India’s ports and shipping sector has made remarkable progress, emerging as a key driver of trade and economic growth. From record cargo volumes to faster turnaround times, the sector has steadily modernised through technology, digitalisation and sustainable practices. Private participation and public-private partnership (PPP) projects are reshaping port infrastructure, while greenfield developments and mechanisation are expanding capacity to meet future demand. Technology is enabling safer, more transparent and efficient operations, while sustainability initiatives, from renewable energy adoption to reduced emissions and resource conservation, are redefining long-term growth. Industry experts highlight the performance of the port sector, recent initiatives, key challenges and the future outlook for the sector…
How would you assess the performance of the ports and shipping sector over the past year? What were the key achievements?
Ashish Vijay Rajgarhia
Over the past year, the Indian ports and shipping industry has demonstrated significant progress. India is moving towards a more sustainable and technologically advanced maritime sector. The port sector witnessed record-breaking cargo handling, enhanced operational efficiency, and a renewed focus on sustainability and infrastructure development. During FY 2025, on an all-India basis, Indian ports handled around 1,593 million metric tonnes (mmt) of cargo, registering a growth of around 3 per cent – the major ports registered a growth of around 4 per cent, and non-major ports registered a growth of around 2 per cent in FY 2025. Containerised cargo has been growing at a rate of over 10 per cent over the past two years, and now accounts for more than 20 per cent of the total cargo handled at Indian ports. Liquefied natural gas and liquefied petroleum gas require specialised facilities, which are being developed at a fast pace. These developments will support the adoption of cleaner and greener fuel, which will drive the energy transition.
Policy measures and a focus on port connectivity projects have also played a crucial role in supporting infrastructure development. The government has unveiled Vision 2047 – a comprehensive road map for maritime transformation over the next 25 years, enabling India’s leap towards becoming a global maritime hub. The objective is to reduce business costs, limit environmental degradation, improve logistical efficiency and create jobs. The sector is brimming with opportunities, with port capacity expected to increase to around 10,000 mmt and traffic to 7,000 mmt by 2047.
On the shipping side, India’s ranking in the World Bank’s International Shipment Logistics Performance Index improved significantly, from 44 in 2018 to 22 in 2023, showcasing the effectiveness of the efforts being made. These advancements collectively highlight a period of strong growth and strategic direction for India’s ports and shipping sector, positioning it for further expansion and a more prominent role in global trade.
“The sector is brimming with opportunities, with India’s port capacity expected to increase to around 10,000 mmt and traffic to 7,000 mmt by 2047.” Ashish Vijay Rajgarhia
Rinkesh Roy
The key metrics for measuring performance include capacity additions, volume growth and efficiency. The Indian port sector has grown at a steady CAGR of around 4-5 per cent, with a similar trend observed last year. The major growth contributors are the three Cs – crude oil, coal and container – contributing to more than 75 per cent of the total cargo. Overall, the operational performance of Indian ports has improved. The average turnaround time has reduced from 96 hours to 49.5 hours. There has been an improvement in idle time as well, reducing from 23.1 per cent to 16.3 per cent, indicating better asset utilisation. Additionally, private investments in PPP projects have increased by about three times in the past year.
There have been several key achievements as well. Over the past few years, India’s port sector has been transitioning from traditional infrastructure to a more efficient, tech-enabled and globally integrated maritime system. These ports have attracted global and private investments. Now, the performance of Indian ports is at par with international benchmarks in several areas. New terminals, mechanised berths and digitalised systems have been commissioned across major ports through the PPP mode, with more coming up. Of the 227 berths in major ports, around 89 are operated in the PPP mode. The sector is no longer government-led – private companies are contributing equally and will eventually overtake it.
“The port sector is no longer government-led; private companies are contributing equally and will eventually overtake it.” Rinkesh Roy
Unmesh Sharad Wagh
The past year has been transformative for the Indian ports and shipping sector. Despite global disruptions and geopolitical uncertainties, the sector demonstrated remarkable resilience. The major ports collectively registered a steady growth in cargo throughput, aided by efficiency improvements, policy reforms and investment inflows.
