Monthly Update

SECTOR: INFRASTRUCTURE

Indian Ports
BSE Sensex: 14,253 S&P CNX: 4,234 15 July 2009

June 2009 cargo grows by 8.6% YoY, due to delayed monsoon and base effect; Mormugao port
registers highest increase of 48% YoY in cargo traffic

June 2009 cargo volume growth attributable to higher activity due to poor rainfall: In June 2009, cargo traffic
at major ports in India increased by 8.6% YoY to 45.4m tons (vs 41.8m tons YoY). The cargo traffic is short of the
target cargo for the month by 4.5%. The key reason for the growth in the month of June 2009 (de-growth since October
2008) is due to higher number of operational days due to poor monsoon, v/s June 2008. This is indicated by a lower
sequential de-growth in June 2009 at 0.7% MoM, v/s 9.6% MoM in June 2008 and 8.5% MoM in June 2007. For
YTDFY10, cargo traffic grew by 1.9% YoY to 136.6m tons due to higher growth number in June 2009.

Major categories of cargo report growth except coal and fertilizers: During June 2009, major categories of
cargo reported strong growth except for coal and fertilizer. Iron ore, POL, container and other cargo increased by
6.8%, 12.6%, 1.9% and 25.5% YoY respectively, while coal and fertilizers cargo traffic declined by 5.2% and 5.8%
YoY, respectively. However, during YTDFY10, coal cargo registered the highest growth of 8.3% YoY at 19.9m tons
followed by POL at 4.3% YoY and fertilizers at 2.3% YoY respectively.

Container Cargo grew by 1.9% YoY in June 2009: During June 2009, the container cargo at major ports of India
increased by 1.9% YoY to 8m tons (vs. 7.9m tons YoY). This is largely on account of increase of 1% YoY in container
traffic at JNPT port to 4.31m ton (vs 4.28m ton in June 2008). Also, the key surprise has been container traffic growth
at Kolkata, New Mangalore, Chennai and Tuticorin port, where container traffic grew by 27%, 27%, 13% and 14%
respectively although on a lower base. These four ports cumulatively account for 2.9m tons of container traffic ie 36%
of total container traffic.

Eleven ports register cargo traffic growth in June 2009; Mormugao, Paradip volumes up 48% and 36% YoY
driven by iron ore and POL: During June 2009, Eleven ports reported growth in traffic. Mormugao and Paradip ports
registered highest growth among major ports at 48% and 36% YoY respectively. For Mormugao port, iron ore cargo
(87% of the total port cargo) grew by 54% YoY to 1.2m ton, which represents 20% of the total iron ore cargo traffic
in India. The cargo traffic at Paradip port was boosted by liquid and iron ore cargo, which grew by 947% YoY and 43%
YoY, respectively.
JUNE 2009: ALL-INDIA MAJOR PORT CARGO SHARE (%) JUNE 2009: ALL INDIA PORT WISE CARGO YOY GROWTH (%)

Others Haldia
75%
7% 6% Paradip
11% 48%
Kandla 50% 36%
17% 25%
25% 18%13%
Vizag 6% 4% 4% 2%
0%
12% 0%
J.N.P.T. -10%
-25%
11% -22%
-29%
Chennai
-50%
11%
J.N.P.T.
Mumbai
Mormugao

Haldia
Chennai
Mangalore
Paradip

Ennore

Kolkata
Kandla

Tuticorin

Cochin
Vizag

Mumbai
Tuticorin
New

10% New
Mormugao 4%
Mangalore
4%
7%

Source: IPA
Satyam Agarwal (AgarwalS@MotilalOswal.com) +91 22 3982 5410 / Nalin Bhatt (NalinBhatt@MotilalOswal.com) +91 22 3982 5429
 Infrastructure

MONTHLY CARGO AT MAJOR PORTS OF INDIA (M TONS)

60 FY10 FY09 FY08 FY07

Cargo volumes increase YoY Grow th

June 2009 cargo traffic by 8.6% YoY in Jun-09 YTDFY10 1.9%
increased by 8.6% YoY to FY09 2%
50
45.4m tons (vs 41.8m tons in FY08 11%
FY07 10%
June 2008)
40

30

Jul

Feb

Mar
Jun

Jan
May

Sep

Dec
Nov
Oct
Aug
Apr

Source: IPA

CARGO TRAFFIC HAS DECLINED IN JUNE HISTORICALLY DUE TO ONSET OF MONSOON SEASON (MOM)

16.0%

7.5%
Cargo traffic
de-grew by 9.6% MoM in
-1.0%
June 2008 and 8.5% MoM in -0.7%
June 2007, vs 0.7% MoM -9.5%
-8.5% -9.6%
decline in June 2009
-18.0%
Feb-08

Feb-09
Jun-07

Jun-08

Jun-09
Dec-07

Dec-08
Oct-07

Oct-08
Aug-07

Aug-08
Apr-07

Apr-08

Apr-09
Source: IPA

COMPOSITION OF TOTAL CARGO TRAFFIC AT MAJOR PORTS (M TONS)

PARTICULARS JUN-08 JUN-09 % YTD YTD %

Coal, Fertilizers traffic
CHG. FY09 FY10 CHG.
declined for the month of
Coal 6.1 5.8 -5.2 18.3 19.9 8.3
June 2009 by 5.2% YoY and POL 13.6 15.3 12.6 41.1 42.9 4.3
5.8% YoY, while other major Fertilizers 1.6 1.5 -5.8 4.0 4.1 2.3

categories of cargo reported Iron Ore 5.9 6.3 6.8 24.7 23.6 -4.3
Container 7.9 8.0 1.9 24.7 23.5 -5.0
increase Others 6.8 8.5 25.5 21.3 22.7 6.8
Total 41.8 45.4 8.6 134.1 136.6 1.9
Source: IPA

15 July 2009 2
 Infrastructure

Growth across major ports of India

Eleven out of Thirteen major ports reported growth in cargo traffic for the month of June
2009. Mormugao port reported highest increase of 48% YoY followed by Paradip (36%
YoY), Kolkata (29% YoY) and Kandla (25% YoY).

