The recently released World Bank’s Logistic Performance Index (LPI) Report 2023 has brought some encouraging news for the Indian Ports and logistics sector. India has moved up to 22nd Rank in the global rankings in International Shipments Category from the 44th position in 2018. Moreover, the country has earned 38th rank in the overall LPI score, an improvement from the earlier 44th position.

The reason behind the vastly improved performance is the substantial reduction in the dwell time at Indian Ports, which has reached an optimum level of about three days only as compared to four days in countries like UAE and South Africa, seven days in USA and 10 days in Germany.

Likewise, in another Sectoral parameter for measuring Port operational efficiency, the average Turn Around Time (TRT) in India at .09 days is amongst the best in the world as compared to 1 to 1.4 days in Belgium, Germany, UAE, Singapore, Malaysia, Ireland, Indonesia, New Zealand etc., 1.5 days in the US, 1.7 days in Australia, 1.8 days in the Russian Federation and 2.8 days in South Africa.

This achievement is a result of the sizeable investments made in the ports and shipping infrastructure upgrade.

Cargo handling zooms

The capacity at the 12 major ports increased from 871 Million Metric Tonnes (MMT) in 2015 to 1,617 MMT in 2023, up 86 per cent. Likewise, for Indian Ports as a whole, the capacity has gone up from about 1,560 MMT in 2015 to more than 2,600 MMT boosting the cargo handling capacity.

There has also been a nearly 150 per cent increase in the value of operationalisation of PPP projects in the Major Ports, from about ₹16,000 crore in 2015 to more than ₹40,000 crore in 2022-23. These PPP projects have also contributed significantly to the increased operational efficiencies while adding nearly 300 MMT extra capacity during this period and amounting to nearly 54 per cent of the total cargo handled in the Major Ports.

There has been a fourteen-fold increase in the use of renewable energy in Major Ports over the last eight years, with four of them generating more renewable energy than their total energy needs.

The ‘Sagar Setu – National Logistic Portal – Marine’ is a Single Window Digital Platform for all stakeholders including Cargo Services, Carrier Services, Banking and Financial Services and those related to regulatory and participating Government Agencies. This along with the ‘Sagar Setu’ App facilitates seamless movement of goods and services in the Ports while substantially enhancing the ‘Ease of Doing Business’ parameters.

Port autonomy

The Centre has also undertaken several key policy and legislative reforms to further boost the Port Sector by promulgating the Major Port Authorities Act, 2021 which grants greater autonomy to the major Ports thereby enhancing the flexibility in decision making.

The Marine Aids to Navigation Act, 2021 provides for increased safety and efficiency in Vessel Traffic Services, Training and Certification at par with International standards. Similarly, the Indian Vessels Act, 2021 facilitates integrated vessel movement through our waterways, both inland and coastal, by bringing in uniformity in law and having standardised provisions across States.

The government is also in the process of replacing the Indian Ports Act, 1908 with a more dynamic and relevant Act, keeping in mind the present-day requirements.

Over the past few years, the government has constantly endeavoured to develop the ports as hubs of economic activity due to a series of initiatives and policy reforms led by the Prime Minister. This global recognition for the operational efficiencies of the Indian Ports and the Indian Maritime Sector, as mentioned in the World Bank LPI Report 2023, encourages the country’s march towards becoming a global maritime power as envisaged in the Maritime India Vision, 2030.

The writer is Secretary, Ministry of Ports, Shipping and Waterways, Government of India. Views expressed are personal