Indian Economy News

December traffic at major ports sails to the highest in FY23 and registers an increase of 10.4%

  • IBEF
  • January 19, 2023

The cargo traffic at state-owned ports rose by 10.4% in December on a year-on-year basis, after three months of stagnant growth signalled a strong recovery in a year. 12 major ports handled cargo of 69.5 million tonnes (MT) in December, which is the highest during the current fiscal year (FY23).

The total traffic at major ports reached at 576 MT in December, which is about 9% higher than the last fiscal year.

It has been suggested that the current surge in coal cargo has taken place because of the increased use of the rail-sea-rail (RSR) mode for the domestic transportation of thermal coal. It was previously reported that the power ministry has directed the thermal power plants of Gujarat, Rajasthan, Maharashtra, Punjab, and National Thermal Power Corporation (NTPC) to source about 10-15% of their total coal requirements via coastal shipping.

The thermal coal cargo is up by 35% in FY23, while coking coal has registered a rise of 16%. Mr. Sai Krishna, Vice President, and Sector Head, ICRA, stated that the iron ore witnessed a 42% surge on a year-on-year basis in December, post the removal of various export duties. In addition, he said that in FY23 so far, 124 MT of containers have been moved through major ports.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.