Samsara Newsletter

Week 45, 2018 (Nov 3 - Nov 9)

Policy & Economy News

Highlights of the Prime Minister's support & outreach initiative for the MSME sector

Manufacturing sector activity rises in Oct on robust order flow: PMI

Business News - The India Boom Factor

India turn net importer of steel in April-Sept period

Indian fish exports to surge 61% to 1.7 mn tonnes by 2030: UN Report

Plastic exports up 31% in H1, above 70% growth in shipments to China, Vietnam

India, Sharjah to bolster economic ties

Shipping News

OOCL enhances China-India product mix

PM Modi to receive India's first Container vessel on Inland Waterways in Varanasi on 12th Nov

Mandaviya highlights coastal shipping & other priorities of Ministry

Logistics News

Railways increases 8.75% freight rates for Major Commodities

Indian Port News

Port-led development under Sagarmala helps India surge in global trading across borders

Non-Major Ports' share rises to 42% in Cargo traffic during FY 2018

Policy & Economy News

Highlights of the Prime Minister's support & outreach initiative for the MSME sector
Exim News Service - November 5 Top
Access to credit

As the first announcement, the Prime Minister announced the launch of the 59-minute loan portal to enable easy access to credit for MSMEs. He said that loans up to Rs 1 crore (Rs.10 million) can be granted in-principle approval through this portal, in just 59 minutes. He said a link to this portal will be made available through the GST portal. The Prime Minister asserted that in New India, no one should be compelled to visit a bank branch repeatedly.

The Prime Minister mentioned the second announcement as a 2 per cent interest subvention for all GST-registered MSMEs, on fresh or incremental loans. For exporters who receive loans in the pre-shipment and post-shipment period, the Prime Minister announced an increase in interest rebate from 3 per cent to 5 per cent.

The third announcement made by the Prime Minister was that all companies with a turnover more than Rs. 500 crore (Rs.5 billion) must now compulsorily be brought on the Trade Receivables e-Discounting System (TReDS). He said that joining this portal will enable entrepreneurs to access credit from banks, based on their upcoming receivables. This will resolve their problems of cash cycle.

Access to markets

The Prime Minister said that on access to markets for entrepreneurs, the Union government has taken a number of steps already. In this context, he made his fourth announcement that public sector companies have now been asked to compulsorily procure 25 per cent, instead of 20 per cent of their total purchases from MSMEs.

The Prime Minister said his fifth announcement is related to women entrepreneurs. He said that out of the 25 per cent procurement mandated from MSMEs, 3 per cent must now be reserved for women entrepreneurs.

The Prime Minister said that more than 1.5 lakh suppliers have now registered with GeM, of which 40,000 are MSMEs. He said transactions worth more than Rs 14,000 crore (Rs.140 billion) have been made so far through GeM. He said the sixth announcement is that all public sector undertakings of the government must now compulsorily be a part of GeM. He said they should also get all their vendors registered on GeM.

Technology upgradation

Coming to technological upgradation, the Prime Minister said that tool rooms across the country are a vital part of product design. His seventh announcement was that 20 hubs will be formed across the country, and 100 spokes in the form of tool rooms will be established.

Ease of Doing Business

On Ease of Doing Business, the Prime Minister said his eighth announcement is related to pharma companies. He said clusters will be formed of pharma MSMEs. He said 70 per cent cost of establishing these clusters will be borne by the government.

The Prime Minister said that the ninth announcement is on simplification of government procedures. He said the ninth announcement is that the return under 8 labour laws and 10 Union regulations must now be filed only once a year.

The Prime Minister said that the tenth announcement is that now the establishments to be visited by an inspector will be decided through a computerised random allotment.

The Prime Minister noted that as part of establishing a unit, an entrepreneur needs two clearances, namely, environmental clearance and consent to establish. He said that the eleventh announcement is that under air pollution and water pollution laws, now both these have been merged as a single consent. He further said that the return will be accepted through self-certification.

As the twelfth announcement, the Prime Minister mentioned that an Ordinance has been brought, under which, for minor violations under the Companies Act, the entrepreneur will no longer have to approach the Courts, but can correct them through simple procedures, said a release.

Manufacturing sector activity rises in Oct on robust order flow: PMI
Economic Times - November 1 Top
The country's manufacturing sector activity improved in October, as firms scaled up production and employment levels amid strong rise in new business order flows, a monthly survey said Thursday.

