India launches LPPI to benchmark port performance
NEW DELHI: In a significant push to modernise its ports and enhance transparency in the maritime sector, the Union government has introduced the Logistics Port Performance Index (LPPI) for fiscal year 2024-25.
Launched by Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, this benchmarking tool aims to drive operational excellence across Indian ports while aligning with broader national goals for logistics and trade.
The LPPI forms a core component of the Sagar Aankalan framework, serving as a structured national mechanism to evaluate and improve port performance. It focuses on key operational metrics across major cargo categories; dry bulk, liquid bulk, and container cargo, providing a clear picture of strengths and areas needing attention.
How the LPPI Works: Metrics and Balanced Assessment
Ports will be assessed using indicators such as total cargo handled, vessel turnaround time, berth idle time, pre-berthing waiting time, container dwell time, and ship berth day output. A distinctive feature of the index is its equal emphasis on absolute performance levels and year-on-year improvements. This balanced approach is designed to reward consistent progress rather than rewarding only the largest or most established facilities.
By making performance data more transparent and comparable, the LPPI is expected to foster healthy competition among ports, encourage best practices, and help stakeholders including shipping lines, exporters, and importers make informed decisions.
Early results from the LPPI underscore varying strengths across cargo segments. Paradip Port Authority led in the dry bulk category with impressive handling volumes exceeding 5 million tonnes. Sikka Port and Terminals topped the liquid bulk segment, while Mundra Port secured the top spot in container cargo, handling over 0.5 million TEUs. Jawaharlal Nehru Port Authority (JNPA) secured the second position among major container ports in same category.
Broader Digital Reforms and Seafarer Welfare Initiatives
Alongside the LPPI, Minister Sonowal unveiled four digital initiatives developed by the Directorate General of Shipping. These include a 24×7 grievance redressal module on the e-Navik platform, a ship registration module on e-Samudra, a medical practitioner module, and a unified ship recycling credit note module.
The grievance system allows seafarers to raise concerns through multiple channels including the portal, toll-free numbers, WhatsApp, and email irrespective of their location.
Addressing the challenges faced by Indian seafarers working far from home, Sonowal emphasised: “Seafarers work far away from home, often under difficult and uncertain conditions. An effective grievance redressal mechanism is not merely an administrative necessity but a critical welfare and protection framework.”
Additional reforms, such as the unified ship recycling portal tied to a government incentive scheme, aim to promote domestic shipbuilding. Under this component of the ₹70,000-crore maritime development package announced in 2025, ship owners recycling vessels at compliant Indian yards can receive credit notes worth 40% of the scrap value, redeemable for new shipbuilding projects in India.
India’s maritime sector has witnessed steady progress in recent years. The country ranking in the World Bank’s Logistics Performance Index improved from 44th to 22nd position in the International Shipments category.
Nine Indian ports featured among the world’s top 100 ports in the World Bank’s Container Port Performance Index 2024.
9 Indian ports in the top 100 are:
1. Visakhapatnam Port (Ranked 19th)
2. Mundra Port (Ranked 27th)
3. Pipavav Port (Ranked 41st)
4. Kamarajar Port (Ranked 47th)
5. Cochin Port (Ranked 63rd)
6. Hazira Port (Ranked 68th)
7. Krishnapatnam Port (Ranked 71st)
8. Chennai Port (Ranked 80th)
9. Jawaharlal Nehru Port (JNPA) (Ranked 96th)
The LPPI and accompanying digital tools build on initiatives like PM Gati Shakti, Maritime India Vision 2030, and the long-term Maritime Amrit Kaal Vision 2047. These efforts seek to position India as a leading global maritime power by reducing logistics costs, improving turnaround times, and integrating technology for greater efficiency.
During the launch event, held on the 37th Foundation Day of JNPA in Mumbai, Sonowal highlighted JNPA’s strong performance, crossing 8 million TEUs and handling over 102 million metric tonnes of cargo in FY 2025-26. He described the port’s evolution as symbolic of India’s broader maritime transformation.
Implications for Trade and Economy
For exporters and importers, a more competitive and transparent port ecosystem could translate into lower costs, faster cargo movement, and greater reliability, factors critical for enhancing India’s participation in global value chains. Industry observers expect the index to drive investments in port modernisation, digital infrastructure, and capacity expansion.
As India continues to expand its trade footprint, tools like the LPPI signal a maturing approach to maritime governance, one that combines data-driven accountability with welfare measures and incentives for greenfield growth.
The government has indicated that future editions of the LPPI will evolve based on feedback, potentially incorporating more parameters related to sustainability, technology adoption, and customer satisfaction.
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