International Container Transhipment Port to be developed at Galathea Bay for transhipment cargo

The project is part of the Holistic Development of Great Nicobar Island and part of the Island Development program announced by the Government.

New Delhi: As part of the Island Development program announced by the Government, the Ministry of Ports, Shipping and Waterways, is working towards the development of Mega International Container Transhipment Port (ICTP) at Galathea Bay of Great Nicobar Island of Andaman and Nicobar Islands in the Bay of Bengal, sources said.

The project is part of the Holistic Development of Great Nicobar Island. The project focuses on three key drivers which can result in making it a leading container transshipment port, i.e. strategic location in terms of proximity (40 nautical miles) with the International shipping trade route, availability of natural water depth of over 20m and carrying capacity of transshipment cargo from all the Ports in the proximity including Indian Ports.

Other proposed projects include Airport, Township and Power plant. Holistic Development of Islands aims to bridge the gaps in infrastructure and improve economic opportunity for the rapid increase in the size of all types of vessels, from feeders to large inter-continental carriers.

Experts have long maintained that a strong economic case exists for enabling a transshipment hub in India that can attract Indian and regional transshipment traffic from the current hubs, save significant revenue loss, reduce logistics inefficiencies for the Indian trade, reduce risks to the country’s export competitiveness and create an opportunity for India to become a large hub for Asia-Africa, Asia-US/Europe container traffic trade.

Currently, nearly 75% of India’s transhipped cargo is handled at ports outside India. Colombo, Singapore, and Klang handle more than 85% of this cargo with 45% of this cargo handled at Colombo Port. Indian ports can save $200-220 Million each year on transhipment cargo. Also, developing Galathea Bay Transhipment Port will accrue significant benefits such as forex savings, foreign direct investment, increased economic activity at other Indian Ports, enhanced logistics infrastructure, and thus, efficiencies, employment generation, and increased revenue share.

Several other allied businesses like chandlery-ship supplies, ship repair, crew change facility, logistics value-added services, warehousing, and bunkering are also planned at this Transhipment Port. Additionally, there is a potential for the creation of around 1700-4000 incremental direct jobs by end of this project.

The proposed facility is envisaged to be developed in four phases with a total estimated cost of Rs. 41,000 crore. Phase 1 is proposed to be commissioned in the year 2028 with a handling capacity of ~ 4 Million TEUs, increasing to 16 Million TEUs in the ultimate stage of development.

The estimated cost for Phase 1 of the proposed transshipment port is around Rs. 18,000 crore which includes the construction of breakwaters, dredging, reclamation, berths, storage areas, building and utilities, procurement and installation of equipment, and development of the port colony with core infrastructure going to be developed with the government support.

Public Private Partnership (PPP) will be encouraged for this project via Landlord mode. The PPP Concessionaire shall have the flexibility to develop a storage area, container handling equipment, and other infrastructure based on the concessionaire’s market and business assessment subject to the Minimum Guaranteed Traffic.

Expressing his happiness on this milestone of MoPSW, the Union Minister of Ports, Shipping and Waterways and AYUSH, Sarbananda Sonowal said that “this project will be a major landmark in developing India to become a self-assured and self-reliant Nation and will support the economic development of the country".