Indian Port Industry – An overview

The Indian port industry plays a crucial role in the country's economy as it handles around 95% of
the total trade volume of India. The industry is responsible for facilitating the movement of goods
to and from the country's major trading partners, including China, the United States, and Europe.

According to the Ministry of Shipping, around 95% of India's trading by volume and 70% by
value is done through maritime transport.

India has a long coastline of around 7,000m kilometers, with 13 major ports and around 200
notified minor and intermediate ports. The major ports are governed by the central government,
while the minor and intermediate ports are managed by the respective state governments.

The Indian government has taken several measures to improve the infrastructure and efficiency
of the port industry. The Sagarmala project, launched in 2015, aims to modernize the port
infrastructure, create new ports, and develop the hinterland connectivity. Additionally, the
government has implemented several policy reforms, including the liberalization of port tariffs
and simplification of customs procedures.

The Indian Government plays an important role in supporting the ports sector. It has allowed
Foreign Direct Investment (FDI) of up to 100% under the automatic route for port and harbour
construction and maintenance projects. It has also facilitated a 10-year tax holiday to enterprises
that develop, maintain, and operate ports, inland waterways and inland ports.

In FY22, major ports in India handled 720.29 million tonnes of cargo traffic, implying a CAGR of
2.89% in FY16-22. India’s key ports had a capacity of 1,598 million tonnes per annum (MTPA) in
FY22. From April-October 2022, all key ports in India handled 446.50 million tonnes (MT) of cargo
traffic. In FY22, all key ports in India handled 720.29 million tonnes (MT) of cargo traffic. India's
merchandise exports in FY22 were at US$ 417.8 billion, up 40% from the previous year.

Non-major ports accounted for 45% of the total cargo traffic at Indian ports in FY22, 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. A roadmap has been prepared for increasing the Indian port capacity to 3,300+ MMTPA
by 2025 to cater to the growing traffic. This includes port operational efficiency improvement,
capacity expansion of existing ports and new port development. There are 206 port
modernisation projects worth Rs. 78,611 crore (US$ 10.71 billion). Of which, 81 projects worth Rs.
24,113 crore (US$ 3.29 billion) have been completed and 59 projects worth Rs. 24,288 crore (US$
3.31 billion) are being implemented.

Overall, the Indian port industry has the potential to become a major global player, given the
country's strategic location, vast coastline, and growing trade volume.
 Brief Details of Cargo Handled by Major Ports in India

1. Jawaharlal Nehru Port Trust (JNPT): JNPT is the largest container port in India, and it
primarily handles containerized cargo. It also handles bulk cargo, such as fertilizers, coal,
and liquid chemicals.
2. Mumbai Port Trust: Mumbai Port Trust handles a variety of cargo, including liquid bulk,
containerized cargo, and general cargo.
3. Chennai Port Trust: Chennai Port Trust handles a mix of cargo, including containerized
cargo, bulk cargo, and breakbulk cargo.
4. Visakhapatnam Port Trust: Visakhapatnam Port Trust is a major iron ore handling port,
and it also handles other types of cargo such as coal, petroleum products, and fertilizers.
5. Paradip Port Trust: Paradip Port Trust primarily handles bulk cargo such as iron ore, coal,
and fertilizers.
6. Kolkata Port Trust: Kolkata Port Trust handles a mix of cargo, including containerized
cargo, dry bulk cargo, and liquid bulk cargo.
7. Kandla Port Trust: Kandla Port Trust primarily handles dry bulk cargo, including petroleum
products, fertilizers, and salt.
8. Cochin Port Trust: Cochin Port Trust handles containerized cargo, dry bulk cargo, and
liquid bulk cargo, including petroleum products.
9. New Mangalore Port Trust: New Mangalore Port Trust primarily handles bulk cargo,
including petroleum products, coal, and fertilizers.
10. Mormugao Port Trust: Mormugao Port Trust primarily handles iron ore and coal.
11. Ennore Port Trust: Ennore Port Trust primarily handles coal, petroleum products, and
containerized cargo.
12. Tuticorin Port Trust: Tuticorin Port Trust handles a mix of cargo, including containerized
cargo, dry bulk cargo, and liquid bulk cargo.
13. V.O. Chidambaranar Port Trust: V.O. Chidambaranar Port Trust handles a mix of cargo,
including containerized cargo, liquid bulk cargo, and dry bulk cargo

Source : Compiled from the different sources available in common platform.