Cargo volume declines in major ports

Data compiled by the Indian Ports Association (IPA) shows container cargo volumes at the 12 major ports in India declined to 1.87 million standard containers in April-June 2013 quarter at from 1.94 million a year earlier.

During the same quarter, these 12 ports, which account for about 58 percent of the total cargo shipped through the countryÂ’s ports, handled 137 million tonne (mn t) of cargo, 1 percent less than in the same period a year earlier.

Industry watchers feel that the decline in cargo volume can be attributed to the slowdown in the domestic and world economy and also to the restriction on export of certain key cargoes.

For example, iron ore shipments declined 61.46 percent to 4.99 mn t during the quarter under review because of the restriction on mining in key southern states.

Orissa has also imposed restrictions on the export of iron ore. The restriction forced some iron-ore loading facilities to consider changing their cargo profile to handling coal or containers to recover their investment.

Sical Iron Ore Terminals, a joint venture between Sical Logistics and IndiaÂ’s state-run commodity trader MMTC, sought government approval to convert its newly constructed iron ore terminal at Ennore port into a coal terminal after exports dried up in the wake of the ban in Karnataka, rendering the facility idle since it was opened in July 2011.