Fu­ture looks bright for ter­mi­nals

Fu­ture bodes bright for the In­dian con­tainer ports with con­tainer traf­fic on ei­ther coasts grow­ing at a CAGR of 6 per cent dur­ing 2011-2016 pe­riod.

Maritime Gateway - - India Container Market Report 2017 -

Pos­i­tive de­mand in Eu­rope and North Amer­ica, re­ver­sal of for­tunes in South Amer­i­can economies, im­proved eco­nomic en­vi­ron­ment in South Africa from the sec­ond half of 2016, as well as ris­ing im­ports from China teth­ered the con­tainer traf­fic growth at In­dian ports in 2016. In­dia’s con­tainer port through­put that grew by a pal­try 2 per cent an­nu­ally in 2015, reg­is­tered an 11per cent growth in 2016. Bar­ring ports of Greater Mumbai where traf­fic was stag­nant last year, the re­main­ing re­gions recorded a dou­ble digit in­crease in through­put. While the con­tainer through­put at In­dian ports grew at a CAGR of 13 per cent dur­ing the six years pe­riod from 2005 till 2010, it slowed to 6 per cent dur­ing 2011-2016. The de­cline was at­trib­uted to the global slow­down, fol­low­ing the eco­nomic re­ces­sion of 2008.

Ma­jor vs non-ma­jor ports

The share of ma­jor ports in con­tainer han­dling has shrunk dra­mat­i­cally in the last ten years, while non-ma­jor ports, par­tic­u­larly in the up­per west coast of In­dia have grown by leaps and bounds. The mar­ket share of ma­jor ports de­clined from 92 per cent in 2005 to 63 per cent in 2016. The rapid ex­pan­sion of pri­vate ports at­tracted a sig­nif­i­cant chunk of the traf­fic. The mar­ket share of non-ma­jor ports col­lec­tively surged to a whop­ping 37 per cent in 2016 from 3 per cent in 2005. On the east coast, Kr­ish­na­p­at­nam and Kat­tupalli have amassed sig­nif­i­cant vol­ume in three years (op­er­a­tional from 2013), adding to the growth story of non-ma­jor ports. In 2016, bar­ring Pi­pavav that is on a weary foot­ing with ru­mours of own­er­ship change from APMT, the other four pri­vate ports reg­is­tered hu­mon­gous growth. Mun­dra han­dled 20 per cent ad­di­tional boxes in 2016 over 2015 even as traf­fic at Hazira zoomed by 54 per cent dur­ing this pe­riod and a fur­ther 73 per cent boxes passed through the quay of Kr­ish­na­p­at­nam in 2016. The ri­val Kat­tua­palli port af­ter its op­er­a­tional take over by Adani is mend­ing its slow start. It han­dled about 3 lakh teu in 2016 from 31,000 in 2014.

East coast ports vs west coast ports

The west coast ports con­tinue to dom­i­nate the con­tainer mar­ket in In­dia and its share in the coun­try’s to­tal con­tainer han­dling is hov­er­ing in the range of 70-75 per cent since 2001, while that of east coast ports is in the range of 25-30 per cent. The traf­fic at both coasts grew at a CAGR of 6 per cent dur­ing 2011-2016. How­ever, the ca­pac­ity growth on the east coast at a CAGR of 15 per cent from 2011 to 2016 is much higher than the 7 per cent growth on the west coast of In­dia. De­spite higher ca­pac­ity ex­pan­sion at east coast ports, their share in the to­tal con­tainer move­ment was pegged at 28%. This also in­di­cates that the in­ter-port com­pe­ti­tion is rife be­tween ports on the same coast and in the same range and not be­tween ports on dif­fer­ent coasts.

On the west coast, com­pe­ti­tion is pal­pa­ble be­tween up­per west coast ports in Gu­jarat and ports on the Greater Mumbai coast. The JNPT that had a share of 66 per cent in the west coast traf­fic back in 2010 slipped to 48 per cent by 2016. On the other hand, Mun­dra ex­panded its share from 18 per cent to 35 per cent dur­ing the same pe­riod. On the east coast, the tus­sle is be­tween Chen­nai and ports few miles north of Chen­nai. Kr­ish­na­p­at­nam and Kat­tupalli that started op­er­a­tions from 2013, cur­rently hold a mar­ket share of 5 per cent and 8 per cent re­spec­tively in the east coast traf­fic, while Chen­nai’s share plum­meted from 52 per cent to 41 per cent.

In­dia’s trade with west and east

Trade with west­ern coun­tries con­tin­ues to dom­i­nate In­dia’s ex­port mar­ket with a share of 72 per cent of the coun­try’s to­tal ex­ports. The share re­mained un­changed dur­ing 2011-2016. How­ever, im­ports from west­ern coun­tries are grad­u­ally de­clin­ing and de­creased from 59 per cent in 2011 to 51 per cent in 2016. On the other hand, in­bound from eastern coun­tries reached 49 per cent in 2016 from 41 per cent in 2011. In­dia’s ex­ports to de­vel­op­ing and emerg­ing economies have been ris­ing, while the pie is shrink­ing to ad­vanced economies. Ex­ports to the EU coun­tries slide by 6 per cent dur­ing 2011-2016. More­over, im­ports from 28 EU coun­tries shrunk by 28 per cent dur­ing the same pe­riod. In­dia’ trade with South East Asia is on the rise. Ex­ports to this re­gion have in­creased by 12 per cent dur­ing 2011-2016.

If we an­a­lyse In­dia’s ex­port bas­ket, the coun­try con­tin­ues to rely on ex­ports of pri­mary goods and low-value, low-tech man­u­fac­tur­ing goods. Agri­cul­tural prod­ucts such as cot­ton, rice, tea, meat and spices con­tinue to dom­i­nate the ex­ports. A shift to ex­ports of medium and high-tech man­u­fac­tur­ing prod­ucts such as en­gi­neer­ing goods is vis­i­ble; how­ever, their share in the to­tal ex­port goods lags be­hind China and other emerg­ing economies.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.