How India can become a global maritime power by 2030

Source– The post is based on the article “How India can become a global maritime power by 2030” published in the “The Hindu” on 15th June 2023.

Syllabus: GS3- Infrastructure

News– In the recently released World Bank’s Logistic Performance Index Report 2023, India has moved up to 22nd rank in the global rankings on the “International Shipments” category from the 44th position in 2014.

What are the reasons behind the improved performance in logistics?

There is a substantial reduction in the dwell time at Indian ports. It is the amount of time vessels spend in port actively loading or unloading cargo.

This has reached an optimum level of about three days as compared to four days in countries like the UAE and South Africa, seven days in the US and 10 days in Germany.

India has done well in another parameter that measures port operational efficiency. The country’s average turnaround time of only 0.9 days is amongst the best in the world.

In Belgium, Germany, the UAE, Singapore, Malaysia, Ireland, Indonesia and New Zealand it is 1.4 days, in the US 1.5 days.

What are various achievements in the ports and shipping sector in the past few years?

There has been a consistent focus on improvements in port efficiency and productivity. This is achieved by reforms, induction of new technologies, a greater thrust on public-private partnership and commitment to the ease of doing business.

The capacity at 12 major ports in the country has increased from 871 million metric tonnes (MMT) in 2015 to 1,617 MMT in 2023.

There has also been a nearly 150% increase in the value of operationalisation of PPP projects in the major ports. These PPP projects have contributed significantly to the increased operational efficiencies while adding nearly 300 MMT extra capacity.

The focus on decarbonisation in the maritime sector along with the Panchamrit commitments of the government has reflected in the port sector: There has been a 14-fold increase in the use of renewable energy in major ports over the last eight years.

The Harit Sagar Green Port guidelines issued by the government is another important step further in this direction. It aims to bring about a paradigm shift towards safe, efficient and sustainable ports.

The efficiency of ports has received a boost with the launch of the National Logistics Portal (Marine). It is a single-window digital platform for all stakeholders like cargo services, carrier services, banking and financial services, and government and regulatory agencies.

This along with the Sagar Setu app facilitates seamless movement of goods and services in ports while substantially enhancing the ease of doing business.

The Centre has also undertaken several key policy and legislative reforms to boost the port sector. This includes the Major Port Authorities Act, 2021 which grants greater autonomy to major ports.

The Marine Aids to Navigation Act, 2021 provides for increased safety and efficiency in vessel traffic services and training and certification at par with international standards.

The Indian Vessels Act, 2021 brings uniformity in law and standardised provisions across all inland waterways in the country.

The government is also in the process of replacing the Indian Ports Act, 1908 with a piece of legislation that is in tune with present-day requirements.