Gujarat Pipavav port share is increasing due to higher container volumes

Shares in Gujarat Pipavav port gained 2% after container volumes rose annually in the June quarter.

The port recorded container volume of 191,000 20-foot units for the quarter ended June 30, up from 187,000 a year earlier. The dry matter volume decreased from 0.93 million tons to 0.67 million tons during this period, while the liquid volume increased from 0.20 million tons to 0.26 million tons during this period.

ICICI Securities noted that the first quarter of FY24 started with headwinds for global container trade. Although sea freight rates have changed by 50-60% from their previous highs, Indian exports remain subdued, particularly goods and handicrafts.

Sentiment is expected to improve later in the year with a pick-up in Chinese manufacturing and lower US inventories.

Gujarat Pipavav Port was established in south-west Gujarat and has a multinational operator, APM Terminals Maersk Group. It is located in a strategic international maritime location that connects India to the Far East on one side and to the Middle East, Africa, Europe and the United States on the other side.

The addition of three service lines in FY23 is seen as an increase in export-import volume. At the same time, the commissioning of the enthusiastic freight corridor in September could help to capture a larger market share. Analysts were pleased that Gujarat Pipavav Port is debt-free and the return on invested capital rose to over 40% in FY24.

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