Due to sluggish progress in iron ore and container volumes, cargo pressure will persist at major ports, said rating agency ICRA. Iron ore has been the main laggard in the first 5 months (April-August) of this fiscal year, ICRA said.
Container traffic declined by 5 per cent YoY owing to the lagged effect of slowdown in worldwide markets and domestic economy setting in.
While renewal of container volumes would be dependent on pick up in generally manufacturing sector activities and correspondingly Exim trade, iron ore exports could be favourably supported by resumption of mining in certain areas. Moreover, the Government of India has been exploring various options to increase export activities, including revival of iron ore exports, the rating agency said.
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