Operational and financial efficiency of Ports in India 2022

A REPORT ON
“ANALYSIS OF OPERATIONAL AND FINANCIAL
EFFICIENCY OF PORTS IN INDIA”
BY
Smit Benani (I003)
Harshit Dhoot (I009)
Kabeer Lalwani (I012)
Manas Patel (I037)
STUDYING AT

MUKESH PATEL SCHOOL TECHNOLOGY

MANAGEMENT AND ENGINEERING
MUMBAI

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Operational and financial efficiency of Ports in India 2022

Table of contents:
1. Introduction .............................................................................................. 03
2. Literature Review .................................................................................... 05
3. Statement of the Problem......................................................................... 14
4. Objectives ................................................................................................ 15
5. Methodology ............................................................................................ 16
6. Result Analysis ........................................................................................ 26
7. Findings and Recommendation ............................................................... 27
8. Conclusion ............................................................................................... 28
9. References ................................................................................................ 29

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Operational and financial efficiency of Ports in India 2022

Introduction
Ports are an important fundamental part of our
economy. It contributes nearly 2% to our gross
domestic product (GDP). There are total of 12
major ports in India 6 in eastern and 6 in
western coastal line.
This ports nearly handled 720 million tons of
cargo shipment in FY-2021. It contributes
nearly 20% of world's trade and shipping. India
was ranked at the 15th position with 963 ships
int the FY-2021.

Ports are the most important thing in any country whether developed or developing nation. India
has 7,500km long coastline. It has various advantages over Indian ocean, Arabian sea, and Bay of
Bengal. It is the most important connecting point for western countries and eastern countries. The
government's strategic developments, Ship recycling, Cargo handling efficiency, and many more
methods are resulting in better Indian ports and bullying up more and more trust of other countries.

The FM in this fiscal year allocated 1,881 crores also government announced almost 2,000cr worth
of new projects to be done till 2035. From the past many decades Indian ocean and India’s coastline
has always been beneficial kings. The maharaja Chhatrapati Shivaji Maharaj used the Indian ocean
to keep away Britishers away for many years and always won the battles held in sea. Britishers
used and almost exhausted the Mumbai port and Calcutta port in the name of the East India
company. In today’s world the ports are almost contributes 90% to our shipping industry. The
biggest port governed by the government is Mumbai port in Maharashtra and the largest private
port is Kandla port in Gujarat successfully ran by Adani ports company.

Government is planning to privatize many ports in the next 5 years. This report covers the
operational and financial efficiency of ports in India, it also discusses the problems and
government initiatives taken for those problems.

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Various operations carried out by ports are

loading, unloading of cargo from ship and
again loading, unloading it from the
containers or trucks.
The hours currently taken by Indian ports are
nearly 82-84 hrs. for one complete loading
unloading cycle.

Whereas for other developed countries it is 72 hrs. only which decreases the efficiency of port as
compared to other countries. The ministry of shipping, ports and waterways are constantly trying
to reduce the operational cost and increase the cargo handling capacity.

Figure 1 12 Major Ports in India

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Literature Review
It contains the comprehensive summary of previous research on “Operational and Financial
Efficiency of Ports in India”.

Causalities Investigation in Ports (Directorate General of Shipping, Ministry of Ports,

Shipping and Waterways, Government of India)

Ministry of ports from years are posting their annual casualties report for every casualty happened
under their flag just so because the ministry and nation shall understand the lessons and any change
in policy if required can be possible. I am taking one of the casualties from year-2013 case of
missing 3rd officer from an oil tanker. The 3rd officer on one fine day disappears despite there
were no clue of this happening to anyone. Many search operations were held by ship fellows, SAR
craft but he was missing. The most estimated reason for disappearance of 3rd officer is either
suicide or might he have slipped to sea while standing beside the side deck area. Lesson learnt
should be one should not move carelessly on board given the changing weather conditions; ship
owners/managers should carry potential risk assessments on ship which removes all hazardous
things placed which can be harmful for people on board.

How government is planning to invest in development of Ports in India (Indian Brand Equity
Foundation, Feb 2022)

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 1,561 million tonnes per annum (MTPA)
in FY21. 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.
In Union Budget 2020-21, the total allocation for the Ministry of Shipping was Rs. 1,702.35 crores
(US$ 233.48 million). India has plans to invest US$ 82 billion in port projects by 2035.As per
studies conducted under the Sagarmala Program, 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.

