Sonowal Addresses Container Shortages and Port Capacity Expansion in Parliament

Regarding container shortages affecting Indian exporters, Shri Sonowal clarified that there is no acute shortage of containers.

In a comprehensive update to Parliament, Union Minister of Ports, Shipping, and Waterways, Shri Sarbananda Sonowal, provided detailed responses to key issues impacting the maritime sector. His address focused on container shortages, port capacity expansion, and the government's strategic measures to address these challenges.

Regarding container shortages affecting Indian exporters, Shri Sonowal clarified that there is no acute shortage of containers. The recent difficulties have been attributed to the Red Sea crisis, which started in late 2023 and extended into early 2024. This crisis led to a notable diversion of ships from the Suez Canal to the Cape of Good Hope, increasing transit times by 35 to 40 percent and causing delays at major global ports, as well as higher charter hire costs.

To address these issues, the government has implemented several proactive measures. Shipping companies are repositioning empty containers globally based on market demands. The Ministry of Commerce & Industry has been actively involved under its Service Improvement Group framework, engaging with shipping lines, port authorities, and export-import associations. Key actions include advising safety convoys for vessels navigating disrupted routes and working to alleviate inland container depot congestion through coordination with the Container Corporation of India.

Additionally, the Directorate General of Shipping is encouraging Indian entities to own and operate containers as a long-term solution. The development of tracking and tracing systems through the Unified Logistics Interface Platform (ULIP) and Logistics Data Bank (LDB) is also underway to enhance the turnaround time of export containers and improve their availability.

On the topic of port capacity expansion, Shri Sonowal reported significant increases across all 12 Major Ports in India from 2014-15 to 2023-24. For example, Syama Prasad Mookerjee Port saw a 31.29% increase in capacity, while Paradip Port experienced a substantial 141.86% rise. Kamarajar Port and V.O. Chidambaranar Port achieved expansions of 154.05% and 150.19%, respectively. Ports like Chennai, Cochin, and New Mangalore also reported significant increases. Deendayal Port in Gujarat stands out with a remarkable 121.79% increase in capacity over the last decade, reflecting substantial improvements in operational capabilities. Overall, the total capacity of these ports surged by 87.01%, highlighting the government's commitment to enhancing maritime infrastructure.

Minister Sonowal's statements underscore the ongoing efforts to tackle current maritime challenges and ensure the sector's long-term sustainability and efficiency. The government's proactive strategies aim to support exporters, streamline container logistics, and boost port capacities to meet future demands.