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Recent Study: India Freight Transport Report Q3 2013

Recently published research from Business Monitor International, "India Freight Transport Report Q3 2013", is now available at Fast Market Research


Boston, MA -- (SBWIRE) -- 08/15/2013 -- India's state-run major ports continue to be the underperformers in the BRIC country's freight transport infrastructure, with volumes at many facilities struggling to grow. A case in point is the Jawaharlal Nehru Port, India's largest in terms of containers handled, which has seen a decrease in its box throughput as it continues to chase the elusive fourth terminal. We see strong growth potential in the air freight sector, however, as air freight and logistics companies look to capitalise on India's growing pharmaceuticals export market, though national carrier Air India will struggle to take on this mantle given its financial constraints.

Headline Industry Data

- 2013/14 Port of Kandla tonnage throughput growth forecast is 5.6% and is projected to average 7.2% a year to 2017/18.
- 2013/14 rail freight growth forecast is 5.0% and is projected to average 5.8% to 2017/18.
- 2013/14 air freight tonnes growth forecast is 4.4% and is forecast to average 5.9% to 2017/18.
- 2013/14 total trade real growth forecast at 1.8%, and to average 7.4% to 2017/18.

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Key Industry Trends

Concor Results See Slowing In Profit Growth: Container Corporation of India (Concor) has released its results for the year ended March 31 2013, showing a healthy growth in net profits. However, we note that the final quarter was not as strong as the year-ago period, which is in keeping with our outlook that growth in Indian rail freight volumes will slow in the coming year.

Virgin Atlantic Cargo Confirms Mumbai Freight Support: Air freight services company Virgin Atlantic Cargo has secured the support of freight forwarders in Mumbai. Virgin was absent from Mumbai for a three-year period from 2009, due to maintenance closures, but resumed offering services in October 2012.

India/Bangladesh Coastal Shipping Moves Forward: BMI believes that a new deal struck between India and Bangladesh in April, which will allow the coastal shipping of goods between the two countries, will bring numerous benefits, bringing down shipping times and costs and alleviating congestion at the land customs station of Petrapole. A number of ports are set to benefit, including the Bangladeshi port of Chittagong and the Indian port of Haldia, part of the larger Kolkata port.

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