In a significant shift, central government-owned ports, also referred to as major ports, have surpassed private and state-government-operated ports in cargo traffic growth for the 2024-25 financial year. Data from the Ministry of Ports, Shipping, and Waterways reveals a 5% increase in cargo handled by major ports, reaching 348.06 million tonnes (MT). This growth is primarily driven by a 4.9% rise in overseas cargo and a 5.2% uptick in coastal
cargo, marking a strong recovery after the disruptions caused by the COVID-19 pandemic.
In contrast, private and state-government ports, or non-major ports, recorded a modest 2.8% increase in overall cargo. While non-major ports posted a competitive 4.29% growth in overseas cargo, a steep decline in coastal cargo hindered their performance. A senior government official emphasized that major ports have been strategically reducing tariffs to attract more cargo, allowing them to outpace their private counterparts. “Tariff adjustments , combined with an emphasis on operational efficiency and infrastructure enhancements, have made major ports more attractive to importers and exporters, particularly for overseas cargo,” the official explained.
Impact of Tariff Adjustments: The tariff adjustments at major ports have played a critical role in driving their recent growth. The Ministry of Ports, Shipping, and Waterways, in collaboration with key port authorities, introduced a series of competitive tariff reductions aimed at making these ports more financially viable for businesses engaged in overseas and coastal trade.
Lower Tariffs to Attract Cargo: Major ports have reduced tariffs across a wide range of services, including cargo handling, warehousing, and other port-related services. These lower tariffs have been designed to provide a cost-effective alternative to private and state-owned ports, which traditionally had higher tariffs. This strategy has helped major ports capture more cargo, particularly from nearby private competitors.
In contrast, private and state-government ports, or non-major ports, recorded a modest 2.8% increase in overall cargo. While non-major ports posted a competitive 4.29% growth in overseas cargo, a steep decline in coastal cargo hindered their performance. A senior government official emphasized that major ports have been strategically reducing tariffs to attract more cargo, allowing them to outpace their private counterparts. “Tariff adjustments , combined with an emphasis on operational efficiency and infrastructure enhancements, have made major ports more attractive to importers and exporters, particularly for overseas cargo,” the official explained.
Impact of Tariff Adjustments: The tariff adjustments at major ports have played a critical role in driving their recent growth. The Ministry of Ports, Shipping, and Waterways, in collaboration with key port authorities, introduced a series of competitive tariff reductions aimed at making these ports more financially viable for businesses engaged in overseas and coastal trade.
Lower Tariffs to Attract Cargo: Major ports have reduced tariffs across a wide range of services, including cargo handling, warehousing, and other port-related services. These lower tariffs have been designed to provide a cost-effective alternative to private and state-owned ports, which traditionally had higher tariffs. This strategy has helped major ports capture more cargo, particularly from nearby private competitors.