At the Jawaharlal Nehru Port Authority (JNPA), we achieved a record throughput of over 7 million twenty-foot equivalent units (TEUs), reinforcing our position as India’s leading container port. The progress on the Vadhvan Port Project has been a landmark development that aligns with the government’s vision of making India a global maritime hub.
What are the ongoing/planned efforts to expand port capacity and improve operations? How is technology/digitalisation being leveraged for enhancing port operations?
“Sustainability is central to our strategy. It is now at the core of how we run the port.” Unmesh Sharad Wagh
Ashish Vijay Rajgarhia
Essar Ports has been a pioneer in offering multimodal logistics solutions across its facilities, be it coastal shipping, industry-integrated conveyor systems, pipeline solutions, vendor-managed stockyard solutions and rail movement. This has resulted in the company offering best-in-class services that can be benchmarked against global standards. Over the years, Essar Ports has developed 168 million metric tonnes per annum (mmtpa) of port capacity in India, involving investments of over $1.5 billion, with technology and automation at the core, some of which have been divested.
Rinkesh Roy
We are operating ports/terminals with a capacity of 177 mmt. Currently, we are developing two PPP projects – one at the JNPA and the other at the V.O. Chidambaranar Port Authority. We also won a PPP project last year at the Kolkata Port for handling containers.
Apart from these, we are working on three greenfield projects – one each at Jatadhar (Odisha), Keni (Karnataka) and Murbe (Maharashtra). We are also expanding the Dharamatar Port from 34 mmt to 57 mmt, and Jaigadh port from 55 mmt to 70 mmt. Additionally, we are working on several logistics projects. Our target is to reach 400 mmt capacity by FY 2031.
On the operations side, all our ports/terminals are performing better than the industry benchmark. We are not only expanding our capacity but also improving turnaround time (TAT) and reducing idle time through dredging work, mechanisation, digitalisation, etc.
Technology and digitalisation are transforming Indian port operations significantly by enhancing efficiency, transparency, safety, security and sustainability. This is now widely acknowledged, whether it is a government port project or a private one, and all ongoing or upcoming port projects are fully automated.
Unmesh Sharad Wagh
We recently inaugurated the Jawaharlal Nehru (JN) Port-PSA Mumbai Terminal (Bharat Mumbai Container Terminal [BMCT] Phase II), developed by PSA Mumbai, in the presence of the Honourable Prime Minister of India, Shri Narendra Modi, and the Honourable Prime Minister of Singapore, Mr Lawrence Wong. With Phase II now operational, the terminal now has a total capacity of 4.8 million TEUs. This has increased JNPA’s total container handling capacity to over 10 million TEUs, making it India’s largest container port. Simultaneously, the upcoming Vadhvan Port Project, a mega greenfield deep draught port, is poised to be a game changer with its planned capacity of over 24 million TEUs.
From an operations and efficiency perspective, one of our most important initiatives is Direct Port Delivery, which plays a key role in improving the ease of doing business, facilitating trade and reducing cargo release time. It ensures that import containers are delivered directly to pre-approved clients at the port, reducing cargo dwell time, logistics costs and carbon emissions. JNPA has also introduced Direct Port Entry, a facility created exclusively for exporters to bring export containers directly to the port instead of routing them through the container freight station. The port has also adopted a radio frequency identification (RFID)-based gate automation system, which ensures that the gate transaction time is reduced from 10 minutes to 1 minute, also providing a high-security profile. The result is a more predictable, less encumbered operational rhythm. JNPA has started issuing online port driving permits to truck drivers entering JNPA terminals, thereby saving time and paper, and ensuring seamless traffic flow.
Further, JNPA has inaugurated the Port VisionX – Universal E-Seal Reader at its centralised parking plaza, a first-of-its-kind in India. The system cuts gate-in processing time from 6-10 minutes to just 15 seconds, replacing two to three manual steps with a fully automated, paperless process. It also enables real-time e-seal monitoring, streamlining cargo movement and boosting efficiency. This innovation reinforces JNPA’s commitment to speed, transparency and modernisation in port operations.
