The importance of the Indian Ocean Region (IOR) — which represents around 20 per cent of the world’s ocean area, connects the shores of three continents and hosts important global trade routes such as the one connecting the Far East with Europe — in global commerce is continually increasing.

India’s maritime sector — contributing around 95 per cent of the country's trade by volume and 70 per cent by value — is not only the mainstay of India’s trade ecosystem but also holds considerable strategic relevance to international trade. Further, India supplies almost 10 per cent of the world’s seafarers, making it the world’s third-largest provider of seafarers. India is also the third largest ship recycling country globally by tonnage. 

Indian Maritime Trade In Focus

Over the past decade, India has seen a resurgence in its maritime ecosystem, marked by defined enhancements in hard and soft infrastructure, streamlined regulatory processes, reduced clearance timelines, improved and augmented cargo handling, as well as other operational improvements such as direct port delivery, the Authorised Economic Operator (AEO) programme, etc. 

Apart from these, other major policy initiatives such as the Sagarmala Programme — envisaged to facilitate port-led development, uplift coastal communities and optimise performance to reduce logistics costs — and the Maritime India Vision (MIV) 2030, are providing a necessary fillip to key areas such as port development/modernisation, cargo handling, connectivity, inland waterways and coastal shipping, among others, thereby revitalising the maritime ecosystem in the country. 

Considerable focus has been put on port development and modernisation, leading to capacity building for increasing trade flows. Upcoming ports such as Vadhavan — an all-weather deep draft port including container terminals, multi-purpose berths, liquid cargo berths, RoRo berths, etc. — in Maharashtra, and Vizhinjam — a potential trans-shipment hub on the Indian coast possessing the ability to handle Megamax and other ultra-large ships — in Kerala, are well poised to become key growth engines, going forward. 

Modernisation In Logistics

The increased adoption of modern equipment — such as contemporary quay/gantry cranes, drive-through/mobile scanners, RFID, etc. — as well as digital infrastructure — Port Community System (PCS), Indian Customs Electronic Data Interchange Gateway (ICEGATE), etc. — has led to augmented cargo handling efficiency as well as streamlined clearance mechanisms, which have continually reflected in improved turnaround times across ports. 

Initiatives such as PM GatiShakti and the National Logistics Portal have also laid the platform for efficient multimodal transport and integrated logistics solutions, respectively. Ancillary services such as shipbuilding, ship recycling, container manufacturing — in destinations such as Bhavnagar — as well as cruise shipping, are expected to gain ground, leading to port-led industrialisation in the near future.

Smart And Green Ports

Further, developments in the Indian maritime ecosystem would also encompass emerging concepts such as ‘smart’ ports, in the times to come. There is a global drive to digitalise ports, and the smart port segment is expected to grow at a rapid pace in the near future. 

The MIV 2030 aptly captures this trend, and India is on the path to transforming its ports into smart ports, and eventually into intelligent ports. Increased adoption of Artificial intelligence (AI), Internet of Things (IoT), Machine Learning (ML), blockchain, big data analytics, etc. would simplify port operations, increase efficiency and improve safety aspects at ports across India. 

Real-time information on infrastructure and facilities, cargo handling, vessel movement, etc. would ensure unprecedented operational streamlining and throughput levels, thereby improving time and cost metrics. Smart port technologies would also promote sustainable port operations through inherent monitoring mechanisms for energy consumption and emissions, as well as waste management.

Sustainable practices at ports would be furthered by the development of ‘green’ ports. The Indian policy establishment has already laid the foundation for green initiatives at ports through the “Harit Sagar” Green Port Guidelines for major ports. 

This is in line with India’s “Panchamrit” commitments, announced during the COP-26 Conference at Glasgow, and its target to become energy-independent by 2047, while achieving net-zero emissions by 2070. The envisaged developments would also ensure compliance with Sustainable Development Goals (SDG) as well as International Maritime Organisation (IMO) regulations. 

The development of green ports in India would ensure the use of clean energy, development of port capabilities for storage, handling and bunkering of green fuels, adoption of green technologies, electrification of port equipment, reduction in wastages, etc. and gradual phasing out of diesel-powered equipment from ports.

India's Ambition To Be A Big Maritime Player

Going forward, the maritime ecosystem in India is slated to go through a paradigm shift, characterised by continued growth in traffic, increase in fleet size, operationalisation of new ports, modernisation of existing ports, wide-ranging digitalisation, operational streamlining, faster turnaround time, increased transhipment facilities, augmented coastal shipping and development of inland waterways among many more. 

All these developments would be complemented by an overall resurgence in the logistics sector, with increased adoption of multi-modal transport, the emergence of a robust highway network, increase in freight share of railways — as per the National Rail Plan — as well as Inland Water Transport (IWT), etc., ensuring holistic developments in the Indian trade ecosystem as a whole. 

This transition, however, would have to entail the introduction of fresh infrastructure — such as state-of-the-art terminals, warehousing facilities, etc. — as well as significant improvements in last-mile connectivity. 

India can become a frontrunner in green transition through well-directed reforms — such as green initiatives, emission reductions and circular economy practices — and increased private participation. It may take cues from countries like the US and South Korea, to accelerate its transition from fossil fuels to renewable energy. Also, increased adoption of new technologies would significantly strengthen the Indian port ecosystem — connecting key stakeholders as well as the hinterland — through seamless data sharing and analytics, thereby ensuring informed decision-making and optimised operations. 

Stakeholder Involvement In Logistics

For instance, the Unified Logistics Interface Platform (ULIP) — launched as a part of the National Logistics Policy — has been developed to integrate all modes of transportation through a single interface, thereby transforming the logistics landscape. 

However, logistics being predominantly an unorganised sector, adequate awareness generation would be key in getting maximum stakeholders on board. 

In accordance with these developments in the logistics ecosystem, the Indian maritime sector would need to ensure consistent reforms on the ground — in terms of infrastructure, operations, technology, innovation, sustainability, and workforce development — to catapult itself to a leadership position in global maritime trade and logistics. 

 

(Afaq Hussain is Director and Samit Chakraborty is Project Manager at New Delhi-based research institute Bureau of Research on Industry and Economic Fundamentals, BRIEF-INDIA. Views expressed are personal.)