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Developing Nhava Sheva into South Asia’s Premiere Transhipment Hub

Developing Nhava Sheva into South Asia’s Premiere Transhipment Hub

Located in Maharashtra, Nhava Sheva is India’s largest container port handling over half of the country’s container cargo.

  • Faces rising competition from new ports like Mundra and Pipavav
  • Handled 5 million TEUs (Twenty-Foot Equivalent Units) in 2023, growth impacted by economic slowdown
  • Infrastructure and procedural improvements needed to retain competitiveness

Operational Performance

  • Handled 65 million tonnes of cargo in 2023, compared to 72 million tonnes in 2022
  • Container volumes grew by only 2% in 2023 versus over 10% growth in the past
  • Share of India’s container trade handled has declined from over 60% in 2020 to 55% in 2023
  • Port constraints leading to waiting times, diversion of ships to competing ports

Key Numbers in 2023

  • Containers: 5 million TEUs
  • Total Cargo: 65 million tonnes
  • Vessels Handled: Over 5000
  • Average Vessel Turnaround Time: Over 2 days
Performance Parameter 2023 2022 % Change
Containers (TEUs) 5 million 4.9 million 2%
Total Cargo (tonnes) 65 million 72 million -10%
Vessels Handled 5000 5500 -9%

Infrastructure Status

  • 4 Container Terminals with total handling capacity of over 8 million TEUs
  • 12 Berths with depth over 15 metres to handle large vessels
  • Storage area of over 1 million sq. metres
  • 6 Railway Lines totaling over 25 kms in length
  • Recently added 4th Terminal in 2018 doubled capacity
  • On-dock rail facility helps quicker evacuation of containers
  • Draft levels sufficient to handle latest vessel sizes
  • Equipment availability, maintenance issues sometimes constrain operations

Procedural Improvements

  • Electronic delivery orders and payments implemented
  • RFID based Gate Management System uses cloud and mobility
  • Enterprise Business System links stakeholders on common platform
  • Dwell time for import containers remains above global benchmarks
  • Further simplification of documentation and clearances required
  • Scope for greater digitization and process automation

Key Initiatives Planned

  • Capacity enhancement to 10 million TEUs by 2025
  • Dredging maintenance to ensure 17 metre draft
  • Road connectivity enhancements
  • Solar power installation in 400 acres of land
  • Masterplan approved to retain and grow market share
  • Environmental sustainability a key priority
  • Training and skill development to improve productivity

Competitive Landscape

Facing rising competition from:

  • Mundra Port (Adani Group): Fast growth to become largest port in India
  • Pipavav Port (APM Terminals): Dominates container trade in Gujarat
  • Hazira Port: Captive port of Reliance Industries gaining market share
  • Competing ports offer deeper draft, superior rail & road connectivity
  • Higher productivity and efficiency at some competing ports

Opportunities & Challenges

Opportunities
  • Government reforms and infrastructure push leading to cargo growth
  • Rising domestic consumption and demand due to expanding economy
  • Increased manufacturing and export competitiveness under ‘Make in India’
  • Potential traffic from proposed Delhi-Mumbai Industrial Corridor
Challenges
  • Significant new port capacity – could lead to hyper competition
  • Global slowdown affecting trade volumes
  • Maintaining cost and operational competitiveness viz-a-viz new ports
  • Ensuring efficiency enhancements and capacity additions on schedule

Technology and Automation

  • Initiatives for automated gate complex using AI and analytics
  • Plan to deploy automated guided vehicles (AGVs) for inter-terminal transport
  • Blockchain solutions being evaluated for documentation processing
  • Discussions with tech providers like IBM and Cisco for modern solutions
  • Digital port project to monitor operations and enable swift decisions
  • Aim to improve productivity and lower costs through technology
  • Increased visibility and control over entire logistics chain
  • Will bring the port on par with global ports in terms of automation

Environmental Sustainability

  • Shore-to-ship power supply to reduce emissions from vessels
  • Solar energy installations to meet 20% of port’s power needs
  • Ban on single-use plastic within port premises
  • Carbon footprint tracking and initiatives to go carbon neutral
  • Focus on energy efficiency in port vehicles and equipment
  • Aligning with India’s COP26 commitments on sustainability
  • Reducing environmental impact of expanding port activities
  • Greener ecosystem to benefit surrounding communities

Human Capital Development

  • National Academy of Ports and Logistics offering specialized courses
  • Plan large scale skilling and re-skilling of workforce
  • Developing talent for emerging areas like AI, ML and data analytics
  • Study tours and knowledge exchange programs with global ports
  • Collaboration with international agencies like World Bank arm IFC
  • Ensuring availability of skilled manpower for port expansion
  • Creating future-ready talent for evolving maritime sector
  • Alignment with national skill development and jobs creation agenda

As India’s premiere container port, Nhava Sheva will play a pivotal role in enabling trade competitiveness and economic growth through infrastructure enhancement and adoption of modern technologies. Its ability to effectively meet current challenges while progressing towards a sustainable and skilled future will determine the port’s continued success and leadership.

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