Final Clearances for Great Nicobar Transhipment Port Project; Construction Set to Commence Next Year

India's Shipping Ministry is gearing up to initiate the construction of the first phase of the international trans-shipment port at Galathea Bay on the Great Nicobar island in the Bay of Bengal next year, according to a senior official familiar with the discussions.

The detailed project report (DPR) for the ambitious venture is currently in the finalization stage, and tenders for construction are anticipated to be invited within the next two to three months. Envisioned as a public-private partnership (PPP) initiative, the proposed international container trans-shipment port is projected to cost ₹44,000 crore and will unfold in four phases, boasting a total capacity of 16 million TEUs (twenty-foot equivalent units). The entire port is slated to be commissioned by 2058.

Officials have confirmed that the Finance Ministry has granted in-principle approval to the project, and environmental clearances were secured in November 2022.

"By next year, construction on Phase 1 of the Galathea Bay trans-shipment port project should start. In the next two to three months, the tendering process should be underway and done," stated the official.

Under the initial phase, which is expected to be operational by 2028, the port will handle nearly 4 million TEUs. The construction scope includes activities such as creating breakwaters, dredging, reclamation, building berths, storage areas, as well as the procurement and installation of equipment. The development of the port colony and core infrastructure will be supported by the government, following a landlord model proposed by the Shipping Ministry.

Strategically situated between Singapore and Colombo, two major trans-shipment ports on the international sea trade route and shipping corridor, Galathea Bay port aims to act as a feeder while also serving the cargo needs of Bangladesh and Myanmar. With approximately 75% of India's trans-shipped cargo currently managed by ports outside the country, particularly Colombo, the new port is expected to play a crucial role in redirecting this traffic.

Union Minister for Ports, Shipping, and Waterways, Sarbananda Sonowal, has reviewed the project progress and engaged with local communities and stakeholders, providing them with insights into the project timelines. "The proposed Galathea Bay Port, due to its strategic location in proximity to the East-West shipping corridor of the world, is suitable to attract both gateway and trans-shipped cargo," said Sonowal.

HBL