In recent years, the Indian port sector has witnessed remarkable progress on account of improved cargo handling infrastructure, efficient logistics and the adoption of technology-driven solutions. The government has launched the Maritime India Vision 2030 (MIV 2030) and the Maritime Amrit Kaal Vision 2047, with the aim of developing world-class ports and promoting inland water transport, coastal shipping and sustainable maritime operations. Leading industry experts present their views on the progress in the port sector, recent initiatives and growth drivers, key challenges, and focus areas…
What has been the progress in the ports and shipping sector over the past year? What have been the key milestones?
Rajiv Agarwal
The Indian port sector has made remarkable advancements in recent years, with significant improvements in both infrastructure and cargo handling efficiency. During financial year (FY) 2024, Indian ports handled around 1,539 million metric tonnes (mmt) of cargo, registering a growth of around 7 per cent over the previous year. Major ports registered a growth of around 4 per cent and non-major ports 11 per cent. Policy measures have been crucial in supporting Indian port infrastructure development. The Indian government has launched Vision 2047, a comprehensive road map for maritime transformation over the next 25 years in order to enable India’s leap towards a global maritime hub. The aim is to reduce business costs, slow down environmental degradation, improve logistical efficiency and create jobs. The sector is steeped in opportunities, with India’s overall port capacity set to increase to 10,000 mmt and traffic to around 7,000 mmt by 2047.
Rinkesh Roy
During the past year, several geopolitical events have directly or indirectly affected the overall economy, especially the ports and shipping sector. Trades from Europe and America have become costlier and transit time has increased. Despite this, Indian ports have shown significant growth in volumes.
During FY 2023-24, Indian port volumes grew at 7.5 per cent and handled around 1,540 mmt of cargo, of which around 819 mmt was handled by major ports and around 721 mmt was handled by non-major ports. The major ports experienced a growth of around 4.4 per cent and non-major ports a growth of 11.2 per cent.
JSW Infrastructure’s volumes grew by 14 per cent during FY 2023-34. Third-party contribution to the cargo mix also increased to 40 per cent during FY 2023-24 compared to 32 per cent in FY 2022-23. In addition, container and liquefied petroleum gas operations commenced at Jaigarh port in 2023.
Unmesh Sharad Wagh
In FY 2024, India’s major ports handled 817.97 million tonnes (mt) of cargo, a 4.45 per cent increase from 784.31 mt in FY 2023. Further, in March 2024 alone, India’s container trade grew by 5 per cent over January 2024, reaching nearly 1.9 million twenty-foot equivalent units (TEUs).
In order to enhance operational efficiency, including mechanisation, draught deepening and faster evacuation at Indian ports, the government has been implementing several measures. One important initiative was the Global Maritime India Summit, organised in October 2023. This provided a platform to showcase global best practices in the port and maritime sector, and strengthen investment partnerships.
The Jawaharlal Nehru Port Authority (JNPA) is India’s first 100 per cent landlord and premier container port. It has always been at the forefront of transforming India’s port operations. It accounted for over half of the total container volumes at major ports in FY 2024. A recent major milestone for JNPA was receiving cabinet approval for the development of a greenfield port at Vadhvan, Maharashtra. The Honourable Prime Minister laid the foundation stone on August 30, 2024 for the Vadhavan Port. This port will be a mega smart, green port of the 21st century, ranking among the top 10 ports globally.
What initiatives are being taken to enhance capacity and promote digitalisation?
Rajiv Agarwal
Essar Ports has been a pioneer in offering multimodal logistics solutions across its facilities, including coastal shipping, industry-integrated conveyor and pipeline solutions, vendor-managed stockyard solutions and rail movement. This has enabled the company to provide best-of-class services that can be benchmarked globally. Over the years, Essar Ports has developed 168 million metric tonnes per annum (mmtpa) of port capacity in India through investments of over $1.5 billion, with technology and automation at the core.
We are on the brink of a transformational journey where efficient logistics, technology-driven solutions, green energy and value-added services will play a major role. Essar plans to diversify the cargo profile at its 20 mmtpa Salaya port and is also pursuing the expansion of its facilities. Railway connectivity, green energy solutions (such as liquefied natural gas and green ammonia) and handling of clean commodities are some of the high-value services that the terminal will deploy in the future. We are also actively pursuing opportunities, both at the national and international levels, that are aligned with our business model.
