Chennai Port Registers Impressive Growth in Cargo Traffic

Chennai:

Port Wings News Network:

Chennai Port has registered a Compounded Annual Growth Rate (CAGR) of 3.29% in Cargo Traffic over the last five years. Given the impressive growth rate, the Ministry of Shipping has proposed a target of 57.80 Million Metric Tonnes (MMT) for Chennai Port at a growth rate of 5.1% for FY 2025-26.

As at the first Quarter ended June 2025, the achievement and progress in Cargo handling are as follows:

INCREASE OF 16.4% IN CARGO TRAFFIC

Chennai Port has recorded an increase of 16.4% in cargo traffic by handling 15.06 MMT for the period April to June 2025 as against 12.94 MMT handled during the corresponding period of last year.

CONTAINER TRAFFIC GREW AT 20.6%

Container Traffic at Chennai Port continued to grow at an impressive rate of over 20.6% with an increase of 14% & 23% respectively by M/s. CCTPL & M/s. CITPL (Two terminals of the port that are run by private players).

3 NEW SERVICES

It may be noted that the CITPL had added three new Services during the Quarter — MISB (Myanmar India Srilanka Bangladesh of Transworld Logistics Pvt Ltd.), TTX (Tamilnadu Thailand Xpress of Evergreen Shipping Agency (India) Pvt. Ltd.) and IIX (Iran India Xpress of Armita India Shipping Pvt. Ltd.)

LIQUID BULK

Overall Liquid Bulk has witnessed a growth of 4.7% with an increase of 2.86 lakh tonnes (10.7%) in Crude Oil, while there is a shortfall of 3.5% in other petroleum products. There was shortfall in Diesel export during March & April 2025, attributed to increased domestic demand and Export Pricing in the International Market. HSD Export in April 2025 was only 26947 Tonnes as against 1,51,620 Tonnes handled in April 2024. However, 1.28 lakh tonnes & 2.56 lakh tonnes of HSD has been exported during May & June 2025 through Chennai Port.

Also the prices of Crude Palm Oil have been on the rise, with global prices at $981.18 per Metric Tonne in April 2025 and hence the Import at Chennai Port reduced to 24,231 Tonnes in April 2025 & 29,309 MT in May 2025, when compared to 45,242 Tonnes in April 2024 & 54,108 MT in May 2024. However, it has increased to 1.12 lakh tonnes in June 2025 due to 20% cut in duties w.e.f. 31^st May.

REVIVAL OF JD CHANNEL HELPS GROWTH

The revival of JD channel width which was restricted during the third quarter of last FY due to the damage of caisson wall, has increased the current Dry-Bulk Cargo volumes. 10.37 lakh tonnes of bulk cargoes have been handled during the current year up to June 2025 as against 6.54 lakh tonnes handled during the same period last year and registered a cumulative increase of 58.6%.

SHORTFALL IN OVERALL BREAK-BULK CARGO

According to the data available, there is a shortfall of 19.4% in the overall Break-Bulk Cargo mainly due to the decrease in handling of Iron & Steel. The quantity handled during the CY April to June 2025 is 1.43 lakh tonnes as against 2.25 lakh tonnes handled during the same period of last year.

DECLINE IN EXPORTS OF IRON & STEEL

While the exports of Iron & Steel declined since FY 2022-23 and is almost “NIL” during the last two financial years, attributed to factors like — weak demand from key export markets, rising steel prices, the imposition of an export duty by the Indian Government, India’s increased domestic steel production reducing the need for imports, and China’s overcapacity and low-priced exports flooding global market.

DECLINE IN IMPORTS OF IRON & STEEL

The Imports are also declining since February 2025 due to various reasons including: the imposition of safeguard duties on steel imports, likely influenced by the Directorate General of Trade Remedies (DGTR), have impacted buyer sentiment and led to a decrease in imports; Large steel companies have been actively lobbying to restrict imported steel, potentially through the imposition of safeguard duties

COASTAL TRAFFIC: 

According to the data available, Chennai Port handled 6.2 Million Tonnes of Coastal Cargo during FY 2024-25. The volume of Coastal cargo handled during the current year up to June 2025 is 1.66 MMT as against 1.73 MMT handled during the corresponding period of last year.

DECREASE IN COASTAL TRANSHIPMENT CONTAINERS There is also a decrease in Coastal Transhipment Containers, viz., 7097 TEUs during CY April to June 2025 as against 14742 TEUs during the same period of last year.

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