India builds a port consortium to snap up foreign assets

The planned consortium of India Ports Global Ltd (IPGL), Sagarmala Development Co. Ltd (SDCL), and Indian Port Rail and Ropeway Corp. Ltd (IPRCL) is expected to strengthen India’s maritime heft, at a time China’s shadow looms over several Asian ports.

IPGL will look at operations, IPRCL will build the actual infrastructure, and SDCL will raise finances for the ventures, shipping secretary T.K. Ramachandran said.

“We are putting through a consortium of these three companies so that they can deliver projects, take their operations across the world. The focus will be on potential development opportunities along the proposed 7,200 km long International North-South Transport Corridor (INSTC), a multi-modal network of roads, railways, and sea routes that connects India to Russia, Iran, Central Asia, and Europe. Also, the India-Middle East-Europe Economic Corridor (IMEC) and the Eastern Maritime Corridor would provide opportunities to India to develop infrastructure that further facilitates cargo movement along global trade routes,” Ramachandran said in an interview.

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To begin with, the consortium will take up work on Mongla, the second largest and busiest port in Bangladesh, providing India access to cargo trade from the country’s North East region, and connect to Nepal and Bhutan. It will also cover infrastructure projects in the strategic South China Sea area up to Vladivostok in Russia, catering to the busy trade route between Asia-Pacific, Europe and Africa.

Economic corridors are seen as modern-day Silk Routes linking nations in Asia, Europe and Africa through port, rail and road networks, speeding up cargo movement and reducing logistics costs. India and Iran had signed a government-to-government agreement to develop the Chabahar port as early as 2002, a project which bore fruit this year. Similar agreements are likely for future projects along the economic corridors under development too, Ramachandran said.

India has already begun operating the Chabahar port as well as the Sitwe port in Myanmar. Talks are now on to get Indian consortium to take up two more port development projects in Bangladesh and Sri Lanka, the secretary said.

Another international project involves terminal development work at Kankesanturai near Jaffna in Sri Lanka. A ferry service already operates between Tamil Nadu’s Nagapattinam and Kankesanturai, and a terminal would further facilitate trade and trans-shipment. The terminal would also help India strengthen its foothold in the neighbouring country, where China has already built a port facility. Besides government-run enterprises, the Adani group is also involved in a port development project in Sri Lanka.

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“This initiative to acquire strategic port locations marks a pivotal step in strengthening India’s blue economy and enhancing global trade. By diversifying port access, India can attract greater investment, reduce dependency on specