Before the advent of modern port handling equipment, ports primarily focused on basic operational tasks, relying heavily on manual labor and outdated technology. However, with the introduction of modern equipment and automation technologies, Indian ports have transformed, now featuring equipment that enhances speed, safety, and environmental sustainability
The port sector in India plays a crucial role in the country's economic development. It serves as a critical hub for the import and export of goods, supporting various industries and facilitating international trade. In FY2023, India's merchandise exports reached US$451 billion, up from US$417 billion in the previous year, reflecting the robust performance and growing importance of port infrastructure in driving economic growth. India is endowed with a long coastline of 7,517 kilometers, forming one of the largest peninsulas in the world. As of 2022, the country has 12 major ports and 217 non-major ports. According to the Ministry of Ports, Shipping, and Waterways, approximately 95 percent of India's trading by volume and 70 percent by value is conducted through maritime transport. The government has taken various initiatives to enhance the port sector. In 2015, it announced the Sagarmala Program, aimed at reducing logistics costs for international and domestic trade with minimal infrastructure investment. The government has also launched the National Maritime Development Program, with a planned outlay of US$11.8 billion, to further develop the maritime sector. Additionally, the Major Ports Authorities Bill was introduced in 2020 to regulate, operate, and plan for major ports in India, providing greater autonomy to existing ports.The Government of India has allowed Foreign Direct Investment (FDI) of up to 100 percent under the automatic route for projects related to the construction and maintenance of ports and harbors, along with a 10-year tax holiday for enterprises engaged in port operations. The government also plans to increase private sector participation in the port sector by monetizing assets worth Rs 10,000 crore in the next fiscal year through public-private partnerships (PPPs).
Technology to the fore
All these initiatives and announcements have driven demand for port handling equipment, as ports need to upgrade and expand their infrastructure to meet growing cargo volumes and improve operational efficiency. According to a report by Market Research Future, the port equipment market was valued at USD 17.9 billion in 2022. The industry is projected to grow from USD 18.31 billion in 2023 to USD 21.96 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.30 percent during the forecast period 2024-2032. This growth reflects increasing investments in port infrastructure worldwide, driven by rising global trade volumes and the need for efficient cargo handling solutions. Over the past decade, India has made significant strides in enhancing its cargo handling capabilities. Major ports saw their capacity increase from 871.52 million metric tonnes per annum (mtpa) in 2014-15 to 1617 million mtpa in 2022-23, marking an 86% rise. According to provisional and advance estimates data released by the Ministry of Ports, Shipping, and Waterways for April-May 2024-25, cargo handled at major ports increased by 4.02 percent year-on-year (Y-o-Y) to 139.3 million tonnes.
To meet the escalating cargo demands at major ports, Indian port operators are embarking on significant expansion initiatives. The VO Chidambaranar Port Authority in Thoothukudi has signed a Concession Agreement with JSW Tuticorin Multipurpose Terminal, a subsidiary of JSW Infrastructure, to mechanize NCB-III for handling dry bulk cargo. This initiative is set to increase the port's capacity by seven million tonnes per annum (mtpa). The project is slated for completion by December 2026.
Adani Ports and Special Economic Zone (APSEZ) has acquired a five-year Operation and Maintenance (O&M) contract for the container facility at the Syama Prasad Mookerjee Port in Kolkata. As part of the agreement, APSEZ will deploy cargo handling equipment within seven months from the date of acceptance (LOA). The Visakhapatnam Port Authority (VPA) has signed an agreement for the semi-mechanization of the WQ-6 berth, located in the Northern arm of the Inner Harbour at the port. The project will include the installation of two new Harbour Mobile Cranes (HMC) with a throughput capacity of 1200 TPH and a lifting capacity of 100 tonnes each. Additionally, the project involves setting up Mobile Hoppers, strengthening stockpiles, implementing a dust suppression system, conducting electrical works, STP works, and acquiring various handling equipment, with a total investment amounting to Rs. 165.70 crores. To boost capacity and productivity at Adani Gangavaram Port, the company has introduced two new Grabs (each with a capacity of 46 CBM) and two new Cargo Hoppers (each with a capacity of 60 MTs).
Embracing technology
Port operators and shipping companies are continuously seeking technologies that enhance operational efficiency and productivity. Key areas of focus include reducing vessel turnaround times and minimizing delays in cargo handling. Modern port equipment such as container cranes, straddle carriers, and automated guided vehicles (AGVs) significantly boost the speed and efficiency of cargo handling, making them essential for competitive ports. The trend toward larger container vessels, including mega-ships, necessitates investments in equipment capable of efficiently managing these massive vessels. This includes larger cranes, deeper berths, and equipment with higher lifting capacities, driving demand for specialized port equipment. Automation and technology are pivotal in contemporary port operations, with automated container terminals featuring robotic cranes, unmanned straddle carriers, and advanced logistics systems becoming increasingly common. These technologies not only enhance efficiency but also reduce labor costs and improve safety. As a result, port operators are investing in advanced equipment and digital solutions to maintain competitiveness and meet the demands of global trade. There is also a growing focus on reducing the environmental impact of port operations. Modern port equipment often includes eco-friendly features such as energy-efficient designs, electrification, and emissions-reduction technologies. Ports are investing in these sustainable solutions to comply with regulations and decrease their carbon footprint. Ensuring the safety of personnel, cargo, and port infrastructure remains a top priority in the maritime industry. Port operators and authorities continually explore ways to improve safety and security measures. Advanced port equipment, such as automated cranes with collision avoidance systems, intelligent surveillance and monitoring technologies, and secure access control systems, play a crucial role in reducing accidents, preventing unauthorized access, and safeguarding valuable cargo. These advancements drive revenue in the port handling equipment market.
