A greenfield deep-sea port has been approved by the Indian government, which is to be constructed near Colachel in Tamil Nadu in order to reclaim gateway cargo transhipped both at Colombo and Singapore, as well as internationally, according to JOC.com.
The Indian government said: “Currently, all of India’s transhipment traffic gets handled in Colombo, Singapore and other international ports. The Indian port industry loses up to Rs. 1,500 crore (about US$230 million) revenues each year. At present, there are only a few ports in India that have sufficient draft and can match global cargo handling efficiencies.”
This development follows news that a feasibility report had been conducted by Typsa Group and Boston Consulting Group, which found that a new container transhipment terminal at Colachel Port could recapture large amounts of transhipment cargo.
The proposed terminal would have the latest automation technology for container handling.
The Indian government is currently accelerating plans for its multi-billion dollar Sagarmala project, which it is set to invest more than $60 billion into 150 projects over the next 10 years.
Previous reports from PTI showed that the Indian government had set aside almost $3 billion for port-rail projects as part of the programme.
In terms of transhipment, Krishnapatnam Port is planning to become the largest transhipment hub on the East Coast of India and is set to induct a strategic investor to help with this.