Prefeasibility Report on Development of Logistics Park in Karnataka Disclaimer The information in this Report has been prepared based on information collected from primary and secondary sources. Wherever information was not readily available, reasonable assumptions have been made, in good faith to draw meaningful inferences and these have been mentioned in the respective sections of the report. All such assumptions are subject to further corroboration based on availability of information. The information and analysis presented in this Report is not and does not purport to be comprehensive or to have been independently verified. This report has been prepared by Feedback Infrastructure Services Private Limited (FISPL) for its client, Infrastructure Development Department (IDD), Karnataka for its use for furthering the project development activity on PPP basis. No external agency shall use any part of this report without prior permission from IDD. The information contained in this Report is selective and is subject to updation, expansion, revision and amendment. It does not, and does not purport to, contain all the information that may be required. This Report includes certain statements, estimates, projections and forecasts. Such statements, estimates, projections, targets and forecasts are based on reasonable assumptions made by the management, officers and employees of FISPL. Assumptions and the base information on which they are made may or may not prove to be correct. No representation or warranty is given as to the reasonableness of forecasts or the assumptions on which they may be based and nothing in this Report is, or should be relied on as, a promise, representation or warranty. i Prefeasibility Report on Development of Logistics Park in Karnataka Table of Contents LIST OF TABLES ..................................................................................................................................................... III LIST OF FIGURES ..................................................................................................................................................... V 1 EXECUTIVE SUMMARY ................................................................................................................................... 1 2 INTRODUCTION ............................................................................................................................................. 2 2.1 STRUCTURE OF THE REPORT ................................................................................................................................ 3 2.2 APPROACH & METHODOLOGY ............................................................................................................................. 4 3 SECTOR PROFILE ............................................................................................................................................ 6 3.1 INDUSTRY OVERVIEW ......................................................................................................................................... 6 3.2 REGIONAL PROFILE OF KARNATAKA ....................................................................................................................... 7 3.2.1 Transportation ......................................................................................................................................... 7 3.2.2 EXIM scenario of Karnataka ..................................................................................................................... 8 3.2.3 Industrial Scenario ................................................................................................................................... 8 3.2.4 Agriculture ............................................................................................................................................... 8 3.3 INFRASTRUCTURE GAP ....................................................................................................................................... 9 3.4 PPP ACTIVITIES IN THE SECTOR ............................................................................................................................ 9 3.5 KEY ISSUES ..................................................................................................................................................... 10 4 PROJECT ...................................................................................................................................................... 11 4.1 DESCRIPTION OF THE PROJECT ........................................................................................................................... 11 4.2 SITE/LOCATION DETAILS ................................................................................................................................... 13 4.2.1 Bangalore ............................................................................................................................................... 14 4.2.2 Hubli-Dharwad ....................................................................................................................................... 18 4.2.3 Hassan ................................................................................................................................................... 22 4.3 CASE STUDIES FOR SIMILAR PROJECTS IN INDIA ...................................................................................................... 24 5 MARKET ASSESSMENT ................................................................................................................................. 25 5.1 BANGALORE ................................................................................................................................................... 26 5.1.1 Inland Container Depot .......................................................................................................................... 26 5.1.2 Warehouse ............................................................................................................................................. 29 5.1.3 Truck Terminal ....................................................................................................................................... 30 5.1.4 Future Demand Drivers .......................................................................................................................... 30 5.2 HUBLI ........................................................................................................................................................... 32 5.2.1 Inland Container Depot .......................................................................................................................... 32 5.2.2 Warehousing .......................................................................................................................................... 34 5.2.3 Truck Terminal ....................................................................................................................................... 35 5.2.4 Future Demand Drivers .......................................................................................................................... 36 5.3 HASSAN ........................................................................................................................................................ 38 5.3.1 Inland Container Depot .......................................................................................................................... 38 5.3.2 Warehousing .......................................................................................................................................... 40 5.3.3 Truck Terminal ....................................................................................................................................... 41 5.3.4 Future Demand Drivers .......................................................................................................................... 41 i Prefeasibility Report on Development of Logistics Park in Karnataka 5.4 PROJECT DESIGN ............................................................................................................................................. 42 5.4.1 Bangalore ............................................................................................................................................... 42 5.4.2 Hubli-Dharwad ....................................................................................................................................... 44 5.4.3 Hassan ................................................................................................................................................... 47 6 PROJECT FINANCIALS ................................................................................................................................... 49 6.1 COST ESTIMATION ........................................................................................................................................... 49 6.1.1 Capital Cost ............................................................................................................................................ 49 6.2 OTHER PROJECT ASSUMPTIONS ......................................................................................................................... 51 6.2.1 Capital Structure .................................................................................................................................... 51 6.2.2 Income Tax Assumptions ......................................................................................................................