The Nikkei India Manufacturing Purchasing Managers' Index strengthened from 52.2 in September to 53.1 in October as new orders and production increased at the quickest rate in four months.

This is the 15th consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

New orders increased at a sharp rate during October and panellists attributed this rise to successful advertising efforts, strengthening underlying demand and competitive price-setting. The rise in new order flows was the fastest since June.

"A combination of domestic and foreign orders fuelled the upturn in overall activity, although export orders displayed the slowest expansion since July, total new work rose at the sharpest pace since mid-year," said Pollyanna De Lima, Principal Economist at IHS Markit and author of the report.

Manufacturers stepped up hiring in October to meet rising demand conditions; and job-creation during the month was the strongest since last December.

Notwithstanding that Indian manufacturers were confident that output will be higher over the course of the next year and they increased their marketing activity and investment in research and development, the level of optimism was stymied by concerns towards future market conditions.

"Goods producers see challenges and uncertainties ahead, which in turn translated into the weakest degree of optimism seen in 20 months," Lima said.

On the price front, there was upward inflationary pressure amid reports of higher prices for chemicals, energy and metals, average cost burdens increased and some manufacturers passed part of the additional cost burden on to their clients by hiking their charges.

"However, the rate of selling price inflation was mild, in the context of historical survey data," the survey noted.

Business News - The India Boom Factor

India turn net importer of steel in April-Sept period
Daily Shipping Times - New Delhi, November 6 Top
India, home to ample iron ore resources and the third biggest crude steel producer, has paradoxically turned into a net importer of iron and steel.

During April-September, the country imported iron and steel valued at $5.33 billion, exceeding its exports worth $4.22 billion. This has reversed the trend of the country being a net exporter of iron ore and steel products for the past two consecutive years.

In the last financial year, exports of iron and steel were valued at $11.24 billion, overshooting the $10.43 billion in imports.

Between 2009-10 and 2017-18, the country's exports of iron and steel logged a CAGR (compounded annual growth rate) of 12.07 per cent, states a report by the Indian Brand Equity Foundation (IBEF), quoting figures sourced from the Ministry of Commerce.

According to the report, the country has turned into a net importer of iron and steel due to robust demand in the manufacturing sector and rise in infrastructure projects under implementation. The Country's transition into a net importer of steel is despite the buoyancy in domestic crude steel output. Crude steel production in FY18 reached an all-time high of 102.34 million tonnes (mt), increasing 4.5 per cent year-on-year (y-o-y).

A forecast by the World Steel Association projects Indian steel demand to grow 5.5 per cent in calendar 2018 to 92 mt and six per cent in 2019 to touch 97.5 mt. By 2019, India is also poised to dislodge the US as the second largest steel consumer, the association predicted.

Indian fish exports to surge 61% to 1.7 mn tonnes by 2030: UN Report
Daily Shipping Times -Geneva, November 5 Top
Exports of fish from India are expected to grow by 61.2 per cent by 2030 as the bulk of the perishable item shipped will originate from Asian countries.

According to a report by Food and Agriculture Organization of the United Nations titled 'The State of World Fisheries and Aquaculture', Indian exports of the fish will touch 1.72 million tonnes compared to 1.07 million tonnes recorded in 2016.

Globally, fish exports are slated to expand 24 per cent by 2030.

In the Asian continent, India will lead other nations in growth followed by Indonesia (57.6 per cent), Vietnam (42 per cent), Japan (40 per cent) and Thailand (24.8 per cent). China's fish production is tipped to grow 22.9 per cent, touching 9.4 million tonnes.

In quantity terms, the world trade of fish for human consumption is expected to grow by 24 per cent in the projection period and will reach more than 48 million tonnes (in live weight equivalent) in 2030 (60.6 million tonnes if trade within the European Union is included).

Asian region will account for about 51 per cent of the incremental exports by 2030. The region's share in total trade of fish for human consumption is pegged at 50 per cent in 2030.

"Advanced economies are expected to remain highly dependent on imports to fulfil their domestic demand. The European Union, Japan and the United States of America will account for 43 per cent of total imports for food fish consumption in 2030, a slightly lower share than in 2016 (44 per cent)", the report added.