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This includes port operational efficiency improvement, capacity expansion of existing ports and
new port development. There are 206 port modernization projects worth Rs. 78,611 crores (US$
10.71 billion). Of which, 81 projects worth Rs. 24,113 crores (US$ 3.29 billion) have been
completed and 59 projects worth Rs. 24,288 crores (US$ 3.31 billion) are being implemented.

How government is reducing the operational cost (India Port Report, 2013)

In the past years India’s trades are booming

millions of tons of cargos and shipments are
being traded or shipped from Indian ports
which is ultimately contributing in our
booming economy. The government of India is
spending thousands of crores and trying to pass
bills in parliament to help and ease the trade
complexity which in return should give them
maximum profit. To maximize the profit the
cost maintaining and operating should be as
low as possible.

Using the todays technological developments in the area of maritime government is trying to cut
as much as cost as possible this in return will give them maximum profit. The ministry of sea,
airways and transport highlighted that the infrastructure development plans, such as Bharatmala
and Dedicated Freight Corridors, are at various phases of execution. Regulatory and administrative
innovations such as E-paperless Sanchi’s EXIM trade process, Truant Customs' faceless
assessment have further aided the logistics sector's efficiency. The minister added that MIV 2030
envisions an overall investment of ₹3 to 3.5 lakh crores across ports, shipping, and inland
waterways categories. He said MIV 2030 has identified initiatives such as developing world-class
mega ports, transshipment hubs and infrastructure modernization of ports. These initiatives would
help in lowering overall operational costs of ports, reducing turnaround time for vessels, increasing
efficiency and throughput, providing ability to handle larger ships and developing Indian port’s
strategic importance in the South Asian region.

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The Indian Port Privatization Model (Shashi Kumar, April 1998)

India is privatizing the ports to many companies like Adani they have allowed all the potential
companies to enter, bid for development the infrastructure of ports in India. Reason behind doing
this is again reducing the cost of maintenance and strategically advance the current ports and
develop them at more rapid and fast way. Number 1 private port being Adani’s Kandala port which
is right now the biggest private port also, adani has owned 2nd largest port near Mumbai. They
have their strategic tactics and highly skilled teams and managers to solve any kind of problem
and to upscale the development of these ports. They have the benefits to scale up the cargo handling
process and drastically lower the cost of handling it. The government port authorities are entitled
to give pension, minimum wages, employment opportunities, and much more which eats up much
of the allocated budget assigned every year to ports. There is one example of Kolkata port where
300cr worth of rupees is being invested to just clear the mud occurred due to high tides or erosion
a survey compared it with private intrusion in it which will cost government 100cr rupees only as
well established companies have already bought equipment’s and skilled employees with updated
technology which makes the job done quickly and easily.

Digital improvements can make or break ports (Nicholas Thiberge, May 2022)

While working with ports around the world we have seen that the inefficiencies of reconciling
billing and tariff processes cost a significant chunk of the revenue as well. Inefficiencies in terms
of late payments, cash flow management, managing AP/AR cause difficulties for ports. The main
issue with billing is that there is no single structure in place, the processes often need to be synced
across multiple systems/parties - and the systems used by the ports are sometimes different
versions of NAVIS or some home-built accounting system. To overcome this problem, we look at
the overall contracting, billing, and tariff structures and create a solution that can automate the
process and create a single source of truth available, so we can update all the systems and parties
in real-time information. To automate all billing processes quickly and accurately, we can build
our solution on top of the existing infrastructure with the help our cloud-based integration platform
as a service and connect different systems to gather all the necessary data into a single view. With
the help of an integration platform, traditionally manual processes can be automated.

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An Integrated container management model for optimizing slot allocation plan and empty
container repositioning (Chia Chang and Lawrence Lan, Sept 2015)

This report proposes an integrated container management model to jointly optimize slot allocation
plan for loaded containers and reposition for empty containers in a shipping network. The proposed
model employs linear programming to formulate loaded and empty container shipping problems
in a bi-level structure. In upper level the loaded container slot allocation plan aims to maximize
operational profits for each service route; whereas in lower level the reposition of empty containers
aims to minimize transportation costs for the entire shipping network. The surplus or deficient
empty containers resulted from the upper problem are fed into the lower problem. To demonstrate
the applicability of the proposed model, a real case of an intra-Asian short-sea container carrier is
presented. The results show that the proposed model can serve as a decision support tool to
facilitate the liner to ship the loaded and empty containers in a coordinative way.

