Cargo pressure continues at major ports with iron ore and containers the main laggards; resumption of iron ore exports due to possible regulatory changes could be positive for the ports
ICRA RESEARCH SERVICES
Corporate Ratings
Contacts: RATING FEATURE
ICRA
K. Ravichandran
+91 44 4596 4301 ravichandran@icraindia.com Ankit Patel
+91 79 4027 1562 ankit.patel@icraindia.com Mathew K. Eranat
+91 44 4596 4309 mathew.eranat@icraindia.com October 2013
Key Developments – Q1 2013-14
Cargo pressure continues at major ports; iron ore and containers the main laggards: Cargo throughput declined during the first three months of FY 2014, with a 1.0% reduction in volumes over that in the corresponding period of previous year and 2% decline on sequential basis. Considering the reported volumes for the first five months (April-August), cargo throughput at major ports showed marginal improvement of 2.0% over the corresponding period of previous year
(233 MT against 229 MT). The lower throughput at most of the major ports notwithstanding, New Mangalore, Ennore and Paradip ports have bucked the trend of cargo decline, posting 12%, 57% and 38% year on year growths respectively. Both these ports saw healthy growth in POL and coal imports, while Paradip also benefited from rising crude oil imports following the commissioning of new facilities.
Million tonnes
Major Ports
% Change qoq
% Change yoy
Q1 FY 12
147
-4%
5%
Q2 FY 12
133
-10%
2%
Q3 FY 12
138
4%
-5%
Q4 FY 12
142
3%
-7%
Q1 FY 13
138
-3%
-6%
Q2 FY 13
132
-4%
-1%
Q3 FY 13
135
2%
-2%
Q4 FY 13
140
4%
-1%
Q1 FY 14
137
-2%
-1%
Iron ore has been the main laggard in the first five months (April-August) of FY 2014, registering a 44% decline on yoy basis, as a result of the continued stalemate on domestic mining activities. Container volumes have also shown some slippage, declining by 5% yoy owing to the lagged effect of slowdown in