New Delhi [India], March 5 (ANI): Indian Railways (IR) latest data indicates a sluggish growth trend in container volumes, raising concerns over the performance of container train operators (CTOs) in Q4FY25, according to a report by Nuvama.

For FY25-to-date (April 2024 - February 2025), IR's container volumes stood at 80.6 mnt, reflecting a modest 4.1 per cent YoY growth. However, EXIM container volume growth is estimated at just 0-2 per cent YoY, signalling continued weakness in the sector.

Although actual trade volume data is unavailable, estimates suggest that India's containerisable EXIM cargo (imports + exports) increased 9 per cent YoY in value terms between April-November 2024. However, a sharp 10 per cent YoY contraction in November 2024 raises concerns over sustained weakness in the sector.

Industry sources indicate that global trade uncertainties and geopolitical tensions continue to weigh on EXIM demand.

In February 2025, Indian Railways handled 7.11 million tonnes (mnt) of container cargo (EXIM + domestic), which remained flat year-on-year (YoY) but fell 12 per cent month-on-month (MoM).

While IR's EXIM container volume grew below 3 per cent YoY for firsts nine months of FY25, leading ports, including major and listed private ports, reported a robust 9 per cent YoY growth during the same period.

This suggests a higher mix of trans-shipment cargo, reducing the reliance on rail transport. Additionally, changes in cargo origination closer to ports may have contributed to IR's sluggish growth.

Despite IR reporting a 3.1 per cent YoY rise in container volume for 9MFY25, this growth lags behind the 10 per cent YoY rise in total Indian port volumes.

While this may indicate that IR has lost market share to road transport, analysts believe that increasing trans-shipment cargo and changes in cargo positioning near ports could be influencing this trend rather than a fundamental market shift.

Moreover, the Dedicated Freight Corridor (DFC) connection to Mundra and Pipavav ports, operational for the past three years, has so far yielded only modest benefits for stakeholders, including CTOs, IR, and port operators.

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. Meanwhile, Gateway Distriparks saw a 5 per cent YoY decline, indicating operational weaknesses.

Adani Logistics, however, stood out with a 10 per cent YoY growth, gaining market share despite the overall weak environment. On the other hand, Adani Ports' rail volume dropped 6 per cent YoY to 50,000 TEUs, marking its first decline in 18 months. (ANI)