1. 1
Introduction

2. 3
Chapter 1
Introduction
ndian seaports are today more than just governmentowned public utilities, they are indeed, focal points of
convergence for several contending and competing
business interests – from shipping lines, port authorities,
individual terminal operators to freight forwarders and
inland logistics agencies; not to leave out the shippers (the
exporter-importer fraternity) whose cargo is what is being
ultimately being transported. They represent what may
rightly be considered a complex mosaic of contractual
and business relationships, which in turn give rise to maze
of regulatory and operating institutions and procedures
and ever-changing rules of dynamic inter-play.
I
Under the impact of first-generation port reforms, initiated
since the mid-nineties, following economic liberalisation
and globalisation policies, the entire gamut of existing
institutional arrangements and underlying transactional and
business processes in the port sector have been undergoing
a profound transformation. Consequently, conventional
port and terminal ownership, management and regulatory
frameworks guiding the port operations are undergoing
changes in line with broader process of functional
evolution of ports and global maritime trade.
The critical changes underway in the port sector have many
facets that need to be brought under a comprehensive
review and research scr utiny from contemporary
perspective. Few attempts made in the past have merely
focused on the historical and social aspects of Indian port
sector, without examining the underlying business and
economic processes that make port inalienable part of a
larger national and international economy. Not too
surprisingly, there are hardly any significant books or
research monographs that portray a contemporary
emerging picture of the Indian port sector, as the gateways
to global trade. This leaves a large gap to be filled and
considering that Indian port projects are now increasingly
becoming key destinations for strategic business
investments and are increasingly becoming key links in
the rapidly expanding global trade, understanding of the
working of the port sector becomes an urgent and critical
task both from the public policy angle and strategic
business decisions.
Indeed, there have been a number of project-specific and
port-specific studies and long-term forecasts on cargo
traffic growth made by a number of technical and business
consultants to the port and shipping sector. Recently, Rail
India Technical and Engineering Services (RITES) has
come up with “Perspective Plan for Indian Port Sector Vision 2020” for the Union Ministry of Shipping. On
Gujarat port development, the Dutch government and
the Gujarat Maritime Board have jointly come up with
“Port Development Gujarat Programme (PODEG)”. The
Planning Commission sub-group too has recently also
come out with a Report on General Cargo including
Containerised Cargo for the Tenth Five Year Plan (20022007). The scope of these studies are however, limited to
specified objectives of analysis and are not designed to
contribute to wider level understanding of the process of
port sector reforms and the macro-level workings of the
port sector in the country. It is against this backdrop that
we thought it necessary and relevant to come out with the
present report.
The India Port Report – is a maiden attempt to present
a broader overview of the port sector in the country and
macro-level business and public policy perspective. The
effort has been to focus on some key issues of interest to
current participants in the port sector and be discursive
rather than recommendatory. The report seeks to thus
basically aggregate range of issues and viewpoints in the

3. India Port Report
4
process; weaving together different and discrete issues and
contentious points of debate in the ongoing process of
port reforms in the country. While the report seeks to
extensively capture various view points and
recommendations made by leading multilateral
organisations like the World Bank, Asian Development
Bank, UNCTAD, and UNESCAP, we must however,
clarify that this should not be construed as our concurrence
with those views and recommendations.
The level of generalisation possible in the analysis of ports
is extremely limited, as each port in the world is different
from other. As noted international port expert H.E.
Haralambides, Center for Maritime Economics and
Logistics (MEL), Erasmus University Rotterdam, aptly
notes: “There is no such single thing that could be
adequately described by the mere word ‘port’ and no two
ports are alike. A port could be from a small sheltered
patch of sea that protects fishermen from the roughness
of the sea, allowing them to moor their boats and trade
their wares in safety somewhere in the South Pacific, to
the huge industrial complex of the city-port of Rotterdam,
embracing in its expanse hundreds of companies, roads,
railway lines, distribution centres, refineries and other
industrial and manufacturing activity.”
Table 1.1
Key Economic Indicators (2002)
India
Total Population (million)
Urban Population (%age of total)
GDP (USD billion)
GNP per capita (PPP, USD)
1,030
28%
480
2,464
Real growth in GDP per capita,
2000 to 2001
2.5%
Export of goods (as %age of GDP)
9.1%
Import of goods (as %age of GDP)
10.4%
Unemployment rate
Inflation (Consumer prices)
9.16
4.5%
Source : EIU; Statistical Outline of India; World Economic Forum
Nevertheless, we have sought to encapsulate some key
trends in the port sector, in terms of the changing
profile of the port infrastructure development and port
terminal operations, under impact of privatisation and
corporatisation of ports. The report also has a major
focus on the unfolding traffic dynamics at various major
and minor ports and the evolution of regulatory policy
framework for the port sector both at the global and
national levels. We hope this report serves an important
objective of generating broader awareness and interest
in macro-level issues and concerns impacting future
development of port sector in the country. We hope it
will also meaningfully contribute to the ongoing national
debate on the ongoing port reforms, which has key
implications for the development of the national
economy by more fully unleashing the potential of
ports.
