International Container Transhipment Port (ICTP)
Why in news ?
The Minister for Ports, Shipping, and Waterways (MoPSW) recently inspected the location of the planned International Container Transhipment Port (ICTP) on Galathea Bay, Great Nicobar Island.
Main body
- The flagship program Sagarmala under MoPSW aims to modernize, mechanize, and enhance capacity of existing ports, making them more efficient and environment friendly. Upgrading & unlocking capacity at major & 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 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 a 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; development of transshipment 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 emerging growth potential of clusters, 3 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 development of four port clusters with capacity of >300 MTPA and 2 port clusters with capacity >500 MTPA. In addition to creating port clusters around the existing major ports, 2 new major ports – Vadhavan and Galathea Bay port are envisaged to be developed.
- Vadhavan has a natural draft of about 20 meter and is therefore well suited for accommodating larger ships. Development of this port will enable cargo container vessels of 16,000-25,000 TEUs capacity. Similarly, 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 higher draft available to accommodate larger vessels. Out of five ports from eight namely DPA, Vadhavan, VoCPA, Galathea Bay and PPA to have draft in the range of 18 meters to 23 meters by 2030. Further, 3 ports NMPA, CoPA and JNPA would be drafted in the range of 20 meters to 23 meters by 2047 in order to align with global standards.
- 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 strategic location of Galathea Bay is a huge advantage to EXIM trade as it lies on International shipping route. With the development of ICTP at Galathea Bay, Indian ports will be able to attract more transshipment 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.
What is a Transshipment Port?
- A transshipment hub serves as a location where cargo or containers are transferred from one ship to another for onward transportation to their ultimate destination.
- Unlike a traditional port where goods are unloaded and transported to the interior of the country via rail, road, or air, a transshipment hub facilitates the direct transfer of cargo between ships, streamlining the shipping process.
Significance of Project
Geo-Strategic: The islands play a crucial role in maritime security due to their strategic positioning within the Indian Ocean Region (IOR).
Improved infrastructure and connectivity will empower India to bolster its military and naval capabilities in the region.
Economic Benefits: This initiative aims to diminish inefficiencies in Indian trade logistics, addressing the significant cost, approximately 14 percent of the GDP. Consequently, it will enhance the country’s export competitiveness and open avenues for India to emerge as a major hub for container traffic trade between Asia-Africa and Asia-US/Europe.
Source – PIB
