Port traffic up by 5.7% in 2009-10

A rebound in economic activity has led to an increase in traffic at major India ports by 5.7% in the period April 2009-March 2010. Major Indian ports have registered growth in cargo traffic for the eighth consecutive month after August 2009 when economy started stabilising. Also in March this year, traffic at major ports was up 2.4% on a yearly basis, which is the highest cargo volume over the last 24 months.

According to the latest data compiled by the Indian Ports Association (IPA), traffic at nine of 12 major ports in India registered a growth to the tune of 560 million tonnes in April 2009-March 2010, as against 530 million tonnes in April 2008-March 2009. As per a report by Motilal Oswal Securities, port traffic in March 2010 stood at 51.6 million tonne, as against 50.5 million tonne in the corresponding period last year. ?Traffic in this month has also registered highest growth rate on a sequential basis 13%,? added the report.

Port traffic has crossed 50 million tonne mark in a month only thrice since financial year 2006-07. First instance was in the month of March 2009 and second in January 2010 when major ports reported traffic volume of 50.4 million tonne and 51.2 million tonnes respectively.

The IPA data chiefly includes movements of products like iron ore, petroleum, oil and lubricants, fertilisers and coal, besides container cargo.

The increase in port traffic is largely driven by increase in iron ore, fertilizer and container volumes across major Indian ports, pointed Supriya Madye (Khedkar) and Rajni Mahadevan of ICICI Direct. For the month of March 2010, fertilizer cargo grew by 101%, container cargo grew by 17% on a yearly basis to 9.6 million tonnes, while petroleum and oil (POL) cargo grew by 8% on a yearly basis to 15.8 million tones.

Jignesh Dhabalia, analyst, India Capital Markets, highlighted that coal cargo reported a decline on 10% on a yearly basis to 5.9 million tones. ?On a sequential comparison, except iron ore that grew by 2%, all other commodities like POL, fertilizers, coal and container reported a double digit growth in March 2010,? added Dhabalia.

Increase in port traffic was highest at Paradip port, up by 22.84%. Also, Murmugao port, Cochin port and Kandla port reported increase in port traffic by 17.19%, 14.45% and 10.10% respectively. Both the ports in West Bengal, managed by the Kolkata Port Trust, showed a drag in their performance and in Apr-Mar, recorded a 14.61% decline in traffic. Ennore Port Trust and New Mangalore Port Trust reported negative growth, with their throughput down 6.9% and 3.1%, respectively.