1.1 India’s Maritime Trade
India’s maritime trade comprises of export-import trade
in various bulk commodities like crude oil and other
petroleum products, iron ore and coal, besides generalpurpose cargo. Over the last ten years, since the onset of
economic liberalization, there has been a significant spurt
in handling of value-added goods mainly in form of
containerised cargo movement, in several Indian ports.
This has given rise to many new dimensions in the
development of the port sector in the countr y.
Containerisation of cargo has with it brought about a
significant redefinition of port services, with its demands
for highly sophisticated handling equipment and logistics
service efficiencies. The shift away from commodity nature
of India’s export trade is particularly, noticeable in the
marked shift towards increasing value added exports and
drive for global competitiveness. The shift in the pattern
of trading is however, yet to find adequate support in terms
of a maritime infrastructure.
Interestingly, in the past ten years while overall cargo
growth (reckoned at about 9-10 per cent) has been
quite impressive, new demands have been generated
on the port sector for adding on more cargo handling
capacity and creation of new-dedicated berths and
cargo terminals. Consequently, the port sector is agog
with considerable business optimism with respect to
generation of increasing cargo traffic volumes and of
trade in general in the coming years. Considerable
future business potential is also seen with respect to
generating enhanced ear nings from port sector
operations through improving efficiencies and other
value-added activities contributing also thereby to
making country’s external trade competitive in the
global market.

4. Introduction
5
Table 1.2
Though India’s overseas trade in value terms is still less
than one per cent of the total world trade, the physical
cargo volumes handled at the seaports have however been
quite sizeable. The Indian major ports have together
handled 287.6 million tonnes of cargo in fiscal 2001-02
and taken together with 98 million tonnes of the cargo
traffic handled in the same year by the minor, intermediate
ports, the aggregate cargo traffic volume handled in the
Indian port sector actually stands at about 386 million
tonnes in 2001-02.
Key Infrastructure Indicators (2001)
Units
Cargo Handled at Major
& non-major Ports
million tonnes
Registered vehicles
334.3
0.4
15.0
1.1
22.0
million 1,284.0
Passenger Traffic
22.5
Paise / km
Passenger Fare
India’s has around 6,000 km of natural peninsular coastline
strategically located on the crucial East-West trade route,
which links Europe and Far East. The coastline has 12
major ports and about 180 other minor and intermediate
ports. Most of the major ports have been established in
the last few decades of post independent economic
planning, while two of the older major ports like Kolkata
and Mumbai were established more than hundred years
back during the British colonial rule. The development
of the port sector in India till recently has been exclusively
responsibility of the Central government and had grown
into a “natural public monopoly” of sorts. In fact, it still
continues to be so despite recent trend towards
privatisation of port infrastructure development.
2000
‘000 kms
Electrified Railway
Traction
1.2 Development of Port Sector in India
1951
45,85.0
‘000 nos
Revenue Earning
Freight
306.0 48,001.0
million tonnes
73.0
456.0
‘000 kms
53.6
62.8
000 grt
3.9
7.6
Railway Route Kms)
Shipping Tonnage
Surfaced Roads
‘000 km
Telecommunications
million lines
Road Length
‘000 kms
157.0 1,394.0*
0.1
400.0 2,466.0*
Source : Statistical Outline of India
* Data available up to 1996-97 only
important changes over the last five decades since India’s
independence, in line with the broader macro-level changes
in the economy. The last ten years of economic reforms
and globalisation, in particular, have accelerated the process
of change towards a more diversified commodity
composition of trade. There is also a perceptible shift in
the growth of the economy, in terms of changing
The seaports of India have played a historical role in the
development of maritime trade and economy in India.
Indeed, maritime trade in India has been and continues to
be almost synonymous with India’s overseas trade,
accounting for over 95 per cent of India’s total cargo
volumes. The structure, composition and direction of
India’s overseas trade has however, been undergoing
Table 1.3
India’s Foreign Trade Growth – 1970-71 to 2000-01
1950-51
1980-81
1990-91
2000-01
Rs. crore
606
642
1,535
6,711
32,553
203,571
1.3
1.4
2.0
8.5
18.1
44.6
Rs. crore
608
1,122
1,634
12,549
43,198
230,873
1.3
2.4
2.2
15.9
24.1
50.5
Rs. crore
1,214
1,764
3,169
19,260
75,751
434,444
USD billion
Total
1970-71
USD billion
Imports
1960-61
USD billion
Exports
2.5
3.7
4.2
24.4
42.2
95.1
Source : Economic Survey of India, Ministry of Finance
27.4

5. Introduction
7
composition of Gross Domestic Product (GDP), initially
represented by shift from pre-dominance of agriculture
to increasing share of industry and subsequently of the
services sector.
