>INDIAN PORTS (MOTILAL OSWAL)

April 2009 cargo decline by 1.2% YoY, FY09 cargo up 2.1% YoY, coal cargo registers highest increase of 39.8% YoY in April 2009

■ Cargo volumes down 1.2% YoY in April 2009 vs. 1.2% YoY increase in March 2009: In April 2009, cargo traffic at major ports in India declined by 1.2% YoY to 45.4m tons (vs 46m tons YoY). This compares with an increase of 1.2% in March 2009 and decline of 1.8% during 2HFY09. For FY09, cargo traffic grew just 2.1% YoY to 530.4m tons, 8% below targets of Indian Ports Association.

■ Coal and Fertilizer traffic increase by 39.8% and 12.4% YoY respectively in April 2009, Iron ore cargo decline 12.3% YoY: During April 2009, coal and fertilizer traffic increased by 39.8% and 12.4% YoY respectively; while Iron ore cargo reported decline of 12.3% YoY to 8.6m tons (vs.9.8m tons YoY). The strong growth in coal volumes was mainly due to increased coal imports by power utilities, which had led to increased PLF of 82.5% for the month of April 2009 (up 260bp YoY). During FY09, fertilizer volumes grew by 9.9% YoY to 18.3m ton (vs 16.6m ton), coal cargo grew by 9.6% YoY, while container cargo volumes were flat at up 0.9% YoY.

■ Container Cargo de-grew by 9.3% YoY in April 2009: During April 2009, the all India container cargo traffic declined by 9.3% YoY to 7.6m tons (vs. 8.4m tons YoY). This is on back of 4.8% YoY de-growth in total cargo traffic at JNPT terminal, where container traffic forms 87% of the total traffic. However, on the other hand, the total cargo traffic at the Kolkata and Tuticorin port increased by 13.7% and 11.2% YoY, of which the container cargo forms 57% and 33% of the total cargo respectively.

■ Five ports register cargo traffic growth in April 2009; Paradip, New Mangalore volumes up 29.2% and 23.4% YoY driven by coal imports: During April 2009, Paradip and New Mangalore ports registered highest growth 29.2% and 23.4% YoY respectively driven by liquid cargo (22% and 61% of the total cargo respectively). The surprise has been the cargo volume growth of 16.8% YoY at Mormugao port, which has largely been driven by Iron ore cargo (82% of the total cargo), which is up 11% YoY at 4.5m tons (vs 4.1m tons YoY). This is compared with the overall decline of 12.3% YoY in the Iron ore cargo in April 2009.

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