Plastic exports up 31% in H1, above 70% growth in shipments to China, Vietnam
Economic Times - November 5 Top
India's plastics exports grew 31.6% on year at $4.59 billion in the first half of the fiscal compared with $3.48 billion a year ago.

The growth in India's plastics export has been primarily boosted by higher shipment of plastic raw materials, plastic sheet, film, plates, and packaging materials, according to Plastics Export Promotion Council.

Further, exports to China, Vietnam and Mexico witnessed high growth rates ranging between 70-140% in the April-September period.

"China, United States and United Arab Emirates continue to be top-3 destinations for India's plastics products. These three countries accounted for 27.5% of India's plastics product exports, by value in the first half," said Ravish B Kamath, chairman, Plastics Export Promotion Council.

India exported plastics to 205 countries in the period with French Guiana, Guam, Kiribati Republic, Lesotho, Marshall Island, Mayotte, Monaco, Nauru Republic and United States Virgin Islands being the latest destinations.

India is currently ranked among the top five consumers of polymers in the world and has 30,000 plus plastic processing units employing over four million people across the country.

India, Sharjah to bolster economic ties
Economic Times - November 5 Top
Over 100 Indian investors participated in a business conference in the UAE to strengthen Sharjah's trade relations with India and to promote the Gulf emirate as a leading business and investment hub in the region.

The 'Sharjah-India Business Roundtable', held on the sidelines of the last week's Indian-UAE Partnership Summit, was part of India's continued interest in the emirate's diversified economy, a statement said.

The conference focused on addressing the investment opportunities spanning across emerging sectors such as technology, artificial intelligence (AI) and renewable energy, in a bid to expand the number of businesses in Sharjah in the coming years.

More than 100 Indian investors participated in the conference aimed at strengthening Sharjah's trade ties with India and to promote the Gulf emirate as a leading business and investment hub in the region.

Sharjah is one the key drivers for Indian outbound investment into the Gulf region, valued at more than USD 137 billion and a primary non-oil trade partner.

India and Sharjah have shown significant growth, with the Indian economy expected to grow by 7.5 per cent and UAE's economy at an accelerated 3.9 per cent rate in 2018, the statement said.

"Sharjah has historically been one of the key drivers for Indian outbound investment volumes into the Gulf Region, and was a key access gateway for international markets looking to bolster their investments in India and the wider Asian region," said Marwan bin Jassim Al Sarkal, Executive Chairman of the Sharjah Investment and Development Authority (Shurooq).

He said the governments have a history of collaborating together across numerous cultural and business initiatives, reflecting on the diverse investment journey Sharjah and India have had for many centuries.

"The business roundtable is a key opportunity to address the substantial changes and development Sharjah's economy underwent, and how these developments directly service Indian investors," Sarkal said.

Shipping News

OOCL enhances China-India product mix
Exim News Service: Hong Kong, Nov. 4 Top
OOCL has announced that the current China Pakistan Express 2 (CPX2) product will be revamped and renamed as the Asia Pakistan Mundra Service (PMX), effective from November 13, 2018 with the first sailing in Shanghai, and a new China India Express 1 (CIX1) service will be introduced from November 14 with the first sailing also from Shanghai. These service enhancements will provide customers with better market coverage and sailing frequency with multiple linkages between China, the West Coast of India, and the port of Karachi, highlighted a release.

The CIX1 and PMX port rotations will be as follows:

China India Express 1 (CIX1): Shanghai - Ningbo - Shekou - Nansha - Singapore - Port Klang - Nhava Sheva - Karachi (SAPT) - Singapore - Shanghai

Asia Pakistan Mundra Service (PMX): Shanghai - Ningbo - Fuzhou - Shekou - Singapore - Port Klang - Colombo - Karachi (KICT) - Karachi (PICT) - Mundra - Port Klang - Singapore - Shanghai

The release added that together they will form an integral part of OOCL's comprehensive service network in this region through the following products:

China Pakistan Express (CPX): Shanghai - Ningbo - Shekou - Singapore - Karachi - Mundra - Port Klang - Singapore - Hong Kong - Shanghai

China Pakistan Express 3 (CPX3): Qingdao - Shanghai - Ningbo - Shekou - Singapore - Port Klang - Mundra - Karachi - Port Qasim- Singapore - Qingdao

