Port traffic volumes edging up in Q1

Iron ore exports and fertiliser imports, however, see substantial decline.

Despite apprehensions of a slowing economy, traffic volume at major ports grew by five per cent in the April-June quarter, compared to about two per cent in the year-ago period.

Barring the 14 per cent fall in iron ore exports and a 42.5 per cent decline in import of finished fertiliser, all categories of cargo showed an increase in volumes. “While there has been capacity addition at various ports, the overall consumption has also risen,” said a senior shipping ministry official.

Last year there was a rise of 28 per cent in the finished fertilizer cargo handled at the 12 major ports. In the last quarter of 2010 all major ports were providing priority berthing for finished fertiliser due to a surge in demand. Kandla Port Trust handles the bulk of finished fertiliser. According to industry experts, the fall was due to not so favourable pricing, which has also caused a delay in placing tenders in the global market. “This year there have been less imports in the finished fertiliser goods. The government did not place orders due to the high market prices in the international market,” said Shailendra Kumar, chief freight traffic manager, Kandla Port Trust.

Going forward, it is still uncertain whether the growth trend will continue or slow down. “Monsoons can affect the loading and unloading of cargo. Iron ore demand is yet to pick up after the ban was lifted,” the shipping ministry official said.

Due to a shortage in supply of domestic coal, there was a 25 per cent increase in import of thermal coal to meet the requirements of the power sector. Coking coal volumes handled at major ports grew by 14 per cent. With exports picking up, container trade grew by eight per cent in terms of tonnage. “We are bullish about the growth in container traffic. The share trade of containerised cargo in international trade is always more. In the coming years, break bulk will also be containerised," said L Radhakrishnan, chairman, Jawaharlal Nehru Port Trust.