The center has decided to build an international container transshipment port on Great Nicobar Island at a cost of about Rs. 410 billion rupees. In this State of the Economy podcast, line of business TE Raja Simhan talks to Jagannarayan Padmanabhan, CRISIL Senior Director and Global Head of Transport, Logistics and Mobility, about the Greater Nicobar Island project and the future of the logistics industry.
Padmanabhan explained the critical role of transshipment in India’s vision of becoming a $5 trillion economy. He emphasized the importance of optimizing logistics and reducing trade costs, and emphasized the strategic need to establish transshipment ports to facilitate these goals. The speakers also mentioned the increasing size of container ships, emphasizing how larger ships can significantly reduce shipping costs.
Padmanabhan acknowledged challenges such as environmental concerns, funding needs for greenfield projects, skills development and ecological impact. He sees the Nicobar Island project as a long-term effort of a decade or more to ensure it fits with India’s changing economic landscape.
He emphasized the geopolitical importance of securing trade routes and suggested that multiple ports would serve different shipping lines, each potentially with a specific port for their operations.
Jagannarayan analyzed the viability of the new port to generate large volumes of container traffic, recommending a gradual increase in capacity in line with India’s economic growth trajectory. He discussed the potential for various cargo types such as bulk and liquid, while emphasizing that containers remain a major focus due to their cost-saving and trade-safe advantages. He discussed the transformative potential of the port, arguing that it could contribute to cost reductions, trade security and increased containerization of cargo. Listen to the podcast!
(Moderator: TE Raja Simhan, Producers: Anjana PV and Siddharth MC)
About the State of the Economy Podcast
India’s economy has been hailed as a bright spot amid the general gloom gripping the rest of the world. But while other industries appear to be pulling out all the stops, several continue to stall. To help you understand the contradictions in this country, career line Bringing you podcasts from experts in everything from finance and marketing to technology and startups.