Vessel, container traffic increased via Chabahar Port and INSTC in FY24: Economic Survey

The Shahid Beheshti Port at Chabahar connects Mumbai to Eurasia via the International North South Transport Corridor (INSTC), reducing transport costs and time, leading to a 43% increase in vessel traffic and a 34% rise in container traffic for the financial year 2023-24, according to the Economic Survey released on Friday.

Similarly, Sittwe Port in Myanmar built as part of the Kaladan multi-modal transport project, offers an “alternative route to Northeastern States, reducing transport costs between Kolkata and Mizoram,” the survey noted referring to international linkages in the maritime sector.

Also Read | India, Iran sign 10-year contract for Chabahar port operation

“India is enhancing waterway connectivity to the Northeast by developing waterways in Bangladesh and funding 80% of the ₹305 crore project. India is also investing ₹1,010 crore to improve the Brahmaputra and Barak rivers and the Indo-Bangladesh Protocol route,” the Economic Survey said on the efforts to boost inland waterways also involving neighbouring countries.

In May 2024, eight years after concluding the general framework of cooperation on Chabahar Port, India and Iran signed a 10-year Long Term Agreement for its operation. Under the agreement between Indian Ports Global Limited (IPGL) of India and the Port and Maritime Organisation (PMO) of Iran, IPGL will invest approximately $120 million in equipping the port and India has also offered a credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.

Another maritime route, the Chennai-Vladivostok eastern maritime corridor has also become operational and is carrying oil, food and machines, as reported by The Hindu earlier.

Also Read | Amid raging fighting in Myanmar, 100th shipment from India reaches Sittwe port

Gratified to see the Ministry of Ports, Shipping and Waterways trailblazing with a remarkable 76% capital expenditure up to November 2024 for the financial year 2024-25 as per Economic Survey 2024-25, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said on the Survey. As a result of the transformational initiatives, the Minister was happy about the exceptional rate of capacity enhancement in ports from 3 Million Metric Tonne Per Annum (MMTPA) during April to November (FY24) to 21 MTPA during the same period this financial year as per the Economic Survey 2024-25, he stated.

By 2047, India targets a port handling capacity of 10,000 million metric tonne per annum, leveraging strategic trade routes through initiatives like the India-Middle East Economic Corridor (IMEEC) and the INSTC, Mr. Sonowal had said in November.

The survey listed out key initiatives as part of this which include, Harit Nauka guidelines launched in January 2024 which aim to turn 1,000 inland vessels over the next 10 years; cargo promotion scheme to incentivise cargo owners to switch from rail and road to inland waterways; river cruise tourism which saw 82,587 passengers on day cruises by October 2024 and a five-fold increase in night cruise passengers to 11,431 in FY24 compared to FY19; Jal Marg Vikas project on National Waterway-1 which enhances cargo transport on the Ganga-Bhagirathi-Hooghly river system, achieving 65% physical progress with a revised cost of ₹5,061.15 crore and Jal Marg Vikas project-II which includes the construction of community jetties and navigation improvements with 49 out of 60 approved community jetties already commissioned.

Explained | Reinvigorating the Chabahar port 

“Port capacity improved significantly in FY25, leading to improvements in operational efficiency and reduction in average container turnaround time. On waterway transport connectivity, the Sagarmala programme aims to harness India’s coastline and waterways fully, improving logistics efficiency. Progress under the programme highlights the highest project completion rates in port modernisation and port-led industrialisation,” the survey said on the overall shipping sector. This is followed by advancements in port connectivity, coastal community development, coastal shipping, and inland water transport.

In this regard, the survey noted that the Union government approved 98 Public-Private Partnership (PPP) projects, including 23 captive projects, worth around ₹69,800 crore, excluding Vadhavan Port Project with a PPP investment of ₹38,000 crore. Currently, 56 projects valued at ₹41,480 crore are operational, increasing port capacity by 550 MTPA , it added.