Galathea Bay: New Major Port Poised to Be a Game Changer.

A quarter-century after Kamarajar Port was designated as India’s 12th major port, the mega International Container Transshipment Port (ICTP) at Galathea Bay in Great Nicobar Island has now been recognized as the 13th major port. This development paves the way for the port’s growth, which has the potential to significantly impact maritime trade in the region.

Strategically positioned along the East-West international trade and shipping route, the ICTP boasts a 20-meter natural draught and is in proximity to key transshipment terminals such as Singapore, Klang, and Colombo. Situated in the rapidly evolving Indo-Pacific geopolitical region, the port is expected to capture transshipment cargo not only from Indian east coast ports but also from neighboring countries like Bangladesh and Myanmar.

Located just 40 nautical miles from the Malacca Strait—an international shipping channel that handles about 35% of annual global sea trade—Great Nicobar Island has a strategic advantage. Currently, nearly 75% of India’s transshipped cargo is processed at foreign ports, with Colombo, Singapore, and Klang managing over 85% of this volume, 45% of which goes to Colombo. The ICTP at Galathea Bay could potentially save Indian ports between $200 million and $220 million annually in transshipment charges.

However, the development of the port faces challenges due to its location in an ecologically sensitive region. According to government sources, consultants will be tasked with creating a plan that preserves the region's ecological integrity. Proposals from contractors will be sought to implement the project in a phased manner.

The ICTP is planned for development in four phases at an estimated cost of ₹41,000 crore. Phase 1 is anticipated to be operational by 2028, with a handling capacity of around 4 million Twenty-foot Equivalent Units (TEUs), which could expand to 16 million TEUs by the final phase. The initial phase, estimated to cost ₹18,000 crore, will encompass dredging, reclamation, construction of breakwaters and berths, as well as infrastructure development.

Jagannarayan Padmanabhan, Senior Director and Global Head of Transport, Mobility, and Logistics Consulting at CRISIL Market Intelligence and Analytics, noted the project’s significant potential. However, he cautioned that the lack of immediate hinterland cargo could hinder the port's ability to attract regular shipping lines and transshipment business, affecting its competitiveness against established regional ports with strong local support.

To address this issue, project planners will need to develop strategies to attract cargo, which may include competitive tariffs, efficient logistics services, and possibly the creation of nearby industrial zones. Improved maritime and air connections with the Indian mainland could also help establish a sustainable cargo base.

Other challenges for the Galathea port include the logistics of transporting construction materials, such as stones for breakwater construction, from long distances.

The designation of Galathea Bay as a major port will facilitate access to central government financing, according to Varun Gogia, Assistant Vice-President at ICRA. He pointed out that Jawaharlal Nehru Port Authority (JNPA) has declined to fund the project due to its ongoing Vadhavan port construction. Gogia emphasized the need for the government to seek a strong partner for project execution or to provide significant viability gap funding to attract private investment.

HBL