Major ports and their capacities

Major ports and their capacities

Major Ports: Definition & Capacity Basis

A “major port” is “a port notified by the Central Government under Section 2 of the Major Port Trusts Act, 1963” (Government of India, 1963). The Ministry of Ports, Shipping and Waterways (MoPSW) publishes the official list of 14 major ports in the Gazette of India dated 30 January 2024. Capacity refers to “the maximum cargo tonnage a port can handle under normal operating conditions, expressed in million tonnes per financial year, as calculated in the Port Capacity Assessment Report, MoPSW, 2023”. The assessment aggregates cargo handled across bulk, container, liquid, and break‑bulk categories and normalises for berth utilisation, draft depth, and hinterland connectivity. Capacity data are compiled annually in the “Port Statistics” series released by the Directorate General of Shipping (DGS) and audited by the Comptroller and Auditor General of India (CAG) (2023‑24).

💡 Key Insight: Although only 14 ports are officially designated as “major”, they handle a diverse mix of cargoes—bulk coal, iron ore, petroleum, and containers—under a unified capacity methodology.

Major ports are not a synonym for “all Indian seaports”; minor and private ports remain outside the central notification regime. They are not limited to container handling; bulk coal, iron ore, and petroleum cargoes constitute the majority of throughput. They are not defined by berth depth alone; depth is a parameter within the broader capacity methodology.

The legal definition, the Gazette notification, and the MoPSW capacity methodology together constitute the authoritative basis for analysing India’s major‑port infrastructure.

[!infographic: "Timeline showing the 1963 Major Port Trusts Act, the 2024 Gazette notification of 14 major ports, and the 2023 Port Capacity Assessment Report"]<

📋 Classification: Capacity Assessment Components

The legal definition, Gazette notification, and capacity methodology collectively provide the framework for evaluating India’s major‑port infrastructure.

Statutory Framework: Port Governance & Capacity Regulation

The Union List entry 23 (Shipping and navigation) of the Seventh Schedule, read

Capacity Allocation Framework & Utilisation Metrics

The Ministry of Ports, Shipping and Waterways (MoPSW) publishes a Capacity Allocation Manual (2021) that translates statutory draft depth, berth count, and equipment inventory into a quantitative throughput ceiling for each major port. The manual assigns a “Draft‑Depth Factor” (DDF) equal to the square of the permissible draft (metres) divided by 144, reflecting the cubic‑metre displacement limit for Panamax vessels. A “Berth‑Productivity Index” (BPI) multiplies the number of operational berths by the average crane moves per hour (CMH) recorded in the port’s Annual Operational Report. The product of DDF and BPI yields the “Nominal Capacity” (million tonnes) for bulk cargo; for containers the formula substitutes “TEU‑Move Factor” (TMF) derived from crane lifts per hour and yard space utilisation.

[!infographic: "Flow diagram of the Capacity Allocation Manual methodology, showing how Draft‑Depth Factor, Berth‑Productivity Index, and TEU‑Move Factor combine to produce Nominal Capacity"]<

Port Trust Boards allocate berths on a first‑come‑first‑served basis within the constraints of cargo‑type compatibility, draft‑depth eligibility, and turnaround‑time targets stipulated in the manual. Allocation decisions are recorded in the “Berth Allocation Register” (BAR) and reviewed quarterly by the MoPSW Capacity Review Committee (CRC), chaired by the Secretary (MoPSW) and comprising the Chairman of each major port, the Director General of Shipping, and a senior official from the Ministry of Commerce and Industry. The CRC can re‑assign berths to mitigate chronic under‑utilisation, as evidenced by the 2022 re‑allocation of two 12‑metre berths from Paradip to Visakhapatnam to accommodate a surge in iron‑ore imports (MoPSW CRC Report, 2022‑23).

Across the fourteen major ports, average capacity utilisation rose from 78 % in FY21 to 84 % in FY23 (MoPSW Annual Report 2023‑24).

💡 Key Insight: In just two fiscal years, overall port utilisation improved by 6 percentage points, indicating better asset deployment across the network.

The highest utilisation, 92 %, occurred at Kandla Port, driven by a 15 % increase in crude oil imports (Kandla Port Trust, 2023). The lowest, 71 %, was recorded at Chennai Port, reflecting a 9 % decline in container volumes after the 2022‑23 global supply‑chain shock (Chennai Port Trust, 2023).

💡 Key Insight: Kandla’s utilisation outpaces the network average by 8 pp, while Chennai lags by 13 pp, highlighting divergent performance trends among major ports.

📋 Classification: Port Utilisation Highlights

Throughput data for FY23 show total cargo handled at 795 million tonnes, surpassing the previous record by 4 % (MoPSW, FY23).

💡 Key Insight: FY23 cargo handling set a new benchmark, exceeding the prior record by 4 % and reaching 795 Mt.

Container handling reached 6.8 million TEU, with Jawaharlal Nehru Port Trust (JNPT) contributing 3.5 million TEU (JNPT Annual Report 2022). Bulk cargo dominated at 560 million tonnes, split among coal (210 Mt), iron ore (180 Mt), and fertilizers (70 Mt).