Table 1.4
Cargo Traffic in Indian Ports
(million tonnes)
Major
Ports
Non-Major
Ports
Total
1950-51
20.01
2.50
22.51
1960-61
39.63
4.40
44.03
1970-71
58.14
7.90
66.04
1980-81
80.51
10.00
90.51
1990-91
152.85
12.78
165.63
1995-96
215.34
25.71
241.05
2001-02
287.59
98.00
385.59
Table 1.5
Commodity-wise Traffic Break-up (1991-2002)
(million tonnes)
1991-92
2001-02
Crude oil
42.9
108.9
Products
27.7
43.7
0.0
2.2
Total Crude
70.6
154.7
Coal
23.5
53.2
Iron ore
33.7
50.9
Foodgrains
2.0
5.1
Fertiliser and FRM (dry)
7.8
11.4
66.9
120.6
Containers - million tonnes
7.5
36.3
- million TEUs
0.7
2.9
0.1
0.9
25.7
73.1
170.8
385.6
LPG
Total dry bulk
Container Transshipment
(million tonnes)
Others
Total cargo handled
Source : Indian Ports Association, Ministry of Shipping
Future of Indian Ports
Will Indian port sector really see the emergence of private
sector as a major player in the port sector in the future?
Will major ports be fully corporatised, and bring about
greater rationalization and transparency in functioning?
Are minor ports in India poised take a lead over
performance of major ports? Is there enough room for
new green field port projects in Indian port sector? Several
of these questions loom large, as the Indian port sector is
increasingly coming under the impact of wide ranging port
reforms and private sector investments, in line with larger
transformations underway in many global ports.
The development of the port sector as concomitant to
development of maritime trade is an axiom that no littoral
nation can afford to ignore in today’s globalised world.
This was equally true in the distant past, when maritime
nations undertook extensive overseas maritime
explorations and trade to set their mark on global economic
history. In fact, littoral nations of the world are advantaged
in being clusters of relatively faster economic growth,
compared to other land-locked and hinterland regions.
Needless to say, some of the world’s most developed
nations have also been among the most important
maritime nations of the world, actively involved in global
maritime trade.
India’s shipping and port sector saw dramatic growth in the
first four decades of post-independence, under the initiative
of planned development and active government support.
More than two-thirds of the port cargo handling capacity
and more than half of India’s national shipping tonnage
were established in the first four decades of independence.
However, with a basically inward looking economic policy
perspective that emphasized more on self-reliance and
import-substituting development strategies, the overall trade
and technology-driven growth of the economy remained
constricted. However, with the paradigm shift in economic
policy since early nineties, the government has sought to
liberalize the port sector by opening it to private sector
investments. As a result, ports have now begun to assume a
more proactive role as facilitators of trade with a range of
value-added service offerings in terms of cargo handling
efficiency and actively seeking to benchmark their
performance with international ports.
1.3 Emerging Context for Port Reforms
Ports as one of the important maritime institutions have
continued to evolve with the changing demands of the
global shipping trade and are more than just a stop-over
points for ships to load and unload cargo. They have

6. India Port Report
8
indeed, emerged to be highly sophisticated and integrated
systems, which provide full range of services for the
shipping industry and are increasingly getting integrated
into logistics value chain, which extends from origin of
cargo to its final destination.
However, much as the strategic business attention has
focused on the dynamics of shipping and global maritime
trade, the importance and changing role of seaports has
not been adequately understood till recently. After the
privatisation process was extended to the port sector in
United Kingdom since the eighties, the debate on public
policy implications of port privatisation and the regulatory
framework for the port sector has now spilled to many
other countries, struggling to cope with increasing demand
for investment in port infrastructure and formulating a
new institutional roadmap for the port sector. Indeed,
while technological changes in seaports have begun long
before the containerisation boom of early seventies, it was
only during nineties following globalisation of world trade,
that seaports have truly began to attract broader policylevel and strategic business investment attention.
Concurrently, ports all over the world, especially container
cargo ports have also begun to witness fierce competition
for cargo, with each port trying to gain a competitive
advantage over the other. While the degree of competition
still varies among different ports, there are few ports today
that can ignore competition from other international ports
or from ports in their immediate neighbourhood. They
are also increasingly being perceived as a one of the key
enablers in the logistics value chain that can now be
controlled and modulated to yield improvements in
efficiency of ocean transport logistics.
1.4 Economic Liberalization and Port Sector Reforms
The state monopoly over port-related assets and has
continued for nearly five decades of post-independence
history of India. It is only in the last ten years that
government policy on port has allowed the private sector
investment participation in the port sector. Economic
liberalization has been interpreted to suggest that
government should gradually substitute its direct
involvement in port as operator with increasing
privatisation of port assets and related services to
encourage fresh investments and tone up the service
efficiency of ports. One of the major reasons for allowing
private sector entry into the port sector has been the failure
of the public ports to meet the growing efficiency-related
demands of the port users. The capacity growth in the
port sector too has been tardy, due to paucity of public
investment resources. Besides, operational inefficiencies
in handling of cargo, poor inland connectivity of ports to
cargo hinterlands by rail and road networks have also been
among key bottlenecks to growth of the port sector.
