The domestic maritime sector has something to cheer about. After going through a rough phase for a long period of time, it is now back on the growth trajectory. Fresh from the impact of the global financial crisis, Indian ports were hard hit by the decline in global freight rates. The cargo throughput was also quite insignificant in the initial part of the current financial year due to weak global demand. However, maritime players have been able to overcome these challenges and presently the industry scenario looks bright. 

Following a revival in global demand, along with the increase in iron ore and coal exports to China, Indian ports have witnessed a surge in freight traffic of late. This has given a boost to their earnings as well. Besides, the consolidated cargo traffic at the 12 major ports across India during April-October 2009-10 has increased by 3.6% on a year-on-year basis. The marginal yet improved growth has made maritime players buoyant and optimistic about their future prospects.

“Even a few days back, we were uncertain about how the industry scenario would be in the coming days. Even the recent surge in global freight rates did not make us rejoice, as we were still sceptical about the future prospects. But now with figures showing that cargo throughput has gone up, we feel much more confident,” says Mohammad Zafar, proprietor of Allwyn Marine Service, a mid-sized shipping firm in Chennai.

SMEs relieved the most

Small and mid-sized players, which have a significant presence in the maritime industry, are the most relieved by the improvement in the sectoral scene. “With demand for commodities such as iron ore, coal, fertilisers and petroleum products having gone up, the ports are getting plenty of consignments on a regular basis. As a result, we are also getting more orders now. We hope that this demand increases further, which will help us recover our losses quickly,” says M Neenad, director of Arya Enterprises, a small-sized shipping company in Pune.