November was the second consecutive month where the 12 major ports of India saw their cargo traffic drop and missed their targets.
MUMBAI: November was the second consecutive month where the 12 major ports of India, which handle 70% of the country’s import-export traffic, saw their cargo traffic drop and missed their targets.
The ports handled 42.55 million tonne in November, which was 5.1% less compared with the same month last year. October 2008 had seen a similar drop of 5.4% in total traffic handled at 42.18 million tonne, as compared with 44.49 million tonne in the same month last year.
As the decline in volumes began in July this year, before which ports actually recorded growth in traffic, the cumulative traffic between April and November increased by 3.9%. However, this growth of 3.9% in port volumes is lower when compared with the April to October figure, which stood at 7.2%.
According to figures from the Indian Ports’ Association, which represents the 12 major ports, ports missed the eight-monthly targets by 8.25% even though they recorded a year-on-year growth. They handled a total of 346.46 million tonne during April-November, as against government targets of 377.6 million tonne. Only Ennore and Kandla crossed their eight-monthly targets by 9.3% and 3.56%, respectively. Even Jawaharlal Nehru Port (JNP), which handles 60% of the country’s container traffic, saw volumes drop 4.38% against the targeted traffic.
Iron ore still remains the worst hit, being the only cargo to see a 6.62% decline y-o-y due to lower demand from China. And the situation won’t improve in December, feel experts. Owing to reduced demand for cargo, the biggest container port has also cut its yearly growth targets by 10 percentage points to 13-14%, from last year’s 23%.
A senior executive of New Mangalore Port said the yearly targets set by the government could not be met, as they were fairly high. Port traffic has been slower for December, till now, compared with November. “As against the target of 40 million tonne set by the government, we might be able to do 36 million, similar to last year.”
A senior JNP official said, “In December this year, we expect to see a drop of 15% in the number of containers handled.” Chennai Port is also facing a strike of truckers, which entered its fifth day. The truckers are demanding improved roads up to the port, which may impact traffic.
An official at Mormugoa Port, however, seemed optimistic. He said that the removal of levy may help iron ore exports.
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