**Executive Summary**
This document presents the "Sagar Aankalan" National Benchmarking Guidelines, issued by the Ministry of Ports, Shipping and Waterways (MoPSW), Government of India, in February 2024. These guidelines aim to map the logistics performance of Indian ports through inter-port comparison based on operational efficiency. The assessment will be conducted annually in April, covering the preceding financial year.
**Key Points / Main Content**
* **Objective:**
* Assess logistics performance of Indian ports via operational performance-based inter-port comparison.
* Improve efficiency, competitiveness, and overall performance of Indian ports.
* Align evaluation and assessment procedures with global norms.
* **Applicability:**
* Applies to all Indian Ports (major & non-major) under the Indian Ports Act (1908).
* Assessment categories: Bulk (Dry & Liquid) and Container.
* Annual assessments to be done in April of the preceding financial year.
* **Definitions (KPIs):**
* **Cargo Handled:** Total cargo loaded, unloaded, and transshipped (April 1st to March 31st).
* **Container Traffic:** Aggregate of containerized cargo and tare weight in TEUs (excluding shifting moves).
* **Average Pre-berthing Waiting Time:** Total time between arrival and berthing, divided by the number of berthing ships.
* **Average Turn Around Time:** Time between arrival and departure, divided by number of ships.
* **Average Ship Berth Day Output:** Aggregate cargo handled divided by total berth days.
* **Percentage of Idle Time at Berth:** Idle time as percentage of time spent at berths.
* **Port Dwell Time (Container):** Time container spends inside port before gate-out (import) or loading (export).
* **Percentage Share of Renewable Energy:** Ratio of renewable energy consumption to total energy consumption.
* **Metrics & Methodology:**
* LPPI (Logistics Port Performance Index) uses a multi-criteria selection algorithm.
* Operational KPIs are used with respective impact factors for Bulk and Container cargo.
* Weightage for Customer Satisfaction and Share of Renewable Energy is based on absolute data only.
* Customer Satisfaction is evaluated through survey questionnaires from port users/stakeholders, quantified on a 1-5 scale.
* **Ministry Powers:**
* The MoPSW has the authority to interpret and clarify any ambiguities or doubts regarding these guidelines.
* The Ministry will review the guidelines based on feedback and learnings.
**Impact Analysis**
**Stakeholder: Indian Ports (major & non-major)**
* **Impact:** Subject to assessment and inter-port comparison based on the defined KPIs and methodology.
* **Action Required:** Collect and provide relevant data for assessment, implement strategies to improve KPI performance, participate in the Customer Satisfaction survey.
**Stakeholder: Port Users/Shipping Lines/Stakeholders (exporters/importers/industry/logistics service providers/regulatory bodies etc.)**
* **Impact:** Impacted by the efficiency and performance of the ports and their associated logistics.
* **Action Required:** Participate in the Customer Satisfaction survey to provide feedback on port services.
Key Entities Referenced
Sagar Aankalan: National Benchmarking Guidelines for mapping logistics performance of Indian Ports.
Logistics Port Performance Index (LPPI): A benchmarking methodology for inter-port comparison based on operational performance.
Ministry of Ports, Shipping and Waterways (MoPSW): The ministry responsible for developing the benchmarking methodology and interpreting the guidelines.
Indian Ports Act (1908): The act under which all Indian Ports (major and non-major) are notified, making them subject to these guidelines.
PM Gati Shakti National Master Plan (NMP): A plan that fosters integrated and holistic logistics planning in the country, under which these guidelines fall.
National Benchmarking
Guidelines - Mapping Logistics
Performance of Indian Ports
(February 2024, Rev-0)“Sagar Aankalan”
National Benchmarking
Guidelines - Mapping Logistics
Performance of Indian Ports
(February 2024, Rev-0)
Ministry of Ports, Shipping and Waterways
Government of India1. Introduction:
1.1 PM Gati Shakti National Master Plan (NMP) envisioned
by the Hon’ble Prime Minister fosters a transformative
approach for integrated and holistic logistics planning in
the country.
1.2 Under the PM Gati Shakti National Master Plan (NMP)
and National Logistics Policy (NLP), the maritime sector
plays a key role in accelerating productivity and economic
growth while ensuring competitive service delivery to the
customers.
