From
The Andaman Express, March 23, 2004

Storm over New Andaman Port
New Delhi:
The Shipping Ministry is toying with the idea of establishing a transhipment
port at Great Nicobar in the Bay of Bengal. It is reliably learnt that the
issue was discussed at a high level meeting recently. Sources say it was
decided that the feasibility fo the project could be examined after the
Andaman & Nicobar Island Administration obtains clearances from the Defence
Ministry. However, it could be tough to get these clearances as the Andaman
islands also form the base fo the country's only tri-services command and is
considered strategic from the country's defence standpoint.
Contingents of the navy, air force and army are stationed on the Andaman
islands under a unified command on the lines of the US.
Around 42% of the world trade is routed via the Andaman and Nicobar Islands
with China and Japan alone accounting for over $300 billion. At present,
Singapore is the hub for international shipping in the area. Even Indian
cargoes are often transhipped through Singapore as the big mother ships find
it quicker to dock and turn around for the port. The Shipping Ministry sees
scope for attracting part of this business to an Indian port.
However the Indian defence establishment is not comfortable with the entry
of foreign vessels around the Andamans. It has, in fact, been opposing the
entry of foreign companies for oil exploration in the offshore area of the
Andaman islands. The Indian Navy is of the view that any oil exploration in
these waters should be taken up by ONGC and senior officials should be
present on the oil rigs.
It made it clear to the oil companies that the permission of the navy would
have ot be taken before any foreign vessel was hired by them for undertaking
drilling in the area. If fact an oil exploration block was put up for
auction in the latest round through international bidding only after
petroleum minister Ram Naik had discussions with defence minister George
Fernandes.
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