According to the DAM Capital report, traffic in Indian Ports has witnessed a growth of 11% growth during the April-June quarter of 2022-23, indicating an opening up of the economy. The reason is the high demand for crude oil and imported coal, the prices of which are soaring this year.
In the first quarter of this financial year, around 336 million tonnes (mt) of traffic witnessed movement between major and non-major ports, wherein government-owned ports accounted for 197 mt.
The traffic for crude oil and coal also grew 16% year-on-year accounting for 65 mt and 195 mt and is expected to grow at 8 to 9%.
The report emphasized that crude oil imports from Russia rose by 21% in June since the Ukraine invasion. The reason for the surge in coal traffic is due to the shortage in domestic supplies and several power companies depending on the much-costlier imported coal during the peak demand season to ensure stock availability at thermal power plants.
In the meantime, the Center has been pushing for coastal shipping of thermal coal to ease the pressure off the Indian Railways.