Ships moved 9% faster at Indian major ports in FY24 as infra improved

Greater participation by private companies is another reason for improvement

India’s major ports in Financial Year 2023-24 (FY24) registered a 9 per cent improvement in turnaround time, of 48 hours, compared to 52.9 hours the year before as infrastructure and processes are strengthened.

“Faster movement through major ports has also resulted in a higher cargo loading ability as well, as major ports saw a 4.5 per cent increase in total traffic at 819 million metric tonnes (mmt) in FY24,” said a senior government officer.

Major ports are owned by the central government through the ministry of ports, shipping, and waterways, while non-major ones are with state governments and private players.

The average output of each vessel per day at berth increased by 7.5 per cent in FY24 year-on-year to 18,925 tonnes, according to the shipping ministry. Total vessels handled by major ports increased by 6.32 per cent to 23,240 ships.

“Ports have invested in newer, technologically advanced cranes, which are able to do more moves per hour. Monitoring and tracking systems installed by major ports enable real time data points, improving operational efficiencies and processes. Digital services such as the Sagar-Setu mobile app facilitate real-time port operations and monitoring. Further, various process reforms have been implemented, such as transitioning to a paperless system for various clearances at ports, implementing faceless assessment by the customs department, introducing provisions for e-way bills etc,” said Sushi S Shyamal, investment banking partner (ports and shipping) at EY.

Pre-berthing detention of vessels at major ports reduced by 31 per cent in FY24 – it is at 5.91 hours compared to 8.53 hours the year before. Didn’t understand)

India’s underperformance in the maritime space has been cited as a factor for its high cost of logistics. According to experts, the country is now doing better due to improved infrastructure at major ports and greater private participation.

Shyamal said according to the World Bank Logistics Performance Index Indian ports’ turnaround time of 0.9 days was better than United States (1.5 days), Australia (1.7 days), Belgium (1.3 days), Canada (2.0 days), Germany (1.3 days), UAE (1.1 days), Russian Federation (1.8 days), Ireland (1.2 days), Indonesia (1.1 days), New Zealand (1.1 days) and South Africa (2.8 days).

The index looks at performance on a “blended basis” (combined performance of major and non-major ports) and indicates that private ports in India do better in operational metrics.

The government officer quoted above said that the shipping ministry is considering increasing public private partnership (PPP) at major ports through the landlord model as data indicates that container terminals operated by private companies have better efficiency metrics than those operated by the port authority.