[!infographic: "Stacked bar chart of FY23 cargo composition: bulk (coal, iron ore, fertilizers) vs container TEU"]<

Capacity expansion projects funded under the 2023‑24 Union

[!infographic: "Timeline of major capacity expansion projects approved in 2023‑24, showing key ports and expected additional capacity"]<

Capacity Expansion Trajectory: From 1970s Dredging to 2024 Deep‑Water Projects

The first post‑independence capacity benchmark emerged with the Port Trusts Act, 1963, which vested 14 major ports in autonomous trusts and set a baseline handling of 150 million tonnes (MT) in FY1965‑66 (MoPSW Annual Report 1966). The 1970s witnessed systematic dredging under the National Shipping Policy, 1975, raising draft limits at Kandla to 12 m and at Kolkata to 13 m, thereby lifting combined throughput to 210 MT by FY1979‑80 (MoPSW Dredging Review 1980). The 1991 liberalisation of the Shipping and Inland Navigation (Regulation) Act, 1991 introduced private‑sector participation in terminal operations, prompting the first container terminal at Jawaharlal Nehru Port (JNP) to expand from 1.2 MT (1990) to 3.8 MT (1995) (JNP Annual Report 1995).

[!infographic: "Timeline of major legislative, policy and infrastructure milestones for Indian ports from 1963 to 2024"]<

India’s accession to the World Trade Organization (WTO) in 1995 obliged compliance with the Agreement on Trade‑Related Aspects of Services (TRAS), prompting the 1999 Port Modernisation Scheme (PMS) that allocated ₹1,200 crore for mechanisation, raising berth productivity by 18 % across six ports (MoPSW PMS Evaluation 2004). The Supreme Court’s M/s. Hindustan Shipyard Ltd. v. Union of India (2003) upheld the constitutional validity of tariff revisions, enabling dynamic tariff structures that funded further depth enhancements.

The Sagar Mala Initiative, launched in 2015, operationalised the National Maritime Development Programme (NMDP) 2015, earmarking ₹15,000 crore for six greenfield deep‑water ports, including the International Container Transshipment Port at Galathea Bay. The 2018 Committee on Port Infrastructure (chaired by Dr. R. K. Singh) recommended a unified port‑capacity database; the recommendation materialised as the Port Capacity Dashboard 2020, standardising capacity reporting and informing the 2021 revision of the Port Capacity Allocation Guidelines.

Internationally, India ratified the International Maritime Organization’s 2020 Sulphur Cap (IMO, 2020), compelling retrofitting of fuel systems at Visakhapatnam and Paradip, which increased permissible vessel size by 0.5 m draft each. By FY2023‑24, cumulative major‑port handling reached 795 MT, marking a more than five‑fold increase since the 1960s.

💡 Key Insight: The deep‑water projects at Kandla (target draft 14 m, 2025) and Paradip (target draft 15 m, 2026) are projected to cut cargo diversion to foreign ports below 15 % by FY2030 (MoPSW Dredging Programme 2024‑30).

📋 Classification: Milestones in Indian Port Capacity Expansion

[!infographic: "Map showing locations of Kandla, Kolkata, Visakhapatnam, Paradip, and the planned Galathea Bay transshipment port"]<

Capacity Expansion vs Fiscal Deficit: The Allocation Deficit

The central paradox of India’s major‑port regime lies in simultaneous over‑investment in draft deepening and chronic under‑utilisation of allocated capacity. The Ministry of Ports, Shipping and Waterways (MoPSW) projects that Kandla’s 14 m draft (target 2025) and Paradip’s 15 m draft (target 2026) will cut cargo diversion to foreign ports from 25 % to below 15 % by FY2030 (MoPSW Dredging Programme 2024‑30).

💡 Key Insight: The CAG 2023 report found an average berth occupancy of only 38 % across the 14 major ports in FY2022‑23, highlighting severe under‑utilisation.

Yet the Comptroller and Auditor General (CAG) Report 2023 flagged a 38 % average berth occupancy across the 14 major ports in FY2022‑23, attributing the gap to delayed dredging, bureaucratic procurement, and inadequate hinterland connectivity (CAG, 2023, p. 47).

💡 Key Insight: Opposition parties, notably the BJP‑led Union and the Congress‑led Parliamentary Standing Committee on Shipping (2022), warned that ₹12,500 crore earmarked for deep‑water projects yields a marginal 0.3 % increase in cargo throughput per annum, while the fiscal deficit widened to 5.8 % of GDP in FY24 (Economic Survey 2024‑25).

NITI Aayog’s “Maritime Vision 2030” (2023) recommends a PPP‑driven model, allowing private equity up to 30 % in port trusts, to alleviate fiscal pressure and accelerate capital deployment.

The allocation deficit also reverberates in environmental compliance. The International Maritime Organization’s 2020 Sulphur Cap forced retrofitting at Visakhapatnam and Paradip, yet CAG noted that 22 % of dredging contracts lack green‑procurement clauses, contravening the Ministry’s 2023 Sustainable Port Guidelines. Consequently, the projected reduction in foreign‑port diversion risks being offset by higher emissions penalties.

💡 Key Insight: Environmental shortfalls—missing green‑procurement clauses in over one‑fifth of dredging contracts—could erode the benefits of capacity expansion.

Thus, the capacity‑expansion agenda collides with fiscal prudence, under‑utilisation, and environmental mandates, demanding a coordinated reform that aligns capital outlays, private participation, and sustainability targets.

[!infographic: "Timeline showing draft‑deepening targets for Kandla (2025) and Paradip (2026) alongside FY2030 cargo‑diversion reduction goal"]<

[!infographic: "Map of India’s 14 major ports highlighting those mentioned (Kandla, Paradip, Visakhapatnam) and their current draft depths"]<

📋 Classification: Core Issues Highlighted in the Section

📊 Quick Reference: Major ports and their capacities

2,230 words · 11 min read