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Back to News FeedHeavy IndustriesBottleneck Watch: What Is Slowing Heavy Industries Shipments Out of Kandla
SectorS34 · Heavy IndustriesFreeSummary

Bottleneck Watch: What Is Slowing Heavy Industries Shipments Out of Kandla

Faster clearance, new rail links and warehouse automation are rewriting the cost structure of moving Heavy Industries goods, but last-mile gaps persist.

MI
Meera IyerVERIFIED
Senior Trade Correspondent, IGEN News
8 Oct 2026, 16:58 IST8 min read1.1K views

Updated 9 Oct 2026, 21:18 IST

Heavy Industries: illustrative image for "Bottleneck Watch: What Is Slowing Heavy Industries Shipments Out of Kandla"
Steel, metals and heavy industry: illustrative image for Heavy Industries coverage. Photo: Unsplash.
311
3
Sponsored

Trade finance for exporters: invoice discounting in 48 hours (partner content).

Average container dwell time at Kandla fell to 60 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Heavy Industries shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

Policy is encouraging the shift. The national logistics plan sets a target of cutting logistics cost to single digits as a share of output, and the latest budget allocated $5.2 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.

Key takeaways

  • A shared visibility platform pilots next quarter at Kandla.
  • Modern warehouse occupancy is above 90 percent as rents climb 11.7%.
  • Physical inspection rates dropped to 11.7% under risk-based clearance.
  • Container dwell time at Kandla fell to 60 hours from 62 a year ago.
  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.

What changed at the port

Technology adoption is uneven. Large shippers have integrated customs, transport and inventory systems and receive alerts on delays in near real time; smaller firms still rely on email and phone calls. Logistics platforms are targeting this gap with subscription tools priced for firms with fewer than 50 shipments a month.

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Kandla to inland container depots now carries 29.3% of the sector's export volume, and double-stack services have cut inland transit to under 36 hours for the first time. Rates are competitive with road once total delivered cost is considered.

By the numbers

Dwell time
47 hrs
-24 hrs YoY
average container dwell
Inspection rate
2.4%
-4 pts
physical inspection rate
Rail share
25.4%
+9 pts
export volume by rail
Logistics saving
8.4%
cost cut
logistics spend saved

Warehousing is evolving in parallel. Grade-A capacity near Kandla reached 1,836 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 11.7%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

“Resilience is becoming a commercial differentiator, not a cost centre.”

Harpreet Sandhu, Chief Economist

Rail, warehousing and the middle mile

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Indonesia and Australia have asked suppliers to document contingency routes. Indian exporters with alternative gateways at two or more ports are winning preferred-supplier status in several categories.

Average container dwell time at Kandlahours
Average container dwell time at KandlaAverage container dwell time at Kandla: from 10 hours in W1 to 7.3 hours in W8; high 10 in W1, low 7.3 in W8.6.67.48.39.11010W1W2W3W48.7W5W6W77.3W8

Source: IGEN Intelligence analysis of directorate general of foreign trade data. Illustrative mock data.

Asian Paints said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 16% of its volume to rail. The company estimates a saving of $347 million a year and a reduction in emissions intensity of roughly 11.7%, a point increasingly requested by European customers.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra6613.6%6.9%
Nhava Sheva3610.3%4.1%
Chennai5420.6%4.5%
Kolkata5022.9%2.6%
Visakhapatnam4120.4%4.8%
Source: Port authority statistics; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

The gains are largely procedural. Pre-arrival processing, risk-based inspection and paperless clearance now cover most consignments, and the share of containers selected for physical examination has fallen to 11.7%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

Timeline of key events

  1. 25 Aug 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 5 Sep 2026
    Rail corridor opens

    Double-stack services begin between Kandla and the inland depot.

  3. 16 Sep 2026
    Network redesign

    Asian Paints consolidates three warehouses into one automated hub.

  4. 27 Sep 2026
    Dwell hits low

    Average dwell time drops to 60 hours, a multi-year low.

  5. 8 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Kandla will go live next quarter. If it works, exporters will be able to track a container from factory gate to destination port in a single interface.

Expert commentary

“Predictability beats speed. A two-day clearance you can plan around is worth more than a one-day clearance you cannot.”

IQ
Imran Qureshi
Gulf & West Asia Bureau Chief, IGEN News

“Firms that treat this as a compliance exercise will keep up. Firms that treat it as a design problem will pull ahead.”

HS
Harpreet Sandhu
Chief Economist, Northbridge Capital

“For Heavy Industries, the margin of safety is in diversification: two markets, two gateways and two sources of finance.”

AP
Arvind Pillai
Chairman, Southern Ports Association

Where the next savings are

Not every link has kept pace. Last-mile trucking remains fragmented, with small operators accounting for most capacity and little data sharing. Several exporters reported that goods cleared in 24 hours then waited three days for a truck, eroding much of the benefit achieved upstream.

What it means for you

Shippers

Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.

Logistics providers

Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.

Warehouse investors

Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.

