The Govt has received 9 Expression of Interests for the development of the International Container Transshipment Port at the Great Nicobar Island, said a senior government official to a major news agency. The government had asked for EOIs in January 2024 from the relevant companies for the development of the project in Galathea Bay of Great Nicobar in Nicobar Islands.
The Rs. 41000cr project was announced by the government as a part of its ‘Holistic Development of Andaman and Nicobar Island’ program launched last year. It is a Rs. 72000cr project aimed at the development of Andaman and Nicobar Island. The project includes development of the International Transshipment Port, a township, a green-field airport and a major power plant.
Image source: The Indian Express
The Ministry of Ports, Shipping and waterways had earlier in a statement announced that the Project of International Transshipment Port will be completed at a cost of Rs. 41000cr (5 Billion$) in Four Phases, the first of which will be completed by 2028 and the port will has a Cargo handling Capacity of 4 million containers per year. This cargo handling capacity will eventually increase to 16 million containers per year by the end of four phases.
The Govt expects the project to be a leading transshipment port because of three reasons which include 1. Strategic location in international trade routes. 2. Availability of natural water depth of 20m and 3. Carrying capacity of Transshipment cargo from all the ports in Proximity.
The project will be completed in a PPP mode and shall be a port with landlord model where the Public Sector commands authority in decision making and the private sector will command authority over collection of fees etc. for a period of 30 to 50 years.
As of today majority of Transshipment cargo don’t arrive at India due to non-availability of Transshipment port. They instead arrive at ports in vicinity such as Colombo, Singapore and Dubai and the containers are later transported to India via smaller ships. A whopping 75% of transshipped cargo is handled outside India. Thus this leads to a forex loss and revenue loss for the nation.
Once completed the project is expected to save near about 200-220 million $ for the Government and generate many direct and Indirect job opportunities for the citizens of Nicobar Islands.
The project also commands a strategic importance given that it lies in the East-West Transshipment corridor through which the majority of oil passes to China and other nations via the Malacca strait. Thus India in case of conflict with China can use this port as a strategic
advantage.
Image Source: Wikipedia