1.3 Policy initiatives undertaken by the Government of India
have led to operational improvements in the maritime
sector which is reflected in global recognition and acclaim
by leading international agencies. According to the Logistics
Performance Index (LPI) published by the World Bank
(2023), India’s ranking in the “International Shipments
Category” has jumped from 44th to 22nd rank and Indian
Ports have outperformed several global peers on various
operational parameters including container turn-around
time and dwell time.
1.4 To develop and calibrate India’s maritime competencies
with other global competitors in the maritime sector, the
Ministry of Ports, Shipping and Waterways (MoPSW),
Government of India, has developed a benchmarking
methodology, on the lines of globally adopted procedures,
for assessing Logistics Port Performance Index (LPPI)
for inter-port comparison based on their operational
performance.
12. Objective:
2.1 Assessing logistics performance of Indian ports through
operational performance based inter-port comparison.
2.2 Improving efficiency, competitiveness and overall
performance of Indian ports.
2.3 Aligning evaluation and assessment procedures followed
nationally with global norms, standards and definitions.
3. Applicability:
3.1 All Indian Ports (major & non-major) notified under Indian
Ports Act (1908).
3.2 Assessment under two categories i.e. Bulk (including Dry &
Liquid) and Container.
3.3 Assessment to be done annually (in April for the preceding
financial year).
4. Definitions:
4.1 Cargo Handled: Cargo handled is the total of cargo loaded,
cargo unloaded and cargo transshipped during the year
from 1st April to 31st March.
4.2 Container Traffic: Container traffic is the aggregate of
containerized cargo and the tare weight of containers in
TEUs. In this case, container moves on account of shifting
must not be included.
4.3 Average Pre-berthing Waiting Time: Total time^ between
arrival and berthing for all berthing ships, divided by number
of berthing ships (refer UNCTAD definitions)
2(^This is the time taken by a ship from its arrival at the
anchorage (reporting station) till it is berthed to the
operational berth.)
4.4 Average Turn Around Time: Total time* between arrival
and departure for all ships, divided by number of ships
(refer UNCTAD definitions)
(*The total time spent by a vessel at the port from its
arrival at the reporting station till its departure from the
reporting station for onward journey. It, thus, includes pre-
berthing delay, time taken for cargo operations, and idle
time. However, the detention/idle time due to litigation,
fire, repair/dry docking, delay in the decision regarding
dismantling, etc. may be deducted.)
4.5 Average Ship Berth Day Output: The Average Ship
Berthday Output is aggregate cargo handled divided by the
total number of berth days spent by the cargo ships during
the year from 1st April to 31st March.
4.6 Percentage of Idle Time at Berth: The total idle time spent
by cargo ships at berths expressed as a percentage of the
total time spent at berths.
4.7 Port Dwell Time (Container): Dwell time is the time spent
by a container inside a Port before gated out (in import)
or loaded on a vessel (in export) (refer NLDC- Performance
Indicators and Definition of Analytics Report)
Average {(Share of Export Container in %/ 100 x
Container Export Dwell Time) + (Share of Import
Dwell Time = Container in %/ 100 x Import Dwell
Time)}/2
34.8 Percentage Share of Renewable Energy (RE) is defined
as the ratio of RE consumption to the total Energy
consumption. (Consumption should also take into account
power consumption in terminals/ berths being operated on
PPP or Captive operator)
5. Metrics & Methodology:
5.1 LPPI (Logistics Port Performance Index) shall be derived
using a standard multi-criteria selection and evaluation
algorithm (quantitative and qualitative input-based) used
widely in the industry (refer Annexure I).
5.2 Operational KPIs used as criteria in the algorithm are
tabulated along with their respective impact factors as
under:
(i) Bulk Cargo Category:
Sr.
KPI Weightage Impact
No.
1. Customer Satisfaction 0.20 +
2. Cargo Handled 0.20 +
3. Idle Time at Berth as 0.10 -
percentage of total time
4. Average Turn Around Time 0.15 -
5. Average Pre-Berthing 0.10 -
Waiting Time
6. Average Ship Berth-Day 0.15 +
Output
7. Share of Renewable Energy 0.10 +
4(ii) Container Cargo Category:
Sr. KPI Weightage Impact
No.
