Sagarmala Programme Accelerates Port Modernisation
WAREHOUSING & LOGISTICS

Sagarmala Programme Accelerates Port Modernisation

The Centre's Sagarmala programme is advancing as a central element of India's infrastructure and trade strategy, directing major investments into port modernisation, multimodal connectivity and logistics to reduce supply chain costs and raise export competitiveness. The programme is expected to support manufacturing, attract private investment and position India as a global maritime and export hub. Government emphasis on port-led development reflects rising merchandise exports and container traffic, increasing demand for efficient logistics.

The initiative encompasses more than 800 initiatives covering port modernisation, coastal area development and port-centric industrialisation, with an investment pipeline of Rs five point eight trillion (Rs 5.8 tn). Hundreds of projects have been completed and others are at various stages of implementation, while authorities continue to prioritise project execution and regulatory facilitation. Multimodal linkages that combine ports with freight corridors, highways and railways are being developed to improve hinterland connectivity and cargo velocity.

Major ports recorded an all-time high cargo traffic of over 850 million tonnes (850 mn t) in FY26 as container volumes, dry bulk and petroleum shipments expanded, driven by greater mechanisation, digital cargo handling systems and deeper berths that accommodate larger vessels. Faster cargo handling and improved connectivity could significantly enhance ease of doing business and lower logistics costs that weigh on exporters. Industry observers pointed to the need for further digitalisation and automation to respond to shifting shipping routes and global supply chain realignments.

Port infrastructure has attracted domestic and foreign capital through public-private partnerships, and the rise of new container and liquid terminals and green ports is expected to create jobs and foster coastal industrial clusters. Logistics currently account for about 13-14 per cent of GDP compared with around eight to ten per cent in many developed economies, underlining the scope for cost reduction through efficient ports and linkages. Continued policy support, private investment and timely project delivery are likely to determine whether the programme sustains momentum and secures larger shares of international cargo flows.

The Centre's Sagarmala programme is advancing as a central element of India's infrastructure and trade strategy, directing major investments into port modernisation, multimodal connectivity and logistics to reduce supply chain costs and raise export competitiveness. The programme is expected to support manufacturing, attract private investment and position India as a global maritime and export hub. Government emphasis on port-led development reflects rising merchandise exports and container traffic, increasing demand for efficient logistics. The initiative encompasses more than 800 initiatives covering port modernisation, coastal area development and port-centric industrialisation, with an investment pipeline of Rs five point eight trillion (Rs 5.8 tn). Hundreds of projects have been completed and others are at various stages of implementation, while authorities continue to prioritise project execution and regulatory facilitation. Multimodal linkages that combine ports with freight corridors, highways and railways are being developed to improve hinterland connectivity and cargo velocity. Major ports recorded an all-time high cargo traffic of over 850 million tonnes (850 mn t) in FY26 as container volumes, dry bulk and petroleum shipments expanded, driven by greater mechanisation, digital cargo handling systems and deeper berths that accommodate larger vessels. Faster cargo handling and improved connectivity could significantly enhance ease of doing business and lower logistics costs that weigh on exporters. Industry observers pointed to the need for further digitalisation and automation to respond to shifting shipping routes and global supply chain realignments. Port infrastructure has attracted domestic and foreign capital through public-private partnerships, and the rise of new container and liquid terminals and green ports is expected to create jobs and foster coastal industrial clusters. Logistics currently account for about 13-14 per cent of GDP compared with around eight to ten per cent in many developed economies, underlining the scope for cost reduction through efficient ports and linkages. Continued policy support, private investment and timely project delivery are likely to determine whether the programme sustains momentum and secures larger shares of international cargo flows.

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