The growth of Indian container traffic has outpaced global growth rates, thus increasing India’s share in global container trade. Container traffic in the country has grown at a CAGR of 15 percent as compared to 8 percent globally, driving its share of global container traffic from 0.6 percent in 1991 to 1.8 percent in 2013. These are findings of a study by consulting firm KPMG. According to KPMG’s industry insight “Transport & Logistics Pulse”, India’s GDP has grown progressively over the past two decades due to a combination of factors, including the export-import (EXIM) trade volume, which has been increasing at a higher rate than the GDP. This has driven growth in container traffic, as shippers are increasingly digressing from general or bulk shipping to container transport. Rising containerisation levels for erstwhile break-bulk commodities have increased India’s share in global container traffic. Growth in containerised cargo traffic, according the study, has facilitated the development of container freight stations (CFS) and inland container depots (ICDs), which have emerged as important components of the EXIM value chain. The CFS phenomenon, which is largely unique to India, plays an important role in decongesting container traffic at ports, adding value to container trade and enhancing ports’ operating efficiency. ICDs cater to the hinterland cargo traffic from various clusters due to increased industrial growth over the past few years. Strong growth prospects and healthy profit margins continue to drive investments in the CFS and ICD segments. “CFS/ICDs are expected to evolve due to rising containerisation levels and ability to offer unique value added services. To sustain their growth, it is important for all CFS/ICD operators to enhance integration with other stakeholders within the EXIM supply chain,” says Jaideep Ghosh, Partner, Management Consulting, KPMG. At US$8.3 trillion, China’s GDP is approximately 4.5 times that of India’s (by value). In comparison, China’s container traffic is estimated at 150 million TEUs while that of India is estimated at 10 million TEUs, reflecting a 15 times multiple in container volumes. Growth of the container traffic movement in India largely depends on global economic conditions and rising containerisation. This association is likely to continue driving investment opportunities in the CFS/ICD segments. Critical success factors for CFSs and ICDs revolve around location, infrastructure and most importantly relationships, specially with shipping lines.n