Annual Report of Port 2015-16, Ministry of Ports and Shipping and Government of India

The report comprises of analysis of ports and shipbuilding which includes data analysis of 12
major ports and 200 non major ports in India. Approximately 95% of country’s trade by volume
and 68% by value is carried out through maritime transport. Planning commission approved
12thfive-year plan for time-period from 2012 to 2017. Under the plan, Rs. 6,960 crores of gross
budgetary support (GBS) were approved for ministry of posts and shipping. There was almost
increase of 109% in GBS as compared to 11th plan.

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From the Rs. 6,960 crores, share of ports was Rs. 3057.47 crores. The cargo traffic at major ports
grew by 3.18% over corresponding previous years and non-major ports handled around 43% of
total maritime traffic of the country.
Major ports improved their efficiency of operation in terms of turnaround time (TRT). Average
TRT was improved from 4.24 days to 2.13 days. During the time period of 2015-16, Kandla port
holds the record of efficient operation for handling traffic at rate 74 million tonnes. The port of
Chennai and Mangalore was more efficient in operational basis with average turnaround time of
about 1.62 days and port of Mumbai was least efficient with average turnaround time of 3 days.

Annual Report of Port 2016-17, Ministry of Ports and Shipping and Government of India

The annual report of port released by Ministry of Ports and shipping in India for FY 2016-17
comprises of the budget estimation and efficiency of ports, how efficiently ports have managed to
overcome their target and how much did it cost them and how they managed it. The estimated
budget for financial year 2016-17 was of Rs. 1000 crores but the revised budget was reduced to
Rs. 950 crores and the expenditure on the completion of year 2016 was around Rs. 705 crores. The
Gross Budgetary Support was around 1773 crores which includes ports, lighthouses and shipping
out of which 126 crores was marked for North eastern region. In the view of operational part, ports
handled a traffic of 481.20 MT which was 7.55% increase as compared to previous year.
Mormugao was leading chart for handling highest throughput at rate of 62.5% followed by Paradip
with 18%. Cargo transport of Petroleum, oil and lubricants was maximum in the year. Gujarat
handled three fourth of total traffic handled by non-major ports. The projected capacity of handling
was 1229.24 MT but the handling capacity of major ports at the end of 2016 was only 1005 MT
which was a problem of not achieving the projected target. To discuss and overcome problem
summit was organized in Mumbai and agenda was made keeping 2020 as the target year.

Annual Report of Port 2017-18, Ministry of Ports and Shipping and Government of India

The report released by Ministry of ports for the financial year 2017-18 was collection of outlay of
budget, planning and operational feature of ports in that FY. The Gross Budgetary Support for FY
2017-18 was Rs. 1773 crores and the revised estimate budget was reduced to Rs. 1570 crores with
Rs. 865 crores allocated for ports sector. The expenditure at the end of year 2017 was Rs. 1031

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crores. Rs. 453 crores out of Rs. 1031 crores were actual expenditure used in ports sector of India.
The operational part experienced increase of 3.64% in traffic as compared to previous year and
handled around 559MT during April – December 2017. 8 ports out of major 12 ports showed
growth in throughput (Units transferred in given time period). These includes cochin with highest
growth of 17% followed by Paradip with 14%. Coal and POL showed a steady growth in ports
operational but there was fluctuation in Iron ores and fertilizer sector. Non-major ports also
experienced growth of 1.4% in traffic corresponding to previous year. The efficiency of port also
showed some growth with decrease in turnaround time from 107.2 hours to 60 hours. To increase
the efficiency and productivity many initiatives like authority’s bill and model concession
agreement came into picture. During this period, Kandla port was renamed as Deendayal port.
Government also increased draft in major ports to handle large vessels. In this draft, harbour of
Visakhapatnam port got deep draft of 18 meters. Maritime India Summit was held to showcase
investment offered in maritime sector.

