11 firms expressed interest in port project in Great Nicobar Island: Govt

Last year, the Ministry of Ports, Shipping and Waterways in a statement said the project is expected to be completed with an investment of Rs 41,000 crore (USD 5 billion), including investment from both government and public-private partnership (PPP) concessionaires.

“11 players have submitted expressions of interest for the international transhipment port project at Great Nicobar Island,” the ports, shipping and waterways minister said.The EOI was sought on January 28, 2022.

The project is located on the international trade route, with existing transhipment terminals like Singapore, Klang and Colombo in proximity.The project focuses on three key drivers, which can result in making it a leading container transhipment port — 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 transhipment cargo from all the ports in the proximity, including Indian ports, as per the statement.

The proposed facility is envisaged to be developed in four phases.

Public-private partnership (PPP) will be encouraged for this project via landlord mode. The PPP concessionaire will have the flexibility to develop a storage area, container handling equipment and other infrastructure based on the 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), will be responsible for the provision(s) of port services and shall have the rights to levy, collect and retain charges from port users.

Currently, nearly 75 per cent of India’s transhipped cargo is handled at ports outside India.Colombo, Singapore and Klang handle more than 85 per cent of this cargo, with more than half of it handled at Colombo port.