International Transhipment Port project at Great Nicobar Island

Context:

India is planning to build an International Container transshipment port (ICTP), as part of a mega-project at Galathea Bay in Great Nicobar Island in the Andamans.

More on News:

• The proposed Port will have ultimate capacity to handle 16 million Containers per year and in the first phase will handle above 4 million Containers. 
• The project is expected to be complete with an investment of INR 41,000 crore (USD 5 Billion) including investment from both Government and PPP concessionaire. 
• Other projects planned around Transhipment Port include Airport, Township and Gas and Solar Power Plant. 

Salient features of the Project:

• Geo-Strategic:
  • The islands are critical for maritime security because of their strategic location in the Indian Ocean Region (IOR). 
  • Better infrastructure and connectivity will help India enhance its military and naval strength in the islands.
  • It Helps India counter China’s ‘String of Pearls’ strategy due to its closeness to the ‘Strait of Malacca’ chokehold.
• Draft – Natural depth of 20m.                        
• Catchment – Potential to capture transhipment cargo from the similar international facilities in the sub-continent and Ports in the proximity including Indian Ports.
• Economic Benefits: 
  • India is the third-largest economy in the world with a 7,500 km long coastline
  • 95 per cent of the country’s trade by volume and 68 per cent by value moving through maritime transport.
  • It will save significant revenue loss, Currently, nearly 75% of India’s transhipped cargo is handled at ports outside India such as Colombo, Singapore etc
• Improved Logistics infrastructure:
  • It will reduce logistics inefficiencies for Indian trade (high logistic cost approx. 14 percent of GDP), improve country’s export competitiveness and create an opportunity for India to become a large hub for Asia-Africa, Asia-US/Europe container traffic trade.
  • Several other allied businesses viz. ship chandlery-ship supplies, ship repair, crew change facility, warehousing and bunkering also planned at this Transhipment Port.
• Other Benefits : such as forex savings, foreign direct investment, increased economic activity at other Indian Ports.
• Humanitarian assistance and Disaster Relief: India could also use these facilities for humanitarian assistance and disaster relief. 

Concerns: Conservationists have outlined many threats to the ecology — including those to endangered fauna, the feeling of 800,000 trees, and the impact on local tribes (Shompen and Nicobarese).

Way forward: Developing the Transhipment hub is a visionary step, which may serve India’s long term strategic and maritime and business interests.

Source: Business Standard

DOWNLOAD PDF