India’s Ports to Expand by 500-550 MTPA Annually

25 Feb 2025 CW Team

Currently, ports in India facilitate 95 per cent of the country's export volumes and 70 per cent of its export values, underscoring their essential role in trade. The nation’s extensive coastline of approximately 7,500 km, along with 20,275 km of national waterways across 24 states, provides a strategic advantage. Its location in the Indian Ocean aligns with 80 per cent of the global maritime oil trade, enhancing its potential as a key player in the maritime sector.

The country’s port infrastructure consists of 13 major ports and 205 non-major ports. In FY24, major ports handled 819 MMT of cargo, while between April 2024 and January 2025, this figure reached 699 MMT. The sector currently operates with a total capacity of 2,604 MTPA, which is expected to witness significant expansion in the coming years.

Cargo traffic is projected to grow at an annual rate of 3-6 per cent, with utilisation rates stabilizing around 55 per cent over the medium term. Container traffic is expected to increase by 4-7 per cent annually over the next five years, supported by rising imports, declining freight costs, and the normalization of global supply chains.

Transshipment, currently comprising about 25 per cent of India's container throughput, remains a critical area of focus. Ports such as Chennai play a key role in this segment, enhancing connectivity and trade efficiency.

The port ecosystem is shaped by the distinct roles of major and non-major ports. Major ports, managed by the central government, are situated near industrial hubs and handle a diverse range of cargo. However, these ports often experience congestion due to shared access channels. In contrast, non-major ports, operated by state governments or private entities through public-private partnerships, exhibit greater operational flexibility and efficiency, resulting in reduced congestion.

In FY23, non-major ports recorded a 7.6 per cent increase in cargo traffic, surpassing the 4.7 per cent growth observed at major ports. This trend highlights the growing significance of non-major ports in India's maritime infrastructure development.

News source: ANI

India's ports sector is set for substantial expansion between FY 2023 and FY 2028, with an estimated annual capacity addition of 500-550 MTPA. This growth is primarily attributed to the increasing handling of petroleum, oil, lubricants (POL), coal, and containerized cargo. Currently, ports in India facilitate 95 per cent of the country's export volumes and 70 per cent of its export values, underscoring their essential role in trade. The nation’s extensive coastline of approximately 7,500 km, along with 20,275 km of national waterways across 24 states, provides a strategic advantage. Its location in the Indian Ocean aligns with 80 per cent of the global maritime oil trade, enhancing its potential as a key player in the maritime sector. The country’s port infrastructure consists of 13 major ports and 205 non-major ports. In FY24, major ports handled 819 MMT of cargo, while between April 2024 and January 2025, this figure reached 699 MMT. The sector currently operates with a total capacity of 2,604 MTPA, which is expected to witness significant expansion in the coming years. Cargo traffic is projected to grow at an annual rate of 3-6 per cent, with utilisation rates stabilizing around 55 per cent over the medium term. Container traffic is expected to increase by 4-7 per cent annually over the next five years, supported by rising imports, declining freight costs, and the normalization of global supply chains. Transshipment, currently comprising about 25 per cent of India's container throughput, remains a critical area of focus. Ports such as Chennai play a key role in this segment, enhancing connectivity and trade efficiency. The port ecosystem is shaped by the distinct roles of major and non-major ports. Major ports, managed by the central government, are situated near industrial hubs and handle a diverse range of cargo. However, these ports often experience congestion due to shared access channels. In contrast, non-major ports, operated by state governments or private entities through public-private partnerships, exhibit greater operational flexibility and efficiency, resulting in reduced congestion. In FY23, non-major ports recorded a 7.6 per cent increase in cargo traffic, surpassing the 4.7 per cent growth observed at major ports. This trend highlights the growing significance of non-major ports in India's maritime infrastructure development. News source: ANI

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