AI-Powered Ports Could Cut Logistics Costs by ₹15,000 Crore Annually
New Delhi, February 17: India can unlock significant savings in cargo handling and logistics by embracing artificial intelligence in its ports ecosystem, according to Gourav Vallabh, Member of the Economic Advisory Council to the Prime Minister.Speaking at the session titled AI-Powered Ports: Reimagining Efficiency and Operations during the AI Impact Summit, Vallabh said that the use of AI in cargo handling alone can result in an estimated saving of ₹20,000 crore. In addition, the country can potentially reduce logistics costs by ₹15,000 crore every year through AI-driven efficiencies.
He emphasized that the central question is no longer whether artificial intelligence will transform India’s ports, but whether the country will take the lead in driving that transformation.
Logistics Costs at 7.97% of GDP, Need for Intelligent Ecosystem
Vallabh noted that India’s logistics cost stands at 7.97 percent of GDP, which he described as competitive. However, he stressed that to achieve the Viksit Bharat 2047 vision, ports must evolve into intelligent ecosystems backed by advanced technology.He called for accelerated policy initiatives to further reduce logistics costs and enhance efficiency across the maritime sector.
Highlighting the scale of maritime trade, Vallabh said that 95 percent of India’s trading volume is handled through maritime routes. Despite recording an annual growth of 13.5 percent, Indian ports still lag behind the largest global ports in terms of handling capacity.
He pointed out that the gap lies not only in physical infrastructure but also in the lack of intelligence-driven systems.
Expanding AI Applications in Maritime Operations
Vallabh outlined multiple areas where artificial intelligence can be deployed to enhance performance at ports, stating that the technology is readily available and its adoption depends on willingness and execution.Subrat Tripathy, President Business Development at APSEZ Ltd, spoke about the concept of introducing a virtual concierge in the ports sector. He explained that the idea involves creating a digital interface to manage multiple non-human interactions across platforms involving vessels, agents, transporters, and other stakeholders.
Tripathy clarified that the initiative is not aimed at replacing human roles but at integrating and streamlining complex operational interactions through technology.
He also highlighted AI’s role in forecasting weather conditions, improving navigation, and ensuring safer port operations.
Structural Shift in Maritime Governance
Susanta Kumar Purohit, Chairperson of VO Chidambaranar Port Authority, described artificial intelligence as more than a technological upgrade. He termed it a structural shift in how maritime infrastructure is planned, operated, and governed.Aprajita Rana of AZB & Partners addressed the legal dimensions of AI deployment in ports, focusing on data safety and authenticity. She underscored the need for an AI governance framework within the industry.
Rana stated that clear governance standards must define how AI is deployed, the scope of its functionalities, and the extent of its use to ensure responsible and secure implementation.
As India positions itself as a leader in emerging technologies, the integration of artificial intelligence in port operations is increasingly being viewed as a strategic lever for improving efficiency, reducing costs, and strengthening maritime competitiveness.
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