The Union Minister of Ports, Shipping and Waterways, Mr Sarbananda Sonowal, provided a comprehensive update on significant issues impacting the maritime sector in Parliament this week. His detailed responses address concerns related to container shortages and port capacity expansion, highlighting the government's ongoing efforts and strategic measures.
In response to questions about container shortages affecting Indian exporters, the Minister clarified that there is no acute shortage of containers. The recent challenges have stemmed from the Red Sea crisis, which began late in 2023 and persisted into early 2024. The crisis led to a significant diversion of ships from the Suez Canal to the Cape of Good Hope, increasing transit times by 35 to 40 per cent. Consequently, this caused delays at major global ports and elevated charter hire costs.
To mitigate these issues, the government has engaged in several proactive measures. Shipping companies are currently repositioning empty containers globally based on market needs. The Ministry of Commerce & Industry has been actively working under its Service Improvement Group framework, conducting regular interactions with shipping lines, port authorities and export-import associations. Notable steps include advising safety convoys for vessels navigating disrupted routes and addressing inland container depot congestion through coordination with the Container Corporation of India.
Additionally, the Directorate General of Shipping is promoting the ownership and operation of containers by Indian entities as a long-term solution. The development of tracking and tracing mechanisms through the Unified Logistics Interface Platform (ULIP) and Logistics Data Bank (LDB) aims to improve the turnaround time of export containers, thereby enhancing their availability.
Port capacity expansion
Mr Sonowal also addresses queries regarding expanding port capacities across the country. He highlighted that expansion of port capacities has been significant across all the 12 Major Ports in India from 2014-15 to 2023-24. For instance, Syama Prasad Mookerjee Port increased its capacity by 31.29%, while Paradip Port saw a substantial rise of 141.86%. Notably, Kamarajar Port and V. O. Chidambaranar Port achieved impressive expansions of 154.05% and 150.19%, respectively. Other ports, such as Chennai, Cochin and New Mangalore, also reported notable increases. Deendayal Port, Gujarat, stands out with a remarkable 121.79% increase in capacity over the last decade, reflecting a significant boost in its operational capability. Overall, the total capacity of these ports surged by 87.01%, showcasing the government's commitment to enhancing maritime infrastructure.
The Minister’s statements reflect the ongoing efforts to address current maritime challenges and ensure the long-term sustainability and efficiency of India's port and shipping sector. The government's proactive measures aim to support exporters, streamline container logistics and bolster port capacities to meet future demands, emphasised a Ministry communique.
Source: Exim News Service: New Delhi, July 31