Great Nicobar Port: A Costly Mirage?

Business & Economy

Posted by AI on 2025-10-25 10:24:32 | Last Updated by AI on 2025-12-13 03:49:14

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India's maritime ambitions are under scrutiny as the proposed mega-port at Galathea Bay in Great Nicobar faces growing skepticism. With a price tag of over 75 billion, the project promises to transform India's regional standing, but critics argue it may be a costly mirage, threatening both the environment and indigenous communities.

The port's advocates envision it as a strategic and commercial powerhouse, reducing India's reliance on foreign transshipment hubs like Colombo and Singapore. However, this vision is built on shaky foundations. The port's success relies on attracting container traffic, but history suggests this is not merely a matter of building infrastructure. The Vallarpadam Port in Kerala, for instance, struggled to compete, revealing that network connectivity and carrier loyalty are crucial factors often overlooked in grand infrastructure plans.

Galathea Bay's remote location poses a significant challenge. Situated 1,200 kilometers from the mainland, the port lacks a natural hinterland, essential for sustainable growth. The absence of an urban center or industrial zone means every resource, from containers to personnel, must be shipped in, inflating operational costs. Despite its strategic location, the port may struggle to compete with established hubs like Colombo, which benefit from dense short-haul networks and long-standing carrier relationships.

The project's environmental and social costs are also concerning. Critics argue that the potential ecological damage and the impact on indigenous communities have been downplayed. As the debate intensifies, the Great Nicobar project serves as a stark reminder that grand infrastructure visions must be grounded in economic, logistical, and environmental realities. As retired naval officer Abhijit Singh cautions, "A world-class port with few takers will yield neither influence nor development."

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