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CA Topic

Indian Ports have to transform using AI

Brief Context

Context The major ports in India have, over the last few years, transformed into smart ports, with IT and automation bringing about major gains in efficiencies. About Platforms such as National Logistics Portal (Marine), Sagar Setu, and e-Samudra have digitised port operations. However, the next phase requires “intelligent ports” powered by AI, moving from digitisation to data-driven decision-making.

Source Content

Syllabus: GS3/Infrastructure

Context

  • The major ports in India have, over the last few years, transformed into smart ports, with IT and automation bringing about major gains in efficiencies.

About

  • Platforms such as National Logistics Portal (Marine), Sagar Setu, and e-Samudra have digitised port operations.
    • However, the next phase requires “intelligent ports” powered by AI, moving from digitisation to data-driven decision-making.

Why is AI Needed in Ports? 

  • AI can enhance project planning and predictive decision-making.
  • Enables congestion forecasting and Just-in-Time berthing, reducing turnaround time.
  • Improves trade facilitation and compliance with safety and environmental norms.
  • Helps in energy optimisation and cost reduction.

Key Digital Reforms in Ports

  • Implementation of Maritime Single Window for seamless regulatory approvals.
  • Introduction of ONOD (One Nation One Document) and ONOP (One Nation One Process) to standardise documentation.
  • Reduction of redundant paperwork across customs, immigration, and port authorities.
  • Shift from manual to fully digital workflows, improving transparency and efficiency.

India’s Port Sector

  • There are 14 major ports out of which 12 Major Ports are in Operation and 200 non-major ports (minor ports) in the country. 
  • Authoritative Control: Major Ports are under the administrative control of the Ministry of Ports, Shipping and Waterways, the non-major ports are under the jurisdiction of respective State Maritime Boards/ State Government.
  • Strategic Position: Located along the world’s busiest shipping routes, India is a key trading hub and a rising global power.
  • India’s Maritime Sector Overview: Handles 95% of India’s trade by volume and 70% by value, with port infrastructure critical to the economy.
  • Port Ranking Improvement: India’s port ranking improved from 54th in 2014 to 38th in 2023, with nine Indian ports now in the top 100 globally.
  • Growth in Cargo-handling: Between 2014-15 and 2023-24, major ports increased their annual cargo-handling capacity by 87.01%.
  • Maritime Sector’s Importance: India is the 16th-largest maritime nation, occupies a key position in global shipping, with major trade routes passing through its waters.
  • Future Goals: India has outlined investments of US$ 82 billion in port infrastructure projects by 2035 to bolster the maritime sector.
    • India plans to establish a new shipping company to expand its fleet by at least 1,000 ships within a decade.

Challenges 

  • Infrastructure Gaps: Inadequate port infrastructure and outdated facilities at some ports, limiting capacity and efficiency.
  • Congestion: High traffic volumes at major ports leading to delays, increased turnaround times, and reduced productivity.
  • Environmental Concerns: Pollution and sustainability issues, including emissions from ships and port operations.
  • Logistics Bottlenecks: Inefficient transport connectivity between ports, roads, and railways, impacting smooth cargo movement.
  • Global Competition: Rising competition from other global maritime hubs, necessitates continuous investment and modernization.

Initiatives by the Government

  • Sagarmala Programme: Focuses on leveraging India’s coastline and of navigable waterways.
    • Supports port infrastructure, coastal development, and connectivity.
    • Financial aid for projects like coastal berths, rail/road connectivity, fish harbours, and cruise terminals.
  • Maritime India Vision 2030 (MIV 2030): Aiming for India to become a top 10 shipbuilding nation by 2030 and create a world-class, efficient, and sustainable maritime ecosystem.
    • Includes 150+ initiatives across ten key maritime sectors.
  • Inland Waterways Development: 26 new national waterways identified by the Inland Waterways Authority of India (IWAI).
    • Provides alternative, sustainable transport, easing road/rail congestion.
  • Green Tug Transition Program (GTTP): Aims to replace fuel-based harbour tugs with eco-friendly, sustainable fuel-powered tugs.
    • Transition to be completed by 2040 across major ports.
  • Sagarmanthan Dialogue: An annual maritime strategic dialogue to position India as a global center for maritime conversations.
  • Maritime Development Fund: ₹25,000 crore fund for long-term financing to modernize ports and shipping infrastructure, encouraging private investment.
  • Shipbuilding Financial Assistance Policy (SBFAP 2.0): Modernized to help Indian shipyards compete with global giants.

Source: TH