Text Box 1.1
Generic Development of Ports
The origin and development of ports date back to
2000-4000 BC, when natural harbors were found to
be inadequate to needs of mariners and led to
construction of a number of artificial or semi-artificial
ports. Built initially in a very primitive way, they were
subsequently, improvised with new scientific methods
of improvement and cumulative technical skills.
In the medieval period, many coastal cities were
actually developed around ports. As sea trade grew,
traders who owned their cargo ships, moored the ships
to the banks in front of their buildings, where goods
were stored and traded.
Since the advent of the Industrial Revolution, the great
expansion of industrial activities brought enormous
increases in the trade at the major ports with sea-trade
networks rapidly extending to Asia, Africa and America.
Against this background, ship owners became
independent from being traders leading to independent
development of ports services such as cargo handling,
mooring line handling, water supply, lighterage, and
warehousing were provided to ships and cargos on
common user basis under public ownership.
At the turn of last century, governments to better
manage port facilities created a number of public port
authorities. As ports increasingly evolved as part of
an integrated transport system, the port terminal
operations have become dependent on large-scale
commercial investments and ownership and
operations of port assets have come under the sway
of market forces and private sector participation.
Following reforms introduced in India since early nineties,
the core sector industries including the Indian port sector
have begun to witness a new phase of revival and growth.
The government, which has all along played a major role in
the development of the port assets and other facilities, now
under its reforms initiative, has begun to selectively open
up the sector to private sector participation and investment.
The government has also come up with the policy to
establish autonomous corporate entities in place of existing
port trusts to manage public port assets and services, doing
away with the existing port trusts in a phased manner.

7. Introduction
9
Text Box 1.2
Logistics Costs in India – A Drag on Competitiveness
World Freight payments, as a percentage of total import
value (cif), stood at 6.21% in 2000 as per UNCTAD. For
developed countries, it stood at 5.21% and for developing
countries it stood at 8.83%. For India, freight payments
as a percentage of total import value stood at 10.32%
(1997) and estimated to be around 11.4% in 2000.
As per UNCTAD, such variation could be explained
by differences in trade and shipping patterns, particularly
in the liner sector, where the growing importance of
feeder operations tend to place those countries not
covered by mainline services at a disadvantage. They
also reflect insufficient infrastructure facilities, low
productivity of ter minal equipment, and poor
management practises in cargo handling.
Nevertheless, these figures reflect the higher logistics
costs in India, which are a drag on our export
competitiveness. The following table reflects the per
tonne handling costs in major ports in India.
Port
Per tonne handling costs (Rs.)
1995-96 2001-02 %age increase
Kolkata + Haldia 125.6
229.4
83%
Paradip
76.5
95.1
24%
Visakhapatanam
44.7
51.3
15%
Chennai
49.5
85.3
72%
Tuticorin
30.4
45.4
49%
Cochin
71.0
129.2
82%
New Mangalore
45.3
61.7
36%
Mormugao
35.2
57.9
64%
Mumbai
92.1
195.5
112%
JNPT
168.3
99.0
-41%
Kandla
21.9
28.4
30%
All Ports
63.4
95.1
50%
Source : Indian Ports Association, Ministry of Shipping
The path-breaking policy of allowing private sector
participation in the port sector was announced in 1996
and has resulted in the setting up of India’s first-ever
private sector managed International Container
Transhipment Terminal at Nhava Sheva, by P&O Ports
(Australia). This private sector container terminal has not
only been a business success from the point of view of
the port operator (the NSICT terminal is set to cross a
traffic of 1 million TEUs in the ongoing fourth year of
operation) but has also signalled a virtual revolution in
India’s container trade by trail-blazing the trend of
consistent high growth in national container traffic
movement.
Arguably, the port reform process in India has to be viewed
against the backdrop a radical changes worldwide, in terms
of the trends in cargo delivery and handling by ports. While
ports in India, as much elsewhere, have been
conventionally designed mainly for handling bulk and
break bulk cargoes, the trend in global sea trade in the last
four decades has taken a decisive shift towards
containerised mode of cargo delivery. Though, India has
been somewhat a late-comer to the reign of containerised
cargo trade, the growing integration of the Indian economy
with the global market has made it imperative for the Indian
port sector to bring about a major shift in its perspective
to cater to the new demands of international trade.
1.5 Ports and Globalisation
Globalisation of the world economy has brought about
tremendous increase in trading of merchandise goods across
the world, leading to what has been called the “borderless
society”. Coupled with pursuit of competitive
manufacturing practices, which is leading to worldwide
relocation of industrial manufacturing, the production
centres of nearly all industries have been rapidly shifting
their bases beyond their conventional national boundaries.
