Cargo Traffic at Major Indian Ports rise 3.5% in May 2023 : IPA

NEW DELHI: Data released by Indian Ports Association (IPA) showed that cargo traffic at Major Ports registered a 3.5 per cent yearon-year growth in May 2023. According to the tentative data, the major ports handled 68.2 million tonnesofcargolastmonth.

The increase in cargo traffic was majorly led by the coal traffic. The ports handled 5.5 million tonnes of coking coal in the month of May, a growth of 35.5 per cent compared to the year ago period. Thermal and steam coal registered a 14 per cent yoy growth in traffic to reach 11.9 million tonnes. Overall, coal traffic rose by 20 per cent in May.

According to CMIE analysis, the month saw higher coal traffic due to increase in imports as the power ministry had asked power generation companies to ensure 6 per cent blending of imported coal. It added thatthedecisionwastakentoprepare for a surge in electricity demand due to prediction of harsher summer this year.

Coal traffic makes up for about 25 per cent of total cargo traffic at major Indian ports. CMIE said that government’s advice to thermal power plants and coal mines to use the rail-sea-route for transporting coal in India also led to an increase of trafficatmajorports.

However, CMIE predicts that the year-on-year coal traffic growth at major ports will fall in June. It is expectedtoriseby14percent,aslight decline from the 20 per cent growth seenlastmonth.

Apart from coal, traffic of containerised cargo, iron ores and finished fertalisers posted a year-onyear growth in May. Petroleum, oil, and lubricants (POL) traffic declined by2.9percentatmajorports.

Despite Cyclone Biparjoy and closureoffewportsalongtheWestern coast of the Country, CMIE predicts that the positive momentum in growth of cargo traffic will continue this month. The agency predicts that cargo traffic will grow by 5 per cent in June.