Anchoring to growth, profit

Observing India’s ports and shipping sector from within, it’s evident we’re witnessing unprecedented growth and transformation. The collective cargo handling by the 12 ‘major ports’, which are under the Union government’s ownership, soared to 819.227 million tonnes (mt) in FY24 from 784.305 mt the previous year.

Beyond this impressive figure is a narrative of strategic infrastructure development, technological advancements, and policy reforms. Specialised terminals like the International Container Transshipment Terminal (ICTT) in Cochin port and the LNG storage and regasification terminal in Dahej port are optimising resources and streamlining operations, contributing to the overall efficiency of the sector. Initiatives such as the Sagarmala logistics project are propelling port-led development, focusing on expanding cargo handling capacity and connectivity infrastructure, including road and rail projects, across coastal states.

Technological innovations are further catalysing the sector’s transformation. Port facilities like the Kolkata Dock System (KDS) have embraced RFID-based port access control, stepping up security and operational efficiency. The Port Community System for digitising documentation, Project UNNATI for skill development, and the National Logistics Portal (Marine) are streamlining data flow and operational processes, fostering transparency within the port ecosystem.

Public-private sector partnerships (PPPs) have helped drive growth. Non-major ports, comprising those owned by state governments as well as private ports run through PPPs, accounted for 45 per cent of port traffic in FY23. The Sagarmala programme, too, underscores the importance of PPPs in fostering sustainable growth.

Course ahead

The port sector’s trajectory remains promising. With the government committed to investing $82 billion in port projects by 2035 and plans for six new mega-ports under Sagarmala, the sector is poised for further expansion. Initiatives such as upgrading Syama Prasad Mookerjee Port in Kolkata and integrating renewable energy sources across key ports reflect a commitment to sustainability and global competitiveness.

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Of the 166 projects initiated at major ports under Sagarmala, 90 have been completed, resulting in capacity increase of over 230 mt per annum. Playing a crucial role in supporting the ports sector, the Indian government has permitted up to 100 per cent foreign direct investment (FDI) in port and harbour construction and maintenance projects, and a 10-year tax holiday for enterprises involved in developing, maintaining and operating ports.

This underscores the government’s efforts to promote seamless trade and economic progress. The ongoing expansion mirrors India’s strides in technological innovation and endeavours aimed at elevating port efficiency, which is a cornerstone of international trade. 

The priorities in the port zone are clear: maintaining momentum, enhancing performance, and fostering sustainable growth via strategic investments and public-private collaboration. The government’s upcoming annual budget is expected to focus on sustainability, initiatives like Blue Economy 2.0, the drive to achieve ‘Net Zero’ by 2070, and the development of port connectivity corridors to meet the sector’s evolving requirements. 

Improving trade efficiency through improved production of containers and vessels is critical, and the government support in this process is essential amidst global challenges. By addressing these needs and through timely investments, India’s ports are set to chart a course for even greater success in the years to come

(The writer is CEO of Jassper Shipping)