Rinkesh Roy
Today, our operating capacity is 170 mmt. We won the bid to build one berth at V.O. Chidambaranar Port and two liquid berths at Jawaharlal Nehru Port. We are also developing greenfield ports at Keni in Karnataka and Jatadhar in Odisha. In 2023, we added one liquid terminal at Fujairah port. We also acquired the majority shareholding in PNP port on the Amba river. Our growth strategy involves leveraging all available opportunities, including the public-private partnership model at major ports, greenfield development at non-major ports, and acquisitions and joint ventures in India and abroad.
We are also focusing on logistics and other value-added services as per the company’s long-term vision of building a pan-Indian logistics network for last-mile connectivity. As the first step, we have acquired a majority stake in Navkar Corporation Limited. We also won the bid to develop a multimodal cargo terminal at Arrakonam in Tamil Nadu.
Unmesh Sharad Wagh
India’s maritime sector plays a pivotal role in facilitating cargo transshipment. With growing demand, throughput at Indian ports is nearing capacity limits. To meet this demand, it is essential to construct new greenfield ports and expand existing ones. Upcoming projects such as Vadhavan port will help meet the growing demand and facilitate cargo transshipment.
Several infrastructure projects are underway at JNPA, with a key focus on capacity enhancement. The Fourth Container Terminal, Phase II, is currently under construction, and is set to be completed by April 2025, increasing the port’s total capacity to 10.4 million TEUs. Additionally, Vadhavan port will have the capacity to handle 23 million TEUs of container traffic, once fully operational in 2034. JNPA is also actively developing multimodal logistics parks in Wardha, Jalna and Nashik to enhance connectivity between the port and Maharashtra’s hinterlands.
On the digitalisation front, we recently inaugurated CPP VisionX, a desktop application that provides real-time traffic data for container-carrying trucks and trailers. This system integrates advanced technology for comprehensive traffic management, ensuring smooth operation and minimal disruption. It generates automatic alerts for scenarios such as traffic congestion, unauthorised parking and unexpected delays, enabling proactive traffic management and quick decision-making.
Last year, we introduced the Port Driving Permit system, and within a year, we have issued 109,647 permits, with 1,697 transporters utilising this facility. The installation of a mobile container scanner for export containers at the Centralized Parking Plaza (CPP) at JNPA is in progress, with scanning operations expected to commence within the next six months. Additionally, weighbridges have been installed at two entry gates, with installations at two more gates currently under way.
What has been the progress in making port infrastructure sustainable and green?
Rajiv Agarwal
Mechanisation, automation and the adoption of state-of-the-art technologies have led to an increase in operational efficiency, streamlined cargo handling processes and sustainable solutions for customers. Investments in port infrastructure have a significant impact on a nation’s GDP and its EXIM competitiveness.
Essar is focused on investing in existing operations and building new assets with more efficient, carbon-neutral and new-age technologies, which will be sustainable and aligned with our theme of energy transition as well as the country’s net zero goals. The company’s key focus areas include:
- Provision of shore power for reducing maritime emissions from ships at ports
- Use of renewable energy and promotion of the hydrogen economy (including green ammonia).
- Green transportation of cargo using mechanised facilities and green freight movement.
- Use of technology for ensuring supply chain visibility and enhanced system uptime.
- Development of next-generation green port infrastructure.
All of these are essential for the green ports of tomorrow.
Rinkesh Roy
We are transitioning to green energy to meet the energy needs of our ports and terminals. For instance, when we took over the Ennore coal terminal in November 2020, its power consumption was entirely reliant on thermal energy. Today, however, only 10 per cent of our power needs are met by thermal energy, with 90 per cent fulfilled by green energy.
We are also implementing the use of electrical vehicles at our port sites and have successfully conducted trials for using blended biodiesel. We are continuously working on process improvement, with the goal of becoming carbon neutral by 2050.
Unmesh Sharad Wagh
The Ministry of Ports, Shipping and Waterways (MoPSW) has developed the MIV 2030 to accelerate the growth of the maritime sector, enhance operational efficiency, and create safe, sustainable and world-class ports. According to the MIV guidelines, the share of renewable energy at major ports is targeted to exceed 60 per cent by 2030.
