Shipping is the lynchpin of a global economy between exporters and importers. Today, about 90% of the world’s goods are transported by water connecting with various land transfer systems, such as rail, truck, and air.” Globalization has fueled huge growth in the shipping industry. Low-cost shipping is the means that enables countries to import consumer goods inexpensively and export their products in a cost-effective way.
The Indian ports and shipping industry plays a vital role in sustaining growth in the country’s trade and commerce. India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 km. The Indian Government plays an important role in supporting the ports sector. According to the Ministry of Shipping, around 95 per cent of India’s trading by volume and 70 per cent by value is done through maritime transport. India has 12 major and 200 notified minor and intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country.
During FY18, cargo traffic at major ports in the country was reported at 679.36 million tonnes (MT). In FY19 (up to November 2018) traffic increased by 4.83 per cent year-on-year to reach 461.22 million tonnes. Cargo traffic at non-major ports was estimated at 491.95 million tonnes FY18 and grew at 9.2 per cent CAGR between FY07-18. The major ports had a capacity of 1,452 million tonnes by FY18 end. The Maritime Agenda 2010-20 has a 2020 target of 3,130 MT of port capacity.
Ports today must constantly improve quality, increase productivity and lower costs for shipping companies in order to compete on the international stage. Other cities like Singapore, Shanghai, Hong Kong and Taiwan have taken similar smart port initiatives, resulting in faster turnaround times for the ships and more efficient port maintenance.
Smart port initiatives help ports, terminals and their partners operate more efficiently and cut costs. The amount of data generated by smart sensors is a real business opportunity for companies trying to develop new data-based services and revenue streams. Using high-end technology as in 5G networks and IoT helps optimize loading and unloading times in ports, leading to fewer emissions. Cutting emissions will improve health benefits globally.
IDST Monthly Access Membership Required
You must be a IDST Monthly Access member to access this content.