Non-Government Railways (NGR) for the public carriage of goods. The government said it would soon prepare the model agreements for private participation under NGR and BOT. The initiative comes to replace a Railway Infrastructure for Industry initiative adopted in The policy, alternatively referred to as R3i, was aimed at attracting private sector participation in rail connectivity projects across the country. Dedicated Freight Corridors The Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL) is a Special Purpose Vehicle set up in 2006 under the Railways Ministry to plan, build and operate railway routes and lines used solely for freight transportation across India. An Eastern and Western corridors, each some 1,500-km long, have been planned and are currently in various stages of completion. Freight corridors are expected to increase the railways' share in freight traffic and reduce freight transportation costs in the country. Capacity utilisation of above 100% of the routes carrying more than half of Indian Railways freight traffic has made the building of freight corridors a necessity. The busy routes are those part of the Golden Quadrilateral linking the cities of Delhi, Mumbai, Chennai and Howrah, and its two diagonals, with a combined length of 10,122 km

29 Port and Shipbuilding Government Policy Key Bodies and Legislation Infrastructure investments in ports are fully controlled by the Ministry of Shipping. The Directorate General of Shipping (DG Shipping) is a statutory maritime authority under the Ministry which deals with executive matters relating to merchant shipping. The Mercantile Marine Department (MMD) works under DG Shipping to implement the Merchant Shipping Act of Other key maritime industry acts are the Major Ports Trust Act, 1963; The Draft Ports Bill, 2011; the Cabotage Law and The Land Policy for Major Ports, The Tariff Authority for Major Ports (TAMP) was set up in 1997 to regulate vessel- and cargo-related tariffs and lease rates for major ports and private players. The Maritime Boards, which are state port authorities, sign concession agreements with private-sector operators. Port dues are regulated and fixed on the basis of actual costs. The Draft Policy on Private Freight Terminals (PFT) is aimed at facilitating cargo handling while switching between railway and water transport modes. The move to gradually replace the Central Sales Tax (CST) with Value Added Tax (VAT) is also expected to facilitate containerisation. Shipbuilding Subsidy and Taxation The Indian government provided a subsidy of 30% of all export orders to both public and private shipyards between October 2002 and August Currently, the subsidy is provided to all eligible shipbuilding contracts signed up to August 14, The subsidy withdrawal caused an outcry among shipbuilders and reportedly brought India's market share in global ship manufacturing down to 0.01%. A 2007 study by KPMG recommended that the 30% subsidy be continued until 2017 and be scaled down to 25% until According to a May 2012 statement of the Shipping Minister to the Upper House of Parliament Rajya Sabha, the domestic shipbuilding sector was adversely affected by high and complicated taxation. Taxes payable by shipyards include 5% excise duty and 3% cess on domestic ship sales, coupled with value-added tax (State VAT) on indigenous ship sales. In addition, basic customs duty of 10% plus additional duty, countervailing duty and cess, adding up to a total 26.85%, are applicable on the capital items imported for shipbuilding works. Inland Waterways The Inland Waterway Authority of India (IWAI) is in charge of the development and regulation of Inland Waterways (IW) for the purposes of shipping and navigation. There are five established inland waterway routes in India. A sixth one has been proposed for government approval. IWAI manages the infrastructure facilities of the first three. Inland water transport (IWT) is more cost effective compared to the road and rail modes, but accounts for about 1% of inland cargo traffic in India. The Planning Commission has not allocated any funds for infrastructure development of NW 4 and 5, as envisaged by the Detailed Project Reports (DPRs) IWAI had prepared, so the waterway authority is seeking public-private cooperation to enhance the commercial viability of these stretches, the Shipping Ministry said in its FY 2013 Annual Report. The Ministry's Maritime Agenda 2020 envisages both budgetary support and private funding for IW development. Source: Shipping Ministry, Deloitte

30 Shipbuilding Subsidy Shipbuilding Subsidy by Sector Shipbuilding Subsidy by Type of Order Year Public Shipyards, INR mn Private Shipyards, INR mn Total, INR mn Year Domestic Orders, INR mn Export Orders, INR mn Total, INR mn FY NIL FY FY NIL FY FY NIL FY FY NIL FY NIL FY , NIL 1, FY , NIL 1, FY , , FY , NIL 1, FY , , FY , , FY , , FY 2004 NIL FY 2005 NIL FY , FY , FY , , FY , , FY , , FY 2011 NIL 1, , FY 2012 NIL 1, , Source: Statistics of India's Shipbuilding and Ship Repairing Industry

31 Public Port Sector Expenditure Estimates Estimated Port Sector Expenditure During XII Plan ( ) Expenditure Item Gross Budgetary Support (GBS), INR bn Contribution from State Govts., INR bn Private Investment/Inter nal Extra Budgetary Resources (IEBR), INR bn Total, INR bn Ship Acquisition NIL NIL Restructuring of the Regulatory Regime 5.46 NIL NIL 5.46 Directorate General 1.5 NIL NIL 1.5 (Shipping) IMU NIL NIL Training & Welfare 8.28 NIL NIL 8.28 Seafarers Safety 0.3 NIL NIL 0.3 Coastal Shipping Multimodal Transport Lighthouses & Lightships Inland Water Transportation (IWT) NIL NIL NIL NIL 7.9 NIL NIL Total Port Rail/Road Port Connectivity Projects Phase I, ( ), INR bn Phase II, ( ), INR bn Phase III, ( ), INR bn Total Investment, INR bn Chennai NIL Kolkata NIL V. O. Chidambaranar Ennore NIL Cochin NIL 8.43 Visakhapatnam JNPT NIL 7.26 Paradip 6.15 NIL NIL 6.15 Mumbai 3.33 NIL NIL 3.33 Kandla NIL 1.61 New Mangalore 0.70 NIL NIL 0.70 Mormugao NIL NIL NIL NIL Total Source: Shipping Ministry, Deloitte

32 Road Transport Government Policy Key Bodies Free Movement of Goods More Lanes and Expressways The Ministry of Road Transport and Highways (MRTH) is the key government body developing legislation on road transport. The National Highways Authority of India (NHAI) an agency under the Ministry of Road Transport and Highways, in charge of developing, operating, maintaining and managing India's national highway network. NHAI was set up in State Public Works Departments (State PWDs) are in charge of building and maintaining national highways, state highways and Major District Roads on their respective territories. Border Roads Construction (BRO) is a road construction unit under the Indian army, set up in BRO specialises in building General Staff (GS) Roads in border areas. It also builds airfields, concrete bridges and housing. The Road Transport Corporation Act of 1950 is the key legislation regulating the operations of road transport companies. In 2010, the Indian government introduced a composite annual goods transport fee of INR 15,000 per truck, allowing it to move freely anywhere across the country. The move amended the previous permit regime, under which goods carriers paid an annual fee of INR 20,000 per truck that granted it access to its home state and three neighboring states. Companies had to pay INR 5,000 for each additional state the truck entered. The amendment to the national permit regime is a step towards adopting an all-india Goods and Services Tax (GST) and achieving a national market of goods and services. The permit regime change is likely to have a marginal impact on the operating costs of transporters but is expected to significantly reduce paperwork. The key legislation in the segment is the Carriage by Road Act of In addition to Phase VI of NHDP, envisaging the building of 1,000 km of expressways, the government has set a target to develop additional 500 km of expressways. Some 200 km will be funded by government support and 300 km through public-private partnerships. At the beginning of FY 2012, a total 9,220 km of national highways had less than two lanes. In a report, the Planning Commission proposed 2,000 km of these to be upgraded to two-lane national highways (one lane per direction), to be funded in different proportions by the central budget, a World Bank (WB) loan and under Build-Transfer-Operate (BOT) schemes with private contractors. At least 200 km of national highways are proposed to be upgraded to at least four-lane divided carriageway facilities through public-private partnerships. The Goods and Services Tax (GST) An important reform expected to improve tax collection and simplify trade across India, is the Goods and Service Tax (GST), proposed in 2009 and as of end-2013 still not implemented. The comprehensive tax levy on manufacture, sales and consumption of goods and services will replace a multitude of state levies with a single national tax rate and will thus abolish the multiple levels of taxation currently existing in India. Under GST, both Central and State taxes will be collected at the point of sale and will be charged on the manufacturing cost. The taxation burden will be divided equitably between manufacturing and services through a lower tax rate by increasing the tax base and minimizing exemptions. Source: MRTH, HNAI, Karnataka PWD, BRO, Economic Times, GSTIndia.com, EMIS Insight

33 The National Highway Development Project (NHDP) Phase under NHDP Progress of NHDP up to March 31, 2013 Total Length, km Completed (km) as of Dec 2012 Length Completed in FY 2013 I 7,522 7, II 6,647 5, III 12,109 4, IV 20, V 6,500 1, VI 1000 NIL NIL VII 700 km of Ring Roads/Bypasses + Flyovers Phase under NHDP Phase I Phase II Stages of the NHDP Description The Golden Quadrilateral (GQ), the 5,846-km highway, connecting India's four major cities - Delhi, Mumbai, Chennai and Kolkata, was completed in Jan The highway consists of four-or six-lane stretches and was worth some INR 300 bn, largely funded by petroleum product tax revenues and government borrowing. The North-South (NS) and East-West (EW) corridors, connecting four extreme points along the length of the country. At the end of FY 2012 in March, some 85% of the project, which also includes port connectivity, was completed. The highways have a total length of 7,300 km and are worth some INR 350 bn. Sources of NHDP Funding in XII Plan ( ) Name of Source Amount of Funding, INR bn Cess External Assistance 1.8 Toll Revenue Additional Budgetary Support (ABS) for SARDP- NE and Jammu & Kashmir Internal and Extra Budgetary Resource (IEBR) Sub-Total Participation of Private Sector Total Phase III Phase IV Phase V Phase VI Phase VII A scheme to upgrade 12,109 km of national highways on a Build-Operate- Transfer (BOT) basis. Contracts have been awarded for some 2,000 km. Consists of a plan for widening 20,000 km of single-lane highways into twolane highways with paved shoulders. A plan to upgrade some 5,000 km of four-lane roads into six-lane roads. Consists of projects for building expressways connecting major industrial and commercial centers. Includes projects to improve city road networks by adding ring roads and facilitating connectivity to national highways. Also envisages improvements to selected national highway stretches, including the construction of flyovers and bypasses. To be funded on a BOT basis. Source: NHAI, Planning Commission, MRTH Annual Report