Buyers abroad

Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.

Companies and leaders in this story

Asian Paints Havells India Reliance Industries Hindalco Industries Shalini Rao Amit Chandra

Frequently asked questions

To 60 hours at Kandla, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Directorate General of Foreign Trade: Export-import policy and public notices
  2. Port authority statistics: Container volumes, dwell times and berth productivity
  3. Ministry-level press releases: Scheme guidelines and cabinet decisions
  4. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data

Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.

#HeavyIndustries#SupplyChain#Logistics#Ports#Indonesia
MI
Written by

Meera Iyer

Senior Trade Correspondent, IGEN News

Covers bilateral trade corridors, customs reform and export finance. Previously a commodities desk reporter in Mumbai.

Source & Editorial Attribution

Ministry of Heavy Industries · IGEN Trade Intelligence

This article is curated and summarized by the IGEN editorial desk. All text is verified from official filings and trade bulletins, rendered strictly in plain text for compliance and clarity. Full text and regulatory updates are archived in the national registry.

Daily briefing

Get stories like this in your inbox

One concise email each morning on trade, policy and markets across Heavy Industries and 49 other sectors.

Discussion (3)

Sort by: Most recent
Log in to comment
A
Ankit Sharma
38m ago

The point about documentation holds true on the ground. Our forwarder has already seen holds from template mismatches.

T
Tanvi Joshi
2h ago

Good to see concrete figures instead of generalities. The table on destination markets is especially helpful.

D
Deepa Nair
5h ago

Any word on how this plays out for services exporters? Would be a good follow-up.

In this article
  1. 1. What changed at the port
  2. 2. Rail, warehousing and the middle mile
  3. 3. The gaps that remain
  4. 4. Where the next savings are
  5. 5. Discussion (3)

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  4. 04Ministry of Science & Technology Notifies Revised Framework for Biotechnology: What Exporters Must Change by Q4 FY27
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Back to News FeedHeavy IndustriesBottleneck Watch: What Is Slowing Heavy Industries Shipments Out of Kandla
SectorS34 · Heavy IndustriesFreeSummary

Bottleneck Watch: What Is Slowing Heavy Industries Shipments Out of Kandla

Faster clearance, new rail links and warehouse automation are rewriting the cost structure of moving Heavy Industries goods, but last-mile gaps persist.

MI
Meera IyerVERIFIED
Senior Trade Correspondent, IGEN News
8 Oct 2026, 16:58 IST8 min read1.1K views

Updated 9 Oct 2026, 21:18 IST

Heavy Industries: illustrative image for "Bottleneck Watch: What Is Slowing Heavy Industries Shipments Out of Kandla"
Steel, metals and heavy industry: illustrative image for Heavy Industries coverage. Photo: Unsplash.
311
3
Sponsored

Trade finance for exporters: invoice discounting in 48 hours (partner content).

Average container dwell time at Kandla fell to 60 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Heavy Industries shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

Policy is encouraging the shift. The national logistics plan sets a target of cutting logistics cost to single digits as a share of output, and the latest budget allocated $5.2 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.

Key takeaways

  • A shared visibility platform pilots next quarter at Kandla.
  • Modern warehouse occupancy is above 90 percent as rents climb 11.7%.
  • Physical inspection rates dropped to 11.7% under risk-based clearance.
  • Container dwell time at Kandla fell to 60 hours from 62 a year ago.
  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.

What changed at the port

Technology adoption is uneven. Large shippers have integrated customs, transport and inventory systems and receive alerts on delays in near real time; smaller firms still rely on email and phone calls. Logistics platforms are targeting this gap with subscription tools priced for firms with fewer than 50 shipments a month.

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Kandla to inland container depots now carries 29.3% of the sector's export volume, and double-stack services have cut inland transit to under 36 hours for the first time. Rates are competitive with road once total delivered cost is considered.

By the numbers

Dwell time
47 hrs
-24 hrs YoY
average container dwell
Inspection rate
2.4%
-4 pts
physical inspection rate
Rail share
25.4%
+9 pts
export volume by rail
Logistics saving
8.4%
cost cut
logistics spend saved

Warehousing is evolving in parallel. Grade-A capacity near Kandla reached 1,836 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 11.7%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

“Resilience is becoming a commercial differentiator, not a cost centre.”

Harpreet Sandhu, Chief Economist

Rail, warehousing and the middle mile

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Indonesia and Australia have asked suppliers to document contingency routes. Indian exporters with alternative gateways at two or more ports are winning preferred-supplier status in several categories.

Average container dwell time at Kandlahours
Average container dwell time at KandlaAverage container dwell time at Kandla: from 10 hours in W1 to 7.3 hours in W8; high 10 in W1, low 7.3 in W8.6.67.48.39.11010W1W2W3W48.7W5W6W77.3W8

Source: IGEN Intelligence analysis of directorate general of foreign trade data. Illustrative mock data.