China India Express 3 (CIX3): Shanghai - Xiamen - Hong Kong - Shekou - Nansha - Singapore - Colombo - Nhava Sheva - Pipavav - Colombo - Port Klang - Singapore - Hong Kong - Shanghai

Far East Indian Subcontinent Service (FI3): Dalian - Xingang - Qingdao - Busan - Kwangyang - Ningbo - Singapore - Tanjung Pelepas - Colombo - Nhava Sheva - Pipavav - Singapore - Dalian

PM Modi to receive India's first Container vessel on Inland Waterways in Varanasi on 12th Nov
Daily Shipping Times -New Delhi, November 6 Top
In a major push to India's inland waterways transportation sector, Prime Minister Narendra Modi will receive a large container vessel travelled for the first time on inland waterways NW-1 Ganga at the newly developed Multi-modal Terminal in Varanasi on November 12. The Prime Minister will also dedicate the port to the nation on the occasion.

India now has about 14,500 km of navigable waterways which comprise of rivers, canals, backwaters, and creeks.

The new vessels that will be ferrying cargo on the routes are capable of operating in shallow water with a depth of 2-3 meters. This will make waterways a viable alternative to road and rail transport.

"These vessels will need only 2-3 metres of depth and 45-metre wide water channel. One such vessel with 2000 tonnes capacity will remove nearly 140 truckloads of pressure from the road. Once developed, inland waterways will significantly decongest the highways across the Country," an official claimed.

Keeping in view the difficult characteristics of River Ganga in the upper reaches between Patna and Varanasi, it is important to have vessels that can ply on low depth, with high carrying capacity, and are economically viable and environmentally friendly," officials said.

Mandaviya highlights coastal shipping & other priorities of Ministry
Exim News Service - Mumbai, Nov. 5 Top
The Minister of State for Road Transport and Highways, Shipping and Chemicals and Fertilizers, Mr Mansukh Mandaviya, has stressed that the promotion of coastal shipping is the topmost priority of the Ministry of Shipping. The government wants to increase the share of freight transport through coastal route from 7 per cent at present to 10 per cent by 2020, which will result in a saving of Rs 20-25 billion.

Speaking about the Sagarmala programme, the Minister said, after inaugurating an event here, that the main focus of Sagarmala was port-led development, to reduce logistics cost and enhance last-mile connectivity. Under this programme, more than 600 infrastructure projects with an investment of approximately Rs 8.78 lakh crore (Rs.8.78 trillion) have been identified, of which 89 projects worth Rs 14,000 crore (RS.140 billion) have been completed and 436 projects worth Rs 4.18 lakh crore (Rs.4.18 trillion) were under various stages of implementation. He added that after completion of these projects, logistics cost is expected to reduce by Rs 30,000-40,000 crore (Rs.300-400 billion), also creating 1 crore jobs, including 40 lakh (400 million) direct jobs in the process.

Mr Mandaviya said that the Ministry is working on developing 14 Coastal Economic Zones (CEZs), which will provide huge employment opportunities in coastal areas and will lead to the port-led development of such regions. Once operational, the CEZs will bring employment opportunities and economic upliftment of the people in coastal regions.

Speaking about the India-Bangladesh agreement for use of Chittagong and Mongla ports for cross-border movement of goods, the Minister said it would be a game-changer for eastern India. It will open new routes for cargo movements to Central Asia and Europe and will promote cooperation between the two countries in the economic, social and cultural fields. He also pointed out that the development of Chabahar port in Iran will provide a direct route to Afghanistan, bypassing Pakistan.

Mr Mandaviya stressed that there is huge scope for development of ship repair facilities in the country. The potential ship repair market in India is estimated to be in the range of Rs 2,600-2,800 crore (Rs.26-28 billion), assuming that all Indian fleet will be repaired in India, he said.

He added that the MoU between Cochin Shipyard and Mumbai Port Trust for operation, maintenance and development of the ship repair facility at Indira Dock would provide a professional ship repair ecosystem that would be beneficial for the commercial as well as defence ship repair industry in India. Cochin Shipyard is in the process of developing ship repair facilities in joint venture with HDPEL on the east coast and with Mumbai Port on the west coast, he said.

In order to strengthen the shipbuilding industry, the government has given infrastructure status to the yards to make them legible for financial assistance at reasonable rates. The government has introduced a Rs 4,000-crore (Rs.40 billion) Financial Assistance Policy (FAP) for shipyards for 10 years, for contracts secured between April 1, 2016 and March 31, 2026, he highlighted, as per a release.

