Cargo traffic in the country is likely to slow down with its growth pegged at just 3.5 per cent in 2008-09 as against the expected 10.5 per cent, an economic think tank has said.
"We expect cargo traffic to grow by a slower 3.5 per cent in 2008-09, revised downwards from our earlier forecast of 10.5 per cent," the Centre for Monitoring Indian Economy (CMIE) said in its latest report.
Port cargo traffic in October fell by 5.7 per cent to 42 million tonnes, largely led by a sharp fall in iron ore movements during the month.
Iron ore cargo traffic fell by a sharp 39.5 per cent, led by a sharp decline in demand from China, it said.
Except Jawaharlal Nehru Port Trust (JNPT), all the other top five ports reported a decline in cargo traffic in October. Cargo traffic fell steepest at Mumbai and Vishakhapatnam ports, by 16.2 per cent and 14.6 per cent, respectively, in October.
Kandla, in October, handled 5.6 million tonnes of cargo traffic, down by a modest 3.3 per cent compared year on year.
More From This Section
JNPT registered a modest 5.2 per cent growth rate in cargo traffic to 4.9 million tonnes in October. It handled 54.8 per cent of the total container traffic at major ports in October.
Petroleum, oil and lubricants, container cargo, iron ore and coal are the main commodities handled by major ports in the country.
Container cargo has been registering robust double-digit growth since December 2005, but it witnessed deceleration in October. It grew by a mere 1.6 per cent to 7.8 million tonnes.