Phase 1 of Great Nicobar trans-shipment hub project to cost ₹18,000 cr

New Delhi

The first phase of the proposed greenfield port at Galathea Bay in Great Nicobar Island, is expected to be built at a cost of ₹18,000 crore. The Ministry of Ports, Shipping and Waterways plans to start the tendering process for the same over the next 30-40 days.

First phase will have a capacity of 4 million TEUs (twenty equivalent units) and the port will have a “deep draft” of over 20 metres allowing access to larger vessels.

Phase I project

According to officials aware of the discussions, the detailed project report for the first phase has been readied and all necessary clearances are in place. The Finance Ministry has already given an in-principle approval, while environment clearances have been received.

“Tenders would be floated in the next 30-40 days or so and construction should begin some three months after that....by this year work should start on the Galathea Bay port project,” the official told businessline.

Phase 1 includes construction of breakwaters, dredging, reclamation, berths, storage areas, building and utilities, procurement and installation of equipment, and development of port colony. Core infrastructure will be developed with government support, with the Shipping Ministry following a landlord model and is scheduled for completion in 2028.

“Work on Phase 2 will be taken up post completion of phase I and after assessing the demand. Separate tenders will be floated for Phase 2. In all likelihood, we are anticipating a maximum of seven years gap between Phase 1 and Phase 2, but if demand pick ups, this time gap would be brought down,” the official said.

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The Galathea Bay port project is to be developed on a public– private partnership basis targeting international container trans-shipment movement and is estimated to cost ₹43,000 crore . It will come up in four phases having a total capacity of 16 million TEUs when ready, expectedly by 2058.

Interest Envisaged

A previous EoI floated by the Ministry saw interest from 11-odd companies. Some of the names that have expressed interest include Adani Ports and SEZ, JSW Infra, RVNL (Rail Vikash Nigam Ltd) and Container Corporation of India. Among international companies, Dutch dredging major Royal Boskalis Westminster has put in an EoI.

India, on its part, has been pushing for developing trans-shipment hubs and deep draft port projects in its bid to attract more international container cargo. Nearly 75 per cent of India’s trans-shipped cargo is being handled in ports outside of the country with Colombo handling the majority of international trans-shipped cargo. This is where the proposed port becomes one of strategic importance.

Strategic importance

Ministry officials said the 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 transshipped cargo.

Located strategically between Singapore and Colombo – two major trans-shipment ports on the international sea trade / shipping route – the greenfield port at Galathea Bay will act as a feeder to these two; apart from itself being a trans-shipment port to shipments from Bangladesh and Myanmar.

Apart from this port, four others – Deendayal, Vadhavan, Tuiticorin, Paradeep - will have a draft in the range of 18 to 23 meters by 2030. Further, three ports, that include Navi Mumbai, Cochin and Jawaharlal Nehru Port would be drafted in the range of 20 - 23 meters by 2047 in order to align with global standards and allow access of larger vessels.

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