India’s container cargo volume is poised to witness a robust growth of 8%, reaching 342 million tonnes (mt) in the financial year 2024-25 (FY25), as projected by CareEdge Ratings.
This anticipated growth comes despite the ongoing geopolitical tensions in the Red Sea region, which pose potential risks to global shipping routes. The expected expansion is driven by several strategic developments within India’s maritime infrastructure. A significant factor is the upcoming integration of the Dedicated Freight Corridor (DFC) with the Jawaharlal Nehru Port Trust (JNPT) by FY26. This connection is anticipated to significantly enhance the efficiency and capacity of cargo handling at one of India’s busiest ports. Additionally, various ports across the country are undergoing capacity expansions, further supporting the upward trajectory in container volumes.
CareEdge Ratings, in its sectoral report, highlighted that the container segment is not the only area witnessing growth. Coal cargo throughput at ports is projected to grow at a compound annual growth rate (CAGR) of 3-4% from FY24 to FY26. This is despite a forecasted decline in coal imports by 2-3%, attributed to a surge in domestic coal production. The agency’s analysis suggests that the share of coastal cargo is expected to increase from 33% in FY24 to 42% by FY26, underscoring the rising importance of coastal shipping in India’s logistics framework. The coal throughput exhibited significant growth, surging from 292mt in FY22 to 367mt in FY23, reflecting a 26% increase. This rise was bolstered by a 6% uptick in thermal power generation, which reached 1,059.9 billion units. In tandem, imported coal volumes saw an 18% year-on-year increase to 249mt in FY23. Coastal coal volumes also played a crucial role, escalating from 80mt in FY22 to 118mt in FY23, marking a substantial 47% growth.
In FY24, coal throughput growth mirrored the increase in thermal power generation, maintaining a steady 9% year-on-year rise. This performance was underpinned by enhanced domestic coal production and sustained high coastal coal volumes from the previous fiscal year.
The report further elaborates that coastal throughput is projected to jump from 60mt in FY21 to 131mt in FY24, reflecting a robust CAGR of around 30%. This surge is largely due to increased cargo movement along the eastern coast, with ports such as Paradip, Gangavaram, Krishnapatnam, Dhamra, and Gopalpur seeing significant volume ramp-ups. The contribution of coal cargo to overall coastal volumes has notably increased, rising from 22% in FY21 to 33% in FY24.