1. Customer Satisfaction 0.20 +
2. Cargo Handled 0.20 +
3. Idle Time at Berth as 0.10 -
percentage of total time
4. Average Turn Around Time 0.07 -
5 Average Container Dwell 0.08 -
Time
6. Average Pre-Berthing 0.10 -
Waiting Time
7. Average Ship Berth-Day 0.15 +
Output
8. Share of Renewable 0.10 +
Energy
5.3 For all the criteria (KPIs) mentioned above (except for
the criteria related to Customer Satisfaction and Share
of Renewable Energy), the total weightage would be
apportioned such that 50% would apply to the absolute
performance data and the balance 50% to the incremental
improvement in performance data year on year. However,
for “Customer Satisfaction” and “Share of Renewable
Energy (RE)” the total weightage would be applied to
absolute data only.
5.4 Evaluation of the criteria related to “Customer Satisfaction”
shall be done based on a survey questionnaire to be filled
by port users/shipping lines/stakeholders (exporters/
5importers)/ industry/ logistics service providers/
regulatory bodies etc. The outcome of the survey would be
quantified on a scale of 1 to 5 which would be then used as
an input criterion in the evaluation algorithm. An indicative
questionnaire for Customer Satisfaction survey is annexed
to the instant Guidelines (refer Annexure II).
6. To incorporate the feedback and suggestions received from
various stakeholders on the implementation of these Guidelines,
the Ministry would review the Guidelines as required to suitably
incorporate the learnings from the National Benchmarking
exercise under these Guidelines.
7. In case of any ambiguity or doubt arising in regard to any
provision of these Guidelines, the Ministry of Ports, Shipping
and Waterways (MoPSW) would have the powers to interpret
and clarify the same within the overall framework and spirit of
these Guidelines.
******
6Annexure I
Methodology
The evaluation process can be encapsulated in 7 steps:
1. Creation of a matrix consisting of M alternatives and N criteria.
This matrix is usually called an “evaluation matrix”.
Illustration: M represents the number of seaports, while N
represents the number of criteria (TAT, OSBD, PBD, Traffic etc).
2. Normalization of evaluation matrix:
Each metric j for each seaport ‘i’ is normalized between 0 and 1.
The higher its value, the better the metric.
3. Calculation of the weighted normalized decision matrix. Each
criterion should have its own weight so that all of them will sum
up to 1.
After a weight is assigned to each metric, normalization to be
done so that the weights sum up to 1. Then each normalized
metric from step 2 is multiplied by the corresponding normalized
weight.
74. Determination of the best and the worst alternative for each
criterion:
Finding the maximum and minimum value of each KPI metric among
all ports.
5. C alculation of the Euclidean distance between the target
alternative and the best/worst alternative:
This is a calculation of the geometric distance between the value
of each KPI metric for a given port i and the best/worst value of
such a metric among all ports.
6. For each alternative calculate the similarity to the worst
alternative. The results are the evaluation scores:
A score is calculated for each port based on distances obtained
as above.
7. Rank alternatives are sorted according to scores in the
descending order.
8Annexure II
Customer Satisfaction Questionnaire / Survey Form
Name of Client: ________________________________________________
Port Name: ___________________________________________________
Service availed: _______________________________________________
(Rate on the scale of 1 to 5 where:
1 – Poor, 2 – Fair, 3 – Satisfactory, 4 – Good, 5 – Excellent)
1. Logistics tracking & punctuality: ___________________
2. Quality/price ratio: ________________
3. Quality of communications with staff (Professional attitude and
behaviour): ________
4. Cargo handling (Safety / Security): __________________
5. Quality of services/ technical support in meeting client’s
requirements: ______
6. After sales service: ______________________
7. Reliability & Efficacy in operations/ Management:
_____________________
8. Error- free invoice and related documents: _____________________
9. Infrastructure of the port (berths, yards, warehouses,
distribution centres, and hinterland connection networks):
_______________________
10. Digital Infrastructure of the Port: ______________________
Signature:
Date:
9Notes