The Indian government has formally unveiled a project for construction of an International Container Transhipment Port (ICTP) entailing an investment of $5 billion at Galathea Bay, Greater Nicobar Island, in the eastern Indian Ocean, a government statement said on Tuesday, November 28.
The development of the ICTP is anchored primarily on its strategic location, 40 nautical miles from the lucrative Colombo-Singapore route via Malacca Strait. Furthermore, the terminal will have a natural water depth of over 20 meters, suitable for handling the largest container ships, the government said.
Recently, India’s Ministry of Finance granted “In-Principle” approval for the ICTP development. With this, it is expected that the tenders for the construction of the first phase of the project will be announced early next year, according to a statement by the Ministry of Ports and Waterways (MoPSW).
The terminal is expected to be developed in four phases until 2058 and will have a capacity to handle 16 million TEUs (twenty-foot equivalent) per year at full capacity utilization.