Annual Report of Port 2018-19, Ministry of Ports and Shipping and Government of India

The annual report of the year 2018-19 was released to address the issues and structure development
of ports in India. The Gross Budgetary Support for financial year 2018-19 was of Rs. 1881.13
crores and the revised estimate was enhanced to 1938.7 crores. The actual expenditure on the
completion of 2018 was Rs. 1455.52 crores. The report also states the analysis of project under
Sagarmala which shows that the total project cost from year 2018 to 2035 is estimated around Rs.
8,78,104 crores. The project includes themes like Port modernization, Port connectivity, Port
Industrialization and coastal community development. During the period 2017-18 major ports
handled total cargo throughput of around 1208 MT and the traffic showed growth of approx. 7%
over the corresponding previous years. Jawaharlal Nehru Port was leading container for handling
port in country with share of 43%. The annual traffic growth rate of non-major ports was 6.53%
per annum. The average turnaround time was improved from 107.2 hours to 58.9 hours during
2018-19. The annual growth in capacity showed growth of 6.6% per annum. A project named
‘Project Unnati’ with 116 points was initiated for 12 major ports to increase the volume of traffic
and 92 of 116already came into existence by December 2019.

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Annual Report of Port 2019-20, Ministry of Ports and Shipping and Government of India

The report of port by Ministry of Ports describes the scenario about the port management,
expenses, development status and much more. The financial section tells that Gross Budgetary
Support for FY 2019-20 was around Rs. 1902.5 crores but the revised estimated was reduced to
only Rs. 1523.4 crores. The actual expenditure at the end of December 2019 was Rs. 1115.3 crores.
PPP (Public-Private Partnership) project added 13 projects with an investment of Rs. 7173 crores
with capacity addition of 140 MTPA. The major ports handled total cargo throughput of 1282 MT
and the traffic growth was 6.13% corresponding to previous year. Only 7 port out of 12 major
ports showed positive growth with Deendayal port (earlier Kandla port) was highest of 8.8%. Non-
major port sector also recorded growth of traffic. Port handling capacity of major ports was
increased from 800 MT to 1514 MT till 2019. Collectively in last 5 years, total of 160 port
infrastructure project with total investment of Rs. 39186 crores were awarded to major port sector.
Some projects were completed during FY 2019-20 was 10 project of port modernization, 8 project
of port connectivity and 2 coastal community development.

Annual Report of Port 2020-21, Ministry of Ports and Shipping and Government of India

The annual report for ports 2020-21 was released by Ministry of Ports and Government of India.
The Report states that 95% of country’s trade by volume and 68% by value is moved through
maritime transport. For that the Gross Budgetary Support for FY 2020-21 was Rs. 1800 crores and
the revised estimate was reduced to Rs. 1433.65 crores. The expenditure till end of December 2020
was Rs. 902 crores. Also, the major ports handled total cargo throughput of 1320 MT and the
growth of traffic was 2.8% which was low as compared to previous all because the trade was
affected during the covid-19. The 12 major ports handled 400 MT during April-December 2020
where decrease of about 10% was recorded over corresponding previous years. The traffic handled
by non-major ports was 480 MT and states like Gujarat, Maharashtra and Andhra Pradesh
accounted 90% for handling non-major port traffic. The average turnaround time was improved
from 106 hours to 66 hours during 2020. Major agenda taken during the time period was to
facilitate citizen with e-Payment and portals. NSW i.e., National Maritime Single window was
also proposed to reduce delay in physical movement of cargo & transaction time.

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Middle East container ports efficiency in the world (Pranbihanga Borpuzari, May 2022)

Ports in the Middle East took four of the top five spots in the second edition of the global Container
Port Performance Index (CPPI) [The Container Port Performance Index is based on total port hours
per ship call, defined as the elapsed time between when a ship reaches a port to its departure from
the berth having completed its cargo exchange. Greater or lesser workloads are accounted for by
examining the underlying data within ten different call size ranges. Five distinct ship size groups
are accounted for in the methodology given the potential for greater fuel and emissions savings on
larger vessels.]developed by the World Bank and S&P Global Market Intelligence. India’s Pipavav
port in Southwest Gujarat is the highest ranked at number 26, while Mundra is ranked at 48.
Increasing the use of digital technology and green fuel alternatives are two ways country can
modernize their ports and make maritime supply chains more resilient,” said Martin Humphreys,
Lead Transport Economist at the World Bank and one of the researchers behind the index in a
statement. “Inefficient ports represent a significant risk for many developing countries in that they
can hinder economic growth, harm employment, and increase costs for importers and exporters.
In the Middle East, heavy investments in container port infrastructure and technology are proving
to be effective.”

