Govt-run ports across India outpace private ones in FY25 cargo growth

A fall in coal and iron ore shipments at privately-owned ports across India saw cargo handled at private ports grow at only 2.2 per cent in 2024-25 (FY25), while cargo handled at central government-run ports grew 4.2 per cent, in a reversal of recent trends. 

Private ports handled 739 million metric tonnes (mmt) of cargo in the previous financial year, according to data released by the Ministry of Ports, Shipping and Waterways, with major contractions for private ports in Andhra Pradesh and Maharashtra.

In March, overseas cargo at non-major ports, owned by private entities or state governments, contracted 3 per cent to 51.4 mmt. In FY24, these ports had achieved an 11.1 per cent growth in traffic. 

Shipments of coal, which accounts for 27 per cent, or 201 mmt, of their freight mix, decreased 3 per cent in FY25. According to experts, part of it was on account of decrease in coal imports. 

“India’s coal production has reached 1047.57 million tonnes (MT) (provisional) in FY25 from 997.83 MT in FY24, marking a 4.99 per cent growth. This has impacted coal imports, which fell 8.4 per cent to 183.42 MT in April-December 2024 from 200.19 MT in the same period of FY24. This contributed to volume degrowth in non-major ports of Maharashtra (-11.6 per cent), Andhra Pradesh (-11.3 per cent) and Odisha (-4 per cent),” said Jagannarayan Padmanabhan, senior director and global head, Crisil Intelligence. 

Additionally, iron ore cargo dropped by 18 per cent last fiscal to 62.7 mmt. 

The Maharashtra Maritime Board has reported a cargo decline of almost 12 per cent. According to experts, two ports run by India’s second-largest operator, JSW Infrastructure, the Jaigarh Port and the Dharamtar Port, have seen contraction in cargo volumes, the latter due to the current state of iron ore demand in India. 

Dharamtar services the needs of JSW Steel’s plant in Dolvi, Maharashtra. According to the company’s January-March 2025 quarter results released on Wednesday, six of its 14 facilities, including the major Jaigarh and Dharamtar ports, reported a decline. 

However, on account of new acquisitions, JSW Infra's overall volumes grew by 9.9 per cent. According to the same period’s data for Gautam Adani-led Adani Ports and Special Economic Zone (APSEZ), cargo at Krishnapatnam Port and Gangavaram Port in Andhra Pradesh decreased by 7 per cent and 28 per cent respectively. On an aggregate level, APSEZ also reported strong cargo growth of 7 per cent at 450 mmt mainly due to higher traffic at most other terminals and ports. 

 

APSEZ’s Mundra Port earlier became the first port to handle 200 mmt cargo in a single financial year. 

Experts had previously said that the current trend was an anomaly which was likely to correct itself in subsequent months. However, muted growth at these ports has been consistent throughout FY25. 

Barring the years impacted by the coronavirus pandemic, non-major ports have been consistently growing faster than state-owned ones. 

Moreover, non-major ports have now lost coastal cargo to major ports, which have shown steady growth in the previous financial year. Domestic cargo shipped via coasts grew at major ports by 2.6 per cent, while it declined by nearly 5 per cent at private ports. 

“The shift of coastal cargo like fertiliser, coal, and food grains to major ports’ has added to the sluggish growth rate of non-major port traffic,” Padmanabhan said.

 

In what could signal a competitive revival for state-owned terminals, major ports' growth was led by a rise in crude oil, container, fertiliser, and foodgrain shipments.

 

“With more private investment and infrastructure upgrades and port authorities being encouraged to actively chase business opportunities, major ports are competing aggressively even in states where private ports dominate,” said a senior government official.

 

According to Padmanabhan, competitive vessel related tariff at major ports and concessional tariff for coastal cargo, and improving efficiency through increased private sector participation have been major drivers for the growth.

 

Volumes at Deendayal Port (13 per cent), Jawaharlal Nehru Port (7 per cent), Chennai Port (7 per cent), Kamarajar Port (7 per cent), and Paradip Port (3 per cent) have grown significantly, contributing to the overall growth in major port traffic.