Shipping Ministry Implements Decongestion Measures Amid Iran Conflict Disruptions at Indian Ports
Container Congestion Relieved at India's Busiest Port Amid Global Supply Chain Disruptions
The Indian government has launched a multi-ministerial initiative to alleviate container congestion at the Jawaharlal Nehru Port Authority's (JNPA) Nhava Sheva port in Navi Mumbai, as global supply chain disruptions and rerouting of Gulf-bound cargo intensify pressure on India's busiest container gateway.
In a meeting with the All India Liquid Bulk Importers and Exporters Association, Union Commerce and Industry Minister Piyush Goyal and Union Ports, Shipping and Waterways Minister Sarbananda Sonowal reviewed operational bottlenecks and outlined immediate interventions aimed at maintaining cargo flows and protecting trade competitiveness. The re-routing of Gulf-bound containers to JNPA, due to the closure of the Strait of Hormuz amid the Iran-US war, had led to rising pressure on terminal and logistics infrastructure, prompting a "Whole of Government" response involving ports, railways, container freight stations, and transport operators.
The JNPA is a key hub for imports of crude oil, other petroleum and gas products, and derivatives to India, as well as edible oils.
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| Terminal/Quarter | Imports (in TEUs) | Exports (in TEUs) |
|---|---|---|
| JNPA Q1 2022 | 2,50,000 | 2,30,000 |
| JNPA Q1 2023 | 2,60,000 | 2,40,000 |
| JNPA Q2 2022 | 2,80,000 | 2,60,000 |
| JNPA Q2 2023 | 3,00,000 | 2,80,000 |
As part of the measures, containers are being evacuated through rail movement, including to nearby container freight stations with railway sidings, while simultaneous scanning of double containers has been introduced to speed up clearances. Authorities have also waived Inter-Terminal Railway Handling Operation (ITRHO) charges and change-of-mode transport charges to reduce costs for trade stakeholders.
To ease yard congestion, container freight station operators have pooled around 100 trailers to evacuate long-pending containers from terminals. Dedicated green channels for empty trailers have also been introduced to improve turnaround time.
The Centre is simultaneously preparing a longer-term logistics resilience plan, including higher rail evacuation, additional cargo handling equipment, driver training initiatives, and a truck appointment system to streamline gate movement. JNPA is also planning a phased transition towards electric vehicles to improve operational sustainability.
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Investor Takeaway
Investors should monitor the situation for potential disruptions to global supply chains and trade competitiveness.
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