34 Government Road Building Programmes Rural Roads In 2000, the Indian government launched a poverty alleviation strategy called Pradhan Mantri Gram Sadak Yojana (PMGSY) to provide all-weather road connections to isolated settlements with a population of 1,000 and above by 2003, and to settlements with a population of 500 and above by Implementation problems and scarcity of funds delayed programme completion and PMGSY was still being implemented at the end of the XI planning period in According to the Planning Commission, PMGSY would need an annual funding of INR 400bn for each of the five years of the XII plan, if all projects are to be completed by its final year In May 2013, the central government approved PMGSY-II to upgrade some 50,000 km of rural roads constructed under the programme, the Business Standard reported on May 5, Jawahar Rojgar Yojna (JRY) is a government-sponsored poverty alleviation scheme set up in 1989 to provide employment opportunities and infrastructure development to India s rural areas. Road construction is one of the ways JRY provides employment to rural Indians. Road programme for the North-East The Special Accelerated Road Development Programme in North Eastern Region (SARDP-NE) is a government initiative designed to promote the rapid development of road infrastructure in the north-eastern regions of India. The programme is divided into three parts Phase A, Arunachal Pradesh Package and Phase B. The total length of roads to be built/upgraded under Phase A is 4,099 km, under the Arunachal Pradesh Package 2,319 and under Phase B 3,723 km. According to a report by the Planning Commission on targets for the XII Plan ( ), some 1,000 km were competed by March 31, 2012 under Phase A and the AP Package. Of the Phase B's total length, 1,610 km will be taken up for implementation in the XII Plan. Total fund requirements under Phase A and the AP Package have been estimated at INR 257.4bn, and for Phase B at INR bn for the XII Plan. A total 625 km were completed in FY 2013, according to the Road Ministry. Roads in Disadvantaged Areas The government of India has drafted a two-phase programme for the development of roads in the Left-Wing Extremism (LWE)- Affected Areas. The programme includes a Tribal Sub-Plan (TSP) component. Phase I features construction and upgrades of roads with a total length of 5,477 km. Some 350 km have been completed by March 31, 2012 and 76 by March 31, The remainder is scheduled to be built by March Phase II envisages road works with total length of 8,014 km to be completed by March The total fund requirements under phases I and II, have been estimated at INR 53.76bn and INR 107bn. The Planning Commission has proposed that some INR 30bn be earmarked for the development of national highways by army building unit Border Roads Construction (BRO). Source: Planning Commission, Ministry of Development of the North-Eastern Region

35 The Central Road Fund (CRF) CRF Allocations for Road Transport in India 140, , , ,415 CRF Allocation Break-Down 212, , % 31.30% -7.95% -5.80% 32.62% -8.65% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 CRF Disbursements, INR bn Grant to State Governments and UTs for State roads Grant to States & UTs for Roads of Inter- State Connectivity and Economic Importance FY 2011, INR bn % y/y change FY 2012 (up to Dec 2011), INR bn FY 2013, INR bn National Highways (incl. Expressways) Rural Roads Railways Total In 2000, the Indian government set up a Central Road Fund (CRF) to promote road building in the country. CRF is financed from the collection of cess on petrol and High Speed Diesel (HSD) Oil. As of March 31, 2013, INR 2 per litre was collected as cess on petrol and HSD Oil. A total 50% of INR 1.5 of the cess on HSD goes to nationwide road development. The other half of the cess on HSD and the entire cess collected on petrol are allocated as follows: 57.5% for the development and maintenance of national highways; 12.5% for the construction of roads under or over bridges as well as for safety works at unsupervised railway crossings; 30% for the development of state roads. A total 10% of this amount is kept as reserve for allocation to states for the implementation of state road schemes (ISC & EI). The remaining cess of INR 0.5 per litre is allocated to development and maintenance of the national highways. CRF operations are regulated by the Central Road Fund Act of In its report on road transport development in the XII Plan, the Planning Commission set a target of 85,000 km of national highways by 2017, compared to roughly 77,000 km available in FY Source: CEIC; MRTH, Deloitte Intermodal and Multimodal Logistics, Planning Commission

36 IV. Air Transport India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

37 Air Transportation Highlights Importance India became the 9 th -largest civil aviation market in the world between fiscal years In spite of this, air travel penetration in FY 2011 was at 0.04 per capita trips, against 2 per capita trips per year in the United States and Australia. China's domestic air traffic is five times the size of India's, although its population is only 10% larger. While air transport accounts for some 0.3% of the country's GDP, India's national statistics body does not measure separately the contribution of all civil aviation stakeholders to the public finances of the country. Civil aviation contributed some 1.5% to India's 2009 GDP and supported some 10 million jobs, including those in tourism, a study by Oxford Economics shows. Players A total five scheduled airlines, flying under eight brands, operated in India in The demise of Kingfisher Airlines was one of the major events in the sector in FY As a result of the removal of Kingfisher's seats, combined with modest capacity induction by other carriers, the demand/supply dynamics in the market favored airlines for the first time since 2004, market research firm CAPA said in a report. This drove average fares up by 15%-20% y/y in FY 2013, which in turn curtailed demand and resulted in almost all carriers reporting a slight decrease in average passenger load factors in the year. Opportunities Factors that support investments in the Indian aviation sector include strong growth prospects coupled with very low penetration, and the low valuations of listed airlines due to poor performance. The country is well situated to become a hub for international traffic between Europe and South Asia, as well as a maintenance, repair & overhaul (MRO) center. However, scheduled air carriers suffer under high operation costs and excess capacity, combined with insufficient airport infrastructure. Jet fuel costs account for 30-45% of operating costs for Full-Service Carriers (FSCs) and 40-55% for Low-Cost Carriers (LCCs). Congestions at major domestic airports increase fuel costs considerably. Challenges The impact of rising prices of imported ATF is aggravated by the depreciation of the rupee against the US dollar, since many carriers have more USD costs than USD revenues. The cost environment remained hostile in FY 2013, according to CAPA. The increased landing and navigation charges at key metro airports and higher operational costs contributed to airline losses. Losses were exacerbated as airlines were unable to fully pass on these incremental costs to passengers. Experienced local pilots are hard to find, which has resulted in the employment of many foreign pilots, who demand higher salaries paid in foreign currency

38 Aircraft and Freight Movement, 2013 Aircraft Movement, 2013 (Jan-Sep), numbers 299, , ,008 76,221 71,389 72,252 30,672 77,094 65,774 77,764 31,665 13,339 17,154 15,160 Domestic International Domestic International Domestic International Domestic International Domestic International Domestic International Domestic International Mumbai Delhi Chennai Kolkata Bangalore Ahmedabad Hyderabad Freight Handled By Airports, 2013 (Jan-Sept), tonnes 336, , , ,431 54, ,265 60,349 32,738 65, ,563 25,232 36,809 26,429 11,533 Domestic International Domestic International Domestic International Domestic International Domestic International Domestic International Domestic International Mumbai Delhi Chennai Kolkata Bangalore Hyderabad Ahmedabad Source: CEIC

39 Selected Air Transportation Details Full-Service and Low-Cost Carriers Flights per Week to North-East Regions and Islands 120% 100% FY 2006 FY 2007 No. of Flights per Week FY 2008 FY 2009 FY 2010 FY % 60% 34% 46% 48% 63% 69% Low-Cost Carriers Total No. of Domestic Flights 8,724 10,624 11,048 11,063 11,315 12,107 No. of Flights to the North-Eastern Region % 20% 0% 66% 54% 52% 37% 31% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Full-Service Carriers (FSC), % No of Flights to Jammu&Kashmir No. of Flights to Andaman & Nicobar Island No. of Flights to Lakshadweep Island Companies Operating Five or More Helicopters (pub. April 2011) Helicopter Usage (data published April 2011) Pawan Hans Helicopters Ltd, (PHHL) 6 Mesco Airlines Ltd. 69% Global Vectra Helicorp Ltd. Total No. of Helicopters: around % 10% 1% 1% 1% Himalayan Heli Services Pvt. Ltd Deccan Charters Total No. of Operators: more than 90 Corporate and General Offshore Oil Support VIP Transportation Training Areas of Helicopter Usage, % Law Enforcement Emergency Medical Services Source: Planning Commission's Report on Civil Aviation in the XII Plan

40 Aviation Turbine Fuel (ATF) Prices Domestic Production and Consumption of ATF, thou tonnes 8,356 Comparison of ATF Prices in India and Competing Hubs 1,400 9,304 4,423 4, ,817 10,061 10, ,078 5,536 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 ATF Production, thou tonnes ATF Consumption, thou tonnes India Singapore Bangkok Kuala Lumpur Dubai 5,270 Comparison of ATF Prices (May-Aug 2011) in India and Major Competing Hubs, USD/kilolitre According to the Planning Commission s report on civil aviation in the XII Plan (up to FY 2017), ATF costs account for some 40-50% of the total operational costs of airlines. Jet fuel in India is some 60% more expensive compared to major competing hubs (see adjacent graph), a KPMG analysis shows. According to the Planning Commission, high ATF prices in India result in airline tickets from India to these locations being cheaper than those for flights within the country. Following the dismantling of the Administered Price Mechanism (APM) on April 1, 2002, ATF prices in India are based on international import parity prices and do not relate to the costs of producing ATF in India. Domestic ATF prices include freight charges from the Persian Gulf to India, domestic transportation charges, throughput charges paid to the airports, marketing margin for the OMCs, excise duty and cess, VAT levied by state governments and sales tax. ATF prices rose 6.9% to INR 75,031 per kilolitre, as a result of the rupee depreciation and costlier crude oil imports, the Times of India reported on September 2, The hike came after price increases of 5.8% in July and 6.3% in August. The industry has suggested that ATF be included in the upcoming Goods and Services Tax (GST), or, alternatively, that jet fuel be assigned a lower and uniform tax under a "declared good" regime. To reduce the taxation burden on ATF prices, the government has decided to allow Indian carriers to directly import ATF to meet their needs, Civil Aviation Minister Ajit Singh said in March Carriers Kingfisher Airlines, SpiceJet and IndiGo were allowed to directly import specified amounts of jet fuel in Source: Petroleum Planning and Analysis Cell (PPAC), EMIS Insight, KPMG, Planning Commission, zeebiz.com, Jet Airways

