"The continuing decline in coal volumes, at a more rapid rate, as compared to the previous periods, is a concern over the long-term for the port sector since many ports and terminals have significant dependence on coal imports. A prolonged decline in coal import requirement in the absence of diversification into other cargo categories will impact the returns for such port sector players," said Senior Vice President and Group Head, Corporate Ratings ICRA, K Ravichandran.
Cargo throughput at Indian ports registered a 5.7% growth to 1,133 MT during FY2017 as against 1,072 MT recorded in FY2016. The growth was supported by 133% growth in iron ore cargo volumes (82 MT against 35 MT) supported by a resumption of mining operations in Goa, Karnataka and Orissa as well as healthy growth of 6% in POL and Liquids (petroleum, oil and lubricants) and other cargo (9%). However, volume of coal was down by 9% during the period as demand side issues and higher domestic production continued to reduce the domestic demand-supply deficit.
In terms of the cargo growth outlook, port sector players will continue to experience healthy growth in cargo in the near-term, albeit somewhat lower compared to the recent fiscals, as revival in iron ore exports, pick up in POL volumes as well as impetus for coastal shipping will be partially offset by lower coal imports and slowdown in container volumes due to weak exim trade.
Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.
- Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
- Now Save Rs.3150 on your Demat Account ...Click here
- Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
- Get the most detailed result analysis on the web - Real Fast!
- Actionable & Award-Winning Research on 500 Listed Indian Companies.