Adani pushes to complete Mundra's fifth terminal as competition looms
Adani Ports (APSEZ) is pushing hard to open of its under-construction fifth container terminal (CT5) ...
India is gearing up to implement countrywide standardised port service rules – another major supply chain reform as the emerging economy targets maritime-led growth.
The process is aimed at minimising or eliminating inconsistencies in port services for ocean carriers and shippers.
Dubbed a “one-nation-one-port” process, the updated framework seeks to “enhance the pace of data exchange between all stakeholders”, such as ports, terminal operators, ocean carriers and cargo owners.
India’s Ministry of Shipping, in a presentation to stakeholders, said the primary rationale behind the administrative project was to eliminate inefficiencies and redundancies and foster continuous optimisation of the port system.
The authorities essentially mapped out a four-pronged programme to lift the profile of government ports, which they believed would make vessel and cargo clearance and cargo-handling/delivery more holistic.
From a containerised trade perspective, operations policies followed by the ports of Nhava Sheva (JNPA), Kolkata and Chennai had been studied, available documents reveal.
The government said: “This involves conducting a comprehensive review of the existing procedures and documents exchanged within the port value chain across all major ports which cover various cargo types, including containers, dry bulk, and liquid bulk, as well as different movement categories, such as export-import, transhipment and coastal operations.”
Indian cargo docks have historically suffered from widespread inconsistencies in data filing and documentation, making industry compliances challenging and cumbersome, even though digitisation has measurably boosted the user experience in recent years.
There has been a series of other supply chain reforms in the Indian port sector in past years, intended to create a more conducive trade environment, but historical procedural complexities persist.
To cite one major example, the introduction of direct port delivery service for import cargo and direct port entry service for export cargo a few years ago has had “a game-changing” impact on India’s logistics efficiency matrix.
Cargo owners are able to pick up consignments directly from the port within 48 hours of arrival, while direct port entry allows factory-stuffed export shipments to be gated in without passing through customs-bonded warehouses. Both schemes present shippers with an opportunity to save on transit times and logistics costs.
As trade volumes expand, global container lines have been increasingly betting on the Indian market for growth opportunities by adding more direct calls at major ports for greater market reach.
India has 12 government-controlled port entities, but they are facing growing competitive challenges from private or minor terminals run by Adani Ports.
Among the government ports, JNPA remains the top runner for container handling, competing with Adani’s Mundra port.
The 12 public ports handled some 6m teu between April through August, up 10% year on year, according to industry data, arguably thanks to greater productivity efforts and improved infrastructure capabilities.
Indian policymakers have lined up a high-stakes maritime event in Mumbai this month to drive industry investments into maritime development, as the port sector sets its sights on handling 10bn tonnes of cargo by 2047.
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