NEW DELHI: Once again India has proved its supremacy by securing a notable strategic victory by obtaining the operational rights to a terminal at Bangladesh’s Mongla port, a move that has notable implications for the regional dynamics, especially for China.
It is the country’s second-largest seaport after Chittagong and the move is being seen as an attempt to curb Beijing’s ambitions in the region.
It’s India’s third successful attempt to run overseas ports in recent years, after Chabahar in Iran and Sittwe in Myanmar.
According to reports, Indian Port Global Limited (IPGL) will manage the terminal at the Mongla port, further details are still awaited.
This development will minimise Beijing’s impact in the Indian Ocean and its grip over strategically important foreign ports.
According to experts, India, is new to the global port management scene, but is investing significantly in this sector and this development is a great opportunity for New Delhi to establish its credibility as an equitable port partner for Indian Ocean coastal states seeking such expertise
The operational rights on one hand will strengthen India’s influence over key maritime locations and reinforce its role in regional security, on the other hand it will stun Beijing due to its substantial investments in the region.
As part of its Maritime Silk Road initiative, China has invested in ports from Gwadar in Pakistan to Djibouti in East Africa. Beijing’s investments include USD78 million in Djibouti and USD1.6 billion in Gwadar.
Chinese companies have involvement in 17 Indian Ocean ports, constructing 13 of them and holding stakes in eight projects. Beyond the Indian Ocean, Chinese companies have also secured leases for ports or terminals in countries like the UAE.
These ports hold a very strategic importance for Beijing as about 80% of China’s energy imports pass through the Indian Ocean. The Mongla port deal is seen as New Delhi’s strategy to counter China’s substantial investments in the region, enhancing India’s influence over key maritime locations and reinforcing its role in regional security.
Now, if we look at Bangladesh, it is a potential hub for intra-regional trade in the Indo-Pacific as it stands at a strategic crossroads in South and Southeast Asia. With an aim to enhance its infrastructure and economic development, by capitalising on Beijing’s financial resources, Bangladesh joined China’s Belt and Road Initiative in 2016.
China has been investing a lot in recent years in Bangladesh, with projects including the development of a 750-acre industrial park in Chittagong and a single-point mooring system at the Chittagong port. However, the Mongla port holds a very critical position where Bangladesh needs a balancing act to manage its ties with both China and India carefully.
Bangladesh Prime Minister Sheikh Hasina’s recent visits to both India and China shows her strategy to maintain cordial relationship with both the countries. During her trip to India, several co-operation deals were inked, including those in the maritime sector. Conversely, her trip to China resulted in a comparatively modest USD137 million financial aid, far short of the USD5 billion loan she sought.
By getting the operating rights of the Mongla port terminal, India will get a boost in its trade connectivity and regional influence. In 2018, Bangladesh gave India full access to both the Chittagong and Mongla ports for transit and cargo shipping, a step that has already enhanced bilateral trade.
India’s involvement in the Mongla port not only enhances its economic relationship with Bangladesh but also counters China’s expanding maritime influence. The port is strategically important as it provides India a base in the Bay of Bengal.
By obtaining the operational rights to the Mongla port terminal, India aims to highlight its maritime power and secure its interests in the Indian Ocean, a region important to its national security and economic development.
This move boosts India’s maritime capabilities and also signifies its growing influence in a region where China has been making substantial inroads.