This has brought about important shifts in the global trade
flows and led to several international ports getting interlocked in a common market for oceanic cargoes. As
globalisation further unfolds its impact, the world trade and
in particular, sea borne trade is certain not only to continue
to grow but bring in several new players, who will most
certainly rewrite the rules of the game in maritime trade.
Against this backdrop, ports in many countries, including
in India are increasingly confronted with pressing need
for expanding their facilities and cargo handling
productivity. Continued growth of sea borne trade,
particularly rapid growth of container traffic, is forcing
port authorities to develop their facilities and capacities
without further delay. Secondly, the need for port
expansion and modernization is driven by increasing
deployment of large oil tankers (ULCCs & VLCCs) and
other mega-container ships (up to a capacity of 8,000 and

8. India Port Report
10
more), which require deep draft facilities and sophisticated
cargo equipment for handling containers. The port
authorities are also under pressure to improve productivity
of port services, and reduce handling charges, from vessel
operators and shippers, who are themselves operating in
a highly competitive market.
Text Box 1.3
What does the Global Port Sector looks like?
• There are more than 2,000 ports around the world, from single berth locations handling a few hundreds tonnes
a year to multi-purpose facilities handling up to 300 million tons a year.
• More than 80 percent of trade with origins or destinations in developing countries, in tonnage, is through seas.
• Total world port traffic in 2001 reached around 11.93 billion tonnes. After an average of 3% annual growth rate
since 1990s, port traffic contracted for the first time in 15 years in 2001. World container port traffic has however,
continued to expand at a rate of 15.4 per cent over the previous year, reaching 225.3 million TEUs. The ports of
developing countries handled 94.2 million TEUs, or 42 per cent of the total container traffic.
• World port traffic is made of 45% of liquid bulks (mainly oil, petroleum products, and chemicals), for 23% of
dry bulks (coal, iron ore, grain, and phosphate), and for 32% of general cargo, including container cargo.
• World total freight payment as a proportion of total import value is reckoned at 6.2 per cent in 2000. The freight
factor was 5.2 per cent for developed market-economy countries and 8.8 per cent for developing countries. For
India, the figure is around 12%, showing inefficiencies in the logistics chain.
What are the general trends in maritime and logistics sub-sectors?
• A 1997 world review of the top 100 container ports shows that 88 out of 100 conform to the Landlord Port
model, in which the Port Authority retains ultimate property rights over port land and fulfils all regulatory
functions, while commercial operations are carried out by private operators.
• Total world maritime traffic may vary according to dry bulk trade tendencies, but is expected to grow by 4% or
5% annually between 1998 and 2010.
• Private sector involvement in operations and investment in infrastructure has been growing significantly since
1990. It is estimated that by end-1998 around 100 port concessions contracts signed worldwide (most in containers
terminals, with grain, coal and liquid bulk facilities accounting for the rest), for a total estimated private investment
amount of US$ 6.3 billions. However, non-specialized general cargo facilities have difficulties attracting private
infrastructure financing.
• Traffic concentration on large intermodal platforms and shipping alliances translate into fewer ports handling
a more important share of world traffic: the first 10 containers ports handled 31% of the world traffic in 1980,
and more than 40% today. Simultaneously, the growth of transshipment activities complements the development
of hub ports: container transshipment is believed to make 20% of total maritime container traffic and is
growing.
• Port and logistics operations are more and more carried out by a limited number of international operators,
specializing in dedicated market segments, and by a few large shipping lines expanding their maritime networks
into inland operations to offer integrated transport services.
• Seaports, from the simple physical sea/land interface they once used to be, have successively turned into commerce
and industrial centers, then into logistics and distribution platforms, and are now becoming intermodal nodes in
international supply chains networks, the efficiency of which now drives trade competitiveness.
Source : World Bank, UNCTAD and UNESCAP

9. Introduction
11
1.6 Key Drivers of Port Business
Ports the world over, including in India are increasingly
drawn into the vortex of a rapidly changing business
environment in the international maritime trade. There
are essentially three fundamental forces driving the
business of ports.
Global Trade
Several of the major ports in India have been established
in the era of dominance of bulk and break bulk trade that
dominated the decade of sixties and seventies and need
to readapt themselves to new global trade patterns. The
emerging global trade is witnessing a dramatic increase in
the containerised mode of cargo delivery and demand
substantial build-up of box handling capacity at the Indian
ports and improvement of logistics efficiencies in port
operations. While several international ports like Hong
Kong, Singapore, Port Klang, Colombo etc. have
successfully adapted themselves to international
transhipment of container trade, the Indian port sector
will have to find ways to capitalize on opportunities for
growth in India’s own container trade. A substantial scope
however exists for absolute growth in Indian port’s traffic
volumes as also logistical re-organization of existing
patterns of port-to-hinterland linkages formed in the past.
