With a vast coastline spanning over 7,516.6 kilometers, India is endowed with numerous ports, strategically located across its maritime borders. Moreover, the government of India has been implementing various policies and initiatives to promote port-led development, including the Sagarmala project, aimed at harnessing the potential of India’s maritime sector for economic growth, job creation, and sustainable development.
Significance of Port for India:
95% of India’s trading by volume and 70% by value is done through maritime transportation. In FY23 (April-January) cargo traffic handled by major stood at 646.10 million tonnes. Non-major ports accounted for 45% of the total cargo traffic at Indian ports in FY23, due to a significant shift of traffic from the major ports to the non-major ports. As per studies conducted under the Sagarmala Programme, cargo traffic at ports is expected to be ~2,500 MMTPA by 2025, while the current cargo handling capacity of ports is only 2,406 MMTPA.
These ports are categorized into major ports(13) and minor ports, each serving specific purposes based on their infrastructure and geographic advantages.
| Major Ports | Minor Ports |
|---|---|
| Falls under the Union List. | Falls under the Concurrent List. |
| Managed by the Central Government. | Managed by the State governments through State Maritime Board (Gujarat, Maharashtra and Tamil Nadu). |
| Major ports are governed by Major Ports Authorities Act 2021 (Repealed the earlier Major Ports Trust Act, 1963). The Government of India’s Ministry of Shipping appoints a Board of Trustees to oversee each major port. Their responsibilities include port development, management and operations. | All the Non-Major Ports (minor ports) are governed under the Indian Ports Act of 1908. |
| Major ports have jurisdiction over a broader area, including international waters and coastal regions, and they often serve as entry and exit points for international shipping. | Minor ports primarily cater to domestic trade and regional connectivity, serving specific states or localities along the coastline or inland waterways. |
Classification of Ports:
| Classification | Ports | Description |
|---|---|---|
| on the basis of Cargo Handled | Industrial Ports | Handles bulk items such as grains,sugar, minerals, oil, chemicals, and similar materials. |
| Commercial Ports | Specialised in general cargo, such as packaged goods and manufactured things, as well as passenger traffic. | |
| Comprehensive Ports | Handles both bulk as well as general cargo in massive amount | |
| on the basis of Location | Inland Ports | Not on coast, connects the sea through river or canal These ports can be approached by flat-bottomed ships and barges. Example:Kolkata Port on Hoogli River |
| Out Ports | Deep-water ports that are located outside of the main ports. Helps main ports by receiving ships that are too large to enter the ports. |
Models of Port Governance:
There are 5 models of port governance
Public service ports: The port authority of public service ports performs the whole range of port-related services and owns all the infrastructure. They are commonly a branch of a government ministry, and most of their employees are civil servants.Â
Tool ports: Like every aspect of a public service port, the tool port differs only in the private handling of its cargo operations, albeit the port authority still owns all or part of the terminal equipment.Â
Landlord ports: Represents the most common management model where infrastructure, particularly terminals, is leased to private operating companies with the port authority retaining control of the land where the port develops either by owning it or via retaining the rights for exclusive exploitation (as granted by the competent public authority).Â
Corporatized ports: This concerns ports that have almost entirely been privatized, with the exception that ownership remains public and is often assumed as a majority shareholder. The port authority essentially behaves like a private enterprise.
Private service ports: This is the outcome of complete privatization of the port facility with a mandate that the facilities retain their maritime role. The port authority is entirely privatized, with almost all the port functions under private control, with the public sector retaining a standard regulatory oversight. Still, public entities can be shareholders and thus gear the port towards strategies deemed to be in the public interest.
Goverment Initiatives:
The Government has taken several initiatives towards Port modernization, mechanization and digitalization with emphasis on ease of doing business initiatives. This includes the introduction of web-based e-forms, direct port delivery, container scanners, radio frequency identification based systems for gate automation, single window interface for facilitating trade and integration of more and more sea ports with the Port Community System software.