How operational efficiency of India’s port impacts its manufacturing exports (Bishwanath
Goldar and Mahua Paul, June 2019)

The average turnaround time of Indian ports has come down significantly since 2010, indicating
improvement in their operational efficiency. However, it still is more than two times the level in
some of the best-performing ports in the world. India’s exports of manufactured products have
grown rather slowly since 2012-13. India needs a major step-up in the growth rate in exports of
such products. This might still be possible with a multi-pronged strategy directed at enhancing
competitiveness. One important element of such a strategy lies in improved operational efficiency
of Indian ports. An important indicator of the operational efficiency of ports is the Turn Round
Time (TRT) – defined as the time spent by a vessel at the port. The average TRT of major Indian
ports in 2010-11 was about 5.3 days, which came down to about 3.4 days in 2016-17. An increase
in operational efficiency of Indian ports has an impact on manufacturing exports from India.

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An increase in TRT by one day causes manufacturing exports to decrease by about 18-20%. If this
reduction could be made, then it would probably lead to an increase in India's manufacturing
exports by about 20-25%.

Technical efficiency analysis of container terminals in India (K. Chandrashekhar Iyer and
Nihar Nanyam, March 2021)

Indian ports handle approximately 95% of India's external trade, which accounts for 70% in terms
of volume. Cost effective way of meeting the increased demand is to improve the efficiency of the
existing container terminals and upgrade capacity of existing ones. Private players have entered
the container port market, and there is a need to understand their efficiency in their respective
terminals to understand the increase in their throughput and transaction costs. Port and terminal
characteristics are key to understanding the performance of Brazil's container terminals. Data
envelopment analysis (DEA) is used to estimate the technical efficiency of Decision-Making Units
(DMUs) considered for analysis. Technical efficiency deals with the production of maximum
output with the given level of resources. This study aims to calculate the relative efficiency of 26
container terminals over the period 2015–2018 using cross-sectional data.

Modernization project of ports and operational analysis (India Brand Equity Foundation)

India's key ports had a capacity of 1,561 million tonnes per annum (MTPA) in FY21. In FY22, all
key ports in India handled 720.29 million tonnes (MT) of cargo traffic. Non-major ports accounted
for 45% of the total cargo traffic at Indian ports in FY22. A roadmap has been prepared for
increasing the Indian port capacity to 3,300+ MMTPA by 2025. There are 206 port modernization
projects worth Rs. 78,611 crores (US$ 10.71 billion). Private sector investments in ports have
reached an all-time high of US$ 2.35 billion by 2020. The VTMS (Vessel Traffic Management
System) commissioned in Cochin Port in 2009 has been upgraded with a state-of-the-art system.
The Gujarat government provided an approval to build a new jetty worth ~Rs. 192 crores (US$
25.77 million) at Navlakha Port.

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Statement of the Problems

1. Inadequate road networks within the port area? Inadequate cargo-handling equipment and
machinery?
2. Inefficiency due to poor hinterland connectivity through rail, road, highways, coastal shipping
and inland waterways, inadequate navigational aids, facilities and IT systems?
3. Insufficient dredging capacity, lack of technical expertise and a lack of equipment for handling
large volumes?
4. The turnaround time at ports in India therefore remains abysmal?
5. The traffic of container cargo of Iron ore and fertilizer at ports were fluctuated for past few
years which results into trade disturbance of iron ore and fertilizer and also raises question on
operation of ports.
6. Out of 12 major ports in India, every year only 7 or 8 ports showed positive growth and
remaining ports were not accounted or didn’t experienced growth.
7. Labor issues - Major Indian ports are bogged with frequent labor strikes, consequently,
congestions, inefficiency and lower productivity at their respective ports.
8. Regulation Bottleneck - The custom procedures and regulations, and lengthy documentation
process are the other areas where Indian maritime sector lags
9. Technology Bottleneck - The technology innovations and information technology have
changed the way goods being transported between international port terminals
10. Logistics Bottleneck - The port productivity and efficiency also depend upon the quality and
reliability of road and rail connectivity, and adequate storage and handling facilities
11. Infrastructure Bottleneck - Indian ports are plug with the lack of capacity and low productivity.

