New India's Global Leadership

The role of ports in international trade is crucial, and India has a long history of harnessing the power of its ports and long coastline for its integration into the global economy. Our country has come to rely increasingly on ports and waterways for both global logistics and security. In the last few years, we have also focused on military support emanating from both local and abroad ports. India has 12 major ports and 217 minor ports-all 229 ports are situated in the nine coastal states.

Ports-Led Development For Amrit Kaal

In the run up to our country’s entry into the Amrit Kaal last year, the Modi Government focused extensively on the ports sector after it came to power, with two key initiatives focusing on Indian ports-Maritime India Vision 2030 (MIV), launched in 2021 and the Sagarmala Project, launched in 2017. As per the data of Ministry of Shipping, 95% of India’s foreign trade is handled via ports.

The MIV focuses predominantly on inland water transport and aims to increase its share to 5% by 2030. It entails 150 initiatives across 10 areas, including port infrastructure, logistics efficiency, technology, policy framework, shipbuilding, coastal shipping, inland waterways, cruise tourism, marine ecosystem, and maritime security.

Sagarmala Project, meaning ‘Garland Of The Sea’, is a government initiative in India geared towards boosting the country’s logistics sector. The primary goal is to tap into the potential of waterways and the expansive coastline, minimising the need for extensive infrastructure investments to meet specified objectives. Its objectives include establishing new mega ports, upgrading existing ones, developing 14 Coastal Economic Zones (CEZs) and Coastal Economic Units, improving port connectivity through road, rail, multi-modal logistics parks, pipelines, and waterways. It also prioritises the development of coastal communities through boosting exports and job creation.

Vishwaguru of The Foreign Ports

However, what actually stands out in the Modi Government’s push for ports, is his Government’s push for focusing on overseas ports and placing India in a central position in the international maritime network. In addition to focusing on local ports and utilising their capacity for global trade, which has huge economic gains for India, the Government has also enhanced India’s maritime awareness and its control on important international sea routes.

Some key overseas ports wherein India has invested, are as follows-

  1. Chabahar Port- India assumed operational control of a section of Iran’s Shahid Beheshti Port, Chabahar, in December 2018. It is a deep sea port with pivotal access to the ocean. India’s investment aims to facilitate trade links with landlocked Afghanistan and Central Asian nations, reducing reliance on Pakistan’s land routes. Positioned along the International North-South Transport Corridor, Chabahar has the potential to evolve into a significant regional trade hub. Notably, it operates outside the realm of American sanctions, easing international trade. This was our country’s first venture into operating a port beyond its borders. It has also granted Central Asian countries safe and economically viable access to the Indian Ocean, stimulating regional investments.
  2. Haifa Port- In July 2022, Adani Ports and Special Economic Zone Ltd (APSEZ), in partnership with the Gadot Group, secured a $1.18 billion lease to privatise Israel’s Port of Haifa, handling nearly half of Israel’s container freight and serving as a key hub for cruise ships and passenger traffic. This collaboration strengthens India’s presence in Israel, in the backdrop of the two countries’ historical friendship. This will establish strategic trade routes between its Indian ports and Haifa to enhance bilateral trade, diversify cargo, and leverage operational expertise for improved efficiency.
  3. Colombo Port’s West International Container Terminal (WCT)- APSEZ signed an agreement in September 2021 to develop and operate the WCT. Collaborating in a public-private partnership, the project aims to enhance the WCT’s container handling capacity. This move is poised to expand transshipment options across South Asian waters, benefitting both India and Sri Lanka.
  4. Sittwe Port- It was constructed in 2016 in Myanmar as a part of the Kaladan Multi Modal Transit Transport Project, a joint project between India and Myanmar connecting the Port to the India-Myanmar border. The project aims to establish a multimodal transportation system, easing cargo movement to Mizoram and strategically connecting India’s northeast while reducing pressure on the Siliguri Corridor.
  5. Chattogram and Mongla Ports: A bilateral agreement between India and Bangladesh in 2018 facilitated the utilisation of Bangladesh’s Chattogram and Mongla ports for transshipment, enhancing connectivity between the two nations. Trials for cargo transshipment to India’s northeastern states are underway, aiming to streamline customs procedures and reduce transportation distance from Kolkata to northeastern cities by almost half, currently over 1,200 km.

Conclusion

The Government showed its seriousness towards investment in overseas ports, when it facilitated the formation of India Ports Global Private Limited (IPGPL), a joint venture company formed by Jawaharlal Nehru Port Trust and Kandla Port Trust, for the sole objective of Indian investment in overseas ports. The Government is now mulling over using IPGPL to own and run ports on a Government to Government basis (G2G). The Government is now targeting African nations and Indonesia, with an aim to directly handle their ports. Despite the significant coastline and the high number of ports, India’s waterways sector languished for years, becoming an economic drain as well as a security threat. The impetus given to this sector has led to a rise in the total number of ports, their cargo capacity, rise in economic activity, use of water routes, among other things. However, the Government of


Author : Bhavya Jha


Disclaimer : The views, thoughts, or opinions expressed in this blogs belong solely to the author, and do not necessarily reflect the views of author’s employer, organisation, committee or any other group or individual.

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