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Port activity is showing no signs of recovery as cargo at major ports showed de-growth of two per cent between October and September, as compared to last year. The volumes stood at 135 million tonnes, according a report by rating agency Icra.
On a quarterly basis, volumes increased by two per cent. But this brings no cheer as third quarter is traditionally a period of high-cargo activity. “The growth rate was quite modest,” Icra said in a report.
Container train business came under pressure recently as due to steep hike in haulage charges by Indian Railways. "With moderation setting in the exim container cargo movement and the already low competitiveness vis-à-vis road movement affecting prospects in domestic container movement, the hike in haulage charges has made the operating conditions tough for container train operators,” the repott said
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The good news for the sector comes from increased pace of awarding port projects on public private partnership (PPP) basis. “However, the plethora of execution challenges which continue to plague the sector, actual translation of these to capacity and improvement of operating standards is still expected to be a long drawn affair. In terms of new project awards, while the progress was lackluster in the first half , there has been a pick-up in activity level in the second half,” said Icra.
According to the Ministry of Shipping, 22 projects have been awarded, in both PPP and non-PPP categories. The ministry set a target to award 42 projects, by the close of the fiscal. It has also come up with a new security clearance policy to ensure time-bound security clearances for port projects and operators.
