Tech-led cost cuts boosted profits: NMPA chief

It has been nearly six years since you took charge. How do you assess the progress so far?

Both cargo handling and profits have grown in the last six years. In 2024-25, we handled 46.7 million tonnes (mt) and recorded a profit after tax (PAT) of ₹450 crore. We expect to reach 50 mt cargo handling and PAT of ₹550 crore in 2025-26. The operating ratio has improved to 37 per cent (from 43-45 per cent earlier), and the turnaround time of vessels has decreased to one day (from more than 1.5 days). Despite challenges like Covid, we increased our profitability by reducing costs using technology and implementing out-of-the-box solutions to improve the efficiency of berth 15 and 16.

What were the major initiatives in technology?

Several technology-driven reforms were introduced between 2019 and 2025, including face recognition for attendance, automated weighbridges and paperless dock entry permits using facial identification like ‘DigiYatra’. Apart from saving time and money, this paperless facility increases the comfort level for people visiting the docks. We will be launching a 360-degree scanning system — under-vehicle scanner with a composite image — at all gates. This will help the Central Industrial Security Force (CISF) staff know what is in the consignment without opening the truck. It saves time for the driver and CISF, and steps up security without diluting standards.

Are there any specific challenges hindering growth?

The biggest challenge is the poor connectivity of Mangaluru with the rest of Karnataka, via Sampaje and Shiradi ghats. These are not all-weather roads from April to October-November because of rains in the region. We do not get much cargo for almost four to five months. The government is working on it. Once Sampaje and Shiradi ghats become all-weather roads, the cargo handling will jump to 55 mt.

What are your plans to improve cargo handling in the coming years?

We have taken a major step in port-led industrialisation. For example, we have given land to many edible oil refineries, which import raw material from across the seas and process them. That helps the port in improving its cargo handling. Coal may decrease in the future. That’s why our thrust is on gas. Import and distribution of gas through NMPA could be to the tune of 3 mt in the future. The expansion plans of MRPL could further boost crude oil and POL (petroleum, oil and lubricants) cargo.

What are the sustainability initiatives undertaken by NMPA?

We are ‘aatmanirbhar’ (self-reliant) in power as the port is 100 per cent solar. We are also ‘aatmanirbhar’ in water usage. Because of rainwater harvesting, more water is stored. This will help NMPA even if the rains are slightly delayed the next season. The port has started moving towards e-vehicles; we have 20-25 EVs now. NMPA’s vermicompost plant makes use of wet waste and generates natural fertilizer. Coal handling is done through a closed conveyor system. We are engaging dust suppression systems and using automated sweeping machines.

How do you see the port evolving over the next five years?

I feel that the next five years will be good. Road works on Sampaje and Shiradi ghats are likely to be completed by November 2026. After that, cargo from the rest of Karnataka, which is otherwise going through the Chennai and Thoothukudi ports, will move from NMPA, boosting cargo handling. The port’s cargo handling can be increased by 5-10 mt without much effort, through the existing initiatives. The port is moving ahead, and I am confident it will have a great future.