Seaports are the connecting link of the world’s transportation network, paving a path for international trade and facilitating economic growth. The strategic locations along the seashore and other open sea routes help move your goods from one port to another. From the crowded container terminals to the calm harbors, the ports have an impact on commercial trade in local, regional, and global economies.
According to some official sources, India has a coastline of approx. 7,516.6 km, and its strategic position in the Indian Ocean region can reshape the maritime trade between nations. It also states that India's best efforts in developing new marine trades with Sri Lanka and Oman and upgrading agreements with the United Arab Emirates and Bangladesh are a splendid achievement. S&P Global Ratings further analyzed that the emergence of private and public ports has significantly increased the marine trade.
The Indian government has undertaken several significant initiatives to boost the port sector and enhance maritime infrastructure. Key developments include:
- Interim Union Budget 2024: The Ministry of Shipping was allocated US$ 281.24 million (Rs. 2,345.45 crore) to modernize and expand port facilities.
- Sagarmala Scheme: Under this initiative, 45 projects totaling Rs. 47,166 crore (US$ 5.69 billion) are planned for non-major ports. Out of these, 4 projects worth Rs. 5,419 crore (US$ 0.65 billion) have been finalized, while 17 projects estimated at Rs. 27,673 crore (US$ 3.34 billion) are currently in process. The program highlights public-private partnerships (PPP), with 31 projects involving an investment of Rs. 45,973 crore (US$ 5.54 billion).
- Syama Prasad Mookerjee Port Revamp: On March 7, 2024, a project exceeding Rs. 800 crore (US$ 96.48 million) was approved for the reconstruction and mechanization of this port in Kolkata, aimed at boosting its operational efficiency and international competitiveness.
- North East Waterways Projects: On February 20, 2024, Mr. Sarbananda Sonowal launched major projects to develop waterways in North East India. These include the inauguration of terminals at Bogibeel and Sonamura and new projects worth Rs. 308 crore (US$ 37.14 million), aimed at enhancing connectivity and fostering economic growth in the region.
Let us discuss the importance of seaports in global shipping. These are as follows:
Gateway to Global Trade : Ports are the main gates to export or import your perishable goods in international trade, which caters to a diverse range of markets.
Planned Routes : India's ports are strategically positioned with the main international trade routes, making them vital hubs to ship your perishable cargo from end-to-end port.
Vicinity : When selecting a port for your shipment, consider its location carefully. The ports should be close to your origin and destination to reduce transportation costs and delays. Make sure your port is well-connected via road, rail, and waterways for hassle-free shipping.
Intermodal Transport : The well-equipped ports with intermodal facilities such as ships, trucks, trains, and airplanes enable faster cargo handling and movement, minimizing delays, reducing carbon footprints, and lowering fuel consumption.
Extensive Scale Distribution Centers : Goods that arrive at ports are sorted, and multiple shipments are combined into a single one to make space in containers or transport vehicles. This will help you to distribute the goods to local, regional, and international markets.
Proper Cargo Handling : Ports must have smart technologies and specialized equipment for handling and storage of the perishable goods. This optimizes the loading and unloading of your cargo, saving both time and cost.
Land transport : Ports with proper road and rail connections make transportation smoother if you need to ship your temperature-sensitive shipments. This ensures your goods reach their destination quickly and efficiently, making your supply chain more reliable.
Economic Growth : Ports play a significant role in developing both national and regional economic growth. It enhances industrial growth, creating job opportunities not only within the port facilities but also in industries related to logistics and manufacturing units.
Increase Trade : As global trade tends to evolve, ports are open to handling larger quantities of perishable goods. Port expansion is a must to continue the trade process and avoid congestion that could reduce trade efficiency.
Accommodate Large Vessels : With the launch of mega container ships and large vessels, ports need improved infrastructure, which requires deeper berths and wider navigation channels, to accommodate them effectively.
Agri-Products: Indian farmlands, blessed with a variety of agricultural products, such as fresh fruits and vegetables, need large ports to accommodate the bulk shipping of these perishable goods to global markets.
Refrigerated Container Technology : Ports should have the provision of refrigerated containers that allow real-time tracking of your shipments and predict any kind of damage or danger during the transit .
Climate Change : As seaports are vulnerable to climate change, rigorous weather conditions and the rise of sea level can adversely affect your shipping operations. Thus, it is necessary for the port authorities to take precautionary measures to withstand any kind of climate.
Regulatory Standards : When choosing a port for shipment, you need to keep in mind customs regulations and procedures. Each port has its own set of obligations for clearing perishable goods through customs, which can significantly impact the speed and ease of your shipments. Ports must provide clear guidance on documentation requirements and offer support services to help navigate the customs process smoothly.
Conclusion
Choosing the right port of shipment is crucial for efficient shipping. Proper handling of various factors such as geographic location, infrastructure management, customs procedures, and overall costs can streamline the export process.
At Citrus Freight , you can select and compare the shipping lines that are easier and simpler than ever. With informed decisions and innovative solutions, businesses can streamline their logistics and facilitate success.