Mundra Port Congestion: Challenges Amid Surging Container Volumes

Updated on June 25, 2024

mundra port congestion

While India speeds up the pace of a new economic paradigm it has come to be more dependent on maritime facilities. This growth is epitomized by Mundra Port now among India’s largest private port complexes with an annual throughput of over a hundred million tonnes. Based in Gujarat it has witnessed phenomenal shipment growth in containers part in the overall boom in trade of India. But, it’s the introduction of issues with the expansion of a company. Mundra Port is currently facing severe congestion problems and this Mundra Port congestion has a major impact on India’s logistic structures and exchange.

Mundra Port is another shipping service provider that formed in the early 2000s but has grown in strength since coming into existence. However, recent reports have highlighted significant Mundra Port congestion, affecting shipping schedules and logistics.

Apart from being an old port of Adani Group, Mundra Port has slowly and steadily risen up the ranks to being one of the largest ports in India. This company has been located in the western coastal area of India and close to the market of the industrial and commercial cities of northern and western part of India which have contributed towards the success of the company. Mundra has grown and developed its channel capacity and facility to accommodate virtually all forms of cargos such as containers, dry bulk, break bulk, liquid, and car-carrying vehicle transports.

These features have put it into position to attract many of the shipping lines, key players in the international market, global civilizations, and multinational companies. The pretty accomplishment of dedicated freight corridors, and en-clients of rail, and road connectivity as well has strengthened its capacities to put up more volume since then.

Surging Container Volumes 

Thus, Mundra Port has peaked in growth of container traffic over the past few years. This increase has many fundamentals such as; Economic growth within India, Increase in exports and imports within the region and shifting of shipping lines towards more volume and effectiveness with large size vessels and bigger ports. They include the ability of the port to have benefited from geopolitical changes like diversification of the supply chain from China, hence movement of cargo through the port of India.

From the data obtained from Mundra’s port authority, it was ascertained that Mundra Port container traffic had increased exponentially and ranked among the 30 top international container ports. A significant factor that has helped the port to gain a competitive advantage over other competitors is its policy on the handling of mega-vessels and an effective terminal business strategy has made the port an extra-ordinary terminal of choice for the shipping lines. However, such growth has also had some problems that include lack of order resulting in Mundra port congestion among others.

The Mundra Port Congestion Challenge 

This is the case with Mundra Port currently that is recording high congestion levels not only to the port but to the entire supply chain system. Several factors contribute to this congestion:Several factors contribute to this congestion:

Increased Vessel Calls 

This has resulted in more calls of vessels within the port and some of the depths and handling of the containers has become an issue. With increased volumes from the large ships shipping companies take longer time in loading and even unloading hence creating congestion.

Infrastructure Limitations 

While the capex on infrastructure has been improving with a focus on increasing traffic, growth has outstripped port expansion. Crowding of berthing space, moonlighting and defect liability yard storage, and evacuation infrastructure become more constrained.

Operational Inefficiencies 

On the other hand, Mundra Port has received several accolades on its ability to handle the traffic flow but the exposure to the pressure change test has challenged the leading port. From the various causes of congestion it can be deduced that stupidities in the customs clearance, documentation, and intermodal transfers have caused congestion.

Supply Chain Disruptions 

In this regard, the COVID-19 pandemic and its consequences, including recovery, have prompted disruptions in the flow of cargo. This leaves the management struggling to balance load, whereby particular times of the year record a high number of containers beyond the port’s capability to handle them.

Effects on Commerce & Transport 

The Mundra Port congestion has a potential impact on the whole concern of trade and logistics for India. In generalization, inefficiency in handling and evacuation of cargos pose severe ripple effects in the great chain. Some of the key impacts include:

Increased Turnaround Times 

There has been a rise in vessel days-charter, which has resulted in longer time durations of a vessel’s operating cycle and consequently, increased operational costs for the shipping lines and sometimes, increased costs for the shippers in form of surcharges due to Mundra Port congestion.

Inventory Management Issues 

Congestion means that goods take longer to get to their destination, which is disruptive for manufacturers and sellers as it affects their supply of stocks. It may result in unauthorized production, thereby causing a lot of inconveniences such as stockouts, which are detrimental to the organizations’ business.

Higher Logistics Costs

This causes congestion which makes containers spend more time in the terminals, hence making the owner be charged more for storage and demurrage. Moreover, requirements for local transport arrangements may lead to a dramatic increase in logistics costs.

Trade Competitiveness 

Otherwise, long-standing congestion problems may undermine competitiveness of its trade in India due to the dissatisfaction of exporters and importers who might look for other dependable parties thereby farming the network.

Measures to Mitigate Mundra Port Congestion 

Solutions to the Mundra Port congestion involve both enhancement of existing structures and systems, plus the implementation of policies and/or changes in the overall operation of the port. Some of the key measures being undertaken or proposed include:Some of the key measures being undertaken or proposed include:

Infrastructure Expansion 

Technological upgrade coupled with the development of new berths, yards and necessary intermodal facilities continues to receive high attention of APSEZ. The elaboration of dedicated freight corridors and linking rail’s improvement is also likely to help to discharge congestion factors in the course of evacuation.

Digitalization and Automation

The use of technology for operations management remains important. Potential applications include the use of digital systems and platforms to address customs clearance, reporting, and existence of tracking and tracing data. Implementing AGVs enable expanding terminal handling capabilities and integrated systems such as advanced cranes can also provide added advantage.

Collaborative Logistics Planning

Having meetings with relevant key players in the logistics and transport chain such as the shipping lines/freight forwarders and the cargo owners who jointly plan and possibly coordinate the flows of cargo possibly in an organized manner would aid in the management of the flow of cargo. It also helps in improving forecasts and resource management Since it is a collaborative effort, plans can be made to harmonize with each other and be mutually beneficial.

Policy Support

For instance, government policies like improving port capacity, freeing up bureaucracy, and promoting logistics are key. Efforts like ‘Sagarmala’– the concept of reforming Indian ports and aggregating with industrial/startup hubs can add a solid dimension of capacity and effectiveness to the support.

Alternative Ports and Routes

The pressure on Mundra can be eased by increasing the cargo traffic to other ports and using other routes to distribute it. There are potential remedies which can be summed up as follows: Promoting the development of regional ports and increasing direct access to ICDs and CFSs should help mitigate the concentration of cargo volumes.

The Road Ahead 

Despite the Mundra port congestion, there are serious problems in the country’s transportation system today. There is the need to invest more and seek new ways of developing ports in the country. Nonetheless, there are valuable lessons to be learnt from this experience that may serve to enhance the collaborative and more robust logistics enterprise in the future.

However, the process of a high-growth period and congestion for Mundra Port and its productivity will be an essential collaboration of all APSEZ, government authorities, and industry members. This analysis shows that by tackling the current issues and forecasting future expansion, Mundra Port should remain a critical commodity in boosting and shaping the nation’s economy.

Summing up, the case of Mundra Port may be viewed as an illustration of changes that take place on the Indian market as well as the pressures that affect its infrastructural development. Therefore in order to continue serving as a main hub for global commerce, congestion has to be well managed as well as the appropriate investments in physical capacity and productivity be made by the cartel. The congestion or course presents a very good chance that enables improvements to be made to Mundra Port and its overall capabilities while ensuring that it remains one of the most key ports in the entire country.

Share Your Thoughts

Connect with us

Anything you need we are here to help

Ready to ship?

Seach, compare rates for imports and exports in seconds.

Book now  

Sales enquiries

Have questions in mind? Contact us for any shipment related queries.

Enquire now  

You may also like