The Shaheen Express between Pipavav and Jebel Ali has been suspended since March, prompting the port to lower its volume expectations even as new services support growth.

Gujarat Pipavav Port Ltd expects to lose around 70,000-80,000 TEUs of container volumes in FY27 as the Shaheen Express service between Pipavav and Jebel Ali remains suspended amid the continuing Middle East conflict. The company now expects the service to remain suspended for the rest of the financial year, even as a new Maersk service and additional transshipment opportunities help cushion the impact.

“It has been a difficult quarter (Q1 FY27) with the Middle-East conflict. We have one service — Shaheen — which is a Middle East service operating between Pipavav and Jebel Ali which has remained suspended so far (since March 2026). We are now assuming it will remain suspended for the remainder of the financial year (2026-27). That is a substantial 70,000-80,000 TEUs of volumes we will lose because of Shaheen,” Girish Aggarwal, Managing Director of Gujarat Pipavav Port Ltd (GPPL) told investors during an earnings call on Thursday.

The Shaheen Express, which connects Pipavav with Jebel Ali, has been suspended since March 2026. Despite the loss of these volumes, the port expects container traffic to grow 4-5 per cent in FY27 to around 7,00,000 TEUs. Aggarwal said the impact was being partly offset by a new weekly Maersk service connecting the Far East with India, which includes Pipavav in its route network, along with additional transhipment opportunities that the port has been able to capture.

“What has helped is the growth from the new service started towards the end of June. This is a Maersk service. We have also captured some of the multiple opportunities of transhipment that are available proactively and we expect that to stay with us for the next 3-4 months and then we will see how it progresses. So overall the guidance is 4-5 per cent growth on the container volumes for the financial year,” he added. The new Maersk FI2 weekly service, which connects Far East Asia with India, has made around four calls at Pipavav so far. Aggarwal expects the service to build volumes as it matures.

“It is about four calls that have happened so far. Usually the service starts small and then they start to grow. I expect it will eventually turn out to be similar to Shaheen,” he said.

The Middle East conflict, however, continued to weigh on several cargo categories during the June quarter. Container volumes rose around 3 per cent year-on-year, while Ro-Ro volumes jumped 53 per cent. Dry bulk volumes declined 7 per cent, while liquid cargo fell 47 per cent, with LPG volumes registering a sharp 63 per cent decline.

Despite the disruption, the company maintained a positive outlook for the full financial year. It expects overall EBIT to grow 20-24 per cent year-on-year in FY27, with Ro-Ro volumes estimated at 2,60,000-2,70,000 cars, liquid cargo at 1.3-1.4 million tonnes and dry bulk at 2.4-2.6 million tonnes. Container volumes are expected to increase 4-5 per cent to approximately 7,00,000 TEUs.

Longer-term growth

The company expects the liquid cargo business to recover as supply chains adjust and alternative sources of LPG become available. “LPG has started to come from the US and we expect to catch up during the remainder of the year,” Aggarwal said. While liquid cargo declined sharply in the June quarter, Aggarwal pointed to the segment’s longer-term growth. “Over the last three years, the liquid cargo has grown from a little less than one million tonnes to 1.6 million tonnes during the last financial year. This is about a 60 per cent growth over the last three years,” he said.

The port had expanded its liquid handling capacity through an additional liquid jetty after customers sought higher volumes. Aggarwal said the current weakness was largely a consequence of the Middle East conflict rather than a structural deterioration in the business. “This quarter has seen a fundamental decline because of the middle-east conflict. We do see now some parts of the LPG volumes coming back through the US channels,” he said.

Another potential source of incremental liquid cargo is Aegis’s upcoming ammonia storage facility. Aggarwal said Aegis is commissioning a 36,000-tonne ammonia tank, which is expected to begin operations in September-October and could add further volumes to the port. “We do see continuous growth on the liquid side,” Aggarwal said.

Published on August 13, 2026