Traffic handled by major Indian ports hits 5-year high in January

The total traffic for the major ports was 72.5 mn tonnes, the highest since Feb 2019, according to data from the Ministry of Ports, Shipping, and Waterways and the Centre for Monitoring Indian Economy

India's major ports handled a larger quantity of goods last month than in the previous sixty months.

The total traffic for the major ports was 72.5 million tonnes, the highest since February 2019, according to data from the Ministry of Ports, Shipping, and Waterways and the Centre for Monitoring Indian Economy. This represents a nearly 60 per cent increase from the pandemic low of 45.45 million tonnes seen in May 2020 (chart 1).

The major ports, under the control of the central government, include 12 locations such as Mumbai, Chennai, and Kolkata. The remaining non-major ports are under the control of state governments or private players. Cargo handled by non-major ports grew 11.1 per cent to 61.6 million tonnes. However, the growth in cargo handled by major ports has been slowing down, with a 3.2 per cent year-on-year increase in January 2024, compared to 12.3 per cent in January 2023.

Non-major ports also showed faster year-on-year growth (8.1 per cent) in December 2023 than major ports (year-on-year growth of 0.7 per cent).

The commodities that make up traffic in the major ports were dominated by two categories. Petroleum oil and lubricants accounted for 21.5 million tonnes in January 2024, up from 20 million tonnes in the same month of the previous year. Coal accounted for 16.8 million tonnes, compared to 15.6 million tonnes previously. The two segments had a share of 50.7 per cent of port traffic in January 2023, which rose to 52.9 per cent in January 2024 (chart 2).

The government has previously noted that water transport accounted for six per cent of India's transport mix, compared to 12.4 per cent in the US and 47 per cent in China. The government has been working on the Sagarmala Programme to reduce logistics costs and improve coastal shipping efficiencies.