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Objectives
The Basic objective of writing any report is to provide clear and brief idea of any given topic.
It should include proper description of problems, solution and evaluation.

Indian ports almost contribute for 2% to our GDP. It plays major role in our economy and relation
with other countries. The objective of writing this report is to provide a crystal-clear view on ports,
History of ports, Current scenario of ports, Problems faced, Solution to that problems, Government
schemes. This report focuses on how operational and financial efficiency of ports works which
includes the financial analysis of several years of particular ports. There are several casualties
happening in ports or on ship which impacts trade and cargo handling this report includes that
aspect too.

This report also includes the complete analysis of the current scenario in the form of graphs.
It includes the present-day problem of ports and its efficiency. It covers the government solution
and pros, cons of that solutions.

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Result Analysis
• Traffic handled at major ports during April to August 2022 vis-à-vis April to August 2021

The data is collected from website of Indian Port Association which describes the variation in
traffic handled by 12 major ports of India in year 2022 and 2021 in different commodities like P.
O. L. (Petroleum Oil Lubricants), Iron ores, Fertilizers, Coal and other miscellaneous cargo
containers. The data concludes that the total growth in handling traffic collectively gained 9.17%
growth from 2021 to 2022.

The analysis of traffic handled at port of Kolkata during the interval year April to August 2022
and April to August 2021 is plotted here for different types of commodities. The traffic handled in
2022 gained 8.6% increase corresponding to 2021. Among the commodities, traffic handled for

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coal showed maximum increase in the years and for iron ore, it almost decreased by 1/8th part in
2022 corresponding to 2021. Traffic handling for other commodities like P.O.L., fertilizers and
containers was equivalent in 2022 as compared to 2021.

The analysis of traffic handled at Paradip port during the interval year April to August 2022 and
April to August 2021 is plotted here for different types of commodities. The traffic handled in
2022 gained 10.11% increase corresponding to 2021. Among the commodities, traffic handled for
coal showed maximum increase in the years and for iron ore, it almost decreased by 1/2th part in
2022 corresponding to 2021. Traffic handling for other commodities like P.O.L. and fertilizers was
equivalent in 2022 as compared to 2021. The traffic handling of containers was the lowest of all.

The analysis of traffic handled at port of Vishakhapatnam during the interval year April to August
2022 and April to August 2021 is plotted here for different types of commodities. The traffic

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handled in 2022 gained 11.15% increase corresponding to 2021. Among the commodities, traffic
handled for coal showed maximum increase with almost double in the years. Traffic handling for
other commodities like P.O.L., fertilizers and containers was equivalent in 2022 as compared to
2021.

The analysis of traffic handled at port of Ennore during the interval year April to August 2022 and
April to August 2021 is plotted here for different types of commodities. The traffic handled in
2022 gained 17.24% increase corresponding to 2021. Among the commodities, traffic handled for
coal and containers showed increase in the years. Traffic handling for other commodities like iron
ore and fertilizers was zero.

The analysis of traffic handled at port of Chennai during the interval year April to August 2022
and April to August 2021 is plotted here for different types of commodities. The traffic handled in

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2022 gained 3.77% increase corresponding to 2021. Among the commodities, traffic handled for
coal decreased to zero. Traffic handling for fertilizers was zero.

The analysis of traffic handled at V. O. Chidambarana port during the interval year April to August
2022 and April to August 2021 is plotted here for different types of commodities. The traffic
handled in 2022 gained 10.18% increase corresponding to 2021. Among the commodities, traffic
handled for iron ore was zero. Traffic handling for other commodities was almost equivalent for
both years.

The analysis of traffic handled at port of Cochin during the interval year April to August 2022 and
April to August 2021 is plotted here for different types of commodities. The traffic handled in
2022 gained 10.77% increase corresponding to 2021. Among the commodities, traffic handled for

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iron ore, fertilizers and coal was zero. Traffic handling for P.O.L. increased in 2022 as compared
to 2021.

