ONE NATION, ONE PORT : REDUCING LOGISTICS COSTS AND BOOSTING EXPORTS

The One Nation, One Port initiative aims to standardise and digitise port operations across India to reduce logistics costs, improve efficiency, and enhance global trade competitiveness. By harmonising documentation, promoting paperless clearances, benchmarking port performance through Sagar Ankalan, and enabling digital trade via the MAITRI platform, the initiative strengthens India’s integration with global value chains. Aligned with PM Gati Shakti and Atmanirbhar Bharat, it transforms Indian ports into efficient, sustainable engines of economic growth.

Description

One Nation one port

https://m.economictimes.com/epaper/delhicapital/2025/dec/10/et-comp/onop-to-cut-documentation-by-33/articleshow/125877411.cms

Copyright infringement not intended

Picture Courtesy: Economics Times

Context:

The One Nation-One Port Process (ONOP) framework will reduce 33% of the documentation leading to enhancing efficiency and reduction in cost and time.

Must Read: INDIA’S PORTS AND SHIPPING | Major sea Port in India | India's Port Development: Achieving Global Recognition |

 

What is One Nation, One Port initiative?

The One Nation, One Port (ONOP) Process initiative, launched by the Ministry of Ports, Shipping and Waterways (MoPSW), aims to create a uniform, efficient, and technology-driven port ecosystem across India. It seeks to remove procedural fragmentation among ports and enhance India’s competitiveness in global trade and logistics.

 

Objectives:

  • Standardise port-related procedures across the country
  • Reduce transaction time and logistics costs
  • Improve ease of doing business in maritime trade
  • Position India as a global maritime and logistics hub

 

Key Features:

Standardised Port Operations

  • Uniform documentation, customs procedures, and clearance mechanisms across all major and non-major ports
  • Reduces delays caused by port-specific practices and interpretations

Reduction in Documentation Burden

  • Container-related documents reduced by 33% (from 143 to 96)
  • Bulk cargo documents reduced by 29% (from 150 to 106)
  • Leads to faster cargo movement and lower compliance costs

Sagar Ankalan – Logistics Port Performance Index (LPPI)

  • A data-driven index to measure and rank port efficiency
  • Encourages competition among ports and alignment with global logistics benchmarks

MAITRI Digital Platform

  • Uses AI and Blockchain to enable automated trade approvals
  • Supports Virtual Trade Corridors (VTCs) with regions such as UAE, BIMSTEC, and ASEAN
  • Enhances transparency, traceability, and predictability in cross-border trade

Green and Smart Port Infrastructure

  • Promotes low-carbon logistics, renewable energy use, and smart technologies
  • Aligns port development with India’s climate commitments and sustainable shipping goals

Maritime Development Fund and Shipbuilding Support

  • Financial support for domestic shipyards and maritime infrastructure
  • Strengthens India’s shipbuilding, repair, and ancillary industries

 

Importance of One Nation One Product initiative:

Lowering logistics cost as a percentage of GDP: India’s logistics cost has traditionally remained high at around 13–14% of GDP, compared to 8–10% in developed economies such as Germany and Japan. One of the key reasons has been fragmented port procedures, duplication of documents, and long cargo dwell times.

Under the One Nation, One Port (ONOP) framework, documentation for container cargo has been reduced by 33%, and for bulk cargo by 29%, directly lowering transaction and compliance costs.

 

Improving India’s ranking in global trade and logistics indices: India has historically underperformed in global logistics benchmarks due to procedural delays rather than physical infrastructure gaps.

In the World Bank’s Logistics Performance Index (LPI), India improved from rank 54 (2014) to rank 38 (2023), with notable gains in customs efficiency and infrastructure quality.

 

Strengthening Integration with global value chains (GVCs): Global manufacturing today relies on just-in-time logistics and predictable port operations. Fragmented port rules previously disrupted India’s participation in GVCs. ONOP addresses this by enabling predictable and time-bound cargo clearances across ports and supporting Virtual Trade Corridors (VTCs) through the MAITRI platform with partners such as the UAE and ASEAN

Supporting Atmanirbhar Bharat and PM Gati Shakti: The ONOP initiative complements national development strategies by improving logistics efficiency and infrastructure coordination.

  • Atmanirbhar Bharat:
    • The Maritime Development Fund and shipbuilding incentives support domestic shipyards, reducing dependence on foreign vessels and repair facilities.
    • Efficient ports lower input costs for domestic manufacturers, enhancing self-reliance.
  • PM Gati Shakti:
    • ONOP ensures seamless multimodal integration of ports with rail, road, inland waterways, and industrial corridors.
    • Standardised port processes improve last-mile connectivity for economic zones and manufacturing clusters.

 

Conclusion:

The One Nation, One Port initiative is a transformative reform aimed at harmonising India’s port operations through standardisation, digitisation, and sustainability. By reducing logistics costs, improving global competitiveness, and enabling seamless integration with global value chains, it strengthens India’s trade ecosystem. Aligned with Atmanirbhar Bharat and PM Gati Shakti, the initiative positions Indian ports as efficient growth engines, supporting export-led development and India’s ambition to emerge as a global maritime hub.

 

Source: Economic Times

 

 

Practice Question

Q. “The One Nation, One Port initiative marks a shift from fragmented port governance to a unified, technology-driven maritime ecosystem.” Discuss. (250 words)

 

 

Frequently Asked Questions (FAQs)

It is a reform initiative of the Ministry of Ports, Shipping and Waterways aimed at standardising port procedures, documentation, and digital systems across all Indian ports to improve efficiency and reduce logistics costs.

Earlier, Indian ports followed different operational practices, leading to delays, higher compliance costs, and unpredictability in trade. The initiative addresses these structural inefficiencies.

By cutting documentation requirements, enabling paperless clearances, reducing cargo dwell time, and ensuring uniform processes, it lowers transaction costs and improves turnaround time.

Related Articles

GUANTANAMO BAY 04 Feb, 2025
CONGO 04 Feb, 2025
MALI 21 Sep, 2024
Poland 22 Aug, 2024
Guam Island 20 Aug, 2024
Virgin Islands 16 Aug, 2024
Kursk 13 Aug, 2024
Barren Island 21 Nov, 2022
KABUL 20 Jun, 2022
DIMA HASAO 24 May, 2022
Let's Get In Touch!

Free access to e-paper and WhatsApp updates

Let's Get In Touch!