By S. Sittarasu, Strategic Advisor, Kolkata and Haldia Ports Authority
The Indian port sector is witnessing a renewed focus on port-led development, particularly driven by government programmes such as the Sagarmala.
A key thrust area has been the development of port-linked industrial clusters. Coastal economic zones have been conceptualised as large industrial regions, each spanning significant land parcels, aimed at promoting manufacturing and trade. Within these zones, specialised facilities such as special economic zones and free trade warehousing zones have been developed to attract global investors.
One of the early implementations was at Jawaharlal Nehru Port, where a sizeable land parcel was earmarked for such activities. The initiative witnessed strong interest from international companies exploring manufacturing and logistics opportunities in India.
In recent years, multiple companies have established operations within port-linked industrial ecosystems. Additional concepts such as bonded manufacturing zones and industrial development centres are also being explored to strengthen the value proposition.
That said, challenges remain, particularly in aligning regulatory frameworks and land allocation mechanisms. Competitive bidding processes and policy constraints have, in some cases, impacted the pace of project implementation. In such scenarios, coordination between state governments, marine boards and industrial development corporations can play a key role in facilitating developments.
New opportunities are also being identified across port-based industrial zones, smart industrial port cities and emerging sectors such as green hydrogen and green ammonia production. Moreover, investments are being directed towards shipbuilding and ship repair, with significant capital expenditure of around Rs 760 billion planned across various locations. Several ports have already identified sites for such developments, with private sector participation being encouraged.
Initiatives and progress at Kolkata and Haldia ports
At Kolkata and Haldia ports, efforts are underway to enhance private sector participation through the public-private partnership model. Specific land parcels have been identified for development, including approximately 200 acres at Haldia, which is being positioned for private investment.
In addition, dedicated zones such as food processing clusters are being planned to attract industry players. Container terminals and other port facilities are also being opened up to private operators, with the landlord port model being adopted.
Under this approach, the port authority retains ownership while operations are carried out by private entities. The expected outcomes include investments in the range of Rs 15 billion-Rs16 billion, along with employment generation for approximately 10,000-12,000 people. Revenue generation from land monetisation is also projected to be significant.
Draught availability has traditionally been considered a constraint for ports such as Kolkata and Haldia. However, ongoing dredging activities and operational measures have enabled these ports to maintain navigability for a range of vessels.
Current draught levels support Panamax vessels, allowing cargo movement in the range of 50,000-60,000 tonnes. Over time, cargo handling capacity has expanded steadily, with Haldia handling around 70 million tonnes (mt) and Kolkata handling approximately 17-18 mt.
This growth indicates that while draught limitations exist, they have not significantly hindered overall cargo expansion.
Evolving port ecosystem and future approach
The port sector is gradually moving towards a hub-and-spoke model, with deep-draught ports functioning as mainline hubs and others serving as feeder ports. In this context, efficient land utilisation and industrial integration are becoming increasingly important.
At the national level, efforts are focused on improving operational efficiency, including reducing vessel turnaround times. While progress has been made, further improvements are required to align with the global benchmark.
Land availability remains a key advantage, with ports collectively holding large land banks across the country. However, the availability of supporting infrastructure and investor confidence are critical factors influencing the pace of development.
Another area of focus is reducing logistics costs by bringing industrial clusters closer to ports. Current distances between manufacturing centres and ports in India remain higher than global standards, impacting overall efficiency.
In sum, the development of port-led industrialisation requires coordinated efforts between central and state governments. While policy frameworks are often driven at the central level, key enablers such as land, incentives and infrastructure fall within the domain of state governments.
Indian ports must evolve from cargo-handling locations into integrated industrial, logistics and investment platforms to global context. Those who can align land, policy, connectivity and investor confidence will shape the next phase of India’s growth story.