JNPA has successfully upgraded its information security management system to the latest ISO 27001:2022 standards, certified by the British Standards Institution (BSI), reinforcing its commitment to robust data security and operational integrity.
All terminal operators at JNPA are leveraging artificial intelligence (AI) and advanced technologies to enhance operational efficiency. A notable innovation is the appointment-based system (ABS), designed for container trailers arriving from the hinterland. This system enables transporters to plan their arrivals in advance, reducing waiting times at the port. By streamlining the scheduling process, ABS ensures faster clearance and seamless cargo movement, reinforcing JNPA’s commitment to world-class port operations. Each of JNPA’s terminals, such as BMCT and APM Terminals (APMT), has adopted advanced terminal operating system (TOS) platforms such as Navis N4. These systems manage container inventory, yard planning, crane sequencing and gate operations, contributing to faster turnaround times and data-driven decision-making.
What are some of the green initiatives being implemented at the ports?
Ashish Vijay Rajgarhia
We are on the cusp of a transformational journey, where efficient logistics, technology-driven solutions, green energy and value-added services are set to play a major role. Essar is not only planning to diversify the cargo profile at its 20 mmtpa Salaya Port, but is also pursuing the expansion of this facility. These initiatives are aligned with the country’s net zero goals and the broader energy transition. Our plans focus on:
- Providing shore power to reduce maritime emissions from ships at ports.
- Utilising renewable energy (solar) and promoting a hydrogen-based economy, including green ammonia.
- Facilitating green cargo transportation through mechanised facilities and promoting sustainable freight movement via railway connectivity.
- Adopting advanced technology to ensure supply chain visibility and enhance system uptime.
- Developing next-generation green port infrastructure.
Rinkesh Roy
We are aligned with India’s Nationally Determined Contributions targets for reducing emissions intensity as per the Paris Accord.
In this regard, some of our initiatives are as below:
- We have developed covered storage sheds at our ports in Jaigadh and Dharamatar (Maharashtra) and a terminal in Goa to reduce dust emissions (the only ports in India with covered sheds).
- Switched to renewable power (25,473 MWh in FY 2025, which is 18 per cent of the total electricity consumption).
- Use of electric vehicles – optimising power consumption by reducing idle drive control time from 30 minutes to 15 minutes for barge unloaders, thus improving their specific power consumption by 7 per cent.
- Shore-based power supply to mini bulk carriers and tugs.
- Deployment of equipment with low fuel consumption.
- Development of covered storage sheds and conveyors with dust suppression systems to reduce fugitive dust emissions.
- Implementation of rainwater collection systems, vertical gardens and Miyawaki gardens.
- Increase in recycling from 51 per cent to 94 per cent.
- Reduction in freshwater consumption from 6.9 litres per tonne to 3.7 litres per tonne.
As a result of these initiatives, our greenhouse gas intensity has reduced from 1.25 kgCO2e/TCH to 0.92 kgCO2e/TCH in the past four years. Further, our renewable power consumption has increased to 18 per cent from only 1 per cent over the past two years. We have set a target to achieve net zero status by 2050.
Unmesh Sharad Wagh
In June 2025, JNPA crossed the 60 per cent mark for generating energy from renewable sources, going beyond the Harit Sagar 2030 goal five years ahead of schedule. Sustainability is central to our strategy. It is now at the core of how we run the port. Over the past year, we have stepped up efforts to make daily operations cleaner and more efficient. Shore power supply for the vessels pilot project will allow vessels to plug in while berthed, cutting fuel consumption and emissions at the dock. At the port premises, we are transitioning to a fully electric vehicle fleet, reducing both noise and air pollution for workers and neighbouring communities.
As part of the Maritime India Vision 2030, JNPA has prioritised the rejuvenation of water bodies, aiming to enhance environmental sustainability and community engagement. This initiative offers multiple benefits, including an increase in the quality and volume of water in the lakes, which supports enhanced biodiversity and erosion control in the surrounding watershed areas. Additionally, the rejuvenated lakes have been named after the great saints of Maharashtra, honouring the state’s cultural heritage.
