Near-term outlook remains weak
ICRA, a rating agency, expects cargo pressure to continue at major ports, with iron ore and containers the main laggards. Iron ore has been registering 18% decline on y-o-y basis, as a result of the stalemate in domestic mining activities. Container volumes have also declined by 4% y-o-y.
While near term outlook for revival in these cargo categories remains weak, resumption of some iron ore mining activity following developments regarding resumption of mining activities based on the Honorable Supreme Court rulings on the subject in Karnataka could alter the outlook to some extent. However, given the imposition of 5% export duty on pellets and the deficit in the domestic market and the restrictions in Goa and Odisha, the revival of iron ore based exports is unlikely in the near term.
ICRA noted that the process of new projects award by the Ministry of Shipping had picked up pace with many new project awards being finalised in the last few months.