A senior official has indicated that the government is in the process of finalising the detailed project report (DPR) for the Rs 410 billion international transhipment port project at Great Nicobar Island in the Bay of Bengal, and the implementation of the project is expected to commence in the next few months. The Great Nicobar Transhipment Port project has faced scrutiny over environmental concerns. However, the project has received the necessary environmental clearances and approval from the National Green Tribunal (NGT), removing any obstacles to its implementation.
Ports, Shipping, and Waterways Secretary T.K. Ramachandran confirmed that the DPR has been finalised and that the project will proceed with its further implementation in the coming months. Last year, the Ministry of Ports, Shipping, and Waterways had stated that the project is anticipated to be completed with an investment of Rs 410 billion, incorporating both government funding and contributions from public-private partnership (PPP) concessionaires.
The ministry added that 11 players have expressed interest in the international transhipment port project at Great Nicobar Island. Among the companies that have submitted expressions of interest are Larsen & Toubro Ltd, Afcons Infrastructure Ltd, and JSW Infrastructure Ltd. The proposed port in the Andaman and Nicobar Islands is designed to handle up to 16 million containers annually, with the first phase, scheduled for commissioning by 2028 at a cost of Rs 180 billion, set to manage more than 4 million containers. Additional developments planned around the transhipment port include an airport, a township, and a power plant.
Situated on an international trade route and close to existing transhipment terminals like Singapore, Klang, and Colombo, the project is focused on three key drivers that could position it as a leading container transhipment port. These drivers include its strategic location (40 nautical miles from the international shipping trade route), the natural water depth of over 20 metres, and the capacity to handle transhipment cargo from nearby ports, including those in India. The facility is planned to be developed in four phases.
The estimated cost for Phase 1 of the project is around Rs 180 billion and will cover the construction of breakwaters, dredging, reclamation, berths, storage areas, buildings, utilities, equipment procurement, and the development of the port colony, with core infrastructure being developed with government support.
The project will encourage public-private partnerships (PPP) under a landlord model. The PPP concessionaire will have the flexibility to develop storage areas, container handling equipment, and other infrastructure based on market and business assessments, subject to guaranteed traffic minimums. The concessionaire will be awarded a long-term PPP concession of 30 to 50 years, depending on requirements, and will be responsible for port services, including the rights to levy, collect, and retain charges from port users. Currently, about 75% of India's transhipped cargo is handled at ports outside India, with Colombo, Singapore, and Klang managing over 85% of this cargo, and more than half of it at Colombo port.
