Why in News?
Recently, the Union Minister of Ports, Shipping and Waterways launched the Logistics Port Performance Index (LPPI) for FY 2024–25 along with four major digital initiatives aimed at enhancing efficiency, transparency, and competitiveness in India's maritime sector.
About Logistics Port Performance Index (LPPI)
The Logistics Port Performance Index (LPPI) is a national benchmarking framework developed under the Sagar Aankalan initiative. It serves as a comprehensive mechanism to assess, compare, and improve the operational efficiency of Indian ports.
The index is designed to foster healthy competition among ports while encouraging continuous improvement in logistics and cargo handling performance.
Objectives
The LPPI seeks to:
- Benchmark the operational performance of ports.
- Enhance logistics efficiency and cargo movement.
- Reduce turnaround and dwell times.
- Improve ease of doing business in the maritime sector.
- Strengthen India's position in global trade and logistics networks.
Key Features of LPPI
The index evaluates ports across three major cargo categories:
1. Dry Bulk Cargo
Includes commodities such as coal, iron ore, fertilizers, and food grains.
2. Liquid Bulk Cargo
Includes petroleum products, crude oil, LNG, chemicals, and edible oils.
3. Container Cargo
Measures the handling efficiency of containerized trade through ports.
Performance Indicators
Ports are assessed using several operational parameters, including:
- Cargo handled.
- Vessel turnaround time.
- Berth idle time.
- Pre-berthing waiting time.
- Container dwell time.
- Ship berth day output.
A unique feature of LPPI is that it assigns equal weightage to absolute performance and year-on-year improvement, thereby encouraging both excellence and continuous progress.
Alignment with National Initiatives
The LPPI supports India's broader maritime and logistics ambitions and aligns with:
- PM Gati Shakti National Master Plan.
- Maritime India Vision 2030.
- Maritime Amrit Kaal Vision 2047.
The framework contributes to reducing logistics costs, improving port productivity, and enhancing India's competitiveness in international trade.
Highlights of LPPI 2024–25
Dry Bulk Cargo Category
Paradip Port Authority emerged as the top-performing port among ports handling more than 5 million tonnes of dry bulk cargo.
Liquid Bulk Cargo Category
Sikka Port and Terminals secured the highest rank in the liquid bulk segment.
Container Cargo Category
Mundra Port ranked first among ports handling more than 0.5 million TEUs (Twenty-foot Equivalent Units).
Jawaharlal Nehru Port Authority (JNPA) secured the second position among major container ports.
Other Digital Initiatives Launched
24×7 Grievance Redressal Module
Launched under the e-Navik platform, it aims to provide round-the-clock grievance resolution for maritime stakeholders.
Ship Registration Module
Introduced on the e-Samudra platform to simplify and digitize ship registration processes.
Medical Practitioner Module
Designed to facilitate maritime medical certification and related services.
Unified Ship Recycling Credit Note Module
A digital platform supporting the Ship Recycling Credit Scheme.
Unified Ship Recycling Portal
The portal forms part of the Government's ₹70,000-crore Maritime Development Package announced in 2025.
Key Provision
Under the Ship Recycling Credit Scheme:
- Ship owners recycling vessels at Hong Kong Convention-compliant Indian ship recycling yards receive a credit note.
- The credit note is equivalent to 40% of the vessel's scrap value.
- The credit can be redeemed against new shipbuilding projects undertaken in India.
Significance
- Encourages environmentally sustainable ship recycling.
- Promotes domestic shipbuilding.
- Supports circular economy principles.
- Enhances India's position as a global maritime hub.
Conclusion
The Logistics Port Performance Index marks an important step in modernizing India's maritime infrastructure. By promoting transparency, efficiency, and competition among ports, LPPI can significantly reduce logistics costs and improve trade competitiveness. Combined with digital governance initiatives and sustainable ship recycling measures, it strengthens India's vision of becoming a leading maritime nation by 2047.