May 2012 cargo traffic down 5.1% YoY, led by iron ore
Motilal Oswal has come out with its report on infra sector. In May 2012, cargo traffic at major ports was 47.6m tons, down 5.1% YoY. Cargo volumes for YTD FY13 declined 5.7% YoY to 94m tons.
Motilal Oswal has come out with its report on infra sector.
Cargo volumes continue to decline: In May 2012, cargo traffic at major ports was 47.6m tons, down 5.1% YoY. Cargo volumes for YTD FY13 declined 5.7% YoY to 94m tons. We believe that the volume decline during the month is due to the ban on iron ore exports and decline in fertilizer/POL cargo.
Fertilizer/POL cargo witnesses de-growth: May cargo volumes de-grew mainly due to fall in iron ore exports (which plunged 28.7% YoY to 5.5m tons). The ban on iron ore exports continues to be a drag on volume growth in the solid category. Additionally, fertilizer cargo volumes declined 25.5% YoY to 0.8m tons (2% of total cargo) and POL volumes de-grew 9% YoY to 14.7m tons (31% of the total cargo). Container cargo recorded 3.5% YoY growth in May to 10.3m tons (20.3m tons in YTD FY13). Coal cargo grew 11.8% YoY in May and 5.9% YoY in YTD FY13. Other cargo recorded a growth of 3% YoY in May and 0.8% YoY in YTD FY13.
Container cargo traffic at JNPT grew 5.1% YoY: Container cargo volumes at JNPT grew 5.1% YoY to 5.1m tons for the month of May. Except JNPT, all-India container cargo grew 3.5% YoY in May and 2.3% YoY in YTD FY13.
Five ports posted cargo traffic growth in May; Ennore posted highest growth of 46.8% YoY: In May 2012, five major ports posted positive cargo growth. Cargo traffic grew 46.8% YoY at Ennore and 25.8% YoY at Cochin. At these ports, volumes were boosted by coal/POL cargo. At the Chennai port, volumes declined 8.2% YoY to 4.4m tons, driven by container and other cargo. Kolkata port reported the highest de-growth in cargo volume at 21.3% YoY, led by container cargo and other cargo.
Coal imports continue to rise (March 2012): In March 2012, coking coal imports grew 32% YoY to 2.1m tons (v/s 1.6m tons in March 2011), primarily due to higher steel production. In FY12, coking coal imports grew 61% YoY to 26m tons. Non-coking coal imports grew 57% YoY to 4.2m tons in March 2012 (v/s 2.6m tons in March 2011) and 52% YoY to 30.7m tons in FY12.
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