Turnaround time is the most commonly used indicator for measuring port efficiency. Approximately 95 per cent of India’s merchandise export by volume and 70 per cent by value is done through maritime transportation. Recognising this, the government has taken various steps to improve the turnaround time at Indian ports. These include the construction of new berths, terminals and parking plazas, mechanisation/modernisation/optimisation of existing berths and terminals, streamlining of processes through digitalisation and expansion of hinterland connectivity. Initiatives like these have led to a 50 per cent decline in the average turnaround time for major ports. The performance of ports and an efficient logistics sector have a significant impact on a country’s competitiveness.
Current statistics
India’s major ports registered a 9 per cent increase in turnaround time to 48 hours during 2023-24, driven by the strengthening of infrastructure and other processes. Previously, during 2022-23, the turnaround time at major ports stood at 52.9 hours. Average turnaround time at a port refers to the average difference between the date of departure and the date of arrival of vessels calling at the port. The average turnaround time at major ports in India significantly declined from 4.3 days in 2012-13 to two days in 2023-24. During the April-November period of 2024-25, this increased to 2.1 days. Faster movement through major ports has also resulted in the handling of more cargo. As a result, traffic at major ports increased significantly at a CAGR of 3.75 per cent from 545.83 million tonnes (mt) in 2012-13 to 817.98 mt in 2023-24.
This remarkable improvement in cargo handling efficiency at Indian ports is also reflected in its improved ranking in the World Bank’s Logistics Performance Index from 54 in 2014 to 38 in 2023. Moreover, nine Indian ports have made it to the global top 100 ranking in the 2023 edition of the Container Port Performance Index. Among these ports, Visakhapatnam port has been ranked at 19. It witnessed strong performance with 27.5 moves per crane hour, a turnaround time of 21.4 hours and minimal berth idle time. This highlights the port’s efficiency in handling container ships and significantly influences customer preference. Meanwhile, eight other Indian ports which secured top ranks are Mundra port (ranked at 27), Pipavav (41), Kamarajar (47), Cochin (63), Hazira (68), Krishnapatnam (71), Chennai (80) and Jawaharlal Nehru Port (96).
Initiatives for improving efficiency
In recent years, several measures have been implemented by the government to improve the overall performance of Indian ports. Some of the key initiatives introduced are the Sagarmala Pariyojana, PM Gati Shakti and the National Logistics Policy. Additionally, various reforms have been implemented to smoothen processes at ports, such as transitioning to a paperless system for various clearances, implementing faceless assessment by the customs department and introducing provisions for e-way bills. In addition, the priority berthing policy for coastal vessels has been notified to reduce the turnaround time for coastal vessels and improve their utilisation. These measures have reduced the turnaround time, improving the overall efficiency at major ports.
Additionally, various initiatives are being undertaken at different ports to reduce average turnaround time. Over the years, Jawaharlal Nehru Port has emerged as the top major port in India with the least average turnaround time. The port has recorded an average turnaround time of 26.88 hours during the April-November period of 2024-25. Measures taken by the port authority towards reducing the turnaround time include the establishment of an extended yard (centralised parking plaza), which resulted in reduced queue outside the port gates and faster customs clearance processes for containers; better road and rail connectivity; streamlining the berthing and unberthing of vessels; and deploying more tugs for efficient ship movement. Additionally, the inter terminal transfer of tractor trailers has helped in reducing about 7.5 km distance of trailer movement on road, turnaround time of trucks, fuel use, pollution, cost of handling and enabled optimum utilisation of trailers.
Automatic gates powered by optical character recognition technology have also been deployed for the first time in India at the Nhava Sheva (India) Gateway Terminal (NSIGT). This technology, which can complete transactions in less than three seconds, enables faster turnaround times, improves operational efficiency and productivity, and ensures the seamless movement of freight via the human-machine interface. The average turnaround time at the NSIGT stood at 23.51 hours during the same period.
Further, the Ministry of Ports, Shipping and Waterways has requested the Mormugao Port Authority to ensure that cargo ships do not take more than 51 hours to unload their cargo and leave the berth. To achieve this target, the port is planning to upgrade the vessel traffic management system (VTMS). The VTMS provides a highly sophisticated computerised radar and automatic identification system for controlling vessel traffic and ensuring safety in the navigational channel and other areas. It manages the process of a vessel entering and leaving the port. IIT Madras has developed an indigenous VTMS, which has been tested at some of the ports in the country and is expected to be implemented at all major ports.
Among the non-major ports, Adani Ports Special Economic Zone (APSEZ) is driving transformational change by establishing new operational benchmarks. Currently, its average turnaround time for ships stands at about 0.7 days. APSEZ has also established a state-of-the-art logistics strategic command centre in Ahmedabad. This centre acts as a primary information hub for all logistics operations and leverages advanced data analytics to improve turnaround time, increase asset utilisation, monitor service level agreement adherence and maintain safety standards.
Other port authorities have also held discussions in the recent past with shipping lines and other stakeholders to identify procedural bottlenecks and hasten cargo evacuation processes at ports.
Looming challenges
There have been uncertainties with regard to the time taken for clearances and processes. This means that exporters and importers need to account for some buffer time, resulting in a longer stay of vessels at ports. This time extension adds to logistics costs. Moreover, the standard deviation in the average release time for exports decreased by 18 per cent in 2023 from 2022. However, it is still very high and needs to be further reduced.
Similarly, the customs process at ports has been considerably quickened. However, other processes, such as the entry of trucks at terminal premises, security clearances and the loading of cargo on to vessels, still take an inordinate amount of time. There is a need to focus on reducing the time for these processes as well.
Other key challenges include the underleveraging of domestic waterways, constrained rail infrastructure, and last-mile connectivity to ports and key industrial hinterlands. Further, limited dredging capacity and delays in obtaining approvals can slow down the turnaround time at ports.
Steps forward
According to the United Nations Conference on Trade and Development, the global median ship turnaround time was 1.04 days in 2022. Despite notable improvements in port efficiency over the past decade, the turnaround time needs to be further reduced in order to improve India’s competitiveness at the global level.
The Maritime India Vision 2030 targets a reduction in turnaround time to less than 20 hours by 2030 by undertaking measures such as mechanised handling, better yard management, improved evacuation infrastructure and multimodal logistics. Going forward, India aims to increase its share in global value supply chains.
Indian ports have significant potential to improve vessel turnaround time, which will affect the overall logistics costs. Driven by the increase in coastal shipping, cargo volumes are expected to increase further in the coming years. Thus, it remains essential for Indian ports to improve service and strengthen rail and road connectivity linkages to benefit the trade. In addition, port-based silo infrastructure should be built to reduce inefficiency in handling commodities at ports. Skilled resources are also essential, as improved labour productivity will hasten the cargo evacuation process. Moreover, the simplification and digitisation of customs processes are required to further improve turnaround time at Indian ports.
Sidra Siddiquie
