The Indian maritime sector plays a critical role in its expanding trade economy. As the country advances its position as a global economic player, it becomes imperative to align port operations with customers’ evolving needs to ensure seamless trade flows. The key stakeholders in this port ecosystem are port operators, the industries that rely on ports for importing essential materials, and the energy companies handling substantial volumes of crude oil and liquefied petroleum gas (LPG). While challenges exist, these entities are implementing innovative solutions that will be crucial in shaping the future of India’s maritime sector.
Indian ports, which currently handle around 95 per cent of the country’s trade by volume, are at a crossroads, with the growing pressure to meet expanding demand while managing cost and enhancing efficiency. However, the changing dynamics between port operators and their customers reveal a trend of adaptation, collaboration and long-term strategic planning.
A shift towards customer-centric operations
As India’s trade and industrial demands escalate, port operators are rapidly adapting to the evolving needs of their customers. Over the years, major players in the terminal operations space have evolved from mere facilitators of trade to becoming customer-centric hubs designed to optimise operations and ensure the smooth movement of goods. For instance, APM (a part of A.P. Moller Maersk) terminals have become more customer centric by implementing solutions based on their needs.
Most port operators’ strategies revolve around minimising the turnaround time for ships and improving berth availability. Other focus areas include providing faster transit times, reducing operational costs and improving the competitiveness of Indian exports.
Evaluating efficiency of container shipping lines
Container shipping lines have seen significant improvements in terms of cargo handling and operational efficiency at major ports over the years. With the increased capacity of terminals, improved road and rail connectivity and the development of dedicated freight corridors, port operations in India have become significantly more efficient. A major milestone in this progress is the reduction of transit times by 30 per cent, largely due to the dedicated freight corridor from Mundra.
Besides, the implementation of the One Nation, One Port policy has been a crucial step in standardising procedures across all Indian ports. This initiative aims to eliminate the difficulties caused by varying customs processes at different ports and streamline operations of shipping lines. The outlook is promising, with the reduction in paperwork down from 15 documents to only seven, signalling a shift towards a more streamlined, digital approach.
However, shipping lines continue to emphasise the need for stronger collaboration between port operators and government authorities to further reduce delays and costs. While infrastructure is improving, some regulatory challenges still remain. The aim is to create a more synchronised ecosystem that benefits all stakeholders, from shipping companies to terminal operators and their customers.
Sustainability in port operations
Sustainability has become a top priority across all infrastructure sectors. As the maritime industry faces increasing pressure to reduce its environmental footprint, port operators are investing in green initiatives aimed at minimising carbon emissions and promoting long-term sustainability.
For instance, APM Terminals is taking significant steps to reduce its carbon footprint by transitioning to solar energy. With a solar power plant now supplying 80 per cent of its electricity, the operator has managed to reduce its total carbon emissions by 40 per cent. Besides energy efficiency, the company is exploring electric vehicles (EVs) to replace its fleet of diesel trucks. This transition is expected to reduce the overall carbon emissions of port operations, with pilot projects already under way to convert the fleet to electric trucks. However, challenges still remain. Port operations, which run throughout, make it difficult to implement EVs at a large scale. While electric trucks provide environmental benefits, their charging infrastructure poses challenges such as increase in cost. To overcome this, the company is piloting battery-swapping technology, a potentially transformative solution that could mitigate the limitations of conventional charging.
In line with global standards, the International Maritime Organization (IMO) regulations require shipping lines to reduce carbon emissions. As the maritime industry moves towards dual-fuel vessels, major ports are expected to provide bunkering services for these ships by 2030. Ports will play a critical role in facilitating this transition, enabling the shift towards sustainable maritime operations.
Looming challenges
Manufacturing sector
Industries relying heavily on the port sector for raw materials such as steel manufacturers, in particular, face challenges due to inefficiencies in port operations, specifically in securing priority berthing for coastal shipments. India’s ambitious target to expand its steel capacity to 330 million tonnes is closely tied to the imports of iron ore as it is the primary raw material for steel production. Yet, the inability to access timely services at the Gangavaram, Visakhapatnam and New Mangalore ports remains a major roadblock.
The demand for efficient port operations is a necessity for industries to stay competitive in a global marketplace. A lack of streamlined processes at ports only increases delays, which trickle down the supply chain and result in higher production costs. For steel manufacturers, the need for strengthening collaborations with port operations is very critical. Energy sector
The energy sector faces its own set of unique logistical challenges. With 85 per cent of crude oil and 55 per cent of LPG being imported to meet the country’s energy demands, the logistical processes involved in transporting these fuels are highly specialised. Ports play an integral role in handling hazardous materials such as LPG and crude oil, and the infrastructure required to discharge and store these materials cannot be easily replicated at new ports. For companies such as Bharat Petroleum Corporation Limited (BPCL), the waiting period for vessels carrying imported crude oil and LPG can stretch from four to seven days, leading to significant operational inefficiencies. Besides, longer-than-expected delays, stretching to 10-11 days, in shipments of petroleum and oil products can create disruptions in supply chains, leading to an increase in cost and instability.
These delays not only affect the financials of the companies but also contribute to higher carbon emissions as vessels remain idle longer than necessary. To address this, BPCL is building a 2,800 km pipeline from Kandla to Gorakhpur, which aims to reduce reliance on road transportation by 30 per cent. This move is part of a broader strategy to enhance the energy sector’s efficiency while minimising its environmental impact.
Future ahead
The future of India’s ports depends on collaboration among various stakeholders. The growing demand for efficiency, sustainability and cost reduction requires a joint effort by port operators, industries, energy companies and shipping lines. Every stakeholder has a pivotal role to play, and working together will not only resolve logistical challenges but also foster an environment conducive to long-term growth.
To remain competitive, ports must continue to invest in infrastructure, technology and green initiatives while also improving the customer experience. The need for seamless operations and efficient service delivery is more pressing than ever. As the maritime logistics sector embraces innovation and sustainability, the synergy between ports and their customers will be key to positioning India as a global leader in maritime trade. w
Based on a panel discussion among representatives from BPCL, Container Shipping Lines Association, Gateway Terminals India (APM Terminals) and KIOCL Limited at a recent Indian Infrastructure conference
