Logistics sector sees robust growth in freight activity in August 2023
GST e-way bill creation rose 20% while Railways reported 6.4% increase in cargo volumes, says Emkay Research report
By : The Federal
Update: 2023-10-27 14:18 GMT
In August 2023, various transportation sectors in India saw robust growth in freight activity, says a report by Emkay Research. GST e-way bill creation rose by 20 per cent year-over-year, while Indian Railways reported a 6.4 per cent year-over-year increase in cargo volumes. Major ports also saw a 4.4 per cent YoY growth in volumes. Container cargo specifically surged by 16 per cent YoY, a...
In August 2023, various transportation sectors in India saw robust growth in freight activity, says a report by Emkay Research.
GST e-way bill creation rose by 20 per cent year-over-year, while Indian Railways reported a 6.4 per cent year-over-year increase in cargo volumes. Major ports also saw a 4.4 per cent YoY growth in volumes.
Container cargo specifically surged by 16 per cent YoY, a marked improvement after a sluggish first quarter of FY24 (1 per cent YoY). This indicates favourable trends for rail logistics companies like Container Corporation of India and Gateway Distriparks, both of which are not rated, says the report.
Furthermore, the rail sector's market share in EXIM container trade has been on the rise, reaching 36.7 per cent in August 2023, a jump of 110 basis points YoY. This suggests benefits from the partial commissioning of the Western Dedicated Freight Corridor (DFC). The healthy uptick in GST e-way bill generation is a promising sign for road logistics companies like VRL Logistics, also not rated, especially as the industry appears to be transitioning from an unorganised to a more regulated structure due to increasing GST compliance requirements, the report says.