New Delhi’s decision to move ahead with a deep-water dry bulk transhipment port at Atlanta Bay in North Andaman marks a major expansion of India’s commercial and strategic footprint in the Bay of Bengal, at a time when regional competition is intensifying, defence and maritime experts have said.
The project, announced in October, is currently undergoing a techno-commercial feasibility study. The Andaman and Nicobar Islands’ Lieutenant Governor, Admiral D.K. Joshi (Retd), a former Chief of the Naval Staff, is personally supervising the initiative, underscoring the strategic importance the government attaches to the port.
Prime Minister Narendra Modi is expected to visit the Andaman and Nicobar Islands later this month. During the visit, he is likely to review progress on the Atlanta Bay and Galathea Bay port projects, along with key strategic defence assets across the archipelago, sources said.
Designed to handle some of the world’s largest dry-bulk vessels, including Capesize ships, the Atlanta Bay port is expected to feature the longest continuous berth in the country. While the Centre has positioned the project primarily as a commercial facility, defence analysts note that a deep-water port of this scale can also significantly enhance naval and coast guard operations, enabling large warships to refuel, resupply and operate closer to critical international shipping routes.
Commodore (Retd) Uday Bhaskar, Director of the Society for Policy Studies and a former Navy officer, said the Andaman and Nicobar Islands had remained underdeveloped for decades despite their strategic location.
“For a long time, India lacked both the resources and the vision to develop these islands, even though they sit next to some of the world’s most important sea lanes linking the Malacca Strait and the Bay of Bengal,” he said.
North Andaman lies close to major shipping corridors that carry a substantial share of global trade and the bulk of East Asia’s oil and gas imports. A strong presence in this region offers both commercial advantages and enhanced maritime domain awareness, allowing closer monitoring of vessel movements through these critical waters.
The islands already host India’s only tri-service military command, supported by airfields, naval bases and advanced surveillance systems. A large port at Atlanta Bay would further strengthen this infrastructure by facilitating the movement of troops, equipment and supplies, and by enabling longer and more sustained naval deployments.
Bhaskar said the scale of the Atlanta Bay project reflects a clear shift in India’s strategic thinking.
“The port is being designed to handle 200,000-tonne ships, which only a handful of ports globally can accommodate. India does not have anything comparable today. If the country aims to become a $5-trillion economy, a strong ocean-based trade system is essential, and these islands will be central to that vision,” he said.
Strategic urgency has also been heightened by China’s growing footprint in the region. Beijing has made significant investments in Bangladesh’s port infrastructure, including Chattogram, the country’s largest port, which Chinese naval vessels visited in 2025. China has also committed around $400 million to modernise Mongla, Bangladesh’s second-largest port, which analysts say has clear dual-use potential. Pakistan’s access to Mongla has further sharpened concerns in New Delhi.
Atlanta Bay is being developed alongside the much larger container transhipment port at Galathea Bay in Great Nicobar. While Galathea Bay is aimed at capturing global container traffic currently routed through hubs such as Singapore and Colombo, Atlanta Bay will focus on dry-bulk cargo, including coal, minerals and industrial raw materials. Together, the two projects would give India major maritime infrastructure at both ends of the Andaman and Nicobar island chain.
For New Delhi, experts say, the stakes extend well beyond trade. Economically, the ports are expected to reduce India’s dependence on foreign transhipment hubs and strengthen control over key supply routes. Strategically, they would significantly enhance India’s ability to project power and safeguard its interests across the eastern Indian Ocean.
