Indian ports are now better, but what’s next?

While there have been considerable strides made in connectivity and infrastructure development, last-mile connectivity remains a key challenge. For instance, the Jawaharlal Nehru Port in Navi Mumbai, one of the country’s busiest, often faces delays due to inefficient last-mile transport links. A high dependence on road transport, where congested roads and underdeveloped highways slow cargo movement, continues to hinder port efficiency. While the Western Dedicated Freight Corridor has great potential, delayed completion has limited its impact. Reviewing implementation strategies thoroughly can speed up completion, leading to more efficient port operations and seamless cargo movement.

In a broader sense, fast-tracking the development of logistics infrastructure, including rail, road and inland waterways, is essential to ensure smoother port operations. Addressing recurring challenges, such as land acquisition hurdles and regulatory bottlenecks, can also be key to maximising the potential of Indian ports.

Besides, India, with its strategically positioned vast coastline, can establish a systematic network of ports, similar to China’s model of port clusters, which includes the integration of islands and coastal regions into a large shipping complex, connected to the mainland by state-of-the-art infrastructure. Such a model can also help India enter the transshipment space. Currently, around 75 per cent of India’s transshipped cargo is handled by transshipment hub ports in countries like Singapore, Malaysia and Sri Lanka, resulting in an annual loss of USD200–220 million in potential revenue.⁸ With three transshipment ports coming up, India has the opportunity to reduce dependence on foreign ports and capture this market.

Although cargo handling capacity has steadily increased at major ports, there remains room for improvement, as the average capacity utilisation for most of these remains somewhere around 49.1 per cent as of  FY23.⁹ One of the main reasons for this is process inefficiencies. While regulatory processes have seen improvements, such as increased digitalisation and paperless systems, these differ in implementation across ports, creating an inconsistent procedural environment. For instance, the dwell time for export processes varies substantially, ranging from 46.3 hours to 149.4 hours across different ports.¹⁰

Although of late, customs clearance processes have become more efficient, other areas, such as truck entry and exit times and security checks, can be improved. Standardising operational procedures across all ports can streamline cargo movement and ensure uniformity in regulatory compliance, something that the government can consider on priority.  

Indian ports are steadily embracing enhanced automation and cutting-edge technologies, leading to significant efficiency gains—such as streamlined cargo handling—and paving the way for more sustainable solutions through green energy initiatives. For instance, Kerala’s Vinzhim Port, India’s first fully automated port capable of handling megamax containerships and ensuring quick vessel turnaround, recently began operations.¹¹ Besides, in another push towards digitalisation, the government launched the Unified Logistics Interface Platform for ports, an integrated system that can help stakeholders in extensive logistics planning.

While these developments are cheerful news, the government and the private sector need to push the needle further to meet international standards. For instance, implementing advanced big data analytics at ports and terminals can enable predictive analysis, which can help in reducing downtime and prevent equipment failures. Additionally, AI-driven interfaces can optimise supply chain analytics and enable smart port operations—from vessel arrival to cargo transportation—enhancing efficiency throughout the process. India’s maritime sector can also draw lessons from global leaders like Singapore, which uses AI for vessel traffic and smart anchorage management, and China, home to the world’s most automated container terminals.¹²

Shipping is a cornerstone of international trade and an essential piece of the puzzle in boosting exports. For India to be considered a more attractive alternative compared to other Asian giants in shipping and trade, the development of India’s maritime sector is a strategic imperative.