Notwithstanding the near-term uncertainties and challenges, the medium-to-long term growth prospects for domestic ports

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in the country are positive, given the favourable opportunities from the several end-user segments.

Considering the continuing weakness in the global economy, this year, like the previous year, will also be a challenging one for domestic ports. The key commodities that suffered slowdown in 2008-09, such as iron ore, coking coal and metallurgical coke, are continuing to face demand-side pressures. Besides, prospects for container trade, despite the brief recovery in the present financial year, remain weak because of the slowdown in several end-user sectors, according to a report by rating agency, Icra.

However, ports focused more on commodities that are largely domestic-consumption driven (such as crude oil, fertiliser raw materials, finished fertilisers, edible oil and thermal coal) could grow at a healthy pace in 2009-10.

Despite these challenges in the near term, the outlook is seen favourable for cargo volumes in the medium-to-long term. The key factors that will drive cargo volumes would be the commissioning of power projects based on imported coal, expansion of domestic refinery capacity, setting up of steel projects in eastern India.