Lucknow Press
On September 29, India Ratings noted that Ind-Ra believes that rail operators will be able to achieve revenue growth in double digits with the exception of the grading for its perceived demand for grade a warehousing. Their expectations concerning the rental prices of warehousing are however relatively more pessimistic with 1-1.5 digit growth expected.
According to them, for sea transport, coastal freight and container freight will expand port activity, boost trade and foster the logistics between the United States and other countries with geopolitical goals.
As for the Indian logistics sector, India Ratings believes its outlook for FY26 remains bright, with the support of a favorable policy from the state, which includes investments in the development of ports, railways, roads and aviation.
Alike, it can be said that if rail operators put in more investment, their costs can be lower as well as their profits can be higher. As Pratik Mundhra, Associate Director, India Ratings states: ‘Our estimate puts operator revenue growth in the US, with private investment in rakes and dry terminals joining the operators in 2024, which should be enough to support growth in the high double digits rail operators revenue growth will be ‘in 2025. E-commerce will continue to increase rents for warehousing companies by 3-5% and the demand for grade-A space will also persist.’
Container freight station profits might go down in this financial year owing to the competition. In the same vein, freight forwarders’ earnings and margins will also suffer because of you guessed it the falling global freight rates.
You will obtain advantages because of government measures
Concerning India Ratings the myriad of measures outlined by the government like the National Logistics Policy and PM Gati Shakti Yojana will facilitate better linkages and co-ordination countrywide thereby enhancing the landscape for the logistics industry. In addition to this, a wider reach of ports will also be achieved through PPPs.
More private investment is required in rail networks, warehouses, and dry terminals in order to facilitate the advancement of India’s logistics sector. The LPI in India is anticipated to rise from 44 in 2018 to 38 in 2023, and goal is to break into the top 50 by 2030.
According to India Ratings, the profits derived from container trains will grow with the finalization of the Western Dedicated Freight Corridor. Although there is more competition to consider alongside that, and shifting factors with haulage cost as well. And still the perception of logistics is “stable” as their coping and financial results are good enough.
