Tuesday, August 16, 2022
HomeMoney & LoansSouth India ports log surge in traffic as ships skip crisis-hit Sri...

South India ports log surge in traffic as ships skip crisis-hit Sri Lanka

[ad_1]


The political turmoil and fuel crisis in Sri Lanka are turning out to be an opportunity for ports in South India, which are seeing a surge in traffic.

Industry bodies said at least 10 per cent of normal cargo is being diverted from Sri Lanka to Indian ports due to multiple reasons like congestion and shortage in fuel availability.

Kochi International Container Transhipment Terminal (ICTT) in Vallarpadam has seen a 37 per cent surge in transhipment and 14 per cent rise in container traffic during the first three months of the financial year.

A similar rise has been seen in the traffic of Ennore and VO Chidambaranar, too, which was 25 per cent and 16 per cent, respectively.

“A good chunk of the normal cargo is getting diverted to Cochin and Chidambaranar port in Thoothukudi. Non-availability of fuel is the basic issue in Colombo. However, this is an opportunity for the Indian ports,” said S Narasimhan, president, India-Asean-Sri Lanka Chamber of Commerce and Industry.

Under normal conditions, Colombo port used to handle over 30 per cent of India’s container traffic and 60 per cent of its trans-shipment.

In the case of ICTT, transhipment traffic increased from 26,698 TEU (twenty-foot equivalent unit) during the first quarter of 2021-22 to 36,627 TEU during the first quarter of 2022-23.

“A lot of ships are skipping Colombo now.

In July, our port saw a rise in transhipment traffic by around 31 per cent compared to the same time last financial year,” said a source from Cochin Port.

In a transhipment terminal, a cargo or container is moved from one vessel to another while in transit to its final destination.

“This is advantageous for both ports in South India and those ports in major manufacturing states. Some of the main line operators and container operators may look at alternatives in India now, considering the long-term advantage, if the crisis intensifies,” said Jagannarayan Padmanabhan, director, transport and logistics at CRISIL.

During the first quarter of the current financial year, 12 major ports across the country have seen an average 9 per cent increase in traffic. Several ports, including Ennore, Chidambaranar, Cochin, Paradip, Mumbai and Jawaharlal Nehru Port Authority (JNPA) saw double-digit growth during the quarter under review. Among commodities, coal saw around 19 per cent rise, while container traffic grew by an average 5 per cent across all the ports.

Nortward Bound

Kochi International Container Transhipment Terminal in Vallarpadam sees 37% rise in transhipment volume

12 major ports across the country have seen a 9% increase in Q1 traffic

Ennore, Chidambaranar, Cochin, Paradip, Mumbai and Jawaharlal Nehru Port Authority saw double-digit growth in traffic during the quarter under review

mail Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



[ad_2]

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

%d bloggers like this: