Indian ports are the gateways to India’s international trade, and are handling over 90 per cent of foreign trade. Though the bulk of Indian trade is carried by sea routes, the existing port infrastructure is insufficient to handle trade flows effectively. A Deloitte study unveiled that the current capacity at major ports is overstretched. The capacity utilisation at major ports has been increasing over the years owing to growing trade. The capacity utilization now is about 100 per cent signifying increasing congestion in all the major ports.
Another major challenge faced by Indian shipping industry is the relatively low hinterland connectivity with the ports. Indian ports are finding it difficult to handle additional traffic because of slow evacuation from ports. Therefore, it is important that connectivity of major ports with the hinterland is augmented not only to ensure smooth flow of traffic at the present level but also to meet the requirements of projected increase in traffic.
Indian-bound container traffic in neighbouring ports outside India. This increases the transportation costs for Indian traders. With a view to overcoming this challenge, concerted measures to deepen channels in various major ports have been taken. companies will lose significant market share hence their concerns must be heard. remarkably, recently the Government of India relaxed the Cabotage Law to some extent by allowing costal shipping from DP World’s International Container Transshipment Terminal in Cochin.