JNPA has already introduced its first battery electric terminal tractor (e-ITV) for container rail operations. These 100 per cent battery electric terminal tractors, designed for heavy-duty operations with a gross combination weight (GCW) capacity of up to 75,000 kg, offer a range of up to 200 km on a full charge and can recharge in just two hours. This initiative, saving a 7.5 km run per road trip, has improved turnaround time, allowing two commercial transactions in one trip. The port has already initiated operations with nine electric trucks, of which six are battery swapping and three are charging trucks. The target is to deploy approximately 400 electric trucks in the near future. Charging stations have also been set up for these trucks.
Through these initiatives, JNPA continues to strengthen its position as a sustainable, future-ready port driving green growth in India’s maritime sector.
What are the key challenges being faced?
Ashish Vijay Rajgarhia
Despite notable progress, India’s port sector continues to face several challenges. These issues, ranging from infrastructure and operational bottlenecks to regulatory complexities and environmental concerns, hinder the sector’s potential to become a truly world-class, globally competitive maritime hub.
India must develop multiple world-class port assets in order to meet the cargo demand projections under Amrit Kaal Vision 2047 and cater to the changing cargo profile. Successfully addressing these challenges requires a collaborative approach involving the government and the private sector, supported by streamlined policies. This will provide the required boost to the port sector.
Rinkesh Roy
We are all affected by ongoing geopolitical developments, such as the Russia-Ukraine conflict or the tariff crisis. However, these challenges are not in our hands. For the few challenges that are in our control, we must address them at the earliest.
Many challenges continue to plague the sector. For instance, most of our ports are not deep-draught ports. The government and the Port Trust Board are working on this, but at their own pace. Due to this, the majority of the ports struggle to accommodate larger vessels because of insufficient water depth. This results in port congestion, seasonal surges in traffic and increased waiting times. Apart from this, traditional labour practices and disputes often lead to operational disruptions. Limited rail and road infrastructure restricts smooth cargo movement to and from ports. In line with this, the existing rail and road infrastructure is not sufficient to match port capacity. Lastly, for developing new ports, there are several complex clearance procedures, policy uncertainties, land acquisition hurdles, and environmental and sustainability pressures.
Unmesh Sharad Wagh
We are awaiting the completion of dedicated freight corridor (DFC) connectivity. JNPA is fully prepared with DFC-related facilities. Once operational, this will significantly reduce road traffic and fuel consumption.
What is the potential of coastal shipping and inland waterways in promoting multimodal transportation?
Ashish Vijay Rajgarhia
Coastal shipping and inland waterways have immense potential to transform India’s logistics landscape by promoting multimodal transportation. This shift can alleviate the pressure on the overburdened road and rail networks, reduce costs and offer a more environment-friendly alternative for cargo movement.
India is endowed with over 11,098 km of coastline and more than 14,500 km of navigable inland waterways, yet their share in the country’s freight movement remains below 6 per cent, compared to 30-40 per cent in regions like China and the European Union. India has set a target to reduce its logistics costs from 12-15 per cent of GDP to less than 10 per cent. This can be achieved by increasing the multimodal share of coastal shipping and inland waterways.
Under the Maritime Vision 2047, the government has set targets of increasing coastal cargo volumes to 1,300 mmtpa, raising the modal share of coastal shipping to 12 per cent and operationalising more than 50 waterways (with traffic exceeding 500 mmtpa).
Both inland waterways transportation and coastal shipping hold significant potential as the nation advances towards becoming a developed economy. Achieving these objectives will require more proactive measures to boost coastal shipping, along with substantial investments in developing sustainable inland waterways. The government should also consider incentivising customers who opt for coastal shipping and inland waterways, considering their long-term benefits for building a sustainable economy.
Rinkesh Roy
In the past few years, our coastal cargo contributed about 26-27 per cent of total cargo handled at Indian ports. This can be increased by using domestic coal for thermal plants and iron ore for the steel industry; however, this is contingent upon the global commodity market price.