During YTDFY10, Six major ports reported growth in cargo traffic, led by Paradip,
Mormugao, Kolkata, and New Mangalore with cargo traffic growth of 25%, 22%, 18%
and 11% YoY, respectively.

CARGO TRAFFIC AT MAJOR PORTS OF INDIA (M TONS)

PARTICULARS JUNE JUNE % YTD YTD % PROMINENT CARGO

2008 2009 CHG. FY09 FY10 CHG. PROFILE % TO TOTAL

Paradip 3.7 5.0 36.1 11.3 14.2 25.3 Coal 36

Mormugao 1.3 2.0 48.1 10.2 12.5 22.3 Iron Ore 79
Kolkata 0.8 1.0 28.7 2.5 2.9 17.6 Container 54
New Mangalore 2.8 3.1 12.8 8.1 9.0 10.8 Liquid 54
Tuticorin 1.8 1.9 5.7 5.5 5.7 3.7 Coal/Container 56
Kandla 5.9 7.4 25.0 18.3 18.8 3.0 Liquid 59
J.N.P.T. 4.8 4.9 1.9 15.0 15.0 -0.5 Container 87
Vishakhapatnam 5.6 5.6 0.3 17.1 16.7 -1.9 Liquid 33
Chennai 4.9 5.1 4.4 14.6 14.1 -3.1 Container 35
Mumbai 4.3 4.5 4.3 13.3 12.9 -3.1 Liquid 64
Ennore 1.0 0.8 -15.0 3.1 2.9 -5.1 Coal 91
Cochin 1.2 1.4 11.6 3.8 3.6 -6.0 Liquid 66
Haldia 3.7 2.7 -28.6 11.3 8.3 -26.7 Liquid 32
Total 41.8 45.4 8.6 134.1 136.6 1.9
Source: IPA

Container cargo traffic up 2% YoY v/s 1% YoY at JNPT

India’s total container traffic increased by 1.9% YoY in June 2009 whereas the container
traffic at JNPT port, which handles ~50% of the all India container traffic increased by
1% YoY.

ALL INDIA CONTAINER CARGO (MT) CARGO AT JNPT (MT) AND YOY GROWTH (%)

Traffic (MT) YoY Grow th (%)

12 FY08 FY09 6.0 30%
5.1 5.1 5.1 5.3 5.0 5.1 5.1 5.2
10.0 4.8 4.9 4.9
4.3 4.3 4.1
9 8.4 8.4 8.3 8.4
8.1 8.0
4.5 4.0 15%
7.87.9 8.0
7.6
6.8
6.4 6.4 6.1 3.0 0%
6

1.5 -15%
3
0.0 -30%
Feb-09
Jul-08

Mar-09
Jun-08

Jan-09

Jun-09
May-08

May-09
Sep-08

Dec-08
Nov-08
Oct-08
Aug-08
Apr-08

Apr-09

0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Source: IPA

15 July 2009 3
 Infrastructure

CARGO COMPOSITION OF PARADIP PORT (M TONS)

36% YoY grow th in Paradip Jun-09 Jun-08

4.0 cargo traffic led by 947%
YoY grow th in Liquid cargo, 3.35
14% in Bulk cargo and 1% 2.95
During June 2009, 3.0 YoY in Other cargo
Liquid and Bulk cargo for
Paradip port grew by 947% 2.0
and 14% YoY to 1.01m ton 1.01
and 3.35m tons respectively, 1.0 0.64 0.63
while other cargo volumes 0.10
increased by 1% YoY 0.0
Liquid Bulk Other

Source: IPA

MONTHLY THROUGHPUT AT MICT (’000 TEUS) AND MOM GROWTH (%)

Throughput Intensity of de-grow th declined to 3.2% YoY (vs. 20%+ in

% Change (YoY) the past 3 months) at MICT in Jun-09
80 40%

During June 2009, the 60 20%

container terminal volume at
MICT reported a relatively 40 0%
moderate decline of 3.2%
YoY to 57,949 TEUs vs. 20 -20%

59,995 TEUs in June 2008

0 -40%
Jul-08
Feb-08

Feb-09
Mar-08

Mar-09
Jan-08

Jun-08

Jan-09

Jun-09
May-08

May-09
Sep-08

Dec-08
Nov-08
Oct-08
Aug-08
Apr-08

Apr-09

Source: IPA

MONTHLY ICD TRAFFIC AT MICT (‘000 TEUS) AND MOM GROWTH (%)

ICD Throughput % Change (YoY)

16 40%

12 20%
During June 2009, the ICD
throughput at MICT
increased by 23% YoY to 8 0%

12,796 TEUs vs. 10,370

TEUs in June 2008 4 -20%

0 -40%
Jul-08
Feb-08

Feb-09
Mar-08

Mar-09
Jan-08

Jun-08

Jan-09

Jun-09
May-08

May-09
Sep-08

Dec-08
Nov-08
Oct-08
Aug-08
Apr-08

Apr-09

Source: IPA

15 July 2009 4
 Infrastructure

N O T E S

15 July 2009 5
 Infrastructure

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15 July 2009 6