41 V. Ports, Water Transportation and Inland Waterways (IWT) India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

42 Port Sector Highlights Overview India has over 7,500 km of coastline and some 14,000 km of navigable rivers and canals. The country s nine coastal states are West Bengal, Odisha, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat. A total 13 major and 187 medium-sized and minor ports operate in India. The newest additions to the major ports group are Ennore Port, located in Chennai, and the first Indian port registered as a public company; and Port Blair, located in the capital city of the Andaman and Nicobar Islands. Both assumed their status in The major ports, excluding the newest additions, handled some 65% of cargo traffic in FY Petroleum, Oil and Lubricants (POL), iron ore and coal are the three major freight groups handled by ports in India. Not all medium-sized and minor ports are equipped to handle container traffic. According to Deloitte India, port traffic grew at an annual rate of some 7.7% between FY 2006 and FY Major ports reported a growth rate of 5.37%, while non-major ports posted a growth of some 13.55% in the period. Performance The classification of ports into major, minor and intermediate (medium-sized) has mostly an administrative significance and does not bear a strict relation to traffic volumes. The Ministry of Shipping administers major ports, while the shipping departments or ministries of the coastal states are in charge of non-major ports in the country. Only about 50 non-major ports are operational while the rest are fishing harbours. The major ports handled a total traffic of million tonnes in FY As of Mar 31, 2012, the major ports reported aggregate capacity of million tonnes per annum (MTPA). 100% FDI is allowed in the port sector in India, which reported private investment of INR bn in the XI five-year plan ( ). The country s plans to triple cargo-handling capacity at its ports to 3.2 bn tonnes by 2020 with private participation of some INR 3.0 tn are jeopardised after many project tenders failed because of lack of interest from bidders, livemint.com reported in Jul Challenges Limited capacity is one of the issues to be addressed by the Indian port sector, as major ports operated well above the optimum range of 70-75% capacity utilisation between FY , Deloitte India said in a report, quoting the Indian Ports Association. On the other hand, many ports are located in cities and cannot be physically expanded beyond a certain limit. According to a study submitted to the Indian Parliament in Feb 2010, ports in the country suffered from inefficient freight handling services and low productivity. Some 55% of the equipment in use at all ports, except the JN Port, had outlived its useful life, the report pointed out. Inadequate drafts and poor connectivity options to other modes of transport represent yet another challenge, Deloitte India said. Other issues to be addressed include different tariff-setting frameworks for major and non-major ports, inadequate port connectivity and slow progress of environmental clearances and land acquisition

43 Freight Traffic Freight Traffic at Major Ports (excl. Ennore and Port Blair) Freight Traffic at Non-Major Ports FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Treight Traffic: Transhipment, mn tonnes Freight Traffic: Export, mn tonnes Freight Traffic: Import, mn tonnes Total Freight Traffic FY mn tonnes FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Import, million tonnes Export, million tonnes Freight Traffic of Selected Goods at Major Ports (excl. Ennore and Port Blair) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Petroleum, Oil and Lubricants, mn tonnes Iron Ore, mn tonnes Fertilizer, Finished, mn tonnes Fertilizer, Raw, mn tonnes Thermal Coal, mn tonnes Coking Coal, mn tonnes Source: CEIC

44 Container Traffic at Major Ports Container Traffic at Major Ports Share of Major Ports in Container Traffic, FY ,561 7,651 6,710 6,588 6,895 5, FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY ,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 JNPT 56.40% Chennai 20.30% Tuticorin 6.20% Kolkata 4.10% Vishakhapatnam 3.10% Mumbai 0.70% Kandla 2.20% Kolkata 4.10% Haldia 1.50% Cochin 4.40% Paradip 0.10% Container Traffic, mn tonnes Container Traffic, TEUs Mangalore 0.60% Container Traffic by Major Ports (figures have been converted from mn TEUs and rounded) Cochin, Containers, TEUs Chennai, Containers, TEUs Haldia, Containers, TEUs JNPT, Containers, TEUs Kandla, Containers, TEUs Kolkata, Containers, TEUs Mormugao, Containers, TEUs Mumbai, Containers, TEUs New Mangalore, Containers, TEUs Paradip, Containers, TEUs Tuticorin, Containers, TEUs Visakhapatn am, Containers, TEUs , , ,000 2,667, , ,000 9, ,000 10,000 4, ,000 47, , , ,000 3,298, , ,000 13, ,000 17,000 2, ,000 56, ,000 1,128, ,000 4,060, , ,000 14, ,000 21,000 4, ,000 71, ,000 1,144, ,000 3,953, , ,000 14,000 92,000 29,000 2, ,000 88, ,000 1,216, ,000 4,092, , ,000 13,000 58,000 32,000 4, ,000 97, ,000 1,524, ,000 4,270, , ,000 18,000 72,000 40,000 4, , , ,000 1,558, ,000 4,321, , ,000 22,000 58,000 45,000 8, , ,000 Source: CEIC, Basic Port Statistics of India

45 Capacity Utilisation of Major Ports Capacity Utilisation at Major Ports 97.60% 92.30% 90.98% 85.06% 80.43% FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Capacity Utilization, % Capacity and Traffic at Major Ports Port Name Capacity FY 2012, Traffic FY 2012, Traffic FY 2013, mn tonnes mn tonnes mn tonnes Kolkata Dock System (KDS) Haldia Dock Complex (HDC) Paradip (PPT) Visakhapatnam (VPT) Ennore 31 N/A N/A Chennai (ChPT) Tuticorin (TPT) Cochin (CoPT) New Mangalore (NMPT) Mormugao (MoPT) J. L. Nehru (JNPT) Mumbai (MbPT) Kandla (KPT) All Major Ports Above Capacity Utilisation By Major Ports 71.37% 76.70% 50.75% 67.56% 69.05% 73.24% % % 48.25% 66.96% 77.09% 84.30% 95.16% 48% 64.63% 69.23% 93.20% % % % % % 90.44% 94.21% 35.52% 43.57% Kolkata Dock System Haldia Dock Complex Paradip Visakhapatnam Ennore Chennai Tuticorin Cochin New Mangalore Mormugao J. L. Nehru Mumbai Kandla Capacity Utilization, %, FY 2012 Capacity Utilization, %, FY 2011 Source: Basic Port Statistics of India , CEIC

46 Efficiency Indicators of Major Ports Average Pre-Berthing Detention at Major Ports, Days Port Name FY 2011 FY 2012 % y/y change Kolkata Dock System Haldia Dock Complex Paradip Visakhapatnam Ennore Chennai Tuticorin Cochin New Mangalore Mormugao J. L. Nehru Mumbai Kandla All Ports (Average) Average Turnaround Time at Major Ports, Days Port Name FY 2011 FY 2012 % y/y change Kolkata Dock System Haldia Dock Complex Paradip Visakhapatnam Ennore Chennai Tuticorin Cochin New Mangalore Mormugao J. L. Nehru Mumbai Kandla All Ports (Average) Comments Average Turnaround Time is an indicator of port efficiency calculated as the total hours a vessel stay in port (buoy-to-buoy time) divided by the total number of vessels. A shorter average ship turnaround time indicates higher port efficiency. Average Pre-Berthing Detention is the time between a ship arrives at the anchorage (reporting station) until it starts moving to the working berth, i.e., operational berth. Pre-berthing Detention is a component of the total turnaround time. Thus, any increase in the pre-berthing detention correspondingly increases turnaround time. Source: Basic Port Statistics of India , nividh.com, Dashboarding Services

47 Number and Type of Vessels Sailed Number and Type of Vessels Sailed by Major Port Number and Type of Vessels Sailed, All Major Ports Container Break Bulk Dry Bulk (Mechanised) Dry Bulk (Conventional) Liquid Bulk All Types FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 FY 2011 FY 2012 Kolkata NIL NIL ,301 1,203 22,022 21,163 Haldia ,189 1,982 Paradip ,487 1,328 7,290 7,035 Visakhpatnam , ,469 2,432 Ennore NIL NIL NIL ,588 4,157 Chennai ,181 2,043 Tuticorin ,402 1,376 Cochin ,644 1,557 2,904 3,035 New Mangalore ,097 1,136 5,604 5,390 Mormugao J.L.Nehru 2,490 2, NIL NIL ,100 2,929 Mumbai NIL NIL ,027 1,102 2,092 2,017 Kandla NIL NIL ,351 1,318 2,692 2,714 FY 2011 FY 2012 Container Break Bulk Dry Bulk (Mechanized) Dry Bulk (Conventional) Liquid Bulk Source: Basic Port Statistics of India

48 Financial Indicators and Employment at Major Ports Capital Employed at Major Ports, INR bn Operating Income and Expenditure per Tonne of Cargo % 13.75% 7.35% 7.39% 6.18% FY 2008 FY 2009 FY 2010 FY 2011 FY % 14% 12% 10% 8% 6% 4% 2% 0% FY 2009 FY 2010 FY 2011 FY 2012 Major Ports' Operating Income per Tonne of Cargo, INR Capital Employed at Major Ports, INR bn % y/y change Major Ports' Operating Expenditure per Tonne of Cargo, INR Number of Employees at Major Ports as of March 31, 2011 (latest figures available) 13,391 7,774 3,774 5,374 4,584 3,749 2,817 2,634 1,730 1,636 2,079 3, Kandla Mumbai J.L.Nehru Mormugao New Mangalore Cochin Tuticorin Chennai Ennore Visakhpatnam Paradip Haldia Kolkata Number of Employees at Major Ports as of Mar 31, 2011 Source: Basic Port Statistics of India

49 Shipbuilding and Ship Repair Number of Shipyards in India, FY 2012 Shipyards Run By State Governments Shipyards Under Ministry of Shipping Cochin Shipyard Ltd., Cochin Hooghly Dock and Port Engineers Ltd., Kolkata 2 13 Total Number of Shipyards in India - 21 Privately Held Shipyards Shipyards Run By Central Public Sector Public Sector Shipyards in India, FY Shipyards Under Ministry of Defence Mazagaon Dock Ltd, Mumbai Garden Reach Shipbuilders and Engineers Ltd., Kolkata Goa Shipyard Ltd., Goa Hindustan Shipyard Ltd., Visakhapatnam Shipyards Run by State Governments Alcock Ashdown Co. Ltd., Gujarat Shalimar Works Ltd, Kolkata, West Bengal In its National Maritime Policy, the government has voiced intentions to bring the country s share in shipbuilding to 5%, grab a 10% share in global ship repairs and create 2.5 million jobs by Indian shipbuilding accounted for 1% of the global market between 2002 and 2007 when a subsidy was available to shipbuilders. India specialises in building off-shore vessels (OSVs) which are used for oil exploration. Other segments expected to see a rising number of orders in the future are rigs/drilling units and LNG-propelled vessels. Some of the challenges to be addressed by the shipbuilding industry in India include high input costs, reliance on imported materials and reduced control over the pricing and delivery of equipment and components due to underdeveloped domestic ancillary industries; foreign exchange risks related to contracts in foreign currencies and the depreciation of the rupee; and stagnant order inflows due to the global downturn. Companies building defense ships have experienced an increase in orders from the Indian Navy and Coast Guard. The government has been operating a Shipbuilding Subsidy Scheme for central public sector shipyards intermittently since Subsidy is currently provided only to shipbuilding contracts signed until Aug 14, According to the Planning Commission s Water Transport Report for the XII Plan ( ), there is an increasing demand for the development of shipbuilding and repair facilities in the vicinity of major ports. The Commission encouraged ports to develop such facilities through private investment by longterm leasing out of land. Source: Shipping Ministry Annual Report , Bharati Shipyard Limited

