Union Minister Sonowal reviews progress of proposed International Container Transhipment Port project
Nov 23, 2023
New Delhi [India], November 23 : Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal visited the proposed site of the International Container Transhipment Port (ICTP) at Galathea Bay, Great Nicobar Island, on Thursday. He reviewed the project's progress with senior officials and engaged with local residents and stakeholders to discuss the implementation methodology and timelines.
After an aerial visit, Sonowal said, "This project will be a major landmark in developing India into a self-assured and self-reliant nation, and will support the economic development of the country. The Ministry of Ports, Shipping, and Waterways is continually striving to fulfil the grand vision of making a New India as envisaged by our visionary Prime Minister Narendra Modi."
Sonowal also explored the tourism potential of Indira Point, the southernmost point of India's territory at the Great Nicobar Islands. He directed officials to consider developing the Indira Point area as a tourism destination, with necessary amenities and facilities.
During the visit, Sonowal reviewed the progress of the Campbell Bay Port project, constructed at a cost of about Rs 17 crore. The extension of the jetty by 50 meters aims to facilitate the berthing of larger vessels, allowing for safer berthing and increasing port capacity.
On completion of the project, vessels 150 metres long will be able to berth, which will provide more passenger and cargo movement between Great Nicobar and other islands. This extension also will facilitate double berthing, which will add for double berthing which will add the port capacity.
As envisaged in the Maritime India Vision 2030 as well as one of the key projects in the Amrit Kaal Vision 2047, the proposed International Container Transhipment Port (ICTP) project has reached significant milestones, solidifying its position as a transformative initiative with a total estimated cost of about Rs 44,000 crore.
The project is strategically important for the country and crucial for the economic and infrastructural development of the entire region and has garnered key approvals and support from government bodies, the Ports, Shipping and Waterways Ministry said in a statement.
The Ministry of Environment, Forests and Climate Change (MoEF&CC) granted environmental clearance on November 11, 2022. Additionally, stage 1 forest clearance has been obtained.
Also, the Department of Expenditure, Ministry of Finance, has granted "in principle" approval for the holistic development of the Great Nicobar Island and the DPR of the ICTP project is under finalisation. It is planned to invite tenders for the construction of the first phase of the project in early next year, after due approvals and concurrences.
The development of this mega container terminal is part of the holistic development of Great Nicobar Island.
The project focuses on three key drivers that can result in making it a leading container transhipment port, i.e., strategic location in terms of proximity (40 nautical miles) with the international shipping trade route, availability of natural water depths of over 20m and carrying capacity of transhipment cargo from all the ports in the proximity, including Indian ports.
The flagship programme Sagarmala under MoPSW aims to modernise, mechanise, and enhance the capacity of existing ports, making them more efficient and environmentally friendly.
Upgrading and unlocking capacity at major and non-major ports is critical for supporting economic activities in the hinterland since ports serve as a vital link between sea and land transit. In the last 9 years under Port modernization, 94 Projects worth Rs. 31,129 Cr. have been completed, resulting in a capacity addition of more than 230 MTPA.
In terms of engaging the private sector, 21 projects worth more than Rs. 23,000 Cr. have been successfully operationalized under PPP since 2014, indicating the considerable progress made in leveraging public-private partnerships. India has significant potential to set up mega ports and compete with global ports.
There are four key intervention areas highlighted under Maritime India Vision 2030, which include capacity augmentation, developing world-class mega ports, the development of transhipment hubs in southern India, and infrastructure modernization.
Currently, India has 5 major ports and 2 non-major ports with greater than 100 MTPA capacities. With this, there is a significant opportunity for India to set up mega ports and compete with global ports.
Based on detailed evaluation across key criteria for Mega Ports and the emerging growth potential of clusters, three Mega Ports--Vadhavan-JNPT Cluster, Paradip Port, and Deendayal Port--have been identified to be developed into Mega Ports with >300 M TPA capacity.
"The infrastructure initiatives marked in Amrit Kaal Vision 2047 focus upon the development of four port clusters with a capacity of >300 MTPA and two port clusters with a capacity >500 MTPA. In addition to creating port clusters around the existing major ports, two new major ports--Vadhavan and Galathea Bay--are envisaged to be developed." the ministry added.
Vadhavan has a natural draft of about 20 metres and is therefore well suited for accommodating larger ships. The development of this port will enable cargo container vessels of 16,000-25,000 TEUs capacity. Similarly, the proposed Galathea Bay Port, due to its strategic location in proximity to the East-West world-shipping corridor, is suitable to attract both gateway and transshipped cargo.
Ports in the country would also need to have a higher draft available to accommodate larger vessels. Out of five ports, eight, namely DPA, Vadhavan, VoCPA, Galathea Bay and PPA, to have drafts in the range of 18 metres to 23 metres by 2030.
Further, 3 ports--NMPA, CoPA and JNPA--would be drafted in the range of 20 metres to 23 metres by 2047 in order to align with global standards.
Currently, nearly 75 per cent of India's transshipped cargo is handled at ports outside India. Colombo, Singapore and Klang handle more than 85 per cent of this cargo, with 45 per cent handled at Colombo Port.
The strategic location of Galathea Bay is a huge advantage to EXIM trade as it lies on the international shipping route.
With the development of ICTP at Galathea Bay, Indian ports will be able to attract more transhipment cargo. Also, developing Galathea Bay Transshipment Port will accrue significant benefits such as forex savings, foreign direct investment, increased economic activity at other Indian Ports, enhanced logistics infrastructure and thus, efficiencies, employment generation, and increased revenue share.
The proposed facility is envisaged to be developed in four phases. Phase 1 is proposed to be commissioned in the year 2028 with a handling capacity of 4 million TEUs, increasing to 16 million TEUs in the ultimate stage of development by 2,058.
The estimated cost for Phase 1 of the proposed transhipment port is around INR 19,000+ crores, which includes the construction of breakwaters, dredging, reclamation, berths, storage areas, buildings and utilities, procurement and installation of equipment, and the development of the port colony with core infrastructure with government support.
Considering the future development of Great Nicobar Island and the expected increase in tourists and traders, this jetty will be useful to capture the traffic growth of the island, the ministry added in its statement.