Cases

A Feasibility Study to Evaluate Entry into the Container Freight Station/ Inland Container Depot Space, for a Shipping Company

Challenge

The client was amongst the top shipping companies in India. It wanted to hedge its risk in shipping and evaluate entry into the container freight station (CFS) /inland container depot (ICD) space.

Our Approach 

To evaluate entry into the CFS and ICD space, UC adopted the following approach:

  • Analysed the demand supply situation for the CFS/ ICDs in conjunction with container traffic growth in key routes
  • Analysed the strategic port locations/ industry clusters and the likelihood of container trade developing at these ports/clusters
  • Profiled key players in the space to gain a perspective on the business models, margins, points of presence and future plans
  • Gained insights into the regulatory aspects and approval mechanism for setting-up CFS/ICD
  • Evaluated potential strategic options for entry into CFS/ ICD space.

Impact

The client received the deliverable on the market attractiveness and other details of the CFS/ ICD space. It also obtained a clear understanding about regulations and recommendations on how to enter the space.