50 Shipbuilding Statistics DWT = Dead Weight Tonnage Ships on Order by Number and DWT, FY 2012 Ships on Order, Public Sector, FY 2012 Private Sector 3, Private Sector Total: 3, thou DWT Public Sector Total No of Ships: Public Sector Cochin Shipyard Hindustan Shipyard Garden Reach Ship- Building & Engineers Number of Ships on Order, as of Mar 31, 2012 Hindustan Shipyard 28.1 Cochin Shipyard 16.2 Mazagon Dock Ships on Order by thou DWT, as of Mar 31, 2012 Ships on Order, Private Sector, FY 2012 Book Order by Type of Vessel, as of March 31, , ABG Shipyard Bharati Shipyard Larsen &Toubro Number of Ships on Order 1, Pipavav Tebma Dempo Shipyard Shipbuilding & Engineering Number of Ships by thou DWT 2,000 1,600 1, Public Sector Private Sector Total Tankers Dry Cargo Bulk Cargo Passengers Others Total No. 11 NIL thou DWT 8.25 NIL No. NIL thou DWT NIL , , No thou DWT , , Source: Statistics of India's Shipbuilding and Ship Repairing Industry

51 Inland Waterways National Waterways (NW) in India Inland Waterway Funding Under Maritime Agenda 2020 Abbreviation Name Length NW-1 Ganges River, from Haldia to Allahabad 1,620 km NW-2 Brahmaputra River from Dhubri to Sadiya 891 km Support from Budget, INR bn Private Funding, INR bn Total, INR bn NW-3 West Coast Canal, from Kottapuram to Kollam, along with the Udyogmandal and Champakara canals 205 km On-Going Projects NW-4 The Kakinada-Puducherry stretch of Canals and the Kaluvelly Tank, the Bhadrachalam Rajahmundry stretch of Godavari River and the Wazirabad Vijayawada stretch of River Krishna 1,028 km New Projects NW-5 The Talcher-Dhamra stretch of Brahmani River, the Geonkhali-Charbatia stretch of the East Coast Canal, the 588 km Charbatia-Dhamra stretch of Matai River and the Mangalgadi-Paradip stretch of the Mahanadi Delta rivers NW-6 (PROPOSED) Barak River from Lakhipur to Bhanga 121 km Total Comments India s nearly 14,500-km navigable inland waterways (IW) consist of 5,200 km of major rivers and 500 km of canals. However, only ten waterways are recommended for navigation. Of these, five routes are termed National Waterways (NW). Inland Water Transport (IWT) is less expensive in terms of fuel efficiency, compared to road and rail modes, but nevertheless accounts for about 1% of India s total inland freight transportation, the Inland Waterway Authority of India (IWAI) said. IWT is suitable for mechanised crafts, bulk goods such as coal, over-dimensional cargo and hazardous goods. According to a report by Deloitte India, inland waterways have until now largely been used for transporting boulders, cement and waste oil. Government-owned Central Inland Water Corporation Ltd. (CIWTC) is the principal IWT operator in the Eastern/North-Eastern Region. Source: Shipping Ministry, Deloitte, Maritime Agenda 2020, India's National Waterways: A Long Way to Go, Dr. K.G.S. Sarma

52 Inland Waterways (cont'd) NW-1 NW-2 NW-3 Goa Waterways Mumbai Waterways Total Freight Transportation by Inland Waterways FY 2010 FY 2011 FY mn tonnes mn tonnes 3.31 mn tonnes btkm btkm btkm mn tonnes mn tonnes mn tonnes btkm btkm btkm mn tonnes mn tonnes mn tonnes btkm btkm btkm mn tonnes 54.5 mn tonnes mn tonnes btkm btkm btkm mn tonnes mn tonnes mn tonnes btkm btkm btkm mn tonnes mn tonnes mn tonnes btkm btkm btkm Inland Waterway Projects Inland Waterways are set to be increasingly used for coal transport, after India s largest thermal power station NTPC signed in 2010 a contract to receive 3 mn tonnes of coal per year for seven years using the NW-1 route. This happened after NTPC s power pants Farakka and Kahalgaon, located along NW- 1, had faced serious coal shortages due to railway infrastructure problems. IWAI pledged to develop the NW-1 branch-out to the power plants to allow the passage of 1,500-2,000-tonne cargo vessels, if NTPC committed to a fixed annual coal quantity to be carried along the upgraded water route. Problems have not been solved as shown by an Apr 4, 2013 publication by The Economic Times of India, saying NTPC threatened to shut down its seven thermal power generation units at Kahalgaon if coal supply did not resume within a few days. An Inland Water Transit and Trade Protocol has been signed between India and Bangladesh, under which the inland vessels of one country can transit through specified routes of the other country. Five ports in each country have been designated to handle inter-country trade. The Kaladan Multimodal Transport Project provides an alternative connectivity of the eastern state of Mizoram with the Haldia/Kolkata ports through the Kaladan River in Myanmar. Related infrastructure works are expected to be completed by Jun A Ro-Ro facility to provide IWT connectivity to the Vallarpadam International Container Transshipment Terminal (ICTT) at Kochi Port started operations in Feb NW-1, 2 and 3, along with the Sunderbans waterways, are popular cruise destinations among domestic and foreign tourists. Source: Shipping Ministry Annual Report , The Economic Times of India

53 VI. Railways India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

54 Railway Transportation Highlights Coverage With its 64,600 route kilometres in FY 2012, Indian Railways (IR) is one of the world's largest rail networks under single management. The railway, which has more than 150 years of history, operates tracks under three gauge standards with broad gauge (distance between the rails of 1,676 mm), dominating the network. IR carried 22.5 million passengers and 2.65 million tonnes of freight each day during FY Steam trains are used in the luxury tourism segment in the country. Upgrade As of March 31, 2012, a total 31.39% of IR's route kilometres were electrified. A total 6,500 route kilometres have been proposed for railway electrification during the 12th Plan. In fiscal years 2008, 2009, 2010 and 2011, IR allocated a combined 36.56% of its expenditure to new line additions and 33.88% to inventory upgrade and other works, the IR Yearbook for fiscal 2011 showed. A total 13.48% were spent on rolling stock, 12.55% on tracks and bridges and 3.53% on electrification. Bridges At the end of FY 2012 in March, Indian Railways had 133,873 bridges, subdivided as 725 important, 10,833 major and 122,315 minor bridges. A total 924 bridges including 12 distressed bridges were rehabilitated/rebuilt during the year. Between FY 2008 and FY 2012, 742 Road Over Bridges (ROBs) and 1,204 Road Under Bridges (RUBs) were built to limit level road crossings and improve safety. A total 226 ROBs and 653 RUBs were completed in FY Level Crossings As of April 1, 2012, Indian Railways maintained 31,846 level crossings, out of which 18,316 or 58% had gate-keepers and 13,530 or 42% were unmanned. A total 777 unmanned level crossings were provided with gate keepers in FY Other 91 level crossings were equipped with gate-keepers between March and June Land Ownership As of April 1, 2012, Indian Railways owned some 460,000 ha of land. Some 360,000, or 90%, were used for railway infrastructure. A total 48,000 ha were allocated to afforestation and other 4,000 ha were used to grow food under the government-sponsored Grow More Food scheme. Vacant railway land is also eligible for commercial development

55 Railway Passenger Statistics Average Lead (Journey Distance), km Number of Passenger Trains Per Day FY 2012 FY 2011 FY 2010 FY 2009 FY ,368 3,602 11,497 3,985 11,262 4,066 11,824 4,239 12,335 4,620 Average Lead, km Average Lead, Suburban, km Average Lead, Non-Sururban, km Annual Passenger Kilometres, Million Km 2,132 2,619 2,676 2,875 3, , , , , , , , ,127 1,046, ,057 4,634 4,893 4,520 4,710 4, , , , , ,465 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Annual Passenger Kilometers, Suburban, million km Annual Passenger Kilometers, Non-Suburban, million km FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Ordinary passenger Trains and Mixed Trains per Day Mail or Express Trains per Day Electric Multiple-Unit (EMU) Trains per Day Source: Indian Railways Yearbook

56 Railway Passenger Statistics (cont'd) Number of Passengers, millions Passenger Figures by Segment 6,524 3,689 7,246 7,651 6,920 3,802 3,876 4,061 8,224 4,377 Segment Number of Passengers Passenger Kms Revenue Millions % of Total Millions % of Total INR bn % of Total Suburban (all classes) 4, % 144, % % Non-Suburban: Upper Class % 72, % % 2,835 3,118 3,370 3,590 3,847 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Number of Passengers, Suburban, millions Number of Passengers, Non-Suburban, millions Average Speed of Passenger Trains, Including Halts, km/h Second Class- Mail/Express (incl. 1, % 548, % % Sleeper Class) Second Class - Ordinary 2, % 281, % % Non-Suburban Total 3, % 902, % % TOTAL 8, % 1,046, % % Passenger Revenue Per Km (in Paise = 1/100 Rupee) Segment FY 2010 FY 2011 FY Suburban (all classes) Non-Suburban: FY 2010 FY 2011 FY 2012 FY 2010 FY 2011 FY 2012 Broad Gauge Metre Gauge Electric Multiple-Unit (EMU) Train, km/h Mail/Express Train, km/h Ordinary Passenger Trains, km/h Second Class-Mail/Express (incl. Sleeper Class) Upper Class Second Class - Ordinary Non-Suburban Average Overall Average Source: Indian Railways Yearbook

57 Electrification, Data by Gauge Gauge Conversions Route Length by Gauge as of Mar 31, ,516 Chart shows conversions from Metre and Narrow Gauge (MG/NG) to Broad Gauge (BG) Gauge (distance between rails) Single-Line Double/ Multiple-Line Grand Total Electrified Non- Electrified Total Electrified Non- Electrified Total FY 2010 FY 2011 FY 2012 Gauge Conversions, km Broad (1,676 mm) 5,242 30,723 35,965 14,365 4,858 19,223 55,188 Railway Electrification 1,165 Metre (1,000 mm) NIL 6,809 6,809 NIL NIL NIL 6,809 1, Narrow (762 mm/ 610 mm) NIL 2,463 2,463 NIL NIL NIL 2,463 FY 2010 FY 2011 FY 2012 Railway Electrification, route km Total 5,242 39,995 45,237 14,365 4,858 19,223 64,460 Source: Indian Railways Yearbook

58 Railway Freight Statistics Annual Goods Traffic, million tonnes Total Annual Goods Carried, tonne-km (millions) Others, mn tonnes Others, tonne-km (millions) FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Petroleum, Oil and Lubricants, mn tonnes Fertilizers, mn tonnes Foodgrains, mn tonnes Cement, mn tonnes Iron Ore, mn tonnes Pig Iron and Finished Steel, mn tonnes Raw Materials for Steel Plants, mn tonnes Coal, mn tonnes FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Petroleum, Oil and Lubricants, tonnekm (millions) Fertilizers, tonnekm (millions) Foodgrains, tonnekm (millions) Cement, tonne-km (millions) Iron Ore, tonnekm (millions) Pig Iron and Finished Steel, tonne-km (millions) Raw Materials for Steel Plants, tonne-km (millions) Coal, tonne-km (millions) Source: CEIC