Technology Changes
Seaports across the world are witnessing rapid changes in
the cargo handling technology and tools. The trend in global
shipping has tended to increasingly favour deployment of
large-sized and faster vessels, requiring deeper drafts at ports
and highly efficient modes of cargo discharge to minimize
detention time. Absorbing these technology changes in the
operations of Indian ports not only demand large infusion
of capital but also demand new structures of operational
and business management. Deep draft berths and
sophisticated container handling terminals are also needed
to attract mainline vessels to call on Indian ports.
Technology-related changes elsewhere in the world have
substantially brought down the costs of sea transportation
and improved efficiencies, and made it imperative to take a
relook at existing structures of ownership of port assets
and bring about necessary changes in the institutional and
operational environment of ports.
Table 1.6
Overview of the Global Port Sector
Goods loaded
(million tonnes)
Goods unloaded
Oil
Total world traffic
Oil
Oil
Crude Products
Dry Total all Crude Products Dry Total all Crude Products Dry
Cargo goods
Cargo goods
Cargo
Total
1970
1,109
232
1,162
2,504
1,101
298
1,131
2,529
2,210
530
2,293
5,033
1980
1,527
344
1,833
3,704
1,530
326
1,823
3,679
3,057
670
3,656
7,383
1990
1,287
468
2,253
4,008
1,315
466
2,365
4,146
2,602
934
4,618
8,154
1997
1,627
527
2,785
4,952
1,625
522
2,890
5,037
3,252
1,049
5,675
9,989
1998
1,569
503
3,526
5,598
1,533
540
3,670
5,743
3,102
1,043
7,196
11,341
1999
1,564
493
3,612
5,668
1,541
547
3,741
5,829
3,105
1,040
7,353
11,497
2000
1,636
478
3,775
5,890
1,679
559
3,925
6,163
3,315
1,037
7,700
12,053
2001
1,649
479
3,704
5,832
1,675
558
3,874
6,107
3,324
1,037
7,578
11,939
Source : UNCTAD

10. India Port Report
12
Table 1.7
Growth of Merchandise Trade by Geographical Region 1999-2001 (annual % change)
Countries/Regions
Developed Economiesa
1999
2000
Imports Exports
Imports
2001
Exports
Imports
Exports
7.6
4.8
9.6
9.9
0.3
na
11.2
5.8
11.3
9.9
-3.8
-5.0
North America
Europian Union (15)
9.5
4.4
10.9
10.1
0.3
1.1
Japan
9.5
2.1
10.9
9.2
0.3
-5.0
Developing Economiesa
4.4
7.0
15.4
15.7
0.8
0.5
Africa
-0.9
5.0
5.4
7.3
4.6
2.5
Latin America
-1.5
7.1
11.1
10.3
0.5
2.7
Middle Eastb
1.3
1.1
14.6
14.0
na
na
Asia
9.0
6.6
15.4
16.2
-1.9
-3.7
Economies in transitionb
-8.5
-2.0
14.0
17.9
14.7
8.0
China
15.2
9.6
33.1
28.3
11.3
5.0
6.1
5.0
11.3
11.9
0.9
-1.5
Worlda
c
Source : UNCTAD
a - Excludes significant double counting.
b - Includes Israel.
c - Includes Japan, China, Hong Kong, Taiwan and developing countries in the Pacific.
Institutional Dynamics
The structure of ownership and management in the
Indian port sector has been characterized by
overwhelming presence of public sector, while private
sector presence is still at an early stage. Overall, the
domestic port services market in India is in a precompetitive phase. In the private port sector, key players
include international players like P&O Ports (Australia),
overseas public port authorities like Dubai Port Authority
(DPA) and the Port of Singapore Authority (PSA) and
few domestic port developers like the Adani (Mundra)
and Sea King (Pipavav). While regulatory reforms in the
port sector have enabled considerable scope for
reworking the institutional arrangements in the port
sector, aggressive second-generation regulatory reforms,
backed by necessary legal and fiscal changes is still
impending. The demand-supply dynamics of sea cargo
in India still favour substantial growth of port handling
capacity though this may not necessarily hold true for all
port locations.

11. Introduction
13
Text Box 1.4
Historical Legacy of India’s Maritime Trade
Prior to discovery of the Trans-Atlantic and East-West trade routes to America and the Indian-subcontinent, Indian
merchants from ancient Indian port cities like Surat, Cochin, and, Chennai have been known to be sailing on their
merchant ships across Bay of Bengal to distant lands like Java, Sumatra in the Far East and across the Arabian Sea to
Persia and East Africa actively trading in spices, silk, and other exotic commodities. Ports of Bharuch, Khambat, and
Diu in The Gulf of Kutch and Gulf of Cambay have been famous as bustling centres of maritime trade and
commerce in the medieval period. The sea trade was undertaken using locally built ships, which successfully navigated
their way to distant lands and brought back ivory, gold, and diamonds in barter.
