India’s major ports play a pivotal role in the country’s economic growth by facilitating the movement of goods and commodities. The first half of the fiscal year 2023-24 has seen notable developments in cargo handling at these ports. This article delves into the key statistics and trends observed in cargo growth, with a particular focus on the performance of various cargo categories and individual ports.
- Overall Cargo Growth: The 12 major ports of India collectively handled 393.73 million tonnes (MT) of cargo during the first six months of FY24. This represents a 2.35% increase compared to the same period in the previous fiscal year. However, this growth rate indicates a notable deceleration from the previous year, signaling potential challenges in sustaining the momentum of economic recovery.
- Comparing with FY23: During the corresponding period in FY23, these major ports witnessed a substantial 10.8% growth in cargo traffic. The ports handled 384.17 MT of cargo from April to September in FY23, marking a significant uptick from the previous fiscal year when they managed 346.87 MT. This positive trajectory was maintained throughout FY23, culminating in an all-time high of 795 million tonnes of cargo handled.
- Thermal and Steam Coal Decline: One of the most striking developments in cargo handling is the 6.36% decline in thermal and steam coal shipments during the first half of FY24. This category ranks third by tonnage among all cargoes handled by major ports, following petroleum and containers. This decline is a notable shift from the 19.8% growth witnessed in H1FY23 when imports surged in response to a central directive aimed at addressing a power shortage.
- Other Cargo Categories: The growth in other cargo categories, excluding petroleum, thermal and steam coal, coking coal, iron ore, fertilisers, containers, and edible oils, has dropped by 11.93% in H1FY24. This decline raises concerns about the broader economic conditions and the implications for various industries.
- Iron Ore and Pellet Movement: In contrast to the overall trend, iron ore and pellet movement, mainly for export, saw a robust 34.12% increase in H1FY24, reaching 26.11 MT compared to 19.47 MT in H1FY23. This growth was particularly notable due to a decline during April-September of FY23, which resulted from the imposition of export duty on iron ore and pellet in May 2022, subsequently withdrawn in November.
- Adani Ports’ Exceptional Performance: While the growth rate of major ports as a whole has slowed, India’s largest port operator, Adani Ports and Special Economic Zone, managed to achieve a remarkable 14.14% increase in cargo handling, reaching 202.6 MT in H1FY24. This growth was built upon an 11% rise in H1FY23, highlighting Adani Ports’ continued success and strategic importance in the country’s maritime sector.
- Mixed Performance Among Individual Ports: Among the major ports, there is a mixed performance in H1FY24. Kandla Port, renamed as Deendayal Port, experienced an 8.35% decline in cargo handling during the first half. In contrast, Paradip, Mumbai, Jawaharlal Nehru Port (JNPA), and New Mangalore reported healthy growth.
- Syama Prasad Mookerjee Port (formerly Calcutta Port Trust): Syama Prasad Mookerjee Port, formerly known as Calcutta Port Trust, recorded a modest 0.81% rise in H1FY24, underperforming its peers. This port, which operates a twin-dock system at Haldia and Calcutta, handled 31.15 MT of cargo, a slight increase from 30.9 MT in H1FY23. Haldia’s volume showed minimal growth, while Calcutta reported a 2.67% increase in H1FY24 compared to the same period in the previous fiscal year.
- Hope for Second Half: Despite the sluggish growth observed in the first half of the fiscal year, port officials remain optimistic about the second half. They anticipate a higher pace of growth in the coming months, driven by increased transshipment operations of capesize vessels at the anchorage point. This optimism is linked to plans to carry out more frequent transshipment operations after October 15. Capesize vessels, due to their size, cannot dock at Haldia or Calcutta, necessitating the use of transshipment to transfer cargo from larger ships to smaller ones at sea.
- SMP’s Historical Performance: Syama Prasad Mookerjee Port (SMP) achieved a significant milestone in FY23 by handling 65.66 MT of cargo, marking the highest volume in its 153-year history. This accomplishment was accompanied by a robust 12.87% growth over the previous fiscal year. H1FY23 also saw an impressive 11.72% increase compared to H1FY22, demonstrating the port’s growth potential and its pivotal role in the region’s trade.
