Bucking global trend, India's port volume up 8.6pc in June

INDIA's 12 major ports have experienced growth for the second month in a row, showing the early signs of economic recovery.

In June major ports registered a 8.6 per cent increase in cargo volumes compared to the same month a year earlier, according to figures released by the Indian Ports' Association.

The highest growth was seen at Paradip Port, with 36 per cent growth, followed by Kandla Port with 25 per cent growth year-on-year, reports Newark's Journal of Commerce.

It said most increases involved import containers, while exports remained sluggish. "Export containers that carry consumer goods have still not seen demand pick up. However, volumes of scrap and waste paper that come to India have seen an increase," said JN Das, director of the Shipping Corporation of India.

Container traffic on a month-on-month basis at major ports saw 4.2 per cent growth in June, which followed 3.4 per cent growth in May, after a 4.4 per cent drop in April.

Chennai experienced 12.7 per cent growth in June and the largest container port, Jawaharlal Nehru, posted positive results in June.

But higher import container volumes are creating congestion. "With import volumes going up, we are now facing shortage of railway wagons to move containers from port and liners have to pay the charges," Mr Das said. "With trade going up, cargo is available to be moved but the low rates that we have to charge hamper business."

(Source: www.schednet.com)