India’s relatively smaller state-owned ports are showing stronger growth momentum this fiscal year, buoyed by improved connectivity, capacity upgrades, and steady demand for select commodities.
According to data from the Ministry of Ports, Shipping and Waterways, the country’s 12 major ports collectively handled 437.43 million tonnes (mt) of cargo during the first half of FY26 — up 5.75% from 413.65 mt a year earlier.
Overseas cargo volumes rose 5.2% to 336.47 mt, while coastal shipments jumped 7.6% to 100.97 mt. Among cargo categories, fertiliser imports surged 108%, container traffic expanded 13.9%, and petroleum, oil and lubricants (POL) retained a 29% share of total throughput, growing 6.4% year-on-year.
Smaller Ports Outpace the Majors in Growth
While Paradip, Deendayal (Kandla) and Jawaharlal Nehru Port Authority (JNPA) continued to dominate in absolute volumes, smaller ports such as Mormugao, Chennai, and New Mangalore posted stronger percentage gains.
Mormugao’s cargo throughput rose 14.5%, Chennai 8%, and New Mangalore 7.26%, reflecting focused commodity growth and operational improvements rather than diversion from larger ports.
“No cargo shift was observed in the first half of FY26,” said Pratik Mundhada, Director, India Ratings & Research. “The growth was commodity specific — coal at Mormugao, iron ore at New Mangalore, and containers at Chennai. A pre-tariff surge in US-bound container shipments also lifted volumes at Chennai and JNPT.”
He added that JNPT, Paradip, Kandla, and Kolkata together accounted for over 70% of the incremental volumes in H1, while smaller ports benefited from capacity expansion, berth mechanisation, and better rail connectivity that improved cargo-handling efficiency.
Policy Support and Environmental Compliance Drive Turnaround
At Mormugao, cargo growth was aided by the revival of coal handling after restrictions were eased following new investments in pollution-control infrastructure.
“Coal handling resumed after significant capex in enclosed warehouses and covered sheds, which has made operations more compliant with environmental norms,” said Maulesh Desai, Director, CARE Ratings.
At Chennai, container traffic climbed 12%, driven by inventory build-up ahead of an anticipated tariff hike, while growth at New Mangalore was led by coastal cargo movement, supported by a low base effect.
Fertiliser Imports Surge on Domestic Supply Constraints
Fertiliser imports recorded the steepest rise among all commodities, largely due to lower domestic output of diammonium phosphate (DAP).
“The surge in fertiliser imports is linked to weak domestic DAP production,” said an industry expert. “Since DAP output depends on imported phosphoric acid and ammonia, PSUs were asked to step up imports.”
Crude oil imports also grew, while iron ore volumes fell 7.77% year-on-year.
Leading Ports by Volume
Paradip Port remained the top performer with 76.78 mt of cargo handled, followed by Deendayal (Kandla) at 74.37 mt, JNPT at 49.63 mt, Visakhapatnam at 43.09 mt, and Mumbai at 35.15 mt.
Despite the overall uptrend, experts noted that growth remains uneven across ports.
“Fertiliser cargo has done well, and Kolkata and Paradip have shown healthy momentum in containers,” said another expert. “But about seven of the twelve major ports — nearly 60% — have posted growth below 5%, highlighting an uneven recovery.”
Momentum Strengthens in September
Cargo movement gained further pace in September 2025, with total throughput rising 11.5% year-on-year to 73.13 mt. Deendayal Port led with 13.08 mt, followed closely by Paradip and JNPT, reflecting sustained recovery in India’s maritime trade flows.