The analysis of traffic handled at port of Mormugao during the interval year April to August 2022
and April to August 2021 is plotted here for different types of commodities. The traffic handled in
2022 showed 18% decrease corresponding to 2021. Among the commodities, traffic handled for
iron ore and cargo containers decreased and for fertilizer traffic handling was zero.

The analysis of traffic handled at port of Mumbai during the interval year April to August 2022
and April to August 2021 is plotted here for different types of commodities. The traffic handled in
2022 was 6.06% increase corresponding to 2021. Among the commodities, traffic handled for
P.O.L. and coal gained increase and other all were equivalent for the years. Traffic handling for
fertilizers was zero.

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The analysis of traffic handled at J. N. P. A. Port during the interval year April to August 2022 and
April to August 2021 is plotted here for different types of commodities. The traffic handled in
2022 was 9.67% increase corresponding to 2021. Among the commodities, traffic handled for
containers gained increase and iron ore, fertilizers and coal were zero.

The analysis of traffic handled at port of Deendayal during the interval year April to August 2022
and April to August 2021 is plotted here for different types of commodities. The traffic handled in
2022 was 10.79% increase corresponding to 2021. Among the commodities, traffic handled for
P.O.L. gained increase and other all were almost constant for the years.

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The graph depicts the comparison of total traffic handled by ports collectively for commodities in
time interval 2021 to 2022. Commodities like P.O.L., coal and containers showed growth in unit
of traffic handled but there was fluctuation in traffic handling of iron ore and fertilizers which
resulted into decrease in both sectors.

The graph describes the comparison between 2021 and 2022 for each and every major port in India
regarding the total traffic handled in terms of unit. Through the graph, it can be concluded that port
of Mormugao experience decrement in handling traffic unit from 2021 to 2022 whereas all other
ports showed positive growth.

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• Container Traffic (Loaded and Unloaded) during 2017-20

The data is collected from website of Indian Port Association which describes container traffic
between 2017 and 2020. Container traffic includes both loading and unloading part. The data was
analyzed by taking mainly 12 major ports and considering interval of a year (2017-18, 2018-19,
2019-20). The data presented is in tonnes. The total container traffic showed growth in units loaded
and unloaded from 2017 till 2020.

J.N.P.A. Port has the maximum container traffic for consecutive years. Ports ok Paradip, Mumbai,
Mormugao and Ennore has much less container traffic as compared to traffic J.N.P.A. port has.
Ports like Deendayal, Visakhapatnam and Cochin showed consistent growth in container traffic
chart.

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• Vessel traffic (Category wise) during 2018-20

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Operational and financial efficiency of Ports in India 2022

The data collected from Indian Port Association site is information about vessel traffic at 12 major
ports in India during 2018 to 2020. The vessel traffic data is considered on the basis of form or
nature of commodities. Forms are dry bulk, Liquid bulk, Break bulk, Container and other. The data
is in number of vessels in traffic.

Port of Kolkata, Chennai, V. O. Chidambarana, Cochin and J.N.P.A. has maximum traffic from
container vessels. Paradip port and Vishakhapatnam port has maximum traffic from dry bulk
vessels category. Port of Mumbai, Deendayal port and New Mangalore has liquid bulk vessel as
maximum traffic generator. The Deendayal port has maximum overall traffic in terms of number
of vessels and port of Mormugao with minimum overall traffic in terms of number of vessels.

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Methodology
The methodology is the way of report is been generated and how the data and information was
collected. The research was divided into various categories like theoretical research, Qualitative
research, Quantitative research, and descriptive research.

The report begins with the information about the ports, its management, rules and working norms.
It also includes about the project plans and schemes that are applicable or made for ports operation
and efficiency of India. All this comes under theoretical research section of report.

The data like numbers and statistics were collected from Indian Port Association website to
analyze and conclude the facts about ports and stats also explains the condition and past records
of ports in India. Numbers and stats are under the quantitative research.

The conclusion from the data numbers and stats are generated and then the conclusions are
analyzed and statements are made which states which port is more efficiently working, which port
is more operational and for what type of goods. Likewise, the quality of port is determined which
is under qualitative research section like statement of problem.