Asian Paints said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 16% of its volume to rail. The company estimates a saving of $347 million a year and a reduction in emissions intensity of roughly 11.7%, a point increasingly requested by European customers.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra6613.6%6.9%
Nhava Sheva3610.3%4.1%
Chennai5420.6%4.5%
Kolkata5022.9%2.6%
Visakhapatnam4120.4%4.8%
Source: Port authority statistics; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

The gains are largely procedural. Pre-arrival processing, risk-based inspection and paperless clearance now cover most consignments, and the share of containers selected for physical examination has fallen to 11.7%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

Timeline of key events

  1. 25 Aug 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 5 Sep 2026
    Rail corridor opens

    Double-stack services begin between Kandla and the inland depot.

  3. 16 Sep 2026
    Network redesign

    Asian Paints consolidates three warehouses into one automated hub.

  4. 27 Sep 2026
    Dwell hits low

    Average dwell time drops to 60 hours, a multi-year low.

  5. 8 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Kandla will go live next quarter. If it works, exporters will be able to track a container from factory gate to destination port in a single interface.

Expert commentary

“Predictability beats speed. A two-day clearance you can plan around is worth more than a one-day clearance you cannot.”

IQ
Imran Qureshi
Gulf & West Asia Bureau Chief, IGEN News

“Firms that treat this as a compliance exercise will keep up. Firms that treat it as a design problem will pull ahead.”

HS
Harpreet Sandhu
Chief Economist, Northbridge Capital

“For Heavy Industries, the margin of safety is in diversification: two markets, two gateways and two sources of finance.”

AP
Arvind Pillai
Chairman, Southern Ports Association

Where the next savings are

Not every link has kept pace. Last-mile trucking remains fragmented, with small operators accounting for most capacity and little data sharing. Several exporters reported that goods cleared in 24 hours then waited three days for a truck, eroding much of the benefit achieved upstream.

What it means for you

Shippers

Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.

Logistics providers

Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.

Warehouse investors

Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.

Buyers abroad

Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.

Companies and leaders in this story

Asian Paints Havells India Reliance Industries Hindalco Industries Shalini Rao Amit Chandra

Frequently asked questions

To 60 hours at Kandla, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Directorate General of Foreign Trade: Export-import policy and public notices
  2. Port authority statistics: Container volumes, dwell times and berth productivity
  3. Ministry-level press releases: Scheme guidelines and cabinet decisions
  4. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data

Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.

#HeavyIndustries#SupplyChain#Logistics#Ports#Indonesia
MI
Written by

Meera Iyer

Senior Trade Correspondent, IGEN News

Covers bilateral trade corridors, customs reform and export finance. Previously a commodities desk reporter in Mumbai.

Source & Editorial Attribution

Ministry of Heavy Industries · IGEN Trade Intelligence

This article is curated and summarized by the IGEN editorial desk. All text is verified from official filings and trade bulletins, rendered strictly in plain text for compliance and clarity. Full text and regulatory updates are archived in the national registry.

Daily briefing

Get stories like this in your inbox

One concise email each morning on trade, policy and markets across Heavy Industries and 49 other sectors.

Discussion (3)

Sort by: Most recent
Log in to comment
A
Ankit Sharma
38m ago

The point about documentation holds true on the ground. Our forwarder has already seen holds from template mismatches.

T
Tanvi Joshi
2h ago

Good to see concrete figures instead of generalities. The table on destination markets is especially helpful.

D
Deepa Nair
5h ago

Any word on how this plays out for services exporters? Would be a good follow-up.

In this article
  1. 1. What changed at the port
  2. 2. Rail, warehousing and the middle mile
  3. 3. The gaps that remain
  4. 4. Where the next savings are
  5. 5. Discussion (3)

Trending now

  1. 01Sun Pharma Commits $3.2 billion to Startups Expansion as Global Customers Seek a Second Source
  2. 02The Long Read: Data Centres After the Tariff Reset
  3. 03Why Netherlands Is Becoming the Fastest-Growing Market for Indian Aerospace
  4. 04Ministry of Science & Technology Notifies Revised Framework for Biotechnology: What Exporters Must Change by Q4 FY27
  5. 05The Long Read: Communications After the Tariff Reset
Topic
S34 · Heavy Industries

Ministry of Heavy Industries

IndonesiaAustralia

More to read

All headlines →
Technology · Startups

Sun Pharma Commits $3.2 billion to Startups Expansion as Global Customers Seek a Second Source

8 min read
Expert · Data Centres

The Long Read: Data Centres After the Tariff Reset

8 min read
Country · Aerospace

Why Netherlands Is Becoming the Fastest-Growing Market for Indian Aerospace

5 min read
Policy · Biotechnology

Ministry of Science & Technology Notifies Revised Framework for Biotechnology: What Exporters Must Change by Q4 FY27

4 min read
Expert · Communications

The Long Read: Communications After the Tariff Reset

9 min read
Company · Animal Husbandry

Inside India's Animal Husbandry Build-Out: Capex, Bottlenecks and the 2028 Target

10 min read