59 Rolling Stock Number of Locomotives by Type Number of Locomotives Number of Goods Wagons Wagon Types as % of Total No. of Wagons FY Steam Diesel Electric Total FY Total No. of Wagons Covered Open High- Sided Open Low Sided Departme ntal Other Types Total , , , , ,387 1, , ,469 2,403 1,036 10, ,915 3,759 1,743 8, ,702 2,810 7, ,843 3,443 8, ,964 3,586 8, ,022 3,825 8, ,137 4,033 9, ,197 4,309 9, , , , , , , , , , , ,200 26% 57.4 ( Includes both types of Open Wagons See cell on left Source: Indian Railways Yearbook

60 VII. Road Transportation India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

61 Road Transportation Highlights Overview India is home to the world's second-largest road network, which carries some 85% of the country's passenger traffic and 65% of its freight, figures by the Ministry of Road Transport and Highways (MRTH) showed. At 0.66 km of highway per sq km of land, the density of India's highway network is similar to that of the US (0.65) and is much higher than that of China and Brazil, at 0.16 and 0.2, respectively, the World Bank (WB) said in a report. However, nearly half of India's roads are unpaved, and some 60% of the rural population does not have access to all-weather roads. Many of India s highways are narrow and congested with poor surface quality, the WB added. In 2011, national highways accounted for 1.5% of the country s total road network, but carried nearly 40% of the total traffic. Fuel Prices Challenges Among the passenger-carrying State Road Transport Undertakings (SRTUs), fuel accounted for some 30% of all expenditures in both FY 2011 and The Indian government controlled the prices of petrol, diesel, kerosene and liquefied petroleum gas (LPG), until June Then authorities deregulated the price of petrol and announced an upcoming deregulation in diesel prices. In November 2011, diesel deregulation was put on hold. After the deregulation of petrol, Oil Marketing Companies (OMCs) are allowed to change prices every two weeks after receiving approval from the government. In mid-january 2013, the government allowed OMCs to periodically raise diesel prices in a partial deregulation aimed at making up for the INR 9.6 per litre they lose from selling diesel at a subsidised price. Total losses amount to some INR 940bn per year, the Economic Times of India reported. Diesel prices will be deregulated in six months with gradual price increases, Oil Minister M. Veerappa Moily said in November Similar to the mining, fossil fuel extraction and utility sectors, land acquisition problems and environment and forest clearances are one of the key challenges slowing the development of India s road network, MRTH said in its FY 2013 Annual Report. Roads Over and Under Bridge (RoBs and RuBs) have to be built to avoid level crossing of highways and railways. These projects require approvals from several railway authorities and departments, which is time consuming and a problem for the progress of many road projects. A similar issue is the coordination among road builders and utilities for electricity and telecommunication lines and water and sewer pipelines that may be affected by road projects. Social protests hinder road development in some areas. Delays often occur as a result of local population demands for additional road infrastructure. Cash flow problems of road contractors have often led to early termination of contracts, litigation and further delays in the completion of works

62 National Highways Expansion of National Highways By Planning Periods National Highways by Number of Lanes 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, , % VIII Plan ( ) 23, % 58,112 IX Plan ( ) 9,008 66,590 10,228 76, % 15.40% X Plan ( ) XI Plan ( ) 80% 70% 60% 50% 40% 30% 20% 10% 0% 120% 100% 80% 70,548 km 18.55% 70,934 km 70,934 km 76,818 km 21.59% 24.22% 23.14% Length Added, km Total Length, km % increase in Total Length State Highways by Type of Surface, FY % 52.94% 52.85% 51.67% 54.05% 40% Black Top (BT) or Cement Concrete (CC) 97.73% 20% 28.51% 25.56% 24.11% 22.81% Water-Bound Macadam (WBM) 1.07% 0% FY 2009 FY 2010 FY 2011 FY 2012 Unpaved 1.21% Single/Intermediate Lane Two-Lane Four-Lane and Above Source: Basic Road Statistics, FY 2009, 2010, 2011 (Ministry of Road Transport and Highways)

63 Share of Paved Roads Urban Roads, FY 2011 Rural Roads, FY 2011 Paved 71% Unpaved 29% Unpaved 62% Urban roads consist of municipal roads, major and minor port roads, railway roads and roads built under Military Engineering Services. Paved 38% Project Roads, FY 2011 Other PWD Roads, FY 2011 Paved 26.63% Type of Other PWD Road Share, % Unpaved 73.37% Project Roads include roads built by forest, irrigation and electricity depts., the sugarcane authority, coal mines, and govt-owned companies such as SAIL and NMDC. Paved BT/CC WBM Motorable Non-Motorable 87.59% of Total 77.48% of Paved 10.11% of Paved 9.29% of Unpaved 3.12% of Unpaved Source: Basic Road Statistics, FY 2009, 2010, 2011 (Ministry of Road Transport and Highways)

64 Number of Motor Vehicles Number of Registered Motor Vehicles in India Bus Ownership by Sector Total Number of Registered Motor Vehicles in India, millions: % % 8.6% 8.5% 8.3% 1, , , , , % 5.3% 5.0% 5.0% 4.8% 1.4% 1.3% 1.2% 1.1% 1.0% % 13.3% 13.5% 13.6% 13.5% 1, , , , , % 71.7% 71.7% 71.8% 72.4% FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Private Sector, thousands Public Sector, thousands FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Two-Wheelers Passenger Cars Busses Goods Vehicles Other Vehicles Note: Public-sector busses are owned and operated by the State Road Transport Undertakings (STRUs). The number of private-sector busses is the difference between the total number of busses and those operated by the public sector. Public sector data as reported by the SRTUs. Source: Road Transport Yearbook FY 2012 (Ministry of Road Transport and Highways)

65 Physical Performance of State Passenger Carriers SRTUs With Highest (l) and Lowest (r) Fleet Numbers For a complete list of the reporting SRTUs, see Appendix. Physical performance Indicators of SRTUs 22, Performance Indicator FY 2011 FY , Average Fleet Held (number) 130, ,824 8,746 Average Fleet Operated (number) 118, ,209 Bus Fleet Andhra Pradesh SRTC Maharashtra SRTC Uttar Pradesh SRTC Bus Fleet Mizoram ST Meghalaya ST Tripura RT Average Age of Bus Fleet, Top 3 SRTUs Top and Bottom Fleet Utilisation, (%) Revenue Earning Kilometres, (billion km) 148, ,666.5 Total Number of Employees 726, ,990 Staff/Bus Ratio Newest Fleet Oldest Fleet Staff Productivity (Km/Staff/Day) Vehicle Productivity (Km/Bus/Day) Passenger Kilometres Offered (billions) Average Age of Bus Fleet, years Karnataka SRTC Metro TC (Chennai) Ltd. Thane MTU Average Age of Bus Fleet, years Kolhapur MTU Bihar SRTC J &K SRTC Passenger Kilometres Performed (billions) Occupancy ratio, (%) Passengers Carried (millions) Source: Performance of SRTUs (Report Published Nov 2012) by the Ministry of Road Transport and Highways

66 Financial Performance of State Passenger Carriers Aggregate Financial Performance of SRTUs For a complete list of the reporting SRTUs, see Appendix. Best and Worst Performing SRTUs, INR bn, FY FY 2010 FY 2011 FY 2012 Total Revenue, INR bn Total Expenses, INR bn Net Profit/Loss, INR bn Structure of Expenses of SRTUs, FY 2012, % Maharashtra SRTC Bangalore Metropolitan TC Karnataka SRTC Delhi Transport Corporation Andhra Pradesh SRTC Highest Profit FY 2012 Highest Loss FY 2012 Gujarat SRTC Performance of SRTUs in Metropolitan Areas, FY 2012 Operating Expenses: Fuel and Lubricants 30.1% Taxes 6.3 Non-Operating Expenses: Others 6.2 Total Revenue, INR bn Total Expenses, INR bn Net Profit (Loss), INR bn Delhi TC Calcutta STC Ahmedabad MTS B.E.S.T. Undertaking Staff 39.60% Spares and Materials 2.90% Tyres and Tubes 2.50% Depreciation 30.1% Interest 7 Bangalore Metropolitan TC Metro TC (Chennai) Ltd Source: Performance of SRTUs (Report Published Nov 2012) by the Ministry of Road Transport and Highways

67 Road Accidents Number of Accidents Reported by SRTUs 21,547 21,356 20,783 4,621 4,628 4,378 FY ,726 Overview of Road Accidents in India Number of Accidents Number of Persons Total Fatal Killed Injured 73,589 (18.1%) Accident Severity (No of Persons Killed per 100 Accidents 85, , FY 2010 FY 2011 FY 2012 FY ,910 79,357 (18.5%) 92, , Total Number of Accidents Reported by SRTUs Number of Fatal Accidents Reported by SRTUs FY ,255 83,491 (19.0%) 94, , Road Accidents Per 100,000 Persons, 10,000 Vehicles FY ,920 FY ,216 93,917 (20.4%) 1,01,161 (21.1%) 105, , , , FY ,704 1,06,591 (22%) 119, , FY ,384 1,10,993 (22.8%) 125, , FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY ,628 1,19,558 (23.9%) 134, , Number of Road Accidents per 100,000 Persons in FY FY ,686 1,21,618 (24.4%) 142, , Number of Road Accidents per 10,000 Vehicles Number of Road Accidents per 100,000 Persons FY ,90, ,093 (25.1%) 138, , Source: State Police Departments, Road Accidents in India,

68 Road Accidents (cont'd) Share of Accidents by Location, FY 2012, (%) Share of Accidents by Type of Road, FY 2012, (%) 46.5% Share of Road Accidents in Urban Roads State Highways 45.3% Other Roads 24.6% Share of Road Accidents in Rural Areas 53.5% National Highways 30.1% Share of Accidents by Type of Vehicle, FY 2012, (%) Share of Accidents by Time of Day, FY 2012, (%) Busses 8.7% Passenger Cars 21.3% 6.9% Auto-Rickshaws Trucks, Tracktors 22.4% 17% Others 23.7% Two-Wheelers 15:00-18:00 PM (day) 12:00-15:00 PM (day) 16.8% 15.1% 09:00-12:00 AM (day) 18:00-21:00 PM (night) 16% 16.2% 11.6% 10.5% 6.7% 7.1% 06:00-09:00 AM (day) 21:00-0:00 PM (night) 00:00-03:00 AM (night) 03:00-06:00 AM (night) Source: State Police Departments, Road Accidents in India,

