Giving a significant boost to India’s port development programme, nine Indian ports have found a place in the global top 100 in the latest edition of the Container Port Performance Index (CPPI), 2023, a report prepared by the World Bank and S&P Global Marketing Intelligence. The credit for this achievement has been given to the Sagarmala programme which has focused on the modernisation of the ports and improving their efficiency.
Key Highlights of the CPPI 2023
About the Index
- It is a global index developed by the World Bank and S&P Global Market Intelligence. It measures and compares the performance of container ports around the world.
- The index ranks 405 global container ports by efficiency, focusing on the duration of port stay for container vessels.
- Its primary aim is to identify areas for enhancement for the benefit of multiple stakeholders in the global trading system and supply chains, from ports to shipping lines, national governments, and consumers.
Global Ranking
- In the CPPI 2023 rankings, Yangshan Port in China is first, followed by the Port of Salalah in Oman. The Port of Cartagena is third, and Tangier-Mediterranean is fourth.
India’s Position
- Visakhapatnam Port jumped from 115 in 2022 to 19 in the 2023 rankings, becoming the first Indian port to reach the Global Top 20.
- Mundra Port also improved its position, rising from 48 last year to 27 in the current ranking.
- Seven other Indian ports, which secured ranks in the top 100, are Pipavav (41), Kamarajar (47), Cochin (63), Hazira (68), Krishnapatnam (71), Chennai (80) and Jawaharlal Nehru (96).
Sagarmala Programme
- The Sagarmala programme launched in 2015, a flagship initiative of the Ministry of Ports, Shipping and Waterways, represents a visionary approach by the Government to transform the country’s maritime sector.
- With India’s extensive coastline, navigable waterways, and strategic maritime trade routes, Sagarmala aims to unlock the untapped potential of these resources for port-led development and coastal community upliftment.
- It seeks to enhance the performance of the logistics sector by reducing logistics costs for both domestic and international trade.
- By leveraging coastal and waterway transportation, the program aims to minimise the need for extensive infrastructure investments, thus making logistics more efficient and improving the competitiveness of Indian exports.
Scenario of India’s Port Ecosystem
- According to the Ministry of Shipping, around 95% of India’s trading by volume and 70% by value is done through maritime transport.
- In November 2020, the Prime Minister renamed the Ministry of Shipping as the Ministry of Ports, Shipping and Waterways.
- 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.
Major Ports vs Minor Ports
- Ports in India are classified as Major and Minor Ports according to the jurisdiction of the Central and State government as defined under the Indian Ports Act, 1908.
- All the 13 Major Ports are governed under the Major Port Trusts Act, 1963 and are owned and managed by the Central Government.
- All the Minor Ports are governed under the Indian Port Act, 1908 and are owned and managed by the State Governments.
- Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country.
Related Statistics
- India is the sixteenth-largest maritime country in the world with a coastline of 7,516.6 kms. The Indian ports and shipping industry play a vital role in sustaining growth in the country’s trade and commerce.
- The Ports sector in India is being driven by high growth in external trade.
- In FY23, major ports in India handled 783.50 million tonnes of cargo traffic, implying a Compound Annual Growth Rate (CAGR) of 3.26% in FY16-23.
- In FY24 (April-January) cargo traffic handled by major ports stood at 677.22 million tonnes.
- Domestic waterways have found to be a cost-effective and environmentally sustainable mode of freight transportation.
- The government aims to operationalise 23 inland waterways by 2030.