Residents of Andaman could be in for a Dubai-shopping-like experience if a planned trade corridor between Campbell Bay and Indonesia’s Sabang moves from negotiation to reality. The proposed route, part of the India-Indonesia “Shared Vision of Maritime Cooperation in the Indo-Pacific” announced in 2018, is gaining traction as both governments advance discussions on operationalising a direct 200-kilometre maritime link.
Indonesian trade coordinator Rahmad Kudri, told The Wave Andaman that the corridor is being designed as a simple, low-investment trade route that can function on existing maritime infrastructure. Under the plan, Campbell Bay would be upgraded to support customs operations and serve as a transit point, with cargo destined for Nancowry and Sri Vijaya Puram continuing onward through the current inter-island vessel network.
Despite the Andaman & Nicobar Islands lying closer to Southeast Asian capitals than to mainland India, with Sri Vijaya Puram roughly 1,200 kilometres from Bangkok and 1,300 kilometres from Yangon, direct import channels have never been permitted. As a result, almost all goods arrive via Chennai or Kolkata, pushing up freight costs and leaving the islands with some of the steepest prices in the country for essentials, construction materials and FMCG products. Officials say a direct link to Sabang could ease this long-standing logistical constraint.
Sabang’s special trade status is a key attraction. The island functions as a free port and free trade zone, allowing duty-free import and sale of a wide range of goods. Travellers visiting Sabang are allowed to carry shopping items worth up to USD 500 tax-free upon return to mainland Indonesia, a rule Kudri said could create a Dubai-style shopping tourism experience for Andaman residents just a short sea journey away.
Sabang is a small island city on Pulau Weh in Indonesia’s Aceh province, located near the entrance of the Malacca Strait. It combines strategic geography with an active tourism and retail ecosystem, drawing nearly half a million visitors annually. Its port facilities include deep-berth container terminals, warehousing and cold-storage units equipped to handle marine products, textiles, FMCG items, construction materials and spices.
India and Indonesia already share a significant economic relationship, with bilateral trade touching USD 38 billion in 2022-23. Indonesia supplies coal, palm oil and minerals to India, while India exports refined petroleum products, machinery, textiles, pharmaceuticals and rice. Officials see the Sabang-Campbell Bay corridor as a sub-regional extension of this larger partnership, enabling faster, cheaper and more targeted movement of goods between Aceh and the Andaman & Nicobar Islands.
Kudri confirmed that RITES has completed a feasibility study for Sabang port’s expansion, with India agreeing to fund 85 percent of the proposed development. The corridor is expected to facilitate the movement of fish, coconut derivatives, betel nut, clove, nutmeg, textiles, FMCG products and construction materials from Aceh into the islands. In return, agricultural commodities and household essentials from the Indian side would have a more direct and cost-effective entry route into Aceh.
With Campbell Bay’s geographic proximity, Sabang’s port readiness and renewed engagement from both governments, officials involved in the discussions say the project is now shifting from long-standing strategic intent to a realistic maritime link in the eastern Indo-Pacific. If finalised, the corridor could reshape how goods, prices and even tourism flows move between the Andaman & Nicobar Islands and Southeast Asia.
