Tariff hikes, gas volume uptick positive for Gujarat Pipavav Port

Though weak volumes may weigh on Gujarat Pipavav Port’s near-term revenues, the Street is expecting the recent price hikes, expansion plan, and commissioning of the Western Dedicated Freight Corridor (WDFC) to boost medium-term prospects. The firm, owned by Danish integrated container logistics major AP Moller-Maersk Group, recently announced a tariff hike, which adjusted for discounts and rebates, would work out 6-7 per cent higher on a blended basis for container cargo.
 

Analysts at Centrum Research say these tariff hikes are more comprehensive than the previous increases and despite the increase in headline container tariffs at the port, they would still