Powered by a strong rebound in the volume levels, Indian government-controlled major ports that had suffered steady market share erosion in recent years grew faster than their privately-built minor port entities led by Adani Group in the fiscal year 2021-22, which ended on 31 March.
The public port network registered a 16.74% increase in combined container traffic, versus 13.89% at Adani Ports, according to a granular port data analysis by Container News. By volume, the 12 major ports cumulatively handled 11.2 million TEU, up from 9.6 million TEU, while terminals under the Adani Port network saw a combined 8.2 million TEU, up from 7.2 million TEU a year earlier.
Adani’s flagship Mundra Port handled more volumes than Jawaharlal Nehru Port Authority (JNPA)/Nhava Sheva, but the latter logged a higher rate of growth – 21.55%, versus 14.84% at Mundra. Fiscal 2021-22 volumes handled by JNPT amounted to 5.68 million TEU, growing from 4.68 million TEU in 2020-21. Mundra’s yearly throughput increased to 6.5 million TEU from 5.66 million TEU in the prior year.
“JNPA’s exceptional performance of handling 5.68 million TEUs during FY 2021-22 is a token of port’s consistent efforts and commitment to providing best services to our clients and stakeholders,” port chairman Sanjay Sethi said in a statement.
“The new benchmark set by JNPA portrays the port’s substantial progress in the EXIM (export-import) trade, maritime, and port sectors. JNPA ensures to consistently enhance its operational efficiency by maintaining global standards and serving as the port of choice for the world,” he added.
Further, transshipment cargo handling has been a major growth driver at Mundra, owing in large part to Adani’s terminal partnerships with MSC and CMA CGM. To put that aspect in context, the number of transshipment loads through Mundra hit 1.4 million TEU out of the total 5.66 million TEU it handled in fiscal 2020-21, according to industry data. The share of transshipment contributions for fiscal 2021-22 was not immediately available.
In contrast, the transshipment movement at JNPA/Nhava Sheva made up just 97,000 TEU in fiscal 2021-22.
That market share improvement bodes well for major government handlers that are in the midst of a structural makeover on the back of recent government policy changes and ongoing investment flow into infrastructure development.
The new port law – known as the Major Port Authorities Act 2021 – has been designed to provide greater functional autonomy, both commercially and operationally, for government ports to better compete with minor counterparts, which enjoy unregulated tariff powers. The recast framework, replacing the “port trust” model, came into effect in November 2021.
Jenny Daniel
India correspondent
Contact email: [email protected]