69 VIII. Major Players India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

70 Top M&A Deals in Transportation and Infrastructure Top M&A Deals in Transportation and Infrastructure in 2013 Date Target Company Deal Type Buyer Seller Deal Value USD (mn) Stake % Jan 16, 2013 Dhamra Port Company Limited ( DPCL ) Acquisition Adani Group Larsen & Toubro Ltd (L&T); Tata Steel Ltd.; % May 30, 2013 Jet Airways India Ltd Acquisition Naresh Goyal - private investor Tail Winds % Sep 27, 2013 Econocaribe Consolidators Inc Acquisition Allcargo Logistics Ltd N/A % Nov 18, 2013 Jet Airways India Ltd Open market purchase; PE Entry Deutsche Securities Mauritius; Merrill Lynch Capital Markets; Private Investors; Tail Winds % Mar 6, 2013 AirAsia (India) Pvt Ltd Joint venture AirAsia Bhd N/A 14.9 N/A Nov 30, 2013 Spicejet Ltd Minority stake purchase Kalanithi Maran - private investor N/A % Sep 10, 2013 ABG Container Handling Pvt Ltd Minority stake purchase Bollore Africa Logistics G Infralogistics Ltd % Oct 31, 2013 Kingfisher Airlines Ltd Minority stake purchase UB Group Kingfisher Finvest India Ltd % Feb 26, 2013 Essar Ports Ltd.; Essar Shipping Ltd. Block trade Undisclosed investors CLSA Mauritius Ltd N/A Nov 20, 2013 Vijayawada Tollway Pte Ltd Minority stake purchase IJM Corporation Bhd 3i India Infrastructure Fund % Sep 30, 3013 Jet Airways India Ltd. Open market purchase Naresh Goyal - private investor Tail Winds % Oct 24, 2013 Gujarat Pipavav Port Ltd Open market purchase Private Investors IL&FS Private Equity Trust % Sep 6, 2013 Gujarat Pipavav Port Ltd Open market purchase Swiss Finance Corporation (Mauritius) Ltd. N/A % May 20, 2013 Gati Ships Ltd Minority stake purchase Riba Construction Pvt Ltd Gati Ltd % Source: DealWatch

71 Possible M&A Activity in Transportation and Infrastructure Companies Looking to Buy Companies Looking to Sell CDC Group will buy a significant minority stake in UTI Capital backed unlisted freight terminal maker Pristine Logistics and Infrastructure for INR 2bn, in the third direct investment by the British fund in India, sources familiar with the development told The Economic Times of India on Jan 10, India Gas Solutions (IGS), the 50:50 joint venture formed by BP and Reliance Industries Ltd. (RIL) is one among the eight bidders who bid for a 25% stake in Gujarat State Petronet Corporation (GSPC) and the Adani group's five million tonnes per annum (mtpa) liquefied natural gas (LNG) terminal at Mundra, Gujarat, the Business Standard reported on Dec 30, Apeejay Shipping of the Apeejay Surrendra Group has just bought ships hauling coal, iron ore and grains It is also looking to foray into tanker, dredging or the OSV segment. The company presently operates only in the dry bulk cargo segment., The Economic Times of India reported on Nov 19, The US-based private equity fund TPG Capital has entered into an exclusivity agreement with the Chennai-based Marg Group to acquire a majority stake in the Karaikal Port near Chennai for some INR 10bn, Hindustan Times and livemint.com reported in Nov In 2013, the Aviation Ministry announced plans to privatise six airports - Chennai, Kolkata, Ahmedabad, Lucknow, Jaipur and Guwahati. Indian road transportation and logistics company Siddhi Vinayak Logistic Ltd., is looking for international investors to back its expansion plans, a senior executive told DealWatch in December The company is looking for an industrial partner rather than a financial one and said that it would not be interested in private equity investors. Airline SpiceJet will get a strategic investor, an international airline, within the next two months, firstpost.com reported on December 17, SpiceJet announced an interline pact with Tigerair, a subsidiary of Singapore Airlines, in December. Authorities deferred the deadline for shortlisting bidders for the privatisation of the airports in Chennai, Kolkata, Ahmedabad, Guwahati and Jaipur - owned by the Airport Authority of India (AAI) The Hindu said in November In September, the AAI allowed private investors to own 100% stakes in the operation and management of six airports (also including that of Lucknow) through public-private partnership (PPP), the paper added. The move was severely criticised by the Employees Union of the Airport Authority. Source: The Economic Times, Business Standard, Hindustan Times; livemint.com, The Times of India, DealWatch, firstpost.com

72 Indian Railways Financial Performance Accounts, INR bn Gross Traffic Receipts , Net Traffic Receipts (less Total Working Expenses) Net Revenue (=Net Traffic Receipts less Net Miscellaneous Transactions) Bottom Line (=Net Revenue less Dividend and Other Payments to General Revenues) Note: Account names, except Bottom Line, are as per the IR financial statement. Text in brackets is explanation of how the amount has been derived, using the account names of the financial statement. 1,400 1,200 1, No. of Employees and Average Annual Wage 1,386 1,362 1, , Number of Employees, thou persons Average Annual Wage per Employee, thou INR Highlights Indian Railways (IR) is India's railway carrier and one of the largest railway companies in the world. Railway transportation was launched in India in 1853 and separate networks were nationalised in Today IR, managed by the Ministry of Railways, operates inter-urban, long-distance and suburban rail systems on a multi-gauge network comprising broad, meter and narrow gauges. At thou route km, broad gauge accounted for 86.6% of the total route kilometres in FY It carried more than 99% of the freight measured in net tonne-km, and above 97% of the passengers measured in passengerkm. As of Mar 31, 2012, Indian railway operations covered 24 states and three union territories as well as a few neighboring destinations in Nepal, Bangladesh and Pakistan. In 2011, the number of passengers carried rose 7.49% to 8,224 million compared to 7,651 million in the previous year. Passenger kilometres, which is the product of the number of passengers carried and the average distance traversed, were 1,046 billion as of March 31, 2012, up by 6.95% from the 978 billion reported in the previous year. Passenger earnings increased by 9.88% y/y compared to FY The company sources its rolling stock from governmentowned locomotive and diesel locomotive manufacturing plants and coach and wheel factories. Government-owned Indian Railway Finance Corporation of India Ltd. (IRFC) has been established as the Railway s Ministry financing arm to help fund the nation s railway development. Source: Company data

73 Indian Railways (cont'd) Railway Upgrades 2011 Production Unit Details Name of Production Unit Location Performance in 2011 A total km of track was converted from MG/NG to BG between Apr 1, 2011 and Mar 31, A total km of double/multiple lines were completed in the same period. New lines of a total length of km were built in the same period. Chittaranjan Locomotive Works (CLW) Diesel Locomotive Works (DLW) Chittaranjan Varanasi Manufactured 246 BG electric locomotives including 76 state-of-the-art three-phase 6,000 HP electric locos. Manufactured 259 BG diesel locomotives including 190 indigenous high HP locomotives. Out of these, 42 diesel locomotives were supplied to non- Railway customers (NRCs). DLW also manufactured a prototype 5,500 HP diesel locomotive with top-notch technologies, and exported spare parts worth INR mn. 3,900 3,800 3,700 3,600 3,500 3,400 3,300 3,200 3,100 3,000 Track Renewals 3, , , Track Renewals, km Gross Expenditure on Track Renewals, INR bn Integral Coach Factory (ICF) Rail Coach Factory (RCF) Rail Wheel Factory (RWF) Chennai Kapurthala Bengaluru Manufactured 1,511 coaches including 405 Electric Multiple Units (EMUs), 141 Diesel EMUs, 48 Kolkata Metro Coaches and 38 coaches for NRCs. Exported spare parts were worth INR mn. Manufactured 1,421 coaches including 112 Main Line Electrical EMUs and 260 lightweight LHB coaches with higher passenger comfort and amenities. Exported 16 MG DMU coaches worth INR 156 mn to Senegal. Produced 70,315 wheel-sets, 201,135 wheels and 100,504 axles. Source: Company data

74 Jet Airways India Ltd Financial Performance Operating Performance of Jet Lite Revenue, INR bn Operating Revenue, INR bn Net Profit, INR bn Departures (Number) 41,992 38,160 Available Seat Kilometres (ASKMs) (Million) Revenue Passenger Kilometres (RPKMs) (Million) 5,829 4,566 4,543 3,416 Passenger Load Factor (%) Revenue Passengers (Number) 4,794,658 3,871, Highlights Jet Airways, India's second-largest airline in terms of market share and passengers carried, was set up in 1992 and is owned by businessman Naresh Goyal. As of Mar 31, 2013, the company operated flights to 75 destinations, including 20 international destinations across four continents and 55 destinations within India. As of Mar 2013 the airline had a 95-strong fleet of an average age of 5.4 years. As of Jan 2013, it employed a total 12,082 people, down from 12,849 a year earlier. On Nov 20, 2013, Etihad Airways, the national airline of the UAE, completed the acquisition of 24% in Jet Airways, after the Indian government allowed FDI in the industry in On Nov 18, 2013, Jet Airways founding entity Tail Wings divested its 7.89% stake in the company through the BSE and NSE stock exchanges. On May 30 and Sep 30, 2013, Jet chairman Naresh Goyal purchased 65.85% and 1.11% in the company from Tail Wings. Jet Airways acquired wholly-owned subsidiary Jet Lite in Apr Effective March 25, 2012 (therefore, starting in fiscal 2013), the service offered under the Jet Lite brand was re-named into JetKonnect. As of March 2012, Jet Lite operated a fleet of 15 Boeing 737 aircraft. The airline flies to 55 domestic destinations, operating over 430 flights a day. Jet Airways has set up a Jet Privilege programme, offering regular customers benefits based on their membership tier. The airline offers passengers the following interactive services online booking engine, web, kiosk and SMS check-in, online payment options, real-time mobile phone application JetMobile, a WAP site as well as mobile and Interactive Voice Response (IVR) ticketing. Source: Company data, Business Standard, Moneycontrol.com, DealWatch

75 Jet Airways India Ltd. (cont'd) Revenue Passenger Data Available Seat Kilometres and Number of Departures 175, , , , ,876 31,652 29,242 34,323 38,643 37, Revenue Passengers, millions Revenue Passenger-Kilometers, billions Available Seat Kilometers, millions Number of Departures Passenger Load Factor, % Freight Carried, tonnes 77% 79% 79% 79% , , ,942 68% , ,432 Passenger Load Factor, % Freight Carried, tonnes Source: Company data

