SEA OF CHANGE

The government has taken several initiatives to develop the physical infrastructure of ports and improve processes to lower the logistics cost.

- ARUN SINGH

Seaports are responsible for around 90 per cent of India’s total merchandise trade (by volume) and thus, any bottlenecks at this juncture could offset the efficiencies of the supply chain network built within the country. Businesses that face inefficient logistics processes at the border (i.e. the ports), suffer through high cost to trade, and will eventually find it difficult to compete with firms in other countries, even if they are able to produce at competitive rates. For India to increase its product competitiveness and gain a share above 2 per cent in world exports, it is pertinent to address the issues that exist at the Indian ports and its related ecosystem. Addressing bottlenecks in the port ecosystem means solving both hard and soft infrastructure-related issues. This requires meeting the physical gap and improving the efficiency in various processes, as well as quality of the services. Over the years, these issues have constrained India’s ability to exploit its maritime trade capabilities.

Ground-level challenges