India's Private Ports Outperform Major Ports in FY24
India's private ports outperformed government-owned major ports in FY24, registering an impressive 11.18% growth in cargo handling compared to the major ports' 4.45% growth. This trend highlights the increasing competitiveness of private ports in the Indian maritime sector.
The growth of non-major ports was primarily driven by thermal coal, which saw a 53% increase in cargo volume. Iron ore also witnessed a significant 44% growth after a subdued performance in FY23. Major ports, on the other hand, saw growth primarily in crude oil, thermal coal, and iron ore.
While private ports under the Gujarat Maritime Board registered a combined growth of 7.9%, Deendayal Port (Kandla) experienced a 4.2% contraction in cargo volumes. This decline was attributed to a decrease in overseas cargo and potential cargo loss to private competitors like Mundra Port, Pipavav, and Hazira.
Kandla Port also lost its position as the largest cargo-carrying major port in India to Odisha's Paradip Port, which handled 145 mt of cargo compared to Kandla's 131 mt.
In the private sector, Adani Ports and Special Economic Zone reported a 24% growth in cargo volumes and a 28% increase in revenue for FY24. The company expects further growth in FY25, particularly due to acquisitions like the Gopalpur Port.
The growth of private ports can be attributed to their focus on coastal shipping, which saw a 15% increase in cargo compared to the 1.97% growth for major ports. This trend is likely to continue as industry and shipping lines increasingly opt for private ports due to their superior efficiency.
Several acquisitions and redevelopments in the private port space are expected to further widen the growth gap between private and major ports in the coming years. In contrast, the Centre's flagship major port projects, Vadhavan Port and the Great Nicobar Transshipment Port, are yet to be realized despite progress in regulatory processes during FY24.