India's Port Cargo Capacity Jumps 22%, But Logistics Gaps Still Haunt Trade
India's port cargo capacity grew to 2.8 billion tonnes, but a FICCI-Kearney report warns of persistent logistics bottlenecks.
India has seen a significant surge in its maritime capabilities, with India port cargo capacity climbing by 22 per cent since 2017-18. According to a joint report by FICCI and Kearney, the annual handling capacity has expanded from 2.3 billion tonnes to 2.8 billion tonnes. While the infrastructure at the water's edge is strengthening, the report warns that the real battle for trade efficiency now lies in the logistical bottlenecks that exist beyond the port gates.
The Numbers: Growth in Volume and Efficiency
The data reveals a robust upward trend in how India manages its sea trade. Cargo handled across both major and non-major ports grew by 38 per cent, rising from 1,209 million tonnes to 1,668 million tonnes during the analyzed period. Furthermore, port capacity utilization has improved from 52 per cent to 59 per cent, suggesting that while growth is steady, there is still room for further expansion.
Operational speed has also seen a boost. Vessel turnaround times at major ports have dropped by 18 per cent, now averaging around 49 hours. This efficiency is reflected on the global stage, with the Jawaharlal Nehru Port Authority (JNPA), Pipavav, and Mundra all ranking among the top 30 ports in the World Bank's Container Port Performance Index 2025.
The 'Last Mile' Struggle: Where the Delays Happen
Despite the impressive gains in port capacity, the report highlights a jarring disconnect once cargo leaves the customs area. The findings suggest that the next phase of growth will depend less on cranes and berths and more on the inland links and shipping services that connect ports to the actual markets.
The 2025 National Time Release Study paints a sobering picture of export delays at four key seaports:
- Export Approvals: Took an average of 30 hours.
- Post-Clearance Wait: The time between official clearance and the vessel's actual departure averaged 158 hours.
- The Gap: This post-clearance window accounts for a staggering 84 per cent of the total recorded time.
A specific example is the Jawaharlal Nehru Custom House, where customs processing was remarkably fast—averaging just two hours and 12 minutes in 2026. Yet, the total export cycle still exceeded eight days, indicating that the delays are rooted in logistics activity and scheduled waiting rather than customs bureaucracy.
The Transhipment Challenge and Private Participation
India remains heavily reliant on foreign shores for its transhipment needs. As of May 2025, approximately 75 per cent of the country's transhipment containers were handled by international ports. While the operational launch of the Vizhinjam port in May 2025 added critical deepwater capacity, the report notes that structural challenges in developing domestic transhipment facilities persist.
To tackle these issues, the government is leaning heavily on the private sector. Under the Major Port Authorities Act 2021, private terminal operators already handle about two-thirds of major port traffic. The government aims to push this private sector participation to 85 per cent by 2030.
Connecting the Hinterland: Roads and Rails
The bridge between the coast and the interior remains a work in progress. Out of 294 identified road and rail connectivity projects, only 84 were completed as of July 2026. A major milestone was achieved in March 2026, when the 1,506-km Western Dedicated Freight Corridor, linking Dadri with JNPA, became fully operational.
The Road Ahead: Recommendations for Global Competitiveness
Comparing India's trade corridors to global giants like Singapore, Rotterdam, Jebel Ali, and Shanghai-Ningbo, the FICCI-Kearney report suggests a more targeted approach. The recommendations include:
- Specialized Development: Creating tailored plans for energy-related ports, transhipment hubs, and dedicated export corridors.
- Cluster-Based Planning: The Ministry of Ports, Shipping and Waterways, alongside state governments, should identify industrial clusters and build connectivity based on actual freight movement.
- Better Coordination: Appointing dedicated gateway coordinators to monitor infrastructure projects and synchronize efforts between various transport agencies.