76 Air India Ltd. Financial Performance Revenue, INR bn Plan Outlay Approved Outlay After-Tax Loss, INR bn INR bn Aircraft Projects Non-Aircraft Projects Budgetary Support from Government Total Plan Outlay Highlights Flag-carrier Air India Ltd., owned by the Indian government, is headquartered in New Delhi. The company, which assumed its current name in 2010, was established as a result of the merger between Air India Ltd. and Indian Airlines Ltd. in Air India s major domestic hubs are located at the Indira Ghandi international airport and the Chhatrapati Shivaji International Airport. Secondary hubs are at the Chennai International Airport and the Netaji Subhas Chandra Bose International Airport. Air India's market share was 20.6% and 20.2% as of March 31, 2012 and 2013, respectively. The carrier has received about USD 1.7bn in funding support from the government since Apr 1, The company pays more interest on its debt than any publicly traded Asian airline, Bloomberg said in May Air India paid INR 34.8bn (USD 634mn) in interest in the year ended Mar 31, Bloomberg added. The company adopted a Turnaround Plan (TAP) and a Financial Restructuring Plan (FRP) to improve its operational and financial performance in The government has pledged USD 6.5bn to cash-strapped Air India in equity infusion till 2021, but the airline has received no funds from the INR 35bn promised to it in the financial year ending March 2014, livemint.com reported in October In addition to having to look for more debt to make up for the delay, the former monopoly is about to face increased competition as Air Asia BHD and Singapore Airlines Ltd. have been reported to be seeking tie-ups in India, and Etihad Airways of the UAE has already bought 24% in Jet Airways. The government granted Etihad the rights to increase the number of its flights to and from India as part of the deal, which is to hurt Air India s international operations. Source: Company data, Bloomberg.com, livemint.com

77 Air India Ltd. (cont'd) Revenue Break-Down, 2011 Expense Break-Down, 2011 Mail & Excess Bagage 1.3% Freight 5.1% Aircraft Landing, Parking and Navigation 4.5% Depreciation and Obsolescence 7.1% Charter & Code Share Revenue 5.0% Others 32.4% Revenue Sharing from AICL 3.1% Fuel & Oil 36.3% Passenger Revenue 77.6% Other Revenue 7.6% Others 0.3% Staff Costs 15.2% Interest on Aircraft Loans 4.5% Fleet Size, 2010 Aircraft Type Owned Leased Sale & Lease Back Total B LR 8 NIL NIL 8 B ER 12 NIL NIL 12 B NIL 2 5 A Pax Nil NIL 1 1 A Fr Nil NIL NIL NIL A A NIL 24 A NIL NIL 20 A330 NIL 2 NIL 2 TOTAL Ground Handling Air India 123, ,845 Foreign Carriers 35,642 33,926 Air India Express 13,196 11,344 Other Flights Haj Flights Total Flights Handled 174, ,227 Source: Company data

78 Jawaharlal Nehru Port (JNP) Financial Performance Cash Flow Overview Revenue (called Operating Income), INR bn Profit Before Income and Tax (called Operating Profit), INR bn Net Profit, INR bn INR bn Net Cash Flow from Operating Activities Total Cash Flow from Investing Activities Total Cash Flow from Financing Activities Increase/(Decrease) in Cash and Cash Equivalents Opening Cash And Bank Balances Incl. Term Deposits Closing Cash And Bank Balances Incl. Term Deposits NIL NIL NIL The Jawaharlal Nehru Port Trust (JNPT), alternatively known as Nhava Sheva, started operations in 1989 to relieve the overburdened Mumbai Port. JNPT, which is the largest container port in India, is located on the Konkan mainland opposite the island city of Mumbai, and covers some 10 sq km, or around 2,500 acres, of land. The port, which is run by the government-owned JNP Trust, enabled importers to avoid paying taxes for entering Mumbai city, as it falls outside its jurisdiction. JNP handles containers, liquid bulk and cement ships and also provides marine and shipping services. In 2011, the port handled about 60% of the total number of containers handled by the Major Ports of India. JNP expects to handle some 10 million TEUs by Mar 2016 from about 4.0 million TEUs a year currently. The port operates three container terminals, general and liquid freight terminals, as well as Container Freight Stations and Connected Inland Depots (ICD) where goods are examined by customs officers and put into containers, or waiting further transportation. According to JNP s website, road connectivity to the port s facilities has been upgraded to four-lane from two-lane roads, while the improvement of rail connectivity is still being completed. JNP employed 1,730 people in 2010, nine less compared to the previous year. Source: Company data, SEBI

79 Jawaharlal Nehru Port (JNP) (cont'd) Key Operational Parameters Traffic Handled Unit FY 2010 FY 2011 FY 2012 Container traffic million tonnes Liquid Bulk Traffic million tonnes Other Bulk/ break bulk (including cement) million tonnes Dry Bulk million tonnes Vehicles million tonnes NIL NIL TOTAL million tonnes Vessels handled (incl. Barges) numbers 3,072 3,128 2,929 Vehicles numbers 756 NIL NIL Net Worth and Capital Employed Container Terminal Cargo Terminals JNPCT NSICTL Container Terminal GTIPL Container Terminal TOTAL Quay Length (Metres) ,992 Draft (Metres) Net Worth (Reserves & Surplus), INR bn Capital Employed, INR bn Capacity (In Million TEUs) RMQCs (Nos.) RTGCs (Nos.) Source: Company data, SEBI

80 The Shipping Corporation of India Ltd. (SCI) Financial Performance Fleet Profile as of Mar 31, 2013 Number of Vessels Revenue, INR bn DWT 1 Crude Oil Tankers 19 2,353,718 Product Tankers ,059 Chemical Tankers 1 33,058 Gas Carriers 2 35,202 VLCC Carriers 4 1,274,175 2 Bulk Carriers 17 1,113,889 3 Liner Ships 5 202,413 4 Offshore Supply Vessels 12 25, Passenger-cum-Cargo Vessels 1 5,140 Total 75 5,951, Pre-Tax profit, INR bn The Shipping Corporation of India (SCI) is a government-owned company that offers shipping services aboard vessels of diversified profile on both domestic and international lines. The Mumbai-based shipper was set up in 1961 by the merger of the Eastern and Western Shipping Corporations. The Jayanti Shipping Company and Mogul Lines Ltd. were merged with SCI in 1973 and 1986, respectively. As of Mar 31, 2012, SCI s fleet comprised 75 ships of a total 5.95 million DWT (deadweight tonnage) and 3.34 million gross tonnage (GT). The company s order book included 13 different types of vessels of a total 986,800 DWT and 606,280 GT as of the same date. SCI is the largest tanker owner and the major bulk carrier in India, with a fleet of 17 bulk carriers as of Mar The vessels carry various types of freight including iron ore, coal, grains, fertilizers, steel products, plywood and bauxite. The company also offers lighterage operations, shipbuilding consultancy, cellular container services, liner break-bulk services from European ports to India and passenger and cargo transportation between the mainland and the Andaman & Nicobar group of islands on behalf of the government of India. SCI is the only Indian shipping company engaged in LNG transportation. Source: Company data

81 Container Corporation of India Ltd. (CONCOR) Financial Performance Total Revenue, INR bn EBITDA, INR bn Net Profit, INR bn Physical Performance, TEU International Handling, million TEU Domestic Handling, million TEU The Container Corporation of India Ltd. (CONCOR) is a government-owned multi-modal logistics provider supporting India s foreign and domestic trade. When it was set up in 1988, CONCOR took over Indian Railways existing network of seven Connected Inland Depots (ICD). As of Mar 31, 2013, the Government of India held 63.09% in CONCOR. The company s shares are listed at the Bombay and the National Stock Exchanges (BSE, NSE). CONCOR currently operates 62 ICDs/CFSs. In addition to providing inland transport by rail for containers, it also offers management of ports, air cargo complexes and cold-chain storage and transportation. The company s wholly-owned subsidiary Fresh and Healthy Enterprises Limited (FHEL) was set up in 2006 to provide cold chain logistics solutions and create cold storage infrastructure in India. In July 2012 another subsidiary, CONCOR Air Limited, was established to handle the design, development and operations of the air cargo terminal at the Santa Cruz airport in Mumbai. As of Mar 31, 2013, India had a total 17 container train operators, of which 15, including CONCOR, were active. The containerised tonnage transported by them rose by some 6.5% to million tonnes from million tonnes in the previous year. However, the level of inland penetration of containers remained quite low on account of heavy costs and delays attributable to import-export imbalances, the company commented in its Annual Report for fiscal Source: Company data

82 Larsen & Toubro (L&T) Financial Performance Revenue by Segments, INR bn, % 88% Gross Revenue from Operations, INR bn EBIDTA, INR bn Profit After Tax, INR bn Engineering & Construction Total Revenue: INR bn 6% 4% Electrical & Electronics Machinery & Industrial Products Others Larsen & Toubro (L&T), headquartered in Mumbai, is a multinational industrial conglomerate and India s top construction and engineering company. The company also manufactures and sells electrical and electronic components and industrial machinery and equipment and provides property development and financial services. L&T started operations in 1938 as a representative of Danish dairy equipment manufacturers. The company, set up by Danish engineers Henning Holck-Larsen and Soren Kristian Toubro, assumed its current name and line of business in Feb In its short-term business strategy, L&T said it aimed for foreign markets, particularly in the Middle East, Brazil and Turkey, to account for 25% of revenue by 2016, to offset the economic slowdown in India. As of Mar 31, 2013, the L&T group comprised 139 subsidiaries, 14 associates and 14 joint venture companies. In 2012, consolidated revenue totaled INR bn, up from INR bn in the previous year, and consolidated net profit excluding exceptional and extraordinary items was INR bn compared to INR bn. As of Mar 31, 2013, financial institutions and the general public were L&T s major groups of shareholders with stakes of 30.54% and 24.05%, respectively. Foreign institutional investors held 16.58%, and management 0.43%. The remaining shares were held by various other stakeholders, the largest of which was the L&T Employees Welfare Foundation with a claim of 12.09%. Source: Company data, reuters.com

83 Larsen & Toubro (L&T) (cont'd) Order Inflow, INR bn Order Inflow by Segment, INR bn, , , , , Order Inflow (Incl. Integrated Joint Ventures), INR bn Order Book (Incl. Integrated Joint Ventures), INR bn Engineering & Construction % Total Order Inflow: INR bn 4% 3% 3% Electrical & Electronics Machinery & Industrial Products Others Order Inflow Vs GDP Growth Number of Employees % 54, % % 5.0% % 6% 4% 45,117 48, % 37,357 38, % Order Inflow, INR bn GDP Growth, % Number of Employees Source: Company data

84 IX. Appendix India's fiscal year runs from April 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means April 1, 2013 March 31, In Indian documents, FY (fiscal) 2014 is also labeled FY The remaining nine months of calendar 2014, i.e. April-December, belong to fiscal year In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, EMIS Insight has chosen to label data by the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between April 1, March 31, 2013, or what in India is referred to as FY This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report. When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this report appear as provided by the source

