Source: The post is based on the article “International Container Transhipment Port(ICTP): Union Minister reviews the project” published in “PIB” on 23rd November 2023
Why in the News?
The Union Minister for Ports, Shipping and Waterways (MoPSW) recently visited the site of the proposed International Container Transhipment Port (ICTP) at Galathea Bay, Great Nicobar Island.
Note: Transhipment is when a cargo or a container is moved from one vessel to another, while in transit to its final destination.
What is the International Container Transhipment Port (ICTP) Project?
| Specification | Details |
| What is it | It is a Transhipment port project being built at Galathea Bay in Great Nicobar Island. |
| Aim | To reduce India’s dependency on foreign ports for transshipment cargo handling. |
| Envisaged under | Maritime India vision 2030 |
| Nodal Agency | Syama Prasad Mookerjee Port, Kolkata (SMPK) |
| Development Model | Landlord Model |
| Phase wise development | 1) The Port facilities are proposed to be developed in four phases between 2028 and 2058 and would handle 16 million containers per year in the final stage of development. 2) The first phase, upon completion in 2028, will handle 4 million containers per year. |
What are the expected benefits of the International Container Transshipment Port (ICTP) Project?
Geo-strategic Benefits: The project is of immense importance because of its:
1) Strategic location in terms of proximity (40 nautical miles from Malacca Strait) to the International Trade Route;
2) Availability of natural water depth of more than 20 meters and,
3) Potential to capture transhipment cargo from all the ports in the proximity, including domestic ones.
Economic Benefits: 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 with 45% of this cargo handled at Colombo Port. The ICTP can ensure India becomes a self reliant nation.
Regional Development: The project has been conceived as a part of the holistic development of Great Nicobar Island.
Other Benefits: It will reduce logistics cost for India (high logistic cost approximately 14 percent of GDP), improve export competitiveness, forex savings, foreign direct investment, employment opportunities and increased economic activity at other Indian Ports.
What is Maritime India vision 2030?
1) Maritime India Vision 2030 focuses on four main areas: increasing capacity, creating top-notch Mega Ports, building transshipment hubs in Southern India and updating infrastructure.
2) Currently, India has 5 Major Ports and 2 Non-Major Ports that can handle over 100 million tons per year. India sees an opportunity to establish Mega Ports to compete globally.
3) Three locations – Wadhawan-JNPT Cluster, Paradip Port and Deendayal Port – have been chosen to become Mega Ports capable of handling over 300 million tons per year.
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