The recently released World Bank’s Logistic Performance Index (LPI) Report 2023 has brought encouraging news for Indian ports as well as for the country’s logistics sector. India has moved up to 22nd rank in the global rankings on the “International Shipments” category from the 44th position in 2014. Moreover, the country has also secured the 38th rank on the LPI score.
The reason behind the vastly improved performance is the substantial reduction in the dwell time (the amount of time vessels spend in port actively loading or unloading cargo) at Indian ports. This has reached an optimum level of about three days only as compared to four days in countries like the UAE and South Africa, seven days in the US and 10 days in Germany. India has done well in another parameter that measures port operational efficiency: The country’s average turnaround time (TRT) of only 0.9 days is amongst the best in the world. In Belgium, Germany, the UAE, Singapore, Malaysia, Ireland, Indonesia and New Zealand it is 1.4 days, in the US 1.5 days, in Australia 1.7 days, in the Russian Federation 1.8 days and 2.8 days in South Africa.
This achievement is the result of large investments in the upgradation of infrastructure in the ports and shipping sector in the past few years. There has been a consistent focus on improvements in port efficiency and productivity through reforms, induction of new technologies, a greater thrust on public-private partnership and an overall commitment to the ease of doing business.
The capacity at 12 major ports in the country has increased from 871 million metric tonnes (MMT) in 2015 to 1,617 MMT in 2023. The total capacity of Indian ports has gone up from about 1,560 MMT in 2015 to more than 2,600 MMT. There has also been a nearly 150 per cent increase in the value of operationalisation of PPP projects in the major ports — from about Rs 16,000 crore in 2015 to more than Rs 40,000 crore in 2022-23. These PPP projects have contributed significantly to the increased operational efficiencies while adding nearly 300 MMT extra capacity during this period — they handle nearly 54 per cent of the total cargo in the major ports.
The focus on decarbonisation in the maritime sector along with the Panchamrit commitments of the government has reflected in the port sector: There has been a 14-fold increase in the use of renewable energy in major ports over the last eight years. Four of the major ports now generate more renewable energy than their total energy needs. The Harit Sagar Green Port guidelines issued by the government is another important step further in this direction — it aims to bring about a paradigm shift towards safe, efficient and sustainable ports while implementing sound environmental practices among all stakeholders.
The efficiency of ports has received a boost with the launch of the National Logistics Portal (Marine), a single-window digital platform for all stakeholders including those engaged in cargo services, carrier services, banking and financial services, and government and regulatory agencies. This along with the Sagar Setu app facilitates seamless movement of goods and services in ports while substantially enhancing the ease of doing business.
The Centre has also undertaken several key policy and legislative reforms to boost the port sector. This includes the Major Port Authorities Act, 2021 which grants greater autonomy to major ports. The Marine Aids to Navigation Act, 2021 that provides for increased safety and efficiency in vessel traffic services and training and certification at par with international standards. The Indian Vessels Act, 2021 which brings uniformity in law and standardised provisions across all inland waterways in the country. The government is also in the process of replacing the Indian Ports Act, 1908 with a piece of legislation that is in tune with present-day requirements.
Over the past few years, the government led by Prime Minister Narendra Modi has endeavoured to develop ports as hubs of economic activity. The global recognition of the operational efficiencies of Indian ports and the Indian maritime sector is an important step in India’s endeavour to become 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 are personal