85 Financial Performance of Shipyards Total Income, FY 2011, INR mn Financial Performance of Shipyards Total Income, FY 2012, INR mn Public Sector (+)Profit/(-)Loss, FY 2011, INR mn (+)Profit/(-)Loss, FY 2012, INR mn Alcock Ashdown (Gujarat) Ltd (-) (-) Cochin Shipyard Ltd. 16, (+) 2, (+) 1, Garden Reach Shipbuilders & Engineers Ltd. 11, (+) 1,627.6 (+) 1, Goa Shipyard Ltd. 10, (+) 2,647.9 (+) 1, Hindustan Shipyard Ltd. 10, (+) 550 (-) Hooghly Dock & Port Engineers Ltd (-)550 (+) 5, Mazagon Dock Ltd. 28, (+) 2,435.2 (+) 6, Shalimar Works Ltd (-) (-) Dempo Shipbuilding and Engineering Ltd. Private Sector (+) (+) ABG Shipyard Ltd. 20, (+)1,888 (+) 1, Bharati Shipyard Pvt. Ltd. 15, (+)1,794.9 (-) Chowgule & Co. Ltd. 2, (+) (+) Ferromar Shipping Pvt. Ltd (+) 5.65 (-) 6.04 A.C.Roy & Comp. Ltd (+) 23.5 (+) Bristol Boats (-) 3 (-) 5.53 Tebma Shipyard Ltd. 1, (-)755.6 (-) Larsen & Toubro Limited 45, (+) 5,832.9 (+) 6, N N Shipbuilders and Engineers (+)2.58 (+) 2.47 Pipavav 9, (+) (+) Source: Statistics of India's Shipbuilding and Ship Repairing Industry

86 Road Statistics by State Road Statistics by State (Most Recent Available) Road Length, km National Highways, km State/Union Territory Total Road Length, km Area, sq km Population 2011, thou persons Per 100 sq km of area Per 100,000 Persons Total Length of National Highways, km Per 100 sq m of Area Per 100,000 Persons Andhra Pradesh 238, ,045 84, , Arunachal Pradesh 21,555 83,743 1, , Assam 241,789 78,438 31, , Bihar 130,642 94, , , Chhattisgarh 93, ,191 25, , Goa 10,627 3,702 1, Gujarat 156, ,024 60, , Haryana 41,729 44,212 25, , Himachal Pradesh 47,963 55,673 6, , Jammu & Kashmir 26, ,236 12, , Jharkhand 23,903 79,714 32, , Karnataka 281, ,791 61, , Kerala 201,220 38,863 33, , Madhya Pradesh 197, ,245 72, , Maharashtra 410, , , , Manipur 19,133 22,327 2, Meghalaya 11,984 22,429 2, Mizoram 9,810 21,081 1, Nagaland 34,146 16,579 1, Source: Basic Road Statistics, FY 2009, 2010, 2011, Ministry of Road Transport and Highways

87 Road Statistics by State (cont'd) Source: Basic Road Statistics, FY 2009, 2010, 2011, Ministry of Road Transport and Highways Road Statistics by State (Most Recent Available) (cont'd) State/Union Territory Total Road Length, km Area, sq km Population 2011, thou persons Road Length, km Per 100 sq km of area Per 100,000 Persons Total Length of National Highways, km National Highways, km Odisha 258, ,707 41, , Punjab 84,193 50,362 27, , Rajasthan 241, ,239 68, , Sikkim 4,630 7, Tamil Nadu 192, ,058 72, , Tripura 33,772 10,486 3, Uttarkhand 49,277 53,483 10, , Uttar Pradesh 390, , , , West Bengal 299,209 88,752 91, , Union Territories Andaman & Nicobar Islands 1,386 8, Chandigarh 2, ,055 2, Dadra & Nagar Haveli Daman & Diu Delhi 29,648 1,483 16,753 1, Lakshadweep Pundicherry 2, , All India (excluding JRY Roads) 3,790,342 3,287,240 1,210, , All India (including JRY Roads) 4,690,342 3,287,240 1,210, , Per 100 sq m of Area Per 100,000 Persons

88 List of State Road Transport Undertakings (STRUs) Names of State Road Transport Undertakings (STRUs) Names of STRUs (cont'd) Abbreviation Ahmedabad MTS Andhra Pradesh SRTC Assam SRTC B.E.S.T. Undertaking Bangalore Metropolitan TC Bihar SRTC Calcutta STC Chandigarh TU Delhi TC Gujarat SRTC Haryana ST Himachal RTC J & K SRTC Kadamba TC Ltd. Karnataka SRTC Kerala SRTC Kolhapur MTU Maharashtra SRTC Meghalaya STC Full Name Ahmedabad Municipal Transport Service Andhra Pradesh State Road Transport Corporation Assam State Road Transport Corporation The Brihan Mumbai Electric Supply & Transport Undertaking Bangalore Metropolitan Transport Corporation Bihar State Road Transport Corporation Calcutta State Transport Corporation Chandigarh Transport Undertaking Delhi Transport Corporation Gujarat State Road Transport Corporation Haryana State Transport Himachal Road Transport Corporation Jammu and Kashmir State Road Transport Corporation Kadamba Transport Corporation Ltd. Karnataka State Road Transport Corporation Kerala State Road Transport Corporation Kolhapur Municipal Transport Undertaking Maharashtra State Road Transport Corporation Meghalaya State Transport Corporation Abbreviation Metro.TC (Chennai) Ltd. Mizoram ST Navi Mumbai MT North Bengal STC North Eastern Karnataka RTC North Western Karnataka RTC Pepsu RTC Pune Mahamandal Rajasthan SRTC South Bengal STC State Exp.TC TN Ltd. Thane MTU TN STC (Coimbatore)Ltd. TN STC (Kumbakonam)Ltd. TN STC (Madurai)Ltd. TN STC (Salem)Ltd. TN STC (Villupuram) Ltd. Tripura RTC Uttar Pradesh SRTC Full Name Metro. Transport Corporation (Chennai) Limited Mizoram State Transport Navi Mumbai Municipal Transport North Bengal State Transport Corporation North Eastern Karnataka Road Transport Corporation North Western Karnataka Road Transport Corporation Pepsu Road Transport Corporation Pune Mahamandal Parivahan Mahamandal Ltd. Rajasthan State Road Transport Corporation South Bengal State Transport Corporation State Express Transport Corporation Tamil Nadu Limited Thane Municipal Transport Undertaking Tamil Nadu State Transport Corporation (Coimbatore) Limited Tamil Nadu State Transport Corporation (Kumbakonam) Limited Tamil Nadu State Transport Corporation (Madurai) Limited Tamil Nadu State Transport Corporation (Salem) Limited Tamil Nadu State Transport Corporation (Villupuram) Limited Tripura Road Transport Corporation Uttar Pradesh State Road Transport Corporation Source: Performance of SRTUs

89 Table of Terms and Abbreviations Table of Terms and Abbreviations Thou MT GTKM NTKM BTKM BPKM Air trips per capita per year Thousand metric tonnes Gross Tonne Kilometres Net Tonne Kilometre, a haulage unit corresponding to 1 tonne of goods being hauled a distance of 1 km Billion Tonne Kilometres Billion Passenger Kilometres Domestic passengers carried in a year/ Total population (Airline) Revenue Passenger Passenger Throughput TEU A passenger who has paid the transport operator for her or his trip. That excludes non-paying passengers such as airline employees flying on free or nearly-free passes, babies and children who do not have a seat of their own, etc. Passengers who paid for their trip with a frequent-flyer programme mileage award are usually included. The number of passengers handled at the airport. A domestic passenger is typically counted twice (on departure and arrival) in the throughput calculation, while international and transit passengers are counted once. The twenty-foot equivalent unit is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals.[1] It is based on the volume of a 20-foot-long (6.1 m) intermodal container, a standard-sized metal box which can be easily transferred between different modes of transportation, such as ships, trains and trucks. Intermodal transport Movement of goods (in one and the same loading unit /a container/ or a vehicle) by successive modes of transport, without handling of the goods themselves when changing modes. The method reduces cargo handling, and so improves security, reduces damage and loss, and allows freight to be transported faster. Multimodal transport Carrying of goods by at least two different modes of transport under a single contract. Intermodal transport is a particular type of multimodal transport. The Multimodal Transport Operator (MTO) acts as an agent for the shipper under a multimodal transport contract. The MTO enters into separate contracts with transporters, cargo consolidators, ports, airports etc., coordinates customs procedures and thus manages end-to-end freight movement. Source: OECD Glossary of Statistical Terms, Intermodal and Multimodal Logistics Knowledge Paper, Deloitte

90 Table of Terms and Abbreviations (cont'd) Table of Terms and Abbreviations (cont'd) Roll-On/Roll-Off (RORO or ro-ro) transport Lift-on/Lift-Off (LOLO or lo-lo) transport Carrying of wheeled cargo such as automobiles, trucks, semi-trailer trucks, trailers or railroad cars that are driven on and off ships on their own wheels. Carrying of wheeled cargo and using a crane to load and unload it on ships. LASH transport Lighter Aboard Ship, a combination of deep sea and inland waterway transportation. Inland waterway vessels are loaded onto a ship, carried across sea to the destination port, then unloaded and left to sail and carry the cargo further into the hinterland. Ports of origin and destination need to have special handling facilities. Piggyback / Trailer train A combination of transport by road and rail, under which the goods are packed in trailers and hauled by tractors to the railway station. At the station, the trailers are moved onto railway flat cars and the transport tractors, which stay behind, are then disconnected. At destination, tractors again haul the trailers to the warehouses of the consignee. Sea Train A combination of rail and ocean transport, similar to the Ro-Ro system, except that in the place of the Ro-Ro vehicle, a rail car is used so that geographically separated rail systems can be connected by the use of an ocean carrier. Spans of Indian Five-Year Planning Periods XII Plan XI Plan X Plan IX Plan Source: OECD Glossary of Statistical Terms, Intermodal and Multimodal Logistics Knowledge Paper, Deloitte

91 Contact: Corporate Headquarters Nestor House Playhouse Yard London EC4V 5EX UK Voice: Fax: Americas Headquarters 225 Park Avenue South New York, New York US Voice: Fax: Asia Headquarters Eucharistic Congress Bldg. No. III 4th Floor, 5 Convent Street Mumbai India Voice: Fax: Disclaimer: The material is based on sources which we believe are reliable, but no warranty, either expressed or implied, is provided in relation to the accuracy or completeness of the information. The views expressed are our best judgment as of the date of issue and are subject to change without notice. EMIS and Euromoney Institutional Investor PLC take no responsibility for decisions made on the basis of these opinions. A Euromoney Institutional Investor company. About EMIS Insight EMIS Insight is a unit of EMIS that produces proprietary strategic research and analysis. The service features market overviews, industry trend analysis, legislation and profiles of the leading sector companies provided by locally-based analysts. About EMIS Founded in 1994, EMIS (formerly known as ISI Emerging Markets) was acquired by Euromoney Institutional Investor PLC in EMIS works from over 15 offices around the world to deliver electronic information products, by subscription, to institutional customers globally. EMIS provides hard-to-get information covering more than 100 emerging markets. Its flagship products are EMIS Intelligence and EMIS Professional. EMIS clients include top investment banks, corporations, law firms, consultants, investment and insurance companies, universities and libraries, multilateral organizations, and others