Central Government-Owned Major Ports Steer Into FY24 With Stellar Double-Digit Cargo Growth

In a remarkable turnaround, major ports owned by the central government, which had been grappling with sluggish growth in the current fiscal year, witnessed a significant resurgence in October.

According to provisional data released by the Indian Ports Association, these pivotal ports recorded an impressive 13 per cent growth in cargo, handling a substantial 70 million tonnes (mt) of goods.

This development marks a pivotal moment in the 2023-24 fiscal year (FY24), as it represents the first instance of major ports achieving double-digit percentage growth and surpassing the 70 mt mark.

Despite substantial investments in infrastructure for modernisation and capacity expansion, major ports had faced lacklustre growth in parts of the previous financial year, primarily attributed to the repercussions of the Russia-Ukraine war.

The tepid performance persisted into the current financial year, partly due to global headwinds. The cargo growth rate between April and September was a modest 2.4 per cent. However, the recent surge in October has propelled the FY24 cargo growth in major ports to nearly 4 per cent.

The handling of containers, constituting approximately a quarter of all cargo at state-owned ports, experienced a notable 19 per cent increase in October.

This suggests heightened movements of finished goods within the maritime economy. Notably, container handling at major ports had only grown by 7 per cent until September.

The provisional data does not immediately clarify whether the growth was primarily fuelled by international trade or increased coastal movements of domestic goods.

While global economic headwinds have been cited by experts and officials as contributing factors, state-owned ports have faced additional scrutiny this year due to the faster cargo traffic growth observed at private ports.

Earlier reports indicated that coastal cargo, a focal point in the central government's Union Budget for the current financial year, showed almost no growth in major ports in FY24.

In contrast, privately owned ports witnessed a substantial 21 per cent growth in their traffic during the same period. Notably, volumes of thermal coal, coking coal, and other industrial coal grew by 10 per cent in October, with iron ore traffic more than doubling, as per a Business Standard report.

The Ministry of Ports, Shipping, and Waterways stated that between April and October, 76.81 mt of raw materials and goods were transported through inland waterways, a 9.92 per cent increase compared to the same period last year (69.88 mt). In October alone, 314,645 tonnes of cargo were moved through the India-Bangladesh Protocol Route.

According to the shipping ministry, major Ports have registered significant improvement during the current financial year in key operational performance parameters.

Average Output per Ship Berth day has increased by 8.74 per cent, while turn round time has improved by 8.61 per cent. Moreover, the percentage of idle time at berth has reduced by 19 per cent, and the average pre-berthing time has seen a remarkable reduction of almost 59.5 per cent, indicating substantial efficiency gains in port operations.