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Container volumes at non-major ports up 20% CAGR between FY12-17

In comparison, volumes at major ports rose just 2%; almost all the incremental volume was taken up by smaller ports

Aditi Divekar  |  Mumbai 

Representational image
Representational image

Container volumes at non-such as Mundra, Pipavav, Hazira and Katupalli have registered a combined compound annual growth rate (CAGR) of 20 per cent to 4.5 million TEUs (twenty-foot equivalent units) between 2012-17 as against a meager two per cent from 7.7 million to 8.4 million TEUs by in the period under review, Icra said in its report.

Thus, have underperformed in comparison to non-during this period.

Overall, container volumes at Indian registered a of about 7 per cent for the last five years, said Icra research note.

"This under-performance can be attributed partly to delays in capacity addition at major ports, especially on the western coast, where nearly the entire incremental volumes have been absorbed by non-major ports," K. Ravichandran, senior vice-president and group head, corporate ratings, Icra was quoted as saying.

Moreover, non-major port operators have been aggressively wooing the container lines with better rates and service levels. Nonetheless, continue to account for a majority of the containers handled at about 65 percent, albeit on a declining trend and offer a significant opportunity for port logistics players.

Going forward, commissioning of capacity additions at the Ennore port (already commissioned in June 2017), JNPT and other should result in some shift back to and support volume growth for the port logistics players operating at

Thus, Icra believes that the higher container volumes at will expand the market for the port logistics players and ease the competitive pressures for players operating at the over the next three-four years.

As regards, near-term outlook for the port logistics sector, container logistics sector is expected to display modest growth overall in the current fiscal as the international trade volumes are likely to remain subdued.

First Published: Mon, October 16 2017. 16:15 IST