The center has decided to establish an international container transhipment port on Great Nicobar Island, the cost of which is around RS. 41,000 crores. In this podcast on the state of the economy: business areas TE Raja Simhan talks to Jagannarayan Padmanabhan, Senior Director and Global Head of Transport, Logistics and Mobility, CRISIL, about the Great Nicobar Island project and the way forward for the logistics sector.
Padmanabhan explains the critical role of transhipment in India’s quest to become a $5 trillion economy. He emphasizes the importance of optimizing logistics and reducing trading costs, and underscores the strategic need for a transshipment port to achieve these goals. The speaker also mentions the growing size of container ships and emphasizes how larger ships can significantly reduce transport costs.
Padmanabhan recognizes challenges such as environmental concerns, funding requirements for a greenfield project, skill development and environmental impact. He views the Nicobar Island project as a long-term endeavor, spanning a decade or more, designed to ensure it aligns with India’s evolving economic landscape.
He underscores the geopolitical importance of securing trade routes and suggests that multiple ports will serve different shipping companies, each potentially taking over a specific port for their operations.
Jagannarayan analyzes the feasibility of generating significant container traffic for the new port and proposes a gradual increase in capacity based on India’s economic growth trajectory. He discusses the potential for a variety of cargo types, such as bulk and liquids, while emphasizing that containers continue to take center stage due to their cost-saving and trade-securing benefits. He discusses the port’s transformative potential, contributing to cost reduction, trade security and increased containerization of cargo. Listen to the podcast!
(Host: TE Raja Simhan, Producers: Anjana PV & Siddharth MC)
Via the State of the Economy Podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have engulfed the rest of the world. But some sectors continue to stutter while others appear to be in overdrive. To help you understand the bundle of contradictions that the country represents, business line offers you podcasts with experts from finance and marketing to technology and start-ups.
https://www.thehindubusinessline.com/multimedia/audio/how-will-the-transshipment-port-at-great-nicobar-island-help-indias-logistics-sector/article67235338.ece How Will Transshipment Port on Great Nicobar Island Help India’s Logistics Sector?