A recent monthly update report by noted credit rating and research agency ICRA which highlights the key trends in the month of June, 2018 has pointed out a significant increase in cargo handling at major ports. However, the trends in railways freight sector was different.
“ The growth in cargo handled at major ports rose a four-month high 7.1% in June 2018 from 2.7% in May 2018, reflecting a sharp uptick in iron ore and coal in that month. Moreover, the growth of non-oil merchandise exports in US$ terms rose to a seven-month high 13.1% in June 2018 from 10.1% in May 2018, led by engineering goods, chemicals, drugs and pharmaceuticals and plastic and linoleum,” it said.
“The pace of growth of rail freight eased for the second month in a row to 4.9% in June 2018 from 6.2% in May 2018. In contrast, the growth in consumption of petrol and diesel rebounded sharply to 14.9% (five-month high) and 7.7% (three-month high), respectively, from the low 2.0% and 0.3%, respectively, in May 2018, partly reflecting a favourable base effect,” the report further added.