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.
To evaluate entry into the CFS and ICD space, UC Strategy 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.
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.