Ports and Logistics - Port container volumes continue to grow steadily at 5% YoY in Nov ’17; overall cargo also grew at 5%: JM Financial

JM Financial's sector report on Ports and Logistics

 
According to the Indian Ports Association (IPA) monthly data release, container volumes continued to grow steadily at 5% YoY in Nov’17 (+7% in mnt terms; +6% during Apr-Nov’17), while railway EXIM container volumes grew 16% YoY (4th consecutive month of high double-digit growth), further strengthening the volume recovery trend for container railway operators. Moreover, the mid-term review of the ‘Foreign Trade Policy (FTP) 2015-20’ brought cheer to struggling MSMEs as the government has allowed duty free import of raw materials (for export manufacturing) along with an increase in validity of duty free scrips and increased incentives under MEIS and SEIS schemes. This is expected to ease the pressure on struggling exports (declined for first time over the past 15 months in Oct’17; expected to decline in Nov’17 as well) data for the country. Overall, major ports registered 5% growth for Nov’17 (+3% for Apr-Nov’17) but continued to be impacted by lower fertiliser and iron ore volumes (-8%/-29% YoY).

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