Things are looking up in the maritime sector, with the 12 government-owned major ports registering a 1.78 per cent growth in traffic for the period between April 2013 and March 2014. As the growth has come after two years of falling cargo volumes, ports are hoping for some recovery this year.
Globally though, the trade is expected to grow marginally keeping the freight rates for the shipping lines under pressure for yet another year. "Economy had hit a rough patch but now there are signs of improvement. Manufacturing, trade etc are expected to go up, which should drive the traffic. The economy should benefit if we get a stable government after the general elections," said Hemant Bhattbhatt, chief executive officer, Hmsa Consultancy Services LLP.
The increase in traffic volumes is also an encouraging sign for ports and private operators to invest in building capacities. The shipping ministry had recently awarded 4.8 million TEUs (twenty foot equivalent units) fourth container terminal project at the Jawaharlal Nehru Port Trust (JNPT). The project is expected to double JNPT's total capacity. The country's total container capacity currently is over 11 million TEUs.
Companies too are pinning their hopes on the next government to expedite port infrastructure in the country and encourage funding of various projects. "There are strong expectations that clearances will come faster and the investment sentiment will make it easier for companies to get financing," Bhattbhatt added. "The capacity addition in ports was suffering because of economic slowdown, which was affecting cargo volumes. But now, if there is demand, supply will have to match up," said senior shipping ministry official.
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