Container volume likely to grow 8% to 342 million tonnes this fiscal: Report

Cargo at Indian ports is dominated by 3Cs crude oil termed as Petroleum Oil Lubricants), coal and containers

Container volume is expected to grow by 8 per cent to 342 million tonnes this fiscal despite the risk of a prolonged Red Sea crisis, CateEdge Ratings said on Thursday.

The slated connection of the dedicated freight corridor to Jawaharlal Nehru Port in FY26, along with capacity additions by ports, is expected to drive growth in container volume over the medium term, it added.

Cargo at Indian ports is dominated by 3Cs - crude oil (termed as Petroleum Oil Lubricants (POL), coal and containers.

These three commodities represent 74-75 per cent of total cargo throughput handled by ports.

Over the past 3 years ended FY24, POL witnessed a moderate CAGR of 4 per cent while coal and container volumes witnessed 13 per cent and 9 per cent growth, respectively, CateEdge Ratings said.

The rating agency said it expects coal cargo throughput at ports to grow at a CAGR of 2-3 per cent between FY24 and FY26, despite an anticipated decline in coal imports by 3-4 per cent due to increased domestic coal production.

The share of coastal cargo is expected to rise from 34 per cent in FY23 to 42 per cent by FY26, as per Care Edge Ratings report.