Technology streamlining operations
In the evolving landscape of port handling equipment, automation stands as a beacon of innovation, reshaping traditional container handling processes. Automated container terminals represent a pivotal shift in port operations, leveraging advanced technologies for heightened efficiency. These terminals deploy automated cranes, guided vehicles, and intelligent systems to streamline container handling. Integration of robotics, sensors, and artificial intelligence minimizes human intervention, resulting in faster container movements, improved safety, and optimized space utilization. Real-time data analytics and predictive maintenance further enhance operational efficiency, transforming ports into smart, adaptable hubs of global trade. Integrating 5G technology into port handling equipment marks a major leap forward for maritime operations. Its ultra-fast speeds and minimal latency enhance real-time communication among connected devices, ensuring seamless coordination of port activities. This technological advancement leads to more efficient cargo handling, enhanced safety protocols, and improved navigation systems. The reliability of 5G supports the deployment of smart sensors and automated machinery, optimizing overall port performance. This allows ports to adopt cutting-edge technologies, paving the way for a more interconnected, responsive, and technologically advanced maritime industry. Artificial Intelligence (AI) is revolutionizing container handling in logistics and shipping. Leveraging sophisticated AI algorithms and machine learning, container terminals enhance operational efficiency and minimize delays. AI enables predictive maintenance, real-time monitoring, and smart decision-making for container movement and placement. These advancements streamline logistics, reduce costs, and improve supply chain management, ensuring container handling is accurate, responsive, and adaptable to the industry's dynamic demands. Blockchain technology is transforming port logistics by enhancing transparency, security, and efficiency. It fosters seamless collaboration among stakeholders like shipping companies, customs, and terminal operators. Blockchain's decentralized and immutable nature provides real-time visibility into cargo movements, reducing fraud risks and optimizing documentation. Smart contracts automate agreements, speeding up transactions and minimizing delays. Drones and robotic systems have become essential components of port handling equipment, enhancing surveillance, maintenance, and inventory management. Drones oversee port areas, identify maintenance requirements, and enhance security, while robotic systems streamline container movement, increasing accuracy and minimizing the need for manual labor. Containers are now outfitted with sensors and IoT devices, providing precise location data, temperature control for perishables, and continuous monitoring of cargo conditions. These advancements ensure optimal management throughout the entire shipping journey.
Implementation Challenges
Automating port equipment is a significant global trend that requires the installation of various systems and technologies to handle the increased cargo flow at terminals. For instance, the control systems of automated stacking cranes are integrated with those of other equipment, such as ship-to-shore cranes, straddle carriers, and mobile harbour cranes. However, these systems often use different interfaces and protocols, complicating integration and affecting overall performance, thereby reducing productivity at port terminals. Software architects and system developers face challenges in accessing real-time data related to equipment location to efficiently assign job orders. The lack of standardization and interoperability between equipment from different manufacturers can delay information flow, leading to slower decision-making. Nonetheless, some major manufacturers are developing systems that operate on a unified platform to achieve high efficiency and enable faster, more reliable exchange of key information. Addressing the synchronization of multiple technologies, communication interfaces, protocols, and platforms for better data transmission is a critical concern that needs to be resolved in the forecast period. India is gradually adopting these innovations due to the high implementation costs and the need to reskill operators.
Technological advancement to continue
With continuously growing demand, the throughput at Indian ports is reaching its capacity limits. To meet this increasing demand, it is necessary to construct new greenfield ports and expand existing ones. The government is making extensive efforts to enhance the port sector in India. Announcements have been made for the upgradation of existing ports and the development of new ones. Recently, the government announced plans to launch two mega projects with investments exceeding Rs 83,000 crore in Tamil Nadu and Maharashtra. In Tamil Nadu, the government is planning to increase capacity at V O Chidambaranar Port in Thoothukudi, district, while in Maharashtra, it is establishing the mega Vadhavan Port in the Palghar district. Additionally, there are 166 projects worth Rs 68,625 crore being implemented at Major Ports in India, and 45 projects worth Rs 47,166 crore have been identified under the Sagarmala Programme for implementation at Non-Major Ports.
With the government's increasing focus on developing ports to match international standards and enhancing maritime cooperation with foreign countries, India's port handling equipment sector is set to experience a surge in fuel-efficient equipment featuring advanced technology and safety features, all adhering to sustainability standards.
Follow