The outlook for cargo growth at major ports will remain strong over the medium- to long-term on the back of domestic requirements of coal for power sector, crude oil and other cargo, ICRA says in its research on the sector.
In 2014-15, total cargo handled at Indian ports rose 5.4 per cent to 1,043 million tonnes (MT) from 976 MT the previous year. The growth was pegged down by a relatively weaker cargo performance at the major ports, which, at 581 MT, registered a modest growth of 4.7 per cent in cargo volumes.
Non-major ports, which are governed by States, are likely to have pushed up overall growth rate by recording a 10 per cent growth in throughput on a year-on-year basis to 462 MT in FY2015, the report says.
K Ravichandran, Senior Vice-President and Co-Head, Corporate Ratings, ICRA, said growth at major ports was pegged down due to continuing mining restrictions in Karnataka, Goa and Odisha and policies measures such as levy of export duty.
Apart from petroleum and lubricants, other cargo categories, including containers, fertilisers and coal grew in volumes at major ports, he said.
ICRA Research said the government’s various recent initiatives are expected to favourably impact growth and investment in ports. “The approach and planning of the government is holistic and if implemented, the cumulative impact of these initiatives should boost the overall development of the sector and the Indian economy.”
On migration of old terminal operators at major ports to a deregulated tariff regime, the situation continues to be in limbo as old terminal operators have rejected the Shipping Ministry’s re-bid offer. ICRA feels uniform application of 2013 guidelines to existing terminal operators will provide the requisite impetus to fresh investments for capacity creation as well as for advanced technology in the existing terminals.