Mumbai Port is the second oldest port in the country and is witnessing an increase in cargo traffic and the number of ships every year. In order to compete with global ports, Mumbai Port Authority is undertaking various initiatives to increase its efficiency and ensure smooth operations. At a recent Indian Infrastructure conference, Rajiv Jalota, Chairperson, Mumbai Ports Authority, and Chairperson, Indian Ports Association (IPA), discussed operations and expansion works at Mumbai Port, key initiatives for greening ports and the future outlook of the sector. Excerpts…
Current scenario
Mumbai Port handled an all-time high cargo of 67.26 million tonnes (mt) during 2023-24, surpassing the previous all-time high of 63.61 mt handled during 2022-23, registering a year-on-year increase of 6.14 per cent.
It emerged as one of the leading major ports of the country in terms of cargo handling during 2023-24. Other performance milestones for the port in 2023-24 include:
Crude oil handled at Jawahar Dweep recorded an all-time high tonnage of 23.34 mt, which surpassed the previous all-time high by 1.47 mt.
Steel cargo increased by 1.44 mt over the previous year.
MbPA (Mumbai Port Authority) Railway handled 0.19 mt traffic in February 2024, which is highest in the past 10 years and includes 0.17 mt of iron and steel cargo, which is the highest ever in a month (in iron and steel cargo type).
The number of domestic cruise calls handled at Mumbai Port rose from 91 in 2022-23 to 118 in 2023-24, registering an impressive growth of around 29.67 per cent.
The number of international cruise calls handled at Mumbai Port rose from 20 in 2022-23 to 27 in 2023-24, registering an impressive growth of around 35 per cent.
The average turnaround time improved from 67.42 hours to 62.97 hours in the year 2023-24, showing an improvement of 6.61 per cent.
The average Ship Berth Day Output improved from 10,035 tonnes to 11,152 tonnes in the year 2023-24, showing an improvement of 11.13 per cent.
The idle time reduced from 36.69 hours to 29.18 hours, showing an improvement of 7.51per cent.
Operations and expansion
Mumbai Port handles about 65 per cent of liquid cargo. Of this, approximately 55 per cent is crude and chemicals associated with refineries. It serves the refineries of Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL). Mumbai Port has reclaimed additional land at Jawahar Dweep to augment tankage capacity in collaboration with BPCL and HPCL. To increase the efficiency of the Marine Oil Terminal, we have implemented a SCADA system for the automation of the entire system. This project is in its final leg of completion. Another major area of activity is in anchorages, where lighterage operations take place. Mumbai Port initially planned to increase the anchorage area. However, a study conducted on cargo for the next 20 years shows that there is currently no need for any investment in increasing the anchorage area. Nevertheless, if there is an increase in demand from the industry, Mumbai Port may look at working towards the same. The port sector is primarily supply driven and with the push on the supply side, demand automatically picks up.
On the fishery front, due to the increasing number of fishing trawlers, Mumbai Port is increasing the capacity of the fishing harbour by developing a new fish jetty at Mallet Bunder, enabling fishing activity to grow and flourish. This initiative is financially supported by the PM Matsya Sampada Yojana and the Sagarmala Programme.
Passenger ferry services are also seeing traction. This is one that requires the development of new facilities, especially for ro-ro passengers (RoPax). We are conducting a study to have more berths in order to increase RoPax ferry services. Till now, only one RoPax vessel was operational, which has now increased to two with the operationalisation of another RoPax vessel in April 2024. With the upcoming Mumbai Trans Harbour Link enhancing connectivity, RoPax will gain more traction. Besides, the ONGC ferry for transport of its personnel to Bombay High is also operational now. We are also focusing on providing facilities such as batteries and transformers and greening the passenger ferries.
Sustainability and greening of ports
Sustainability and the greening of ports are expected to emerge as significant challenges for stakeholders. Therefore, a key priority for Mumbai Port is to become green at the earliest. We are trying to take certain measured steps in reaching those objectives. For instance, we have just completed our Scope 1 and Scope 2 greenhouse gas inventorisation, and our Scope 3 inventorisation is under way. This is expected to take about three to four months. Notably, Mumbai Port currently uses almost 90 per cent of renewable power for port operations.
Since most of the new cruise ships on order are shore power compliant, and more and more cruise terminals across the globe are gearing towards providing shore facility to cruise ships, we have also committed ourselves to providing shore power in 18-24 months for cruise ships berthing at our cruise terminals. At present, Mumbai Port is conducting a feasibility study, which is in its last leg, for providing this shore power facility.
We have also initiated the setting up of a centre of excellence (CoE) for ESG and a circular economy at Mumbai Port under the newly incorporated Mumbai Port Sustainability Foundation. The centre aims to implement the best practices for improving ESG ratings and aligning with circular economy principles to foster carbon neutrality and net zero in the shipping sector in India. The country aims to increase the share of renewable energy to 60 per cent of the total power demand at each of its major ports, a significant rise from the present share of less than 10 per cent. This will be facilitated primarily by solar and wind-generated power. The CoE will not only cater to major ports, but also serve as a platform to bring together the ports and shipping sector on key implementation measures to improve sustainability.
Growing demand and prospects
The MoPSW has implemented several measures to improve the efficiency and operations at ports; however, certain challenges remain. The launch of the PM Gati Shakti National Master Plan has spurred serious deliberation among ministries and departments regarding infrastructure development. As part of the PM Gati Shakti, several projects are under way and at various stages of development. These projects are expected to fill the infrastructure gap, wherever applicable. It is our Honourable Prime Minister’s resolve to provide the best-in-class infrastructure and remove all the bottlenecks. Of the total Indian population, the middle class is expected to reach around 60 per cent by 2050, from about 30 per cent in 2021-22. Thus, there will be substantial domestic demand, which will eventually put significant stress on the port sector. This is because our exports and imports are anticipated to rise by almost five times by 2050. Considering all of this, proper planning and development need to be in place.
One of the most important steps in making Indian ports globally competitive is encouraging active participation of the private sector, and the MoPSW is taking steps to ensure this. The increased role of the private sector in port development is aptly recognised in the Maritime India Vision 2030 and the Maritime Amrit Kaal Vision document 2047. The new Model Concession Agreement was launched in November 2021 and privatisation of various services delivery is being implemented vigorously in all ports. This is because private players bring efficiency, greater mechanisation and modernisation.
Conclusion
The Indian ports and shipping sector is growing in conjunction with the nation’s economy. Cargo volume growth is expected to follow similar patterns, with the transshipment segment expected to undergo a significant expansion. Private participation is expected to provide a push to the sector. One of the major trends anticipated at a macro level in the port sector is sustainability and the greening of ports. New opportunities in this segment are expected to come up as well. For instance, Tuticorin and Kandla ports are being positioned as hubs for wind power. Therefore, the development of an ecosystem at ports is necessary, which will lead to increased demand for frequent maintenance and management services. Mumbai Port still faces challenges related to cargo handling, especially in sectors such as automobiles, cement and steel, and substantial work is ongoing to address them. While it plans to increase efficiency and cater to the growing demand, it is imperative for the ports around Mumbai to plan for the further expansion of the Mumbai Metropolitan Area.
