New Delhi [India]: The latest data from Indian Railways (IR) reveals a sluggish growth trend in container volumes, raising concerns over the performance of container train operators (CTOs) for Q4FY25, according to a report by Nuvama.
For the period April 2024 – February 2025 (FY25-to-date), IR’s container volumes stood at 80.6 million tonnes (mnt), reflecting a modest 4.1 per cent year-on-year (YoY) growth. However, EXIM (export-import) container volume growth is estimated at just 0-2 per cent YoY, indicating continued weakness in the sector.
Trade Performance and Concerns
Although actual trade volume data is unavailable, estimates suggest that India’s containerisable EXIM cargo (imports + exports) increased by 9 per cent YoY in value terms between April-November 2024. However, a sharp 10 per cent YoY contraction in November 2024 has raised concerns about sustained weakness in the sector.
Industry sources attribute this sluggishness to global trade uncertainties and geopolitical tensions impacting EXIM demand.
In February 2025, Indian Railways handled 7.11 mnt of container cargo (EXIM + domestic), which remained flat YoY but declined by 12 per cent month-on-month (MoM).
Performance Comparison with Ports
While IR’s EXIM container volume grew by less than 3 per cent YoY for the first nine months of FY25, leading ports — including major public and private ports — reported a robust 9 per cent YoY growth during the same period. This suggests a higher mix of trans-shipment cargo, which may have reduced reliance on rail transport.
Additionally, changes in cargo origination closer to ports may have contributed to IR’s sluggish growth. Despite reporting a 3.1 per cent YoY rise in container volumes for 9MFY25, IR’s growth lags behind the 10 per cent YoY rise in total Indian port volumes.
Analysts suggest that this trend may indicate a shift in market share towards road transport. However, they also believe that factors like increasing trans-shipment cargo and changes in cargo positioning near ports might be influencing this trend, rather than a fundamental shift in the market.
Impact of the Dedicated Freight Corridor (DFC)
The Dedicated Freight Corridor (DFC), which has been connected to Mundra and Pipavav ports for the past three years, has so far yielded only modest benefits for stakeholders, including CTOs, IR, and port operators.
Key Players’ Performance
Key container train operators reported mixed performance during 9MFY25:
- Concor posted a 2 per cent YoY increase in originating container volumes, suggesting a slight recovery in market share.
- Gateway Distriparks saw a 5 per cent YoY decline, indicating operational weaknesses.
- Adani Logistics emerged as a bright spot, reporting a 10 per cent YoY growth, thereby gaining market share despite the overall weak environment.
- However, Adani Ports’ rail volume dropped by 6 per cent YoY to 50,000 TEUs, marking its first decline in 18 months.
Key Highlights:
- Indian Railways reports 4.1% YoY growth in container volumes for FY25-to-date.
- EXIM container volume growth remains weak at 0-2% YoY.
- Adani Logistics gains market share with 10% YoY growth.
- Concor shows slight recovery, while Gateway Distriparks faces decline.
- Adani Ports sees first rail volume decline in 18 months.