India to build $5bn Bay of Bengal container transshipment terminal

India’s Ministry of Ports, Shipping and Waterways has announced that the country will build a new container transshipment terminal, the Galathea Bay Transshipment Port. In a statement, the ministry said a transshipment hub in India would “attract Indian and regional transshipment traffic from the current hubs, save significant revenue loss, reduce logistics inefficiencies for Indian trade, reduce risks to the country’s export competitiveness and create an opportunity for India to become a large hub for Asia-Africa, Asia-US/Europe container traffic trade.”
India to build $5bn Bay of Bengal container transshipment terminal

The ministry said that “nearly 75% of India’s transshipped cargo is handled at ports outside India. Colombo, Singapore and Port Klang handle more than 85% of this cargo.” The terminal is expected to save Indian ports $200m to $220m a year on transshipment cargo. The ministry also anticipates that the terminal “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.”

The project will cost an estimated $5bn and the first phase of construction is expected to be completed in 2028. Capacity of 4m teu when phase one is completed will increase to 16m teu when the terminal reaches full capacity.

A concession of 30 to 50 years will be awarded to the winning bidder in a competitive process

SOURCE: February 1, 2023 splash247

Feb 6, 2023 15:20