Logistics News

Railways increases 8.75% freight rates for Major Commodities
Daily Shipping Times -New Delhi, November 5 Top
Freight rates of food grains, flours, pulses, fertilisers, salt and sugar have not been increased

Indian Railways has rationalised its freight rates to ensure additional revenue generation across the network for improved passenger amenities.

The rationalisation of freight rates will result in a 8.75% increase in freight rates for major commodities such as coal, iron and steel, iron ore, and raw materials for steel plants.

Furthermore, the haulage charges of containers has been increased by 5% and the freight rates of other small goods have been increased by 8.75%.

However, the freight rates of food grains, flours, pulses, fertilisers, salt, and sugar have not been increased, keeping in mind farmers and the common man. Additionally, the freight rates of cement and petroleum (including diesel) have not been increased.

The decision to rationalise freight rates will result in additional revenue generation for Indian Railways to the tune of Rs. 3,344 cr. The additional revenue will further help enhance various aspects of Railways including safety, service, punctuality, etc.

Indian Port News

Port-led development under Sagarmala helps India surge in global trading across borders
Exim News Service - New Delhi, Nov. 4 Top
As per the World Bank report 2019 on Ease of Doing Business, India has taken a huge leap of 23 ranks from 100 in 2017-18 to 77 in 2018-19, indicating it is continuing its steady shift towards global standards. One of the key indices which has contributed immensely toward this growth is 'trading across borders' which shows an impressive improvement from 146th rank last year to 80th rank this year.

As per a release, the Ministry of Shipping has been taking initiatives to improve the parameter of 'trading across border' as 92 per cent of India's export-import trade by volume is handled at ports.

The report mentions that this is mainly due to India's continued reform agenda, which has made it the top-ranked economy in the region. Upgradation of port infrastructure, improvement of processes, and digitisation of document submission has substantially reduced export/import cargo handling time at ports which has significantly contributed towards improving the trading across border parameter and India's impressive growth in the World Bank's report. The World Bank has recognised India as one of the top improvers for the year.

According to the report, under the Border Compliance Criterion relevant to the port sector the cost to export has come down from $ 382.4 to $251.6. Similarly, the cost to import has come down from $ 543.2 to $ 331.

The government has initiated a series of steps to make India's ex-im logistics more competitive in terms of time and cost. A series of studies to benchmark the performance of Indian Major Ports with their international counterparts has been undertaken and steps to increase the capacity and productivity to global standards have been initiated. Specifically, 114 initiatives which were identified have been undertaken.

"The focus has been on development of port infrastructure and capacity enhancement, improvement in last mile connectivity and development of multimodal hubs to promote ex-im while reducing logistics cost and time. Under Sagarmala, port-led-development initiative of the government, 266 port modernisation projects with an investment of more than Rs 1.45 lakh crore (Rs.1.45 trillion) has been identified for implementation over next 10 years," said Mr Nitin Gadkari, Shipping Minister.

A total of 80 projects worth Rs 13,701 crore (Rs.137 billion) have been completed and projects worth Rs 2.39 lakh crore (Rs.2.39 trillion) are under implementation.

"In order to enhance last mile connectivity, 211 road-rail projects worth Rs 250,907 crore (Rs.2.5 trillion) have been identified under Sagarmala. 15 multimodal logistics parks with an investment of Rs 3,989 crore (Rs.39.8 billion) will help in improving efficiency in freight movement under the programme," the Minister added.

With more than 5 per cent average growth at Major Ports over last 4 years, the Ministry of Shipping has taken several steps to improve their operational efficiencies through policy and procedural changes and mechanisation.

As a result, key efficiency parameters have improved considerably. The Average Turnaround Time has reduced from 82 hrs to 64 hrs in 2017-18. The Average Output Per Ship Berth day has increased from 14,583 tonnes in 2016-17 and to 14,912 tonnes in 2017-18. The traffic at Major Ports increased to 6,794.7 lakh tonnes during 2017-18 over 6,483.98 lakh tonnes during 2016-17.

