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India’s cargo growth to continue driven by crude, containers - Icra

Logistic News - Published on Mon, 10 Dec 2018

Image Source: SteelGuru
The prospects of the Indian port sector are favourable, supported by healthy growth in cargo of volume drivers like crude and coal, and over the medium to long-term, it will continue to gain traction, ratings agency Icra expects. Giving the sector a stable year-end outlook, the agency said cargo growth has been driven by domestic requirements of crude oil to meet domestic petroleum requirements, and containers, given the cost and logistical advantages associated with containerisation.

According to Icra, coal imports, which had become a concern over the last two years, have been witnessing a rebound and could continue to, with the momentum witnessed in first half of FY2019.

The agency said in a statement that “The prospects for the Indian port sector players in the medium-term are expected to be favourable, supported by continuing healthy growth in cargo of major volume drivers like coal, crude and containers. Demand revival from the power sector and key consumer industries would be critical for sustained pick-up in coal imports.”

The agency further noted that cash accruals for the major players will be supported by steadily rising handling rates, barring the projects where the tariff setting process is mired in litigations.

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Posted By : Joykumar Irom on Mon, 10 Dec 2018
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