Galathea Bay: A Strategic Game-Changer in Maritime Trade

Galathea Bay: A Strategic Game-Changer in Maritime Trade

Sub : Eco

Sec: Infrastructure

Why in News

Galathea Bay, located on the Great Nicobar Island, has been notified as India’s 13th major port. The International Container Transshipment Port (ICTP) proposed here could potentially transform maritime trade in the region.

Strategic Importance of Galathea Bay Port:

Location and Trade Route: Galathea Bay, situated on the Great Nicobar Island in the Bay of Bengal, is strategically positioned along the East-West international shipping and trade route. It lies close to major transshipment hubs such as Singapore, Colombo, and Klang, making it a key location for capturing cargo from Indian east coast ports, as well as from Bangladesh and Myanmar.

Proximity to Global Shipping Channels: The port is located 40 nautical miles from the Malacca Strait, which handles 35% of the world’s annual sea trade. Presently, 75% of India’s transshipped cargo is routed through foreign ports, with Colombo alone handling 45% of this. The development of the ICTP at Galathea Bay can help Indian ports save $200-220 million annually in transshipment charges.

Reduction in Transshipment Costs: At present, India’s transshipment cargo is predominantly handled by foreign ports, leading to substantial outflow of revenue. The Galathea Bay port can significantly reduce transshipment costs and improve the efficiency of Indian maritime trade.

Boost to the Indo-Pacific Region: As part of the evolving Indo-Pacific geopolitical region, this port can act as a gateway for trade and security, increasing India’s presence and influence in the region.

Four-Phase Development Plan:

The ICTP is planned to be developed in four stages with an estimated total cost of ₹41,000 crore.

Phase 1, scheduled for completion in 2028, is expected to have a handling capacity of 4 million TEUs (Twenty-foot Equivalent Units), with the final stage scaling up to 16 million TEUs.

Phase 1 alone will require ₹18,000 crore for dredging, reclamation, breakwater construction, and development of core infrastructure.

Phase 2: Gradual increase in capacity beyond the initial 4 million TEUs. Additional berths and expansion of logistical and operational facilities.

Phase 3: Scaling up to a more advanced cargo handling capability. Further enhancements in equipment procurement and operational efficiencies to handle larger shipments.

Phase 4: Full-scale development to reach 16 million TEUs. Aimed at establishing the port as a major global transshipment hub​.

About Kamarajar Port: India’s 12th Major Port

Kamarajar Port, located in Ennore, Tamil Nadu, was declared India’s 12th major port in March 1999.

This port was the first corporatized major port in India, functioning as a public sector company with 100% equity held by the government.

The port was named after K. Kamaraj, a prominent Indian politician and former Chief Minister of Tamil Nadu, in recognition of his contribution to public welfare and development.

Located on the Coromandel Coast, Kamarajar Port primarily serves the industrial and commercial needs of Tamil Nadu.

Its strategic position near Chennai Port has allowed it to function as a satellite port to ease the congestion at Chennai, handling bulk and liquid cargo, including coal, iron ore, and petroleum products.

Ports In India

• India previously had 12 major seaports (11 Government-owned and one private) and 205 notified minor and intermediate ports that handle a huge volume of traffic.
• About 95 percent by volume and 70 percent by value of India’s total international trade are carried on through maritime transportation.
• All ports in India are situated in the 9 coastal states of India namely Kerala, Karnataka, Maharashtra, Goa, Gujarat, West Bengal, Odisha, Andhra Pradesh, and Tamil Nadu.
• Mumbai is the largest natural port in India.
• While the Major Ports are under the administrative control of Ministry of Shipping, the non-major ports are under the jurisdiction of respective State Maritime Boards/ State Government.