Transfer of conventional activities to digital platforms, use of technology for moving cargo, and simplification of processes have been done to promote business and facilitate ease of doing business. Steps taken include the following:

* Radio Frequency Identification (RFID) system installed in 11 Major Ports to enhance security, remove bottlenecks for seamless movement of traffic across port gates. The RFID system automatically identifies the trucks and drivers without the need to stop at the port gates for manual checking.

* DMICDC's Logistics Databank (LDB) system for tracking and tracing movement of ex-im container in the Major Ports, thereby enabling the consigners and consignees to track the movement of the containers from portal.

*Direct Port Delivery (DPD) and Direct Port Entry (DPE) enable direct movement of containers from factories/ port without intermediate handling requirement, thus saving cost and time.

* Direct Port Delivery of import containers increased from 3 per cent in November 2016 to 40.62 per cent in July 2018. The DPD importers are benefited by savings in cost of up to Rs 15,000 and average serving in delivery time of 5 days.

* The percentage of Direct Port Entry of export containers increased from 60 per cent in April 2017 to 82.66 in July 2018.

* Installation of drive-through container scanners to save time at Major Ports.

* Reducing paper work- Issuance of e-Delivery orders, e-invoice and e-payment across all the Major Ports. Digitalisation of processes has considerably reduced the processing time.

* Upgradation of the Centralised Web Based-Port Community System (PCS) to provide global visibility and access to the central database to all its stakeholders through internet-based interfaces

Non-Major Ports' share rises to 42% in Cargo traffic during FY 2018
Daily Shipping Times - New Delhi, November 5 Top
Non-Major Ports performed better in the last 10 years due to more efficient operations and lesser time to load and unload cargoes

Non-Major Ports are gradually eating into the share of Major Ports in cargo traffic. Between FY12 and FY18, the share of total cargo traffic held by the Non-Major Ports has risen from 39 per cent to 42 per cent.

In the comparable period, Major Ports have had their market share shrink from 61 per cent to 58 per cent.

A report by the Indian Brand Equity Foundation (IBEF), a trust formed by the Ministry of Commerce, says Non-Major Ports are evolving faster than their major counterparts, and are gaining market share as a major chunk of the traffic has shifted to them.

What's more, with enhanced private participation in establishment of Non-Major Ports, their cargo traffic has outpaced that of Major Ports.

Key players in private port and terminal operations like Adani Ports & Special Economic Zone (APSEZ) and Essar Ports Ltd are looking to expand footprint across the Country.

Private ports have also scored over major ones in attracting imported crude traffic. At the end of 2016-17, the Non-Major Ports handled 191.5 mt of liquid cargo including crude oil imports, surpassing 158.3 mt of Major Ports.

Data by the Ministry of Shipping shows the Non-Major Ports handled 485.33 million tonnes (mt) traffic in 2016-17. Cargo traffic at such ports has logged 10.01 per cent compounded annual growth rate (CAGR) from 2006-07 to 2016-17. By contrast, cargo traffic at Major Ports recorded a modest 2.73 per cent CAGR between 2007-08 and 2017-18.

"Non-Major Ports performed better in the last 10 years due to more efficient operations and lesser time to load and unload cargoes. Major Ports on the contrary, struggled with less capacity utilisations and a high dependence on bulk cargo. But with the Sagarmala projects taking off, Major Ports have delivered on cutting turnaround time and grabbing a bigger share of containerized cargo," said an analyst.

Twelve Major Ports have been identified under the Sagarmala project for cargo handling till 2035. This project envisages port led development by providing better infrastructure for rapid transport of goods to and from the ports at competitive costs besides aiming at streamlining efficiency.

In 2017-18, the Major Ports handled 679.36 mt of cargo, recording 4.77 per cent growth. In the current fiscal (as of August end), the cargo growth is 5.13 per cent year-on-year with the combined traffic by Major Ports totaling 288.38 mt.

Ports sector in the Country has received a cumulative FDI (foreign direct investment) of $1.64 billion between April 2000 and June 2018. Total investment on the Indian ports is estimated to reach $43.03 billion by 2020. Around 200 Non-Major Ports (a third of them operational) located strategically on the world's key shipping routes, are expected to profit from the Country's robust growth in external trade.

The total external trade grew to $763 billion in 2017-18, implying a CAGR of five per cent since 2008-09. Increasing trade is also pushing the demand for containerization. With the combined port capacity envisaged to be ramped up to 3200 mt, the traffic handled is seen at 2500 mt by 2020.