Great Nicobar Mega Port Cleared: India’s Strategic Gateway to the Malacca Strait Takes Shape

India has taken a decisive step toward strengthening its maritime and geopolitical influence with the clearance of the ₹90,000-crore-plus Great Nicobar mega infrastructure project. After years of environmental scrutiny and legal delays, the National Green Tribunal (NGT) has upheld the 2022 environmental approval, effectively clearing the path for one of India’s most ambitious strategic projects in the Bay of Bengal.

The project envisions transforming Great Nicobar Island into a major international transshipment and logistics hub, positioned close to one of the world’s busiest maritime corridors — the Malacca Strait.

A Multi-Layered Strategic Project

Spread across 166 square kilometres near Galathea Bay, the project integrates three core components:

• An International Container Transshipment Port (ICTP)
• A dual-use civil and military airport
• An integrated township

This structure highlights that the initiative is not purely commercial. It combines economic objectives with long-term national security considerations.

The ICTP alone carries an estimated investment of ₹40,040 crore. The first phase, targeted for completion by 2028, requires ₹18,000 crore and is expected to handle over 4 million TEUs annually. At full capacity, the port could process 16 million TEUs per year.

To safeguard strategic interests, the government has decided that foreign port operators will not be allowed to run the facility. Instead, a joint venture majority-owned by an Indian private entity will develop and operate the port, with state-owned ports holding minority stakes. The 50-year concession period will be backed by viability gap funding from the Centre.

Why Location Is India’s Biggest Advantage

Great Nicobar Island lies about 520 km from Port Blair and just 40 nautical miles from the Malacca Strait — the critical maritime link between the Indian Ocean and the Pacific Ocean.

A significant portion of global trade, including a major share of China’s energy imports, passes through this chokepoint. The island’s location places it almost equidistant from Colombo, Singapore, and Port Klang — three major transshipment hubs that currently handle a large share of India’s container traffic.

At present, more than 75% of India’s transshipped cargo is processed outside the country, with over half routed via Colombo. The new port aims to reverse this dependence.

Economic Logic Behind the Port

India’s container traffic stood at approximately 17 million TEUs in 2020, far behind China’s 245 million TEUs. This gap underscores the structural limitations in India’s maritime infrastructure.

When Indian cargo is routed through foreign ports, associated revenues — including port charges and logistics services — benefit those economies. The Great Nicobar ICTP seeks to retain that value within India.

With natural water depths exceeding 20 metres at Galathea Bay, the port can accommodate ultra-large container vessels without extensive dredging. Large “mother vessels” could dock directly at Great Nicobar, while feeder vessels distribute cargo to Indian ports, reducing sailing times and logistics costs.

Strategic Implications in the Indian Ocean Region

Beyond economics, the project carries strong geopolitical undertones. Official feasibility reports have highlighted national security and maritime consolidation as central objectives.

China’s global rise was reinforced by its investment in world-class ports like Shanghai and Shenzhen. Similarly, India’s move reflects a long-term strategy to build infrastructure that strengthens both trade competitiveness and strategic influence.

The inclusion of a dual-use airport enhances the island’s significance as a forward strategic outpost in the Bay of Bengal, particularly amid growing competition in the Indo-Pacific.

Alongside the operationalisation of Vizhinjam International Seaport in Kerala — India’s first full-fledged deepwater transshipment port — the Great Nicobar project represents a two-front maritime strategy. While Vizhinjam focuses on the Arabian Sea routes, Great Nicobar targets the Bay of Bengal and the Malacca corridor.

Transshipment: The Missing Link in India’s Trade Strategy

A transshipment hub serves as a cargo transfer point where containers shift from large ocean vessels to smaller feeder ships. Since many Indian ports lack the depth for ultra-large ships, domestic cargo has historically been consolidated at foreign hubs.

By establishing a competitive alternative near the Malacca Strait, India aims to insert itself into established global shipping networks. Over time, the Great Nicobar port could draw cargo volumes currently handled abroad, strengthening India’s logistics autonomy.

A Long-Term Strategic Bet

The Great Nicobar project is more than an infrastructure initiative — it is a strategic wager on India’s role in future global trade flows.

If the first phase becomes operational by 2028 as planned, India could begin reclaiming transshipment revenues and enhancing control over its maritime logistics. As the country seeks to position itself as a manufacturing alternative to China, efficient and strategically located ports will be crucial.

Manufacturing ambition requires logistics strength. Trade expansion demands maritime independence. The Great Nicobar mega project represents India’s attempt to secure both.