At JNPA, as part of our sustainability initiatives and vision for a green future, we have conducted a mega tree plantation drive, with over 116,000 saplings planted in the green belt zone of the JNPA SEZ. Additionally, all our container terminal operators are transitioning to green energy. As part of our green port initiatives, we have provided shore power supply to tugboats, reducing diesel consumption, air and noise pollution. We have a pilot project in the pipeline to extend shore power to vessels as well.
I am pleased to highlight that JNPA’s share of green energy has already reached 44 per cent. We are optimistic about achieving 50 per cent by the end of FY 2025 and confident that we will exceed the 60 per cent target set under MIV 2030. Furthermore, we are actively working to eliminate diesel vehicles from our port premises, replacing them with electric trucks to create a zero-emission port and green logistics supply chain. Last month, we launched two zero-emission trucks which will ply inside the port. In the near future, we will increase their numbers.
To encourage green projects within the port area, we have initiated the rejuvenation of existing water bodies located at the Sheva Temple, Sheva Foothill and near the CPP Plaza. These lakes were inaugurated by the Honourable Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal. We have named these lakes after the great saints of Maharashtra. This project has been included in the National Action Plan for Climate Change by the MoPSW and is part of MIV 2030.
The project addresses the need to rejuvenate stagnant waterbodies, recognising water as a precious resource and seeking to enhance the ecological value of the surrounding environment. The rejuvenation of these waterbodies will benefit the rich biodiversity of the JNPA area, supporting birds, butterflies, flora and fauna that rely on this resource. Additionally, it will serve as an attraction for tourists.
What are the key challenges that remain unaddressed?
Rajiv Agarwal
Port infrastructure development in India faces several significant challenges. The key issues requiring prompt action include inadequate last-mile connectivity, congested road and rail networks, low utilisation of existing infrastructure, unavailability of long-term and low-cost financing options and delays in decision-making. In addition, efficient land acquisition processes and timely environmental clearances are essential to prevent unnecessary delays. Addressing these challenges successfully requires a collaborative approach involving the government and private sectors with streamlined policies. This will spur growth in the sector.
Rinkesh Roy
Decarbonisation, tight labour markets, cybersecurity, unstable power politics (globally), protectionism (trade policy) and regulatory compliance are some of the key challenges putting pressure on profit margins in the sector.
Unmesh Sharad Wagh
One of the key challenges that remain unaddressed is increasing the rail share by shifting cargo from road to rail. Achieving this requires the completion of the dedicated freight corridor (DFC) project. While JNPA is fully prepared with DFC-related facilities, the project’s completion is still pending. Once operational, it will significantly reduce road traffic and fuel consumption.
What will be the key focus areas and growth drivers in the future?
Rajiv Agarwal
Evolving global supply chains will spur a shift in trade lanes and the mode of delivery, particularly in the energy sector, in segments such as oil and gas. Meanwhile, the focus on carbon neutrality and energy transition will drive the adoption of green infrastructure (mechanised terminals, green hydrogen and electric vehicles), emphasising sustainability.
Ports and terminals must adapt these changing dynamics by incorporating multimodal connectivity, green ports, hydrogen transportation through ammonia, and digitalisation of the supply chain. As part of the energy transition, Essar Ports plans to expand its 20 mmtpa Salaya port and develop it as a next-gen green port with a capacity of 50 mmtpa.
Rinkesh Roy
The port sector thrives on the three Cs – crude, coal and containers. These three commodities together account for more than 75 per cent of the cargo volume. India is witnessing a significant increase in coal movement and improved efficiencies in coal supply chain management. Meanwhile, alternative sources of energy such as solar, wind and hydro are increasingly replacing traditional modes of energy supply in the country. However, the increasing demand for energy will drive coal volume growth for at least the next 20 years. In the coming years, there will be a greater requirement for containers, pipelines and tanks to transsport or tranship materials. As a result, strategic locations and investments in these sectors are expected to emerge.
In the coming years, trade with the East is expected to grow more as compared to the West due to its abundant natural resources and manpower.
Unmesh Sharad Wagh
The key focus areas and growth drivers in India’s port sector in the coming years will include infrastructure expansion, digitalisation, upskilling of professionals working in the port sector and sustainability. The development of new greenfield ports, such as Vadhavan, alongside the expansion of existing facilities, will be critical to accommodating increasing cargo volumes. Emphasis will also be placed on enhancing operational efficiency through advanced technologies and automation. Sustainability initiatives, such as increasing the share of renewable energy and green logistics, will be prioritised.
