Opportunity Snapshot
- Country: India
- Industry: Transport, Automotive, Aviation
- Stage: Seed
- Investment size: $10,000,000 / min. $5,000,000
Investment Opportunity
The business is about renting a cargo ship and transporting cargo from one port to another.
We want to rent a Cargo Ship on time basis (Time Charter) and use it to transport cargo of any shape and volume from any port to the desired location / port by sea.
Basically, it's a volumetric business and the amount which is to be invested can give handsome returns over a period of 3-6 months. Return on the investment will fluctuate on case-to-case basis and is dependent on the factors:
1) Type of Ship & Cargo
2) Destination of delivery of the cargo
3) Availability of Funds.
This is a very conventional business with long traditions that requires a very strong financial assistance when large/heavy volumes are transported. Correspondingly, the desired profits are also high. If adequate measures like Full Insurance of Ship, Cargo and crew are met then risk can be minimized. Threat like Piracy are related to this business but remedial actions like change of route and assistance of different Navy's can minimize the risk
If the investor invests his capital into this new venture then he can expect a decent profits on his investments as large volumes are concerned in it.
Since there is no other possible alternative available for the transportation of large quantities of goods from one continent to another, this is a very consistent business.
This business is in its very much primary stage. If adequate capital is provided by the investor then it can be chalked out as soon as possible.
At the end it’s my humble request to the investor consider this proposal and if the opportunity is of interest then I am ready to discuss the details with the investor.
Competitive Advantage
In contrast to the other sectors the transportation of large-scale cargo by ship is the only available option which gives a unique advantage to this particular business. According to recent studies the ship transportation sector has a growth rate of 3/4 % every yr.
Use of financing
The available finance can be utilized in the following way:
1) Payment made to the ship owners for the particular voyage time (time charter)
2) Partial payment made to the Cargo Owner as advance payment
3) Full scale insurance of the ship and test to check its seaworthiness
4) Port usage charges and territorial water charges
5) Ship supply charges - fuel / provision / operational Payments
6) Crew Salary
7) Payments to agents who will work for us in any port
8) Stevedorring charges
9) Travel Expenses and hotel stayes for ship charteres
10) Miscellaneous
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