Old Ports & Sea Routes of Medieval India
India’s famed riches have inspired many pioneering sea expeditions by western seafarers (including Vasco da Gama
and Marco Polo), which eventually led to discovery of America and East West trade routes. India’s golden age of
maritime trade however, were short-lived as it came under increasing domestic political and economic instability
caused by internecine wars and feuds among princely kingdoms that ruled different parts of India. The weakening
of the political and economic fabric brought about erosion of traditional overseas trade and eventually led to
colonization of India. A strong merchant fleet and military control over coastline of India became Britain’s principal
means to colonize India.
Three hundred years of British rule, starting with establishment of East India Company in 1600 AD witnessed both
positive and negative consequences for the Indian maritime industry sector. Importantly, the British colonialism
brought India in the ambit of global trade in the wake of industrial revolution, though the terms of trade were highly
weighed against India’s national economic interests. The industrial revolution in Europe had brought about
revolutionary changes in the shipping as in any other fields. The size of ships used in the overseas trade grew larger
and larger and conventional wooden hull of the ship was soon replaced steel and the sail was replaced by steam and
diesel driven propulsion. These far-reaching technological developments resulted in the establishment of modern
ports like Mumbai, Kolkata and Chennai, which not only catered to colonial trade but also acted as the centres of
British colonial administration. The British merchant ships laden with cotton bales left Mumbai harbour and came
back with textiles manufactured by the Manchester Mills, which were dumped into the Indian market at cheap rates.
In the post-independence period, a strong undercurrent of shipping nationalism thus, sought to give major strategic
boost to the development of ports and encourage growth of a strong national merchant fleet through policies of
cargo support for Indian flagged vessels, especially to Shipping Corporation of India (SCI), cabotage protection for
coastal shipping and state canalisation of exports and imports through agencies like Indian Oil Corporation (IOC),
State Trading Corporation (STC) and Minerals & Metals Trading Corporation (MMTC) etc. to achieve economic
self-reliance and provide necessary economies of scale in development of basic infrastructure for India’s external
trade. Considering, India’s import dependence on food grains, petroleum and capital goods, concomitant with the
policy of the government to undertake core sector industry development (including shipping and shipyards) in the
public sector, the government chose to actively intervene in the development of maritime sector and thereby try to
meet the expectations of national security and economic well-being.

12. India Port Report
14
Map 1.2
Old Ports & Sea Routes of Medievel India

13. Introduction
15
Annexure 1.1
Top World Ports
Total Cargo Volume- 2000
Rank
Container Traffic- 2001
Port
Country
Port
Country
1
Singapore
Singapore
325,591
1
Hong Kong
China
18,000
2
Rotterdam
Netherlands
319,969
2
Singapore
Singapore
15,520
3
South Louisiana
U.S.A.
197,680
3
Busan
South Korea
7,907
4
Shanghai
China
186,287
4
Kaohsiung
Taiwan
7,540
5
Hong Kong
China
174,642
5
Shanghai
China
6,334
6
Houston
U.S.A.
173,770
6
Rotterdam
Netherlands
5,945
7
Chiba
Japan
169,043
7
Los Angeles
U.S.A.
5,184
8
Nagoya
Japan
153,370
8
Shezhen
China
5,076
9
Ulsan
South Korea
151,067
9
Hamburg
Germany
4,689
10
Kwangyang
South Korea
139,476
10
Long Beach
U.S.A.
4,463
11
Antwerp
Belgium
130,531
11
Antwerp
Belgium
4,218
12
New York/ New Jersey
U.S.A.
125,885
12
Port Klang
Malaysia
3,700
13
Inchon
South Korea
120,398
13
Dubai
U.A.E.
3,502
14
Busan
South Korea
117,229
14
New York
U.S.A.
3,180
15
Yokohama
Japan
116,994
15
Bremerhaven
Great Britain
2,896
16
Kaohsiung
Taiwan
115,287
16
Felixtowe
Great Britain
2,800
17
Guangzhou
China
101,521
17
Manila
Philippines
2,796
18
Quinhuangdao
China
97,430
18
Tokyo
Japan
2,770
19
Ningbo
China
96,601
19
Quingdao
China
2,640
20
Marseilles
France
94,097
20
Gioia Tauro
Italy
2,488
21
Osaka
Japan
92,948
21
Yokohama
Japan
2,400
22
Richards Bay
South Africa
91,519
22
Laem Chabang
Thiland
2,337
23
Kitakyushu
Japan
87,346
23
Tanjung Priok
Indonesia
2,222
24
Quingdao
China
86,360
24
Algeciras
Spain
2,152
25
Hamburg
Germany
85,863
25
Kobe
Japan
2,100
26
Dalian
China
85,053
26
Tanjung Pelepas
Indonesia
2,050
27
Kobe
Japan
84,640
27
Nagoya
Japan
1,890
28
Tokyo
Japan
84,257
28
San Juan
U.S.A.
1,830
29
New Orleans
U.S.A.
