Paradip Port Dethrones Kandla as India's Top Cargo Handler

Paradip Port Authority (PPA) in Odisha has etched its name in the history books by surpassing Deendayal Port Authority (formerly Kandla Port) in Gujarat to become India's highest cargo handling major port in the financial year 2023-24. With a staggering throughput of 145.38 million metric tonnes (MMT), Paradip has not only shattered previous records but also ended Kandla's 16-year reign as the country's top cargo hub.

This remarkable feat is a testament to Paradip's unwavering commitment to operational excellence and strategic growth initiatives. The port's achievement is even more commendable when considering that it has registered a year-on-year growth of 10.02 MMT, or 7.4%, in cargo traffic, highlighting its resilience and adaptability in a dynamic global trade landscape.

Coastal Shipping Dominance

Paradip Port has emerged as a powerhouse in coastal shipping, a crucial component of India's maritime trade ecosystem. During the fiscal year 2023-24, the port handled an unprecedented 59.19 MMT of coastal shipping traffic, marking a growth of 0.76 MMT or 1.30% compared to the previous year. This accomplishment underscores Paradip's pivotal role in facilitating the movement of goods within the country's territorial waters, fostering seamless domestic trade and supply chain efficiency.

Notably, Paradip's dominance in thermal coal coastal shipping is particularly impressive, with the port handling a staggering 43.97 MMT, reflecting a 4.02% increase over the previous fiscal year. This achievement highlights the port's strategic importance in meeting the nation's energy demands and supporting the growth of thermal power plants across the country.

Operational Excellence and Productivity Gains

Paradip Port's ascent to the top can be attributed to its relentless pursuit of operational excellence and continuous process improvements. During the financial year 2023-24, the port handled a remarkable 21,665 rakes, registering a 7.65% growth over the previous year, while also servicing 2,710 ships, marking a 13.82% increase. These figures underscore the port's ability to efficiently manage and coordinate the movement of cargo, minimizing delays and ensuring a seamless flow of goods.

Furthermore, Paradip Port has achieved a significant milestone by improving its berth productivity from 31,050 MMT in the previous fiscal year to an impressive 33,014 MMT, representing a 6.33% growth. This remarkable improvement has not only reduced idle time between rake unloading but also contributed to the highest handling of thermal coal at 27.12 MMT, further cementing the port's position as a vital cog in India's energy supply chain.

Financial Prowess and Cost Competitiveness

Paradip Port's success is not limited to operational excellence; it has also demonstrated remarkable financial performance. During the last financial year, the port's operating revenue surpassed the ₹2,300 crore mark, a significant increase from the ₹2,074 crores recorded in the previous fiscal year. This robust financial performance provides a solid foundation for the port to invest in further infrastructure development, technological advancements, and capacity augmentation, ensuring its continued growth and competitiveness in the years to come.

One of the key factors contributing to Paradip Port's success is its cost competitiveness. The port is known for offering the lowest tariffs among all Indian ports, a strategic advantage that has attracted a diverse range of customers and cargo. Additionally, as part of its business development plan, Paradip Port has frozen its tariff rates for cargo handling for three years starting in 2022, providing much-needed stability and predictability to its clients during times of economic volatility.

Strategic Importance and Future Outlook

Paradip Port's strategic location on the eastern coast of India positions it as a vital gateway for the nation's hinterland regions, including Jharkhand, Chhattisgarh, Madhya Pradesh, Uttar Pradesh, Bihar, and West Bengal, in addition to serving its home state of Odisha. The port's multimodal connectivity, facilitated by its proximity to major rail and road networks, enhances its accessibility and seamless integration into the country's logistics ecosystem.

With a current capacity to handle 289.75 MMT of cargo, Paradip Port is well-equipped to accommodate future growth in trade volumes. However, the port's ambitious plans do not stop there. Recognizing the importance of sustainable development and environmental stewardship, Paradip Port is actively exploring opportunities to adopt eco-friendly practices, reduce its carbon footprint, and embrace renewable energy sources, positioning itself as a leader in the transition towards a greener maritime industry.

As India continues its journey toward economic prosperity and global trade integration, Paradip Port's role as a strategic maritime gateway will only become more crucial. With its unwavering commitment to operational excellence, technological innovation, and customer-centric approach, Paradip Port is poised to maintain its leadership position and contribute significantly to the nation's growth and development in the years to come.