Freight Traffic Trends in India

A national market monitoring agency had conducted an extensive research on the cargo handling and transport industry in India to forecast a bright scenario till 2019. The findings of this survey were released in late March, 2015.

This study was based on the ongoing and future infrastructure projects which presented a viable picture of the cargo transport in India in terms of volume as well as value in the segments of rail, road, water and air.

This report has confirmed that the foreign trade which represented 20% of the country’s gross domestic product (GDP) in 2000 rose to 42% in 2012 and this trend has been maintained on a consistent note as evident from the freight traffic movement.

Between 2009 and 2014, the cargo transport industry in India witnessed a growth rate of 6.1%. 

This was alongside the government enhancing investments in the logistics sector in the form of Dedicated Freight Corridors (DFCs), simplification of tax structure, development of national highways, expanding the reach of the railways and port infrastructure development, which will play a central role in the future of the industry.

Probably, a clearer picture will emerge at the end of the Southern Asia Ports, Logistics and Shipping 2015 Exhibition and Conference that is scheduled to be held in mid-September at Mumbai.

This ensuing event, the tenth edition of its kind is regarded as the biggest annual Container Ports and Terminal Operations Exhibition and Conference in Southern Asia.

Around 500 senior executive harbour masters, port engineers, procurement decision makers together with the region’s leading shippers, cargo owners, importers, exporters, shipping lines, freight forwarders, logistics companies, terminal operating companies including railways and services suppliers from countries throughout Southern Asia are expected to participate.

As for air cargo transportation in India, this segment is on a high-growth trajectory and the country is all set to become the third-largest aviation market by 2020 and the largest by 2030.

 

The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as low-cost carriers (LCCs), modern airports, foreign direct investment (FDI) in domestic airlines, advanced information technology (IT) interventions and growing emphasis on regional connectivity. 

India is the ninth-largest civil aviation market in the world, with a market size of around US$ 16 billion, a fact that has been acknowledged by Tony Tyler, Director General and CEO, International Air Transport Association (IATA).

In June 2015, total freight carried rose by 5.4% year-to-year to touch the mark of 222,990 tonnes as against 211,590 tonnes in June 2014.

International freight movement witnessed higher growth of 7.1% as compared with domestic freight movement that was 2.6%.

In June 2015, total aircraft movements at all Indian airports stood at 141,620, which was 8% higher than June 2014.

Over the next five years, the domestic and international cargo traffic is estimated to rise at an average annual rate of 12% and 10%, respectively. So much so, Crisil has projected that the airlines operating in India are expected to record a collective operating profit of Rs. 8,100 crore (US$ 1.29 billion) in fiscal year 2016.