Transportation & logistics

Transportation & logistics are the true backbone of growing economies and serve as indicators that measure economic and social progress of a nation.

Identifying opportunities and making informed business decisions

With over 25 years of experience in the industry, AGR has been supporting Governments, PE firms & financial institutions, and the private sector at large in identifying opportunities and making informed business decisions.

Capabilities

AGR has a long-standing and deep expertise in several segments including maritime & ports, transportation & sourcing, warehousing & SEZ and future mobility among others.

Maritime & Ports

Maritime & Ports

AGR has successfully conducted maritime assignments within and outside India and have developed a good appreciation of the key factors that influence the maritime sector. We have developed a comprehensive model called ‘P-TEAM’ for traffic estimation-a vital input for port and terminal related decision making.

Transportation & Sourcing

Transportation & Sourcing

From logistics cost optimization to concept blueprints for transportation, AGR has a wide range of capabilities in this segment. We have conducted studies on Global Sourcing, Sourcing Policies and Processes and have applied our structured approach to quantum cost reduction.

Warehousing & SEZ

Warehousing & SEZ

At AGR, we have conducted feasibility studies to support setting up of Warehousing & Industrial Parks and Economic Zones in India and internationally. We identify key industries which could be part of the proposed zone based on cost and market competitive analysis.

Future Mobility

Future Mobility

We have studied several mobility solutions such as Electric Vehicles (EVs), Autonomous Vehicles, Mobility as a service (MaaS) and many more in India, Europe and USA. AGR is constantly analyzing how these businesses models are performing and they will shape the future of mobility.

Assignment Examples

Knowledge Center

Market due diligence for a private equity firm evaluating investment in a logistics firm

CHALLENGE

  • A private equity firm was evaluating investing in a logistics company diversifying into warehousing business
  • Warehousing is an unstructured, location specific business in India

APPROACH

  • AGR studied the competition in the shortlisted locations to understand their business practices – volumes, clientele, pricing, services etc
  • AGR identified the hinterland from where volumes can be attracted and estimated the volumes that pass through to final consumption destination
  • AGR interviewed key prospective users to understand their willingness to consider or switch to client facility
  • Prospective users’ volumes, seasonality and added services were factored into assess business potential

VALUE DELIVERED

  • AGR presented a roadmap of how the business will look like and break even scenario
  • We suggested few modifications to the business plan to make it functional and profitable
  • PE firm was able to make an informed decision on the investment

Traffic forecast study for an Iron Ore Terminal project at New Mangalore

CHALLENGE

  • The client was the lead arranger of finance for the Iron Ore Terminal project at New Mangalore and appointed AGR as the Lenders Business Analyst (LBA) for the same

Approach

Key areas covered included-

  • World & China Iron Ore Scenario
  • Indian Iron Ore Scenario
  • Competition
  • Connectivity
  • Infrastructure
  • Along with – Tariff
  • Integrated Logistics Cost
  • Government Policies
  • Traffic Potential
  • SWOT & Risk analysis

VALUE DELIVERED

  • An accurate traffic forecast was made for Iron ore volumes from the identified catchment areas
  • Potential risks in the form of Government policies and transportation bans were identified
  • Weak points such as lack of import cargo which could affect rake allocation by railways were identified
  • Suggestions were made to increase iron ore traffic at the port e.g. Handling Cape size vessels through partial unloading at lighterage and strategic tie-ups with few key exporters in the hinterland
  • This helped our client make a robust financial model and arrange funds from the consortium

Feasibility study for a container transshipment terminal at Cochin Port

CHALLENGE

  • The client was evaluating the prospect of developing a container transshipment terminal at Cochin port and appointed AGR to carry out an independent market study to assess the attractiveness of the proposed facility

APPROACH & METHODOLOGY

  • Analysis of past container traffic trends in India, with focus on trends at South Indian ports
  • Assessment of Cochin as transhipment hub for Indian/South Asian cargo (including analysis of transhipment services/facilities at Colombo, Dubai, Singapore, etc.)
  • Connectivity
  • Infrastructure
  • Tariff
  • Integrated Logistics Cost
  • Traffic Potential
  • SWOT & Risk analysis

VALUE DELIVERED

  • An accurate traffic forecast was made for Containers (Exim and Empties)
  • Potential risks in the form of competing container terminals, cabotage law, labour issues and trucking cartel issues were highlighted
  • Customer expectations from the new terminal were gathered
  • Recommendations included reducing handling charges to match competing ports, strategic tie-up with one or two large shipping lines who could drive volumes

Techo-economic feasibility study (traffic study and financial analysis) for a port expansion project for a leading metals manufacturer.

CHALLENGE

  • The client wanted to evaluate the expansion of its port facility to cater to group cargo besides its own growing requirement cargo handling requirements.
  • The study involved an understanding or existing traffic mix, future traffic build-up, connectivity and evacuation issues, ship size analysis and infrastructure assessment at the port.

Approach & Methodology

  • AGR used it P-TEAM model for traffic estimation. This involved traffic estimation of group businesses through a mix of published reports and in-person interviews with key company stakeholders.
  • Competition and total logistics cost analysis was done to evaluate attractiveness of client’s port (for captive and group cargo) vis-à-vis competition.
  • Traffic forecast was done based on client and group business expansion plans, along with long term industry growth drivers and growth rates.
  • A field visit and detailed site assessment was done to understand infrastructure, connectivity, and evacuation issues.
  • AGR’s proprietary financial analysis was done for CAPEX, financial indicators, and ratios.

VALUE DELIVERED

  • Detailed findings of the study were presented to the top management and cross functional teams across business.
  • The client had a clear understanding of the addressable cargo potential, the various infrastructure improvements and additions, and the financials.
  • The client could take a go/no-go decision on the expansion plan based on AGR’s report.

Technology & patent landscape for a global oil & gas major

CHALLENGE

  • The client, a global oil & gas major, wanted to understand the technology & patent landscape on technologies to remove NH3 and HCN from syngas streams

Approach

  • AGR started the study by identifying the available commercial technologies.
  • This was followed by a detailed identification of papers and publications to identify technologies under development.
  • This helped the AGR team refine its taxonomy and conduct targeted patent search. The relevant patents were identified and categorised based on the process/target end-use.

VALUE DELIVERED

  • AGR helped the client with a detailed understanding of the current status of technologies to remove NH3 and HCN from syngas streams.
  • It helped the client team understand key competitors, emerging players and their capabilities.
  • The client was able to make an informed decision on shortlisting technologies for the commercial evaluation.