The statements are taken into account and problem are searched from it and check has been done
for any solution do government has provided for that specific problem or any scheme and if yes
then till what extent it is applicable and if not, what can be recommendation from our side. This is
under descriptive research section where problem is described and solution to problem is also
described.

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Operational and financial efficiency of Ports in India 2022

Findings and Recommendation

The government has adopted measures for developing the port sector, which include the
introduction of the Maritime Agenda aimed at bringing Indian ports on par with international ports
in terms of performance and capacity. Around 352 ports have been identified to be implemented
as major ports, and it is expected that the total port capacity will be increased to 3200 million
tonnes to handle 2500 million tonnes of cargo by 2020.
The issue of port tariffs has been a cause of concern in the past. To address this issue, the
government proposes to set up a single regulator – the Major Ports Regulatory Authority – which
will be responsible for formulating guidelines, principles, approach and methodology for setting
rates for facilities and services provided at port terminals. This single regulator will be set up once
the Ports Regulatory Authority Bill, 2011 is implemented. The Bill also focuses on providing a
uniform platform for government owned major ports, as well as state-controlled ports in the
country, by giving them the flexibility to fix their own tariffs.
The government has introduced the captive port policy under which the government will allow
captive berths at major ports for private companies, to enable them to utilize these facilities
exclusively for their own goods. Public-private partnership (PPP) projects that were introduced in
the Indian port sector in the late 1990s are expected to be the preferred mode for developing port
terminals and other commercially viable activities in the country’s major ports.
In order to encourage investment opportunities in the port sector, the government is presently
offering a special tax incentive for investments through a 10-year tax holiday to enterprises that
engage in developing, operating or maintaining ports, inland waterways and inland ports. Foreign
capital inflow has been permitted by the government through 100 percent FDI under the automatic
route for the construction and maintenance of ports and harbour. While the government has
introduced several policies, measures designed to encourage growth in the port sector, certain
policy reforms are needed to accelerate the development of India’s port sector. Such reforms
should be aimed at upgrading infrastructure at Indian ports, implementing new land policy for
major ports, establishing a port regulator at all ports to monitor and regulate services and technical
and performance standards, simplifying the environmental clearance process for port projects,
establishing a special purpose vehicle for making investments in ports, developing major new
ports, and so on.

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Conclusion
This report highlighted certain issues like infrastructure, labor issues, Slow development of ports.
Along with problems it also stated some of the measures too to tackle it. The ports as mentioned
above is the significant aspect for any country hence the government should take timely measures
and although our Indian government is doing it by passing many bills in favour and welfare of our
ports. The need and urgency of having 70-72hours of cargo handling cycle is must as it defines
many things for a country government has promised to fulfill that by 2025. Government also has
given 2,000 crores for port infrastructure development. Hence concluding it ports and shipping
industry are growing at much faster rate contributing much more to Indian economy and GDP
seeing the government measures and subsequent schemes the port infrastructure will be much
stabilized by 2025.

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References
• https://byjus.com/free-ias-prep/major-ports-in-india/#:~:text=Thirteen%20major%20ports%
20in%20the,Paradip%2C%20Kolkata%2C%20and%20Ennore
• https://www.sciencedirect.com/science/article/pii/S2092521220300420
• https://www.ideasforindia.in/topics/trade/how-operational-efficiency-of-indias-ports-
impacts-its-manufacturing-exports.html
• https://www.ibef.org/
• https://m.economictimes.com/small-biz/trade/exports/insights/middle-east-container-ports-
most-efficient-in-the-world-indias-pipavav-ranked-at-26/amp_articleshow/91803884.cms
• https://www.researchgate.net/publication/265844346_An_integrated_container_management
_model_for_optimizing_slot_allocation_plan_and_empty_container_repositioning
• https://www.researchgate.net/publication/280558512_The_Indian_Port_Privatization_Model
_A_Critique
• https://blogs.worldbank.org/transport/digital-improvements-can-make-or-break-ports
• https://www.ibef.org/archives/industry/indian-ports-analysis-reports/indian-ports-analysis-
presentation
• https://www.statista.com/search/?q=ports&Search=&qKat=search&newSearch=true&p=1
• http://www.ipa.nic.in/
• https://shipmin.gov.in/publication/annual-reports
• https://www.unescap.org/sites/default/d8files/bulletin73_Article-2.pdf

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