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Port capacity set to cross 1 billion tonne mark

Indian port sector is all set to touch a milestone with the combined capacities of all major and non-major ports crossing the one-billion tonne mark in September.

According to port officials, the nation-wide capacity today stands at 996 million tonnes. With Gujarat Maritime Board facilities adding 19 million tonnes next month, the total capacity in the country is headed to rest at 1015 million tonnes.

It is a momentous occasion for the country and its maritime industry and the ministry is planning to celebrate it in style. However, there is a flip side to the story. The major chunk of the contribution to the growth in capacity has come not from the government-controlled 12 major ports but from the non-major ports, led by those managed by Gujarat Maritime Board.

For example, the total capacity available with the 12 major ports as on June 30, 2010 was 619.88 million tonnes, non-major ports’ contribution was 355.06 million tonnes. Of the 355.06 million tonnes capacity, Gujarat Maritime Board (GMB) controlled ports alone contributed to 243.64 million tonnes.

The capacities available at non-major ports as on June 30, 2010 were: Gujarat (243.64 million tonnes), Andhra Pradesh (49.14 million tonnes), Maharashtra (28.28 million tonnes), Goa (13.90 million tonnes), Karnataka (9.20 million tonnes), Puducherry (4.30 million tonnes), Andaman & Nicobar Islands (3.23 million tonnes), Orissa (2.00 million tonnes), Tamil Nadu (1.2 million tonnes), Kerala (0.17 million tonnes) and Daman & Diu (0.005 million tonnes).

According to Capt Sandeep Chandra Mathur, chief nautical officer of Gujarat Maritime Board, three facilities would contribute a total of 19 million tonnes capacity from next month. They are: Essar jetty at Magdalla, Adani’s solid cargo terminal at Dahej and Kribco jetty at Magdalla, which is being revived.

The total capacity of the ports has grown 84.4% from 135 million tonnes in 2000-01 to 244 million in 2009-10.

If the progress made by GMB ports so far is incredible, they have much reason to look forward to. 

ARC reports India bouncing back fast from recession

Everyone is still struggling to recover from what is being called the Great Recession, but India, according to one analyst from ARC Advisory Group, is faring better than many other countries.

In the U.S., the economy is slowly limping back to recovery, but in India, the economic recovery from the Great Recession is far more pronounced, according to the latest analysis by ARC Advisory Group. 

According to new research by Rajabahadur V. Arcot, General Manager of ARC Advisory Group India, the Indian economy is now in the same position it was in prior to the collapse of Lehman Brothers in the U.S. 

"Some countries, such as India, have weathered the storm better because of the positive impact of the State's stimulus package on its economy, which had only recently entered a strong growth phase and as such enjoyed a robust demand-centric market," Arcot wrote in India's Economy Returns to Pre-Lehman Brothers Era of Robust Growth. "Consumer demand in India did retreat a bit because of the global impact, but recovered quickly." 

As proof, Arcot cited recent indices of industrial production in that country, which show the manufacturing sector in India leapt up 18.5 percent in December 2009 compared to December 2008. In addition, the consumer durables industry, in the same time period, went up 46 percent compared to 2008, and capital goods rose by 38.8 percent.  

The purchasing managers' index, which needs to be above 50 percent to register growth, has been above 50 since April of 2009, and hit 57.6 percent in January 2010, Arcot wrote. 

"All these growth indicators show that India's economy is back to the era of robust growth that preceded the Lehman Brothers' collapse," he wrote. 

Arcot cited "sustained consumer demand" as one reason, but added that cutting costs and lower interest rates were also contributing factors to the speedy turnaround. 

The automotive industry took off in January 2010. Arcot wrote that major manufacturers such as Tata Motors, Mahindra &Mahindra, and General Motors India, as well as Maruti Suzuki, posted record January sales. Motorcycle manufacturers also posted massive increases in sales compared to January 2009. 

Similar surges in revenues can be found in cement, electric power, and manufactured power equipment companies, as well as in the steel, pharmaceutical, and software industries. 

Arcot cautioned that the economy in India is not out of the woods yet. "Uncertain times lie ahead and manufacturing companies and technology solution providers have to restructure their business strategies to meet the ‘new normal' challenges," he wrote. 

But the new normal, or what he also called the "reset" world economic order, is here to stay, and with an eye on growth-oriented markets, companies in India will continue to succeed.