(Photo : www.iprcl.in)

India is preparing to launch a new consortium of state-run port ventures aimed at acquiring and developing foreign terminals as part of its strategic efforts to increase its access and control over key international sea routes and trade hubs. According to a report from Mint, the consortium includes state-run India Ports Global Ltd (IPGL), Sagarmala Development Co Ltd (SDCL), and Indian Port Rail and Ropeway Corp Ltd (IPRCL).

 IPGL will manage the operations, while IPRCL will be building infrastructure, and SDCL will handle financing, according to the report. Shipping Secretary T.K. Ramachandran mentioned that the consortium's immediate focus will be on development opportunities along the International North-South Transport Corridor (INSTC), a significant network of roads, railways, and sea routes that connects India with Russia, Iran, Central Asia, and Europe.

The report also highlights the potential for India to capitalize on other emerging trade corridors, such as the India-Middle East-Europe Economic Corridor (IMEC) and the Eastern Maritime Corridor. This will facilitate cargo movement across these vital routes.

India's first investment on a foreign port outside its borders was in Iran's Chabahar port. The Indian government entered into a contract for equipping and running the Chabahar Port in 2016 and it assumed control of operations of a portion of the port in 2018.

Further India also constructed the deepwater Sittwe Port in Myanmar in 2016. Both ports have manifested India's commitment towards operating the ports in foreign soil and play a crucial role in facilitating regional connectivity and trade. The government is also in talks to take up new projects in Bangladesh and Sri Lanka, marking further expansion in the region.

The consortium's first project will be the development of Mongla Port in Bangladesh, the country's second-largest port. The contract will improve India's access to trade from its northeastern region and create direct connections to landlocked Nepal and Bhutan.

 Role of Private Players: Adani Group's Strategic Expansion

India's efforts are not limited to government-run initiatives. Private sector players, particularly the Adani Group also have secured contracts to operate ports in foreign countries.. In 2021, Adani Ports secured a contract to develop and operate the West Container Terminal at the Colombo Port in Sri Lanka, one of the busiest trans-shipment hubs in the region. The project, a joint venture between the Adani Group (holding 51%), Sri Lanka's John Keells Holdings, and the Sri Lanka Ports Authority, involves an investment of approximately $700 million. This initiative is expected to significantly enhance the port's capacity and is seen as a counterbalance to China's influence in the region, where Beijing has developed both the Colombo International Container Terminal and the Hambantota Port.