Since we are moving towards “Make in India” and increased containerisation, coastal cargo contributions will likely remain the same in the future.
India’s inland water transport sector has seen significant achievements, from 18.1 mmt of cargo transported in 2013-14 to 145.5 mmt in 2024-25. We are also proud to say we are a major contributor to this, with our Dharamatar and PNP ports contributing to more than 20 per cent of the total. Additionally, we handle the highest cargo at the riverine Dharamatar port on National Waterway 10.
Our experience in waterways gives us confidence to explore more opportunities in Indian riverine ports. We are exploring such opportunities. When compared to China and Europe, we are not doing enough on inland waterways. Nevertheless, in recent years, several government schemes and policies have been implemented to improve this. With multimodal logistics, we aim to reduce logistics costs to 9 per cent of GDP.
Unmesh Sharad Wagh
Coastal shipping and inland waterways hold immense potential in the country’s multimodal transportation network. With logistics costs accounting for 13-14 per cent of the GDP, which is higher than the global standards of 8-9 per cent, there is a pressing need for more cost-efficient modes of transport.
Greater promotion of coastal and inland routes can reduce overall logistics costs while improving supply chain competitiveness. Cargo such as cement, coal, steel and fertilisers can be moved more efficiently through coastal shipping, thereby easing the burden on road networks. This shift not only lowers transportation expenses but also reduces congestion and wear on road infrastructure. Environmental benefits further strengthen the case for water-based transport.
JNPA had already realised the importance of coastal shipping and, keeping this in focus, developed a dedicated coastal berth. The 250-metre-long facility has the capacity to handle 2.8 million tonnes per annum of coastal cargo, supporting the movement of diverse domestic goods, promoting efficient shipping, reducing logistics costs and easing the burden on road and rail networks.
What are the trends that are likely to shape the sector in the coming years?
Ashish Vijay Rajgarhia
The Indian ports and shipping sector is poised for a significant transformation, driven by a convergence of technological innovation, a strong focus on sustainability and forward-looking policy reforms. These trends are expected to address many of the long-standing challenges and propel the sector towards becoming a global maritime leader.
We are also in the midst of two major shifts – the energy transition and AI-led technological advancement. The maritime, ports and logistics sector will play a key role in driving the energy transition while embracing AI-led innovation to create value for stakeholders.
It is an exciting time for the industry, and the future will be very different for the sector in many aspects. However, the core characteristics of the business will remain the same – providing reliable, efficient, cost-effective, safe and secure logistics solutions to customers.
Rinkesh Roy
In the coming years, the trends in commodities are expected to remain the same, being driven by the aforementioned three Cs. However, container contribution will increase as it moves towards “Make in India” and containerisation.
Investments in PPP projects (with a target of 85 per cent by 2030), multimodal logistics, and road and rail infrastructure will enhance berth productivity, further reduce TAT and improve competitiveness with neighbouring countries and international ports. Our ports are becoming more competitive and increasingly automatic, and logistics costs will reduce to single digits as a percentage of GDP.
Projects like the India-Middle East-Europe corridor and the Chennai-Vladivostok Maritime corridor have bolstered strategic connectivity and global trade resilience. Coastal economic zones and port-based special economic zones are being developed to create integrated industrial ecosystems to support port activities. Apart from cargo handling, several developments are under way to enhance cruise capabilities and shipbuilding infrastructure.
Unmesh Sharad Wagh
Looking ahead, the sector is clearly steering towards greener horizons, where cleaner fuels, green bunkering and eco-friendly port practices are the norm, with efficiency going hand in hand. At the same time, smarter ports powered by AI, internet of things and automation will make cargo movement faster and more efficient. India’s port sector is successfully embracing the PPP model, with JNPA at the forefront as the country’s only 100 per cent landlord model port, setting a benchmark for others to follow. The rise of multimodal logistics parks will seamlessly integrate sea, rail and road, while deeper integration with coastal shipping and inland waterways will add new layers of connectivity. Alongside this, a sharper focus on skill development and specialised training will ensure the workforce is ready to operate and maintain these next-generation systems.
