India Freight Transport Report Q2 2015
BMI View: The primary issue in Indian freight transport is the state of the nation's ports. Investment in the 12 major state-run facilities has not kept up with the demand engendered by rapid economic growth experienced in India over the past decade. Plans to push ahead with the privatisation of state-run facilities will likely see mass strikes in the sector in 2015. Although we believe the move is necessary in order to compete in the long-run, in the short term the privatisation will likely see throughput lost to private ports.
On the positive side, investment in connecting the facilities to the rail network - the backbone of the Indian economy - will increase efficiencies in freight transport, while the rapidly developing pharmaceuticals industry is driving growth in air freight volumes.
Headline Industry Data
2015/16 (ending March 31 2016) Port of Kandla tonnage throughput is forecast to grow by 1.8% and is projected to average growth of 2.3% a year to 2019/20.
2015/16 rail freight growth forecast is 5.6% and is projected to average 5.6% to 2019/20.
2015/16 air freight tonnes growth forecast is 5.6% and is forecast to average 5.7% to 2019/20.
2014/15 total trade real growth forecast at 9.2%, and to average 8.6% to 2019/20.
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