How India's IPGL is flexing its port muscles abroad
State-run Indian Ports Global Ltd (IPGL) is leading a consortium to acquire and operate 20 commercial ports across Asia, Africa and India, two people aware of the matter said. The company, which operates Iran's landmark Chabahar terminal, has set its eyes on ports in Bangladesh, Sri Lanka, Africa, West and East Asia, as well as in India.
IPGL, along with a group of state-run companies, has submitted its proposal to the Union shipping ministry, which has asked the Centre for Maritime Economy and Connectivity (CMEC) to examine the plan, the people cited above said on the condition of anonymity.
Sunil Mukundan, managing director of IPGL, confirmed the development. 'We have proposed the operation of 20 ports across the globe and in India to the ports and shipping ministry. Further action would be made on getting directions on our proposal," he said.
IPGL operates the Shahid Beheshti terminal at Chabahar Port, a strategically important gateway for trade with Afghanistan and Central Asia. The port is crucial for India's connectivity ambitions and its participation in the International North-South Transport Corridor (INSTC) that aims to reduce transit times and costs for trade with Eurasia.
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The IPGL consortium has not revealed its targets, but may start with terminal development work at the Mongla port at Khulna, Bangladesh's second largest and busiest port, as well as at Kankesanturai near Sri Lanka's Jaffna, the people cited earlier said. Presence at these locations, also coveted by China, aims to serve India's strategic and commercial interests along the existing trade routes between Asia-Pacific, Europe and Africa.
The Indian government may directly negotiate with its foreign counterparts to advance these deals, one of the two people said. India is keen to develop the Eastern Maritime Corridor, which will link its eastern ports to the Russian port in Vladivostok, with strategic acquisitions of ports, terminals, or trans-shipment presence along the route. The IPGL plan may also include infrastructure projects in the strategic South China Sea area up to Vladivostok.
Some African countries have offered India the opportunity to operate their terminals, and IPGL may evaluate some of them, the second person quoted above said.
A query sent to the shipping ministry remained unanswered till press time.
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'Some Indian private groups have already been very active in acquiring international ports/terminals, and this focused initiative by IPGL will further cement India's role in international maritime trade and help create trading routes which are shielded from international geo-political risk," said Kuljit Singh, Partner and Infrastructure Leader, EY India. "India has been on good terms with most countries, and hence, getting approvals for Indian investments in global ports may not be so difficult and, in fact, such port investments can be leveraged to enhance Indian influence beyond its borders. India can also bring in international best practices for its own ports from these international investments," Singh said.
IPGL has previously acquired ports in Iran, Myanmar and Sri Lanka, and has ambitions to expand into Africa as well, said Pushpank Kaushik, chief executive officer and head of business development (Subcontinent, Middle East and Southeast Asia) at Jassper Shipping, adding the latest proposal shows a clear effort to increase strategic reach and improve trade connectivity.
"With more ports under its control, India's influence on trade routes and supply chain stability is expected to grow. Control over ports along important corridors like the INSTC and IMEC will help logistics to be streamlined, transit times and costs to be reduced, and supply chains to become more resilient," he added.
The G20's proposed India-Middle East-Europe Economic Corridor (IMEC) includes a western maritime corridor connecting India to Europe via the Middle East, including Israel. This corridor aims to enhance trade and connectivity by improving infrastructure and reducing transit times between India and Europe. The IMEC has two main components: an Eastern Corridor connecting India to the Gulf countries and a Northern Corridor connecting the Gulf to Europe.
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Meanwhile, the INSTC is a 7,200-km multi-modal transportation route that connects the Indian Ocean and Persian Gulf to the Caspian Sea via Iran, and then to northern Europe via Russia. Established in 2000 by India, Iran, and Russia, it aims to enhance trade and connectivity among member countries.
India has set up Bharat Ports Global Consortium, bringing together three state-run enterprises—IPGL, Sagarmala Development Co. Ltd (SDCL), and Indian Port Rail and Ropeway Corp. Ltd (IPRCL)—for acquiring ports, and undertaking port and terminal work overseas. While IPGL will oversee operations, IPRCL will build the actual infrastructure, and funding will be raised by SDCL.
Along with global port ventures, India is also strengthening its domestic port facilities. The government has approved the
₹
76,220 crore mega port at Vadhavan in Maharashtra, which will not only scale up country's port infrastructure but also create potential employment opportunities of 1.2 million. Another mega port is proposed at Galathea Bay in the Andaman & Nicobar Islands. This
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44,000 crore project will be developed under a public-private partnership model and aims to capture transhipped cargo currently handled outside India.
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