Vedika Jain explains how the expansion of airports and ports across India over the last decade has had a profound impact on the nation’s connectivity and trade dynamics. Improved air connectivity has facilitated easier access to various regions within India, promoting tourism, business travel, and economic development. As major economic engines, they have emerged as a good augury for nation’s trade and commerce growth.
In the ongoing efforts to revitalise and strengthen infrastructure development in the country to boost economic growth, the government of India has made well-planned and aggressive efforts for the ‘expansion and modernisation of the Marine Sector’ which is extremely crucial to trade and commerce.
Several new ports have been constructed or are underway as part of the Sagarmala Programme ‘to promote port-led development in the country through harnessing India’s 7,500 km long coastline on key international maritime trade routes.’ These include Vadhavan (Maharashtra), Enayam (Tamil Nadu), Tajpur (West Bengal), Paradip Outer Harbour (Odisha), Sirkazhi (Tamil Nadu), Belekeri (Karnataka), etc.
Additionally, enhancing air connectivity has been at the forefront of infrastructure development even in remote areas to promote travel, tourism and business. For example, Sikkim’s Pakyong Airport, nestled in the Himalayas, is a testament to engineering ingenuity and provides air connectivity to Sikkim, previously inaccessible by air, promoting tourism and development.
Developing and upgrading ports
In July 2015, the government of India launched the Sagarmala Programme under the GoI’s Ministry of Shipping (Ministry of Ports, Shipping and Waterway), basically to enhance the performance of the logistics sector in the country. The main aim of the programme is to decrease the heavy logistics cost that comes with trade (EXIM i.e. Export-Import and domestic sector) using minimal investment in terms of infrastructure.
As part of the programme, potential opportunities to reduce the logistics cost have been identified to improve overall efficiency and increase exports competitiveness. The main five areas that have been identified to further this programme are: Port-led Industrialisation (industrial clusters, SEZ, power plants, etc.); Coastal Community Development (skill development, fisheries, tech centres, etc.); Coastal Shipping and IWT (coastal and cruise tourism, island development, inland waterways, Ro-Ro, etc.); Port Modernisation (new ports and ship repairs); and finally, Port Connectivity (through road, rail, pipelines, etc.).
As far as the progress is concerned, 171 projects of INR 11,000 crores have been sanctioned under the programme with funding support of INR 4,570 crores. Of these, 55 projects worth INR 3,400 crores have been completed while 68 projects worth INR 6,000 crores have been awarded and are under implementation and the rest are under different development phases.
These projects are encompassing different works and aspects of the programme, such as improving connectivity through infrastructure, ports’ capacity enhancement, developing tourism jetties, establishing RO-RO transport, creating fishing harbours, skill development and capacity building of the coastal communities.
Crucial role in trade
India’s maritime sector has also experienced substantial growth in the past decade, leading to the development and modernisation of ports across the country. With India’s extensive coastline and strategic maritime location, ports play a crucial role in facilitating trade and commerce, both domestically and internationally.
The Jawaharlal Nehru Port aka Nhava Sheva Port or JNPT at Navi Mumbai, operated by the Jawaharlal Nehru Port Authority (JNPA), is an important container handling Port that makes up for 50 per cent of the ‘total containerised cargo volume across the major ports of India.’ The Nhava Sheva Port is the largest container port in the country, among the top 100 container ports in the world, and situated in the East of Mumbai.
The JNPA was commissioned in 1989 and in a short span of time it graduated from being a bulk cargo terminal to a leading container port in India, now connected to more than 200 ports in the world. In June 2023, in a major feat, the JNPA played host to its longest-ever 399-metre-long and 54-metre-wide cargo ship sailing under the Panama flag and called MSC Hamburg.
The port authority is always upgrading and expanding the port infrastructure which is a continuous process with the aim of upgrading capacity of cost-effective integrated logistics solutions. The JNPA has also undertaken several ‘Ease of Doing Business’ initiatives including inter-terminal transfer system linking all terminals, Direct Port Delivery (DPD) services to facilitate quicker and cheaper delivery of import consignments, etc.
In June 2015, the JNPA signed an MoU with Maharashtra Maritime Board to develop Vadhvan Port in Maharashtra. The proposed port is situated near Maharashtra’s Dahanu in Palghar District and at a distance of about 150 km from Mumbai. The port, once functional, will serve cargo movement from India’s western and northern states. It will be developed as a green field port to handle the substantial increase in the traffic demand of major ports along India’s western coast.
The container port is a nationally important project to be built at an estimated cost of INR 75,000 crore. It was conceived under the Sagarmala Programme and is a government of India initiative to bolster port-led development and the development of India’s coastlines for furthering economic growth and trade. To meet demands of the transportation of large containers and bulk and crude vessels, the Vadhvan Port will be developed as a deep draught port as the harbour has the natural features to be developed in the desired manner.
Flying high
The Airports Authority of India (AAI) has constantly undertaken airport upgradation and modernisation conditional to the multitude of factors such as commercial viability, land availability, traffic demand, socio-economic factors, airlines conditions, interest of the airport operators, etc. Notably, the AAI in tandem with the airport operators are aiming to construct greenfield airports and new terminals and undertake strengthening of runways, modernisation and expansion of existing terminals, etc., by 2025, with an estimated investment of INR 98,000 crore.
The modernisation drive has focused on improving the overall passenger experience, with the incorporation of premium lounges, retail outlets, and dining options within the airport premises. These additions not only cater to the evolving preferences of modern travellers but also contribute to the airports’ revenue streams, further consolidating their status as premier aviation hubs in the country.
Importantly, the modernisation and expansion of these airports have positioned them as major hubs for international travel and transit, significantly enhancing India’s connectivity globally. With world-class facilities and infrastructure in place, these airports have become preferred destinations for airlines and passengers alike, facilitating seamless travel experiences and bolstering India’s reputation as a global aviation hub.
The works undertaken at Indira Gandhi International Airport, Chhatrapati Shivaji Maharaj International Airport, and Kempe Gowda International Airport underscore India’s commitment to augmenting its aviation infrastructure. These airports have not only improved air connectivity within the country but have also elevated India’s stature as a key player in the global aviation landscape, catering to the growing demands of both domestic and international travellers.
As part of the Regional Connectivity Scheme ‘Ude Desh ka Aam Nagrik’ (UDAN), there are plans to develop 100 airports by 2024. The AAI has initiated construction of Greenfield Airports at Navi Mumbai in Maharashtra; at Karnataka’s Vijayapura, Hassan and Shivamogga; at Gujarat’s Dholera and Hirasar; at Bhogapuram in Andhra Pradesh; and more. At the same time, extensive upgradation and modernisation works are being carried out at several Brownfield Airports in India including at Ahmedabad, Guwahati, Lucknow, Delhi, Bengaluru, Hyderabad, etc.
The expansion of airports and ports across India over the last decade has had a profound impact on the nation’s connectivity and trade dynamics. Improved air connectivity has facilitated easier access to various regions within India, promoting tourism, business travel, and economic development. Additionally, enhanced maritime infrastructure has bolstered India’s trade competitiveness, enabling smoother movement of goods and fostering economic growth.