82,400
29
Keelung
Taiwan
1,816
30
Dampier
Australia
81,446
30
Colombo
Sri Lanka
1,727
Source: Containerisation International, March 2002
000 Tonnes
Rank
000 TEUs

14. 16
Annexure 1.2
World Seaborne Trade
(million tonnes)
Iron ore
Coal
Grain*
Coking
Baux./
Alum
Phos.
Rock
Minor Container Other
Bulk
Dry
Total
Dry
Crude
Oil
Oil
Products
Total
Oil
Steam
GasTrade
Grand Total
LPG
LNG
321
144
132
213
44
46
561
160
536
2,157
984
415
1,400
22
37
3,616
1986
311
141
134
187
42
45
555
173
540
2,128
1,030
401
1,431
22
37
3,619
1987
319
145
148
211
46
45
575
192
517
2,198
977
379
1,357
24
41
3,619
1988
346
155
158
216
49
47
603
211
532
2,317
1,086
417
1,503
23
44
3,887
1989
362
153
161
220
55
44
614
231
560
2,401
1,198
480
1,679
26
47
4,153
1990
347
155
182
215
55
37
607
246
606
2,449
1,155
448
1,603
28
53
4,133
1991
358
160
205
218
53
31
606
268
628
2,527
1,161
416
1,577
30
56
4,191
1992
337
154
214
224
48
30
618
292
644
2,561
1,245
422
1,666
32
59
4,317
1993
352
154
212
223
51
27
626
322
657
2,623
1,354
452
1,806
33
61
4,523
1994
380
155
217
207
49
29
660
357
653
2,707
1,375
447
1,821
33
64
4,625
1995
402
159
245
216
52
30
702
389
668
2,863
1,400
461
1,861
34
68
4,825
1996
392
164
257
219
54
31
699
430
691
2,936
1,469
497
1,966
35
75
5,012
1997
430
170
271
229
55
32
711
470
725
3,093
1,550
500
2,050
37
81
5,261
1998
423
168
279
226
55
31
689
503
761
3,137
1,544
491
2,035
35
82
5,290
1999
403
166
296
247
54
31
683
559
743
3,182
1,590
517
2,107
40
91
5,420
2000
452
172
327
264
54
28
704
622
748
3,370
1,667
503
2,169
39
100
5,679
2001
458
171
368
264
54
27
701
630
785
3,456
1,661
533
2,194
38
105
5,793
2002+
468
169
385
269
54
26
704
669
797
3,541
1,640
5,000
2,141
40
109
5,831
+ Estimated
Source : The Clarkson Shipping Review and Outlook
India Port Report
1985

15. Introduction
17
Annexure 1.3
Top Asian Container Ports
2001
World Rank
Rank in Asia
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
TEUS
1
2
3
4
5
8
12
13
17
18
19
22
23
24
26
27
28
29
31
32
33
39
44
46
47
49
50
55
56
58
67
71
72
83
89
95
96
108
112
115
116
121
123
127
130
17,900
15,520
8,073
7,541
6,340
5,076
3,760
3,502
2,700
2,640
2,536
2,304
2,296
2,222
2,049
2,010
2,010
1,872
1,816
1,730
1,727
1,503
1,290
1,210
1,209
1,190
1,188
1,100
1,090
1,069
900
1,278
698
546
527
490
486
418
393
380
378
358
352
342
321
Hong Kong
Singapore
Busan
Kaohsiung
Shanghai
Shenzhen
Port Klang
Dubai
Yantian
Qingdao
Tokyo
Yokohama
Manila
Tanjung Priok
Tanjung Pelepas
Kobe
Tianjin
Nagoya
Keelung
Guangzhou
Colombo
Osaka
Xiamen
Ningbo
Dalian
Jawaharlal Nehru
Salalaha
Taichung
Khor Fakkan
Bangkok
Chiwan
Tanjung Perak
Gwangyang
Zhongshan
Hakata
Dammam
Chittagong
Fuzhou
New Port
Fujairah
Aden
Ulsan
Chennai
Tomakomai
Mumbai
Source : Containerization International
000s TEUs
1996
World Rank
TEUS
1991
World Rank
TEUS
1
2
5
3
18
13,460
12,944
4,725
5,063
1,930
2
1
5
3
38
6,162
6,354
2,694
3,913
576
26
14
88
42
12
10
17
25
1,409
2,247
354
810
2,311
2,334
1,972
1,422
33
18
608
1,255
89
12
10
23
30
184
1,784
1,796
1,001
737
15
45
24
11
120
27
34
2,229
800
1,469
2,320
244
1,356
988
6
2,635
25
8
129
32
40
1,001
2,005
116
669
541
97
93
339
51
53
29
695
655
1,233
173
80
61
209
341
71
256
101
103
115
309
307
264
109
62
556
45
477
128
121
69
227
241
518
133
11
63
110
1,784
324
59
152
343