Muted cargo growth makes port firms cautious on short-term investment

They say it is difficult to think of building capacity entirely for third-party cargo, but are bullish on investment for the longer term

Port cargo growth of only four to five per cent annually over recent years has made Indian companies in the sector cautious on investment for the short term. 

“At this juncture, (from the industry perspective), it is difficult to think of building port capacity entirely for third-party cargo. With the muted cargo growth that we (industry) have had, it would be risky,” said an official with JSW Infrastructure. “A right mix of captive and third-party improves chances of survival, with better utilisation. This means better revenue visibility.”

The Sajjan Jindal-led JSW Infra has total capacity of 75 million tonnes and