For now, Galathea Bay remains largely untouched. A Google image search reveals photos of a vast white-sand beach backed by dense jungle. In just a few years, however, one of India’s largest container ports is set to be built in the bay at the southern tip of the Nicobar Islands. Delhi’s plans call for the construction of three piers, capable of handling up to seven container ships at once. Construction work is slated to start in April. In the long term, the port is meant to establish itself as a key hub in the Indian Ocean.
Galathea was chosen primarily for its strategic location. The waters off Great Nicobar Island naturally reach a depth of twenty meters, allowing large container ships to enter the bay. It is located only 40 nautical miles from the Malacca Strait, a chokepoint for roughly a third of global maritime trade. That proximity could make the planned port an attractive alternative to the transshipment points of Colombo, Singapore and Kuala Lumpur.
Proponents of the project argue that the existing transshipment ports are already operating at the limits of their capacity. If trade volumes in the Indian Ocean keep rising as expected, congestion and longer waiting times will follow, they maintain. A new hub, they contend, would ease bottlenecks and make economic sense. They further argue that India could save foreign currency if goods were transshipped at an Indian port instead of abroad.
India aims to reduce reliance on foreign ports
Transshipment ports are important hubs along international shipping routes, where cargo is transferred from one ship to another. Without a major transshipment hub of its own, India currently relies on foreign ports for 75% of its seaborne trade – about 45% is handled in Colombo, Sri Lanka, while another 40% passes through Singapore and Port Klang near Kuala Lumpur. By building the port in Galathea Bay, the Indian government hopes to save up to $220 million each year.
Yet doubts persist over the project’s economic viability. The port will struggle to survive amid competition from the low-cost ports of Singapore and Colombo. A port’s attractiveness hinges largely on how quickly ships can be loaded and unloaded. As of now, ships spend around 24 hours in Colombo and only 12 hours in Singapore. Indian ports, on the other hand, have an average turnaround time of 48 hours.
In addition, Galathea is located more than 1,600 kilometers away from the Indian mainland . Unlike Colombo or Singapore, the port on Great Nicobar will lack direct road and rail links to an economic hinterland. The island is almost completely covered by jungle and has less than 9,000 inhabitants. The only notable settlement is located at Campbell Bay a little north of Galathea, where the island’s only existing harbor is situated.
Environmental concerns spark outrage
Construction is set to be costly and complex, as all materials, equipment and labor must be transported from the mainland. The government’s policy think tank, Niti Aayog, expects construction costs to reach $5 billion. In its initial phase, the port will have a capacity of 4 million containers per year. After its completion in 2058, it will be able to handle 16 million containers a year.
In addition to the container port, the project also includes construction plans for shipyards, a cruise terminal, an electricity plant and an airport at the southern tip of Great Nicobar. According to the government, 130 square kilometers of pristine rainforest are set to be cleared for this purpose – a move that has sparked outrage among environmentalists. The beach at Galathea is an important breeding ground for the leatherback turtle, the world’s largest turtle, which can grow up to 2.5 meters in length.
Environmental activists accuse the government of altering the boundaries of a protected nature reserve on the island to facilitate construction. They also argue that the expected destruction of the environment is at odds with the government’s stated ambition of turning the island into a tourist destination. The government has rejected inquiries about environmental clearances, citing national security concerns. The authorities have been denying journalists access to the region for years.
