Ports in India

India is surrounded by sea from three sides and this long coastline of around 7500 km provides opportunities for port infrastructure in India. India has 12 major ports and 205 minor ports. Ports handle 95% of India's trade by volume and 70% by value. Ports are significant as they reduce logistics costs, improve connectivity, support the blue economy and lead to development of coastal areas. However, ports face challenges in terms of lack of adequate infrastructure, limited cargo handling capacity, regulatory issues such as delayed clearances. Government has taken various measures to boost port infrastructure such as allowing 100% FDI through automatic route, Sagarmala Initiative and Maritime India Vision 2030.

Growth in trade of a country is an important indicator of its overall growth. Water transport has been playing an important role in the Indian economy since time immemorial. Ports have been the gateways of international trade since ancient times. During the colonial times, ports were instrumental in bringing a range of socio-economic, political and cultural influences. Even after independence, the ports continued to grow and today they handle large volumes of domestic as well as overseas trade.

India is a large country bestowed with an extensive coastline of around 7500 km which offers opportunities for port infrastructure. India has 12 major ports and 205 minor ports, in all nine coastal states of India. The majority of ports are located on the west coast of India rather than the east coast. It is an easy and cheap means of exports and imports of heavy items. It is in this context that the role of ports becomes all the more important. India's key ports had a capacity of 1,598 million tonnes per annum (MTPA) in FY22.

Ports can be subcategorized on various basis such as location, functions and the cargo they handle.

1. On the basis of Location:
   1. Inland Ports: Located away from the sea and linked to sea through river or canal. Eg. Kolkata Port on Hoogly river.
   2. Out Ports: Ports serving the parent port and are generally deep water ports.
2. On the basis of Cargo Handled:
   1. Industrial Ports: Specialize in bulk cargo like oil, chemicals, sugar etc. Eg. JNPT (Maharashtra)
   2. Commercial Ports: Such ports handle general cargo products and manufactured goods. Eg Chennai Port.
   3. Comprehensive Ports: Handle cargo in large volumes. Eg. Mumbai Port.
3. On the basis of Functions:
   1. Ports of call: Serve as calling points on sea routes for refueling, watering.
   2. Oil Ports: Specialize in processing and shipping of oil.
   3. Packet Station: Also known as ferry ports, which are exclusively concerned with the transportation of passengers and mail across water bodies over short distances.
   4. Entrepot Ports: Serve as collection centers where goods from different countries are brought for export.
   5. Naval Ports: Ports having strategic importance serving and repairing warships. Eg. Kochi Port.

• Oldest Port: Syama Prasad Mookerjee Port Trust, Kolkata
• Newest Port: Vadhavan, Maharashtra
• Largest Port: Mumbai Port, Maharashtra
• Deepest Port: Vishakhapatnam Port, Andhra Pradesh
• Busiest Port: Jawaharlal Nehru Port Trust (JNPT), Maharashtra
• Private Major Port: Mundra Port (Operated by Adani Port limited)
• Largest Container Port: Jawaharlal Nehru Port Trust (JNPT)

Major ports are managed by the Central Government as they fall under Union List. The Major Ports Authorities Act, 2021 provides for regulation and operation of major ports in India. There is a Board of Major Port Authority for administration, control and management of each major port. The minor ports are managed by State governments through State Maritime Board and fall under Concurrent list.

Privatization Of Ports: The Government has been pushing for Public-Private Partnerships (PPP) in the development of the ports sector in the country. PPP model has become the preferred mode of infrastructure development in Major Ports. Presently, more than 30 PPP projects are working successfully in major ports. PPP model offers greater training and employment opportunities for workers, creating job opportunities, improving efficiency and making the ports sector more competitive.

One Public-Private Partnership model which is recently being promoted by the Government is the Landlord Model of Port. Under this, a publicly managed port authority serves as both a regulator and a landlord, while private enterprises handle port operations, primarily cargo handling. The infrastructure is leased to private companies that build and maintain their own superstructure and install their own cargo handling equipment.

• Promoting International Trade: Ports in India handle nearly 95% of trade by volume and around 70% by value.
• Cargo Handling: Playing an important role in export-import of key commodities like iron ore, crude petroleum, coal and other vital commodities.
• Lower logistics cost: As compared to other modes of transportation, ports are 60-80% less expensive.
• Connectivity and Regional Integration: Ports help create an integrated hub and spoke model for regional connectivity in Bay of Bengal and Arabian Sea.
• Strategic Importance: Ports help in ensuring strategic installations such as naval bases.

• High ship turnaround times: The average turnaround time in India is more than 2.2 days, which is higher than other developed economies.
• Poor hinterland connectivity: Due to lack of proper roads, railways and inland waterways thus increasing transportation cost.
• Inadequate port structure: In terms of lack of handling equipment, container tonnage which causes port congestion.
• Regulatory issues: such as environmental clearances, land acquisition, custom procedures and inspections leading to inefficiencies and delays.
• Environmental issues: Cases of leakages and spills during port operations causes damage to marine life and environment.

• Maritime India Vision 2030: The vision comprises 150 initiatives across 10 themes which cover logistic efficiency, port infrastructure, technology, policy framework, inland waterways, tourism, and maritime security.
• 100% FDI: Government has opened up the automated route to 100% FDI for port and harbor building and maintenance projects.
• Tax Holiday: There is provision of a 10-year-tax break for businesses that create, maintain, and operate ports, inland waterways and inland ports.
• Sagarmala Project: The project aims at port-led development by reducing logistics cost through modernization, mechanization and computerization of ports.
• Major Port Authorities Act 2021: which aims to provide for operation, planning and regulation of major ports in India and encouraging decentralized decision-making.
• Project UNNATI: By Ministry of Shipping which aims at benchmarking operational and financial performance of major ports and undertaking capability maturity assessment for key processes and identifying gaps.
• "Harit Sagar" Green Port Guidelines 2023: with a vision of making ports of India more environmentally friendly and sustainable.

Inland Waterways and ports: Waterways acts like arteries for the ports and plays a crucial role by providing an efficient and cost-effective mode of transportation for goods. Given India's large number of rivers, canals and water bodies, there are about 14,500 km of navigable waterways. Under the National Waterways Act, there are 111 national waterways proclaimed but only 13 national waterways are in operation now. Maintenance and development of these is essential for Ports operation in India.

• Regulatory and Policy reforms: Such as streamlining tariff determination and periodically revising it as envisioned under Major Port Authorities Act 2021.
• Improving existing port infrastructure: Creating harbors, container handling and mechanization of port operations.
• Better connectivity: to ensure smooth multimodal transit and aiming at reducing logistic and transportation costs.
• Developing inland waterways: as these can serve as a major link to connectivity and development of Indian Ports.
• Bringing competitiveness: By ensuring fair private sector participation such as leasing out existing assets, construction and creation of facilities. Eg. Mundra Port.

The ports in India have contributed in fostering trade and economic growth. Addressing the challenges and improving the existing infrastructure is essential to maximize the potential of India's ports as well as meeting the demands of a growing economy. The current initiatives by the government such as Sagarmala Initiative and Project Unnati are positive moves forward. The Maritime India Vision 2030 is a comprehensive scheme which holistically provides for ensuring a sustainable and efficient port ecosystem in India. Incorporating world-class facilities and modern equipment will contribute to better supply time management and move towards achieving the goal of a $5 trillion economy in near future.