HOW INDIA’S PORTS ARE STEERING A NEW ERA OF GLOBAL TRADE

At sunrise on a Thursday morning in May 2024, the San Fernando, a 300-metre-long, 48-metre-wide container mothership, sliced through the waters off Kerala’s coast. Chartered by Maersk, the vessel reached the outer channel of the Vizhinjam International Seaport around 7 am and by 9:30 am, was gently being nudged into its berth.

Even as a water salute from the tugs heralded its arrival, thousands gathered at the port, waving Indian flags to mark what became the first mothership to dock at India’s first deepwater container transshipment terminal. As 1,930 containers began to be unloaded, it wasn’t just cargo that was being deposited; it was a historic marker that was putting down anchor. 

But Vizhinjam, that is now poised to challenge transshipment giants like Colombo, Salalah, and Singapore, is not a success story that was crafted overnight. It is the latest chapter in a decade-long national strategy to reimagine India’s coastline, a strategy that has seen the country’s ports evolve even as it redraws new corridors like the India-Middle East-Europe Economic Corridor (IMEC). The goal: to turn India from a passive transit nation into an active, resilient global trading hub. 

The change is already visible: In FY24, key ports in India handled over 817 million tonnes (MT) of cargo, a 4.45% increase from FY23.

India’s port overhaul began in earnest with the launch of the Sagarmala Programme in 2015. A multi-pronged strategy to modernize ports, boost coastal shipping, and develop port-led industrial clusters, Sagarmala identified over 800 projects worth Rs5.7 trillion of which 272 projects have been completed. This has seen a more than 100% growth in coastal shipping over the last decade, reducing logistics costs and emissions not to mention a 700% surge in inland waterway cargo movement, while easing congestion on roads and railways.

Flagship ports like Mundra and Jawaharlal Nehru Port Authority (JNPA) are prime examples of this transformation. Mundra Port alone handled more than 7.4 million TEUs, over a third of India’s container cargo, while JNPA has evolved from a bulk cargo terminal into a premier container hub, now ranked 26th among the world’s top 100 container ports.

A port’s strength is only as good as the corridors leading to and from it. Recognizing this, the PM Gati Shakti National Master Plan, launched in 2021, is integrating ports with expressways, freight corridors, and economic zones to reduce logistical bottlenecks. This integration has already reduced cargo movement time manifold boosting export competitiveness.

India’s maritime push isn’t just economic; it’s strategic. In an era where conflicts threaten global shipping routes, India is actively diversifying its trade corridors, the IMEC being one. Connecting India with the UAE, Saudi Arabia, Jordan, Israel, and on to Europe, IMEC aims to reduce dependence on the Suez Canal, which currently channels nearly 12% of global trade and 30% of global container traffic but has become a chokepoint prone to disruptions.

To amplify its maritime capabilities, India is forging deeper partnerships with like-minded allies including with France, Japan and the UAE, too. 

The success of Vizhinjam signals that India is no longer content being a client of the global shipping order. It is becoming a competitor — with the infrastructure, ambition, and strategic foresight to lead.

The author is a writer at Milayabawmi.

2025-05-13T17:59:24Z