Further, as part of Maritime India Vision (MIV) 2030, globally benchmarked targets have been defined to help India develop best-in-class port infrastructure. The development of Indian Ports is estimated to drive cost savings to the tune of Rs. 6,000-7,000 Crore per annum for EXIM clients and help unlock Rs. 70,000 – 75,000 Crore worth of potential revenue. MIV 2030 targets 423 MTPA of capacity addition at Major Ports for the next 10 years. A total investment cost of over Rs. 33,400 Crore has been envisaged for this capacity expansion. Out of this, approximately 95% capacity expansion is likely to be planned under Public Private Partnership (PPP) / Captive mode by Major Ports.
The Government of India has allowed Foreign Direct Investment (FDI) of up to 100% under the automatic route for projects related to the construction and maintenance of ports and harbours. The cumulative FDI equity inflow in the Port industry is US$ 1.63 billion during the period April 2000 to September 2023.
A 10-year tax holiday is extended to enterprises engaged in the business of developing, maintaining, and operating ports, inland waterways, and inland ports. The Government has also initiated the National Maritime Development Programme (NMDP), an initiative to develop the maritime sector with a planned outlay of US$ 11.8 billion. In Union Budget 2023-24, the total allocation for the Ministry of Shipping was US$ 1,813.16 million (Rs. 2,218.74 crore).
To meet the larger vision of achieving Zero Carbon Emission Goal, launched ‘Harit Sagar’ the Green Port Guidelines. Four major ports, namely, Deendayal Port, Visakhapatnam Port, New Mangalore Port and VOC Port are already generating renewable energy more than their demand.
Major Ports Authorities Act 2021:
Board of Major Port Authority & Composition
- The new act has proposed a simplified composition of the Board of Port Authority which will comprise of 11 to 13 Members from the present 17 to 19 Members representing various interests
- Provision has been made for the inclusion of representatives of:
- State Government in which the Major Port is situated
- Ministry of Railways
- Ministry of Defence and Customs
- Department of Revenue
- A Government Nominee Member
- A member representing the employees of the Major Port Authority
- Adjudicatory Board – An Adjudicatory Board has been proposed to be created to carry out the residual function of the erstwhile TAMP for Major Ports, to look into disputes between ports and Public-Private Partnerships (PPP) concessionaires, to review stressed PPP projects and suggest measures to review and revive such projects.
The State-wise List of Major Ports in India
| Zone | State | Port | Features |
|---|---|---|---|
| Eastern Coast | Tamil Nadu | Chennai Port | Artificial Port,the second largest container port of India,The port is the largest one in the Bay of Bengal. The third-oldest port among the 13 major ports of India with official port operations beginning in 1881. |
| Western Coast | Kerala | Cochin Port | Established in 1928, Sited in the Vembanad Lake, Exports of spices and salts, It is also the first transshipment port in India, The 2023 malayalam film THURAMUKHAM is based on the condition of the Kochian port during the Chappa system. |
| Eastern Coast | Tamil Nadu | Ennore (Kamarajar Port) | Located on the Coromandel Coast, India’s First corporatized port, designed as Asia’s energy port, Ennore Creek is located adjacent to the Ennore Port (Ennore Creek drains two important rivers, Kosasthalaiyar in the South and Aranaiyar in the North) |
| Eastern Coast | West Bengal | Kolkata(Shyama Prasad Mookerjee Port) | It is the oldest operating port in India, India’s only major Riverine port Situated on Hugli river, The port has two distinct dock systems — Kolkata Dock at Kolkata and a deep water dock at Haldia Dock Complex, Haldia, Known as Diamond Harbour. |
| Western Coast | Gujarat | Kandla (Deendayal Port) | Known as Tidal Port, Acknowledged as Trade Free Zone, Largest port by volume of cargo handled. |
| Western Coast | Karnataka | New Mangalore Port | The deepest inner harbour on the west coast, The seventh largest port in India, Deals with the iron ore exports. |
| Western Coast | Goa | Mormugao Port | Situated on the estuary of the river Zuari, Launched “Harit Shrey” scheme offering incentives to ships with good ESI score. |
| Western Coast | Maharashtra | Mumbai Port Trust | Largest Natural Port and harbour In India The busiest port in India, Transfered by Portuguese to Great Britain in dowry, The port has four jetties on Jawahar Dweep, an island in the harbour, for handling Crude and Petroleum products. |
| Western Coast | Maharashtra | Jawaharlal Nehru Port Trust (JNPT) also known as Nhava Sheva, Navi Mumbai | Largest Artificial Port, Largest container port, 28th in the world in terms of traffic handling capacity, Major exports from Jawaharlal Nehru Port are textiles, sporting goods, carpets, textile machinery, boneless meat, chemicals, and pharmaceuticals. The main imports are chemicals, machinery, plastics, electrical machinery, vegetable oils, and aluminium and other non-ferrous metals. |
| Eastern Coast | Odisha | Paradip Port | Natural Harbour, Near the Confluence of the river Mahanadi and the Bay of Bengal, The Eighth Major Port of India on 18th April 1966 FIRST MAJOR PORT in the East Coast commissioned after independence, Deals with the export of iron and aluminium. |
| Eastern Coast | Tamil Nadu | Tuticorin (V.O. Chidambaranar Port) | A port in Thoothkudi, TamilNadu, A major port in South India, Deals with the fertilizers and petrochemical products. |
| Eastern Coast | Andhra Pradesh | Visakhapatnam Port | Deepest port of India, Commissioned 10 MW Solar Power project, Deals with the export of iron ore to Japan, Amenities for building and fixing of ships are available. |
Vadhvan Port (13th Major Port -under development)
Maharashtra has only two major ports i.e. Mumbai and Jawahar Lal Nehru Port (JNPA) and Mumbai Port are constrained in the evacuation of cargo for the past several decades due to the development of the city around it as well as due to limited depths in the harbour which allows only small ships to berth. The Arabian coast at Vadhvan towards the north of Mumbai is most suitable and ideal for the development of a new port where natural a depth of 20 Meters is available at a distance of about 4 ½ nautical miles. This port will be jointly implemented by JNPA and Maharashtra Maritime Board with a shareholding of 74% and 26% respectively. The port will be developed based on Landlord Port.
Need for deep draft port:
- Size of container ship is increasing, requiring deep draft of 18 to 20 mtr.
- No port in India has the draft to accommodate the largest container ship.
- Deep draft port will give advantage of economy of scale and will reduce the logistics cost.
- JNPA will exhaust its full capacity of 10 Mn TEUs (for mid size vessels only) and cannot be dredged further from the 15 mtr draft.
- In order to be one of the top 10 container ports in the world, port with capacity to handle container vessels of size 16,000 TEU and above with deep draft from 18 to 20 mtr is essential.
- 7 of the top 10 container ports are in China with Shanghai as no. 1 handling container volume of 40 million TEUs.
- Not having a deep draft port results in shipping lines bypassing India thereby increasing the transhipment of Indian cargo.
- The Vadhvan Port has potential to be amongst the Top 10 Container Ports in the World.
Salient features of Vadhvan Port:
- Development of a Port at Vadhvan has been concieved under Sagarmala Program an inititiave of the the Govt. Of India to augment Port Led Development and Development of Coast Lines to contribute in India‘s growth.
- The objective is to augment and develop Green Field Port to handle growing traffic demand of Major Ports at West Coast.
- The new Port at Vadhvan will be developed as a deep draught Port to cater to large container, bulk and crude vessels.
- Jawaharlal Nehru Port Authority signed a MoU with Maharashtra Maritime Board for development of Vadhvan Port.
- The Proposed Port is located at Vadhvan point near Dahanu in the District of Palghar, Maharashtra.
Advantages of Vadhvan Port:
- A natural water depth of 20 Mtrs is available at a distance of 10 km and 15 Mtrs contour is available at 6 km from the shore, which allows safe voyage and mooring for the new generation vesels.
- No capital dredging required in navigational channel & harbour area as draft of 18 m is naturally available.
- 1,473 ha. (3639.86 acres) land will be reclaimed & 571 Ha (1410.97 acres) land consists of private, tribal, forest and Govt land will be acquired for rail and road connectivity. In addition 1000 Ha Govt land will be available for Port related facilities.
- Mumbai Delhi western railway line can be tapped at a distance of 12 kms only; flat terrain with no natural obstruction.
- NH-8 from Mumbai to Delhi is about 34 KM & Mumbai Vadodara express way is at 18 KM only; will be linked to port by dedicated Rail and Road.
- The Vadhvan Port will add container capacity of 15 Million TEUs in the year 2035, which will increase to 23.9 Million TEUs by 2040.