PPPs to be given concession for 30-50 years for ICTP at Galathea Bay
Expression of Interest (EoI) is to be invited for the Rs.41,000 crore International Transshipment Port at Great Nicobar Island which is located on the International Trade Route with existing transshipment terminals like Singapore, Malaysia’s Klang and Colombo in proximity.
The identified location has a natural depth of 20m for the development of Mega International Container Transshipment Port (ICTP) at Galathea Bay of Great Nicobar Island of Andaman and Nicobar Islands in Bay of Bengal.
It has the potential to capture transshipment cargo from the similar international facilities in the sub-continent and ports in the proximity including Indian ports.
Expressing his happiness on this milestone of MoPSW, the Minister of Ports, Shipping and Waterways Sarbananda Sonowal said on 27 Jan 2023, “This project will be a major landmark in developing India to become a self-assured and self-reliant Nation. It will support the country’s economic development.”
Indian ports can save US$200-US$220 million each year on transshipment cargo.
Currently, nearly 75% of India’s transshipped cargo is handled at ports outside India. Colombo, Singapore and Klang handle more than 85% of this cargo. Colombo port handled 45% of the Indian 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.
Experts have long maintained that a strong economic case exists for enabling a transshipment hub in India that can attract Indian and regional transshipment traffic from the current hubs, save significant revenue loss, reduce logistics inefficiencies for Indian trade, reduce risks to the country’s export competitiveness and create an opportunity for India to become a large hub for Asia-Africa, Asia-US-Europe container traffic trade.
Several other allied businesses viz. ship chandlery-ship supplies, ship repair, crew change facility, logistics value added services, warehousing and bunkering are also planned at this Transshipment Port. Additionally, there is a potential of creation of around 1,700-4,000 direct jobs by end of this project.
The port’s phase 1 is proposed to be commissioned in 2028 with handling capacity of ~4 million TEUs, increasing to 16 million TEUs in the ultimate stage of development.
The estimated cost for Phase 1 of the proposed transshipment port is around Rs.18,000 crore which includes the construction of breakwaters, dredging, reclamation, berths, storage areas, building and utilities, procurement and installation of equipment. The Government will support the development of port colony with core infrastructure.
Public Private Partnership (PPP) will be encouraged for this project via Landlord mode. The PPP Concessionaire shall have the flexibility to develop storage area, container handling equipment and other infrastructure based on concessionaire’s own market and business assessment subject to the Minimum Guaranteed Traffic.
The Concessionaire would be awarded a long-term PPP concession of 30 to 50 years (based on requirement), shall be responsible for the provision(s) of port services and shall have the rights to levy, collect and retain charges from port users.
Syama Prasad Mookerjee Port, Kolkata (SMPK), on behalf of MoPSW, is the nodal agency for implementation of this project and will be inviting Expression of Interests from the interested organizations having relevant technical expertise, financial capacity and operational experience required for development, operations, maintenance and profitable growth of the proposed project.
The EOI pertaining to ICTP, Galathea Bay is available at SMPK website https://smportkolkata.shipping.gov.in and https://kopt.enivida.in from 28th January 2023.
All other details, including date of submission, extension, clarifications amendment etc. will be updated on above websites from time to time. All terms and conditions shall be as per EoI notification.
Project features for Phase 1:
Two breakwaters, 400m wide navigational channel, 800m dia turning circle, total berth length of about 2.3km translating to 7 berths, 125 Ha for container yard, container handling equipment including RMQCs and RTGs, provision to develop 2 liquid cargo berths
Working towards the Island Development program announced by the Government, the Ministry of Ports, Shipping and Waterways, as part of the Holistic Development of Great Nicobar Island, is working towards completion of these projects.
Other projects include, Airport, Township and Power plant. Holistic Development of Islands aims to bridge the gaps in infrastructure and improve economic opportunity for rapid increase in size for all types of vessels, from feeders to the large inter-continental carriers.
Further, the proposed infrastructures facilities shall be such that the service levels and facilities match with that of the global top container transshipment terminals and neighbouring ports.
The project focuses on three key drivers which can result in making it a leading container transshipment port, i.e. strategic location in terms of proximity (40 nautical miles) with the International shipping trade route, availability of natural water depth of over 20m and carrying capacity of transshipment cargo from all the Ports in the proximity including Indian ports. fiinews.com
