Setting sail for Viksit Bharat with maritime growth push

India’s ports are transcending traditional roles as logistical nodes to become modern gateways of commerce. A focus on capacity expansion, mechanisation, digitisation, and ease of doing business has propelled ports such as Visakhapatnam, Mundra, JNPA, and Kamarajar up in the global rankings.

- Sarbananda Sonowal

The World Bank's Logistics Performance Index (LPI) 2023 acknowledged India’s efficiency and speed, placing it ahead of many developed nations. The country has risen in key logistics indicators, ranked 38th of 139 countries in 2023, up from 54th in 2014. India's rank in the international shipment category improved dramatically from 44th to 22nd in the period, while average container dwell time reduced to approximately 2.6 days, a competitive figure globally. The turnaround time (TRT) of major ports hasalso sharply declined from around 94 hours to about 48.06 hours.

Substantial infrastructure development underpins this progress. Cargo handling capacity at major ports, over the past decade, reached 1,681 million tonnes per annum (MTPA) from 800.5 MTPA. Ninety-eight port modernisation projects, costing over ₹232,000 crore, have been completed, adding more than 230 MTPA to the annual port capacity.

Major ports’ financial performance has been equally impressive, with total income rising from ₹11,760 crore in FY15 to ₹24,203 crore in FY25—a 7.5% CAGR over 10 years. Operating surplus nearly tripled to ₹12,314 crore, driven by a 13% CAGR over the same period. Operational efficiency also improved significantly, with the operating ratio declining from 64.7% in FY15 to 42.3% in FY25, reinforcing the ports’ financial sustainability.

Significant projects like the Tuticorin International Container Terminal (TICT) and the foundation stone laying for the ₹76,000 crore Vadhavan Port mark crucial milestones in enhancing infrastructure and logistics efficiency. The Vizhinjam International Seaport will boost India’s transshipment capabilities.