In India, nearly 95 per cent of trade by volume and 70 per cent by value moves through sea routes, making efficient port governance critical for logistics performance and economic growth. Traditionally, India’s major (government-owned) ports have operated under the Major Port Trusts Act, 1963. While this model ensured public accountability and stability, it has become less effective in a globalised and technology-driven environment. The rise of efficient private ports has exposed structural limitations, including bureaucratic delays, limited financial autonomy and slow infrastructure expansion.
To overcome the challenges, the government enacted the Major Port Authorities Act, 2021, introducing corporatised governance. Corporatisation does not imply privatisation; rather, it allows publicly owned ports to function with commercial autonomy, professional management and financial flexibility. The objective is to improve efficiency, enhance competitiveness and attract investment. Kamarajar Port (Ennore), established in 2001 as a corporatised entity, demonstrated the effectiveness of this model through improved operations and investment mobilisation, influencing broader port-sector reforms.
Why corporatisation?
Global competitiveness: Ports have evolved into integrated logistics hubs, supported by advanced technology and multimodal connectivity. Without reform, Indian ports risk losing their position in global shipping networks.
Financial independence: Modern port infrastructure demands significant capital investment in deep-water berths, container terminals and digital systems. Corporatised ports can access financial markets and partnerships more efficiently than traditional trust-based entities.
Faster decision-making: In a competitive environment, delays can lead to lost opportunities. Corporatisation enables quicker decisions on investments, tariffs and operational strategies.
Alignment with national strategy: Initiatives such as Sagarmala, the National Logistics Policy and PM Gati Shakti require ports to function as integrated logistics hubs. Corporatised governance supports diversification into logistics services and improved connectivity.
Lessons from global practice: Global experience highlights the benefits of corporatised port governance. The Port of Rotterdam operates as a corporatised public entity, balancing efficiency and public oversight. Singapore’s PSA International demonstrates how government-linked corporations can achieve global leadership. While the UK’s privatised model shows efficiency gains, it may not fully align with India’s strategic infrastructure needs.
Employees as partners in growth: A crucial dimension of corporatisation is recognising employees as key stakeholders in organisational growth. Successful reform depends on addressing workforce concerns through transparent and inclusive policies that build trust and engagement. Employees must be equipped with the skills required to adapt to rapid technological changes, including automation and digital logistics systems, through continuous training and reskilling initiatives. Performance-linked incentives, fair evaluation systems and clear career progression pathways can align individual aspirations with organisational goals. Moreover, sharing the benefits of growth through recognition, financial incentives and participation in decision-making strengthens morale, fosters a sense of ownership and ensures that corporatisation evolves into a truly people-centric and sustainable transformation.
In India, major ports such as Jawaharlal Nehru Port, Chennai Port and Visakhapatnam Port are well positioned for corporatisation due to their scale, diversified cargo profile and strategic importance in global trade. While they handle substantial volumes, they continue to face challenges related to capacity limitations, operational inefficiencies and infrastructure gaps. Corporatisation can help address these concerns through professional governance, quicker decision-making and enhanced access to private capital. It can further improve competitiveness, raise service quality and drive modernisation through technology adoption, while minimising procedural delays and aligning operations with international best practices.
It is essential to address institutional challenges through inclusive policies, strong regulation and stakeholder engagement. With professional management, digital investment, global partnerships and employee participation in growth, corporatised ports can drive economic development and strengthen India’s position as a global maritime leader.
B Swaminathan, retired associate professor, Indian Maritime University, Chennai campus
(The writer is a retired associate professor, Indian Maritime University, Chennai campus. Views are personal)
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Published on May 4, 2026