Ships moved 9% faster at Indian major ports in FY24 as infra improved

India's major ports underwent a significant performance boost in FY24. They achieved a 9% reduction in ship turnaround time, bringing it down to 48 hours. Additionally, the total cargo traffic handled by these ports witnessed a 4.5% increase, reaching 819 million metric tonnes. This positive trend can be attributed to several factors, including investments in improved infrastructure, the implementation of digital processes, and a greater role for private companies. Upgraded infrastructure led to a 7.5% increase in the average daily output per vessel, while digitalization efforts like the Sagar-Setu mobile app and paperless clearances streamlined operations and boosted efficiency. Moreover, private participation, particularly in container terminal operations, seems to be a key driver of improvement, as evidenced by better efficiency metrics in these terminals compared to those run by port authorities. This has prompted the shipping ministry to consider expanding Public-Private Partnerships (PPP) at major ports using the landlord model.

These advancements mark a considerable improvement for India's maritime sector, which was previously a weak link in the country's logistics chain. The improved turnaround time puts Indian major ports ahead of many developed nations, including the United States, Australia, and Germany. This progress is expected to continue as the government pushes for further private sector involvement through PPP models. By leveraging private expertise and resources, India can solidify its position as a competitive player in the global maritime trade landscape.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.