Port Modernization & New Port Development

Port Modernization

Since about 95% of India's trade by volume is via the maritime route, there is a continuous need to develop India's ports and trade related infrastructure to accelerate growth in the manufacturing industry and to assist the 'Make in India' initiative. India has 12 major ports and approximately 200 non-major ports administered by Central and State Governments respectively.

As per the studies carried out under Sagarmala Programme, it is expected that by 2025, cargo traffic at Indian ports will be approximately 2500 MMTPA while the current cargo handling capacity of Indian ports is only 1500 MMTPA. A roadmap has been prepared for increasing the Indian port capacity to 3000+ MMTPA by 2025 to cater to the growing traffic. This includes port operational efficiency improvement, capacity expansion of existing ports and new port development. Due to these initiatives, the efficiency has improved in shorter terms as Avg. Turnaround Time, which is presently at 2.08 days against 2.32 days in 2013-14. Similarly, the Ship Berthday Output has increased from 12468 in 2013-14 to 14505 at present.

Port Operational Efficiency Improvement

For improving operational efficiency, a study to benchmark performance of major Indian Ports to comparable international ports has been completed and recommendations of the study are being implemented. Through this benchmarking study, 116 initiatives have been identified for implementation during 2016-18, which are expected to improve the operational efficiency and profitability of the 12 Major Ports. Out of 116 initiatives, 70 initiatives have already been implemented. Enhancing “Ease of Doing Business” by streamlining of procedures is also major focus under the Programme. 42 action points have been identified, specifying responsibility of concerned stakeholders/agency in respect of each action point with specific reference to Jawaharlal Nehru Port. Intensive monitoring of these is yielding good results. 35 action points have been achieved.

Capacity Expansion of existing Major Ports

As part of the Sagarmala programme, Master Plans have been finalized for the 12 major ports. Based on the same, 142 port capacity expansion projects (total cost: Rs. 91,434 Cr) have been identified for implementation till 2035. The capacity addition during the last three years i.e. from 2013-14 to 2015-16 was 55.61 MTPA, 70.00 MTPA and 93.84 MTPA respectively.

New Port Development

To fill the demand gap, 6 new major ports are planned which will bring in significant capacity expansion. The locations of these new ports are deliberated after detailed origin-destination study of cargo commodities and there are mainly three levers that propel the need for building new ports: New port locations have been identified based on the cargo flow for key commodities and the projected traffic:

Greenfield ports are proposed to be developed at

  • Vadhavan (Maharashtra),
  • Sagar Island (West Bengal)
  • Paradip Outer Harbour (Odhisha)
  • Cuddalore/Sirkazhi (Tamil Nadu)
  • Belikeri (Karnataka)
  • Enayam (Tamil Nadu)