Gujarat's Minor Ports Reach Maturity

With over 1,000 factories producing bathroom and floor tiles to dinner sets, Morbi in Gujarat is India's ceramic hub, whose products are in high demand both domestically and internationally. Currently, much of this cargo is transported by road to Kandla port, approximately 134 km away, costing about ₹22,000 per container. However, this cost could be reduced to ₹7,000 if the nearby Navlakhi port, located 45 km from Morbi, is modernised as planned by the Gujarat Maritime Board (GMB).

“The [Navlakhi] port can easily attract 3-4 TEUs [twenty-foot equivalent units] of container cargo that currently goes to other ports, including Kandla,” said a GMB official.

Cargo volumes handled by non-major ports (state and union territory ports) in Gujarat are projected to quadruple to 2,000 million tonnes per annum (MTPA) by 2040.

“We currently have the capacity to handle around 500 MTPA. We have appointed a consultant to determine the investment needed to bolster the cargo handling capacities of the ports,” stated Rajkumar Beniwal, vice-chairman and CEO of GMB, which oversees the state’s non-major ports.

To enhance export-import traffic, GMB is conducting cargo flow analysis to identify bottlenecks and necessary infrastructure improvements to expand port capacity. Over the past decade, traffic at Gujarat's non-major ports has grown by 5 percent annually. During 2023-24, these ports handled 448 MTPA of cargo, nearly 60 percent of the 772 MTPA managed by all non-major ports in India. Andhra Pradesh followed with 25 percent, and Maharashtra with 10 percent.

A significant share of the projected cargo growth for Gujarat's non-major ports is expected to come from private ports, including Adani Port and Special Economic Zone (APSEZ) at Mundra, Pipavav, Dahej, and Hazira. “Future growth will primarily be in private ports. The Gujarat government will support private ports by adding basic infrastructure,” Beniwal added.

In December 2022, GMB projected that non-major ports in Gujarat would achieve 1,000 MTPA cargo traffic by 2040, with APSEZ at Mundra accounting for 400 MT, and 300 MT expected to be containerised cargo. Pipavav was projected to handle 37 MT by 2040. These projections have since been revised, but no updated targets for private ports have been released yet.

Some of the proposed expansion and modernisation plans for non-major ports are expected to impact the lone major port of Gujarat, Kandla, which has already lost its position as the country's top major port to Paradip this year.

During 2023-24, Kandla port handled 131 MT of cargo, a 4.17 percent decline from the previous year, with the steepest drop in overseas cargo, down nearly 4.8 percent year-on-year. In contrast, coastal cargo grew by 1.48 percent.

Meanwhile, Paradip port in Odisha handled over 145 MT of cargo, achieving a 7.4 percent growth driven by an 11.47 percent increase in overseas cargo and a 1.98 percent growth in coastal cargo.

“One of the main reasons for Paradip overtaking Kandla in cargo volumes this year is infrastructure development. The addition of a mechanised coal handling plant at Paradip boosted its cargo handling capacity and efficiency. Additionally, there has been a significant increase in coastal shipments through Paradip, further contributing to the rise in cargo volumes,” said Pushpank Kaushik, CEO of Jassper Shipping, a Singapore-based shipping company with operations in India.

HBL