Performance of Major Ports in august according to a rating agency
Major Ports Volume
came in flat month to month, a decent traction, considering crane collapse at
JNPT during the monsoon in August and seasonally a weak month. Besides, we
understand that the pickup in the non-major ports volumes is better than major
ports, according to a rating agency.
Iron ore exports a positive at the margin for East coast ports
Strength in iron ore
exports has come as a positive at the margin for East coast ports. We
understand that the increase in global iron ore prices has resulted in
exporters flocking to export their iron ores (Chinese factory and building boom
has sent iron ore prices to 6 year high). As a result, the numbers were better
year on year.
However, Adani ports
reported volumes of 19.3million tons, +9 per cent month to month growth and
likely a growth of 7 per cent year on year. Dhamra port owned by the Adanis in
Odissa coast also reported a volume of 3million tones in August (vs 2.3mt/month
runrate in Q2FY20). A strong beat in
volume has been positively surprising and perhaps reiterates the strong moat
built by the business.
and Hapga Lloyd, the first and fifth largest shipping lines continue to be
cautious in their guidance for Calendear year 2020 container.
Statistics: August volume declined by 11 per cent year on year
Indian Major Port recorded volumes of 52 million tons for August 20, a
decline of 11 per cent year on year.
Volume was flat month to month. The decline has been higher in container
at 13 per cent year on year and crude oil at 22 per ent year on year
Pick up in container volumes remains healthy (similar run rate as July). It
is to be noted that the cargo volumes stood at 705 million tons during the
financial year 2019-20. 10 year CAGR of major port volume growth is 2.3 per
cent.. The key highlights of the port data for the month are given below.
Cargo wise handled
Break up of 52 million tons – Container – 12million tons, POL – 16million tons, coal – 9million tons and Iron ore –6 million tons
Container volumes declined by 10
percent in August 2020 to 0.8 MillionTEUs; Container volume grew by 1 per cent
for FY 2019-20 to 10 million TEUs (10
year CAGR of 3.7%)
Iron ore grew by 38 per cent year on year to 5.6 Million tons, Thermal coal
declined by 30 percent year on year to 7.8 million tons while coking coal
declined by 33 per cent year on year to 3.3 million tons.