Capacity constraints take toll on container volumes
Container volumes at major ports remained subdued in February
Container volumes at major ports remained subdued in February. Volumes declined by 3.9% from a year earlier mainly because volumes at the Chennai Port declined by about 7%. But the February performance is in keeping with the year-to-date performance where volumes have declined by 3.9%. Analysts from Religare Institutional Research point out that despite the favourable base of the past two years (-0.9%/+3% growth in FY13/FY12), volume growth has failed to pick up in FY14, marred by weak macro conditions and capacity constraints at major ports. That’s discouraging. This may take some time to improve, even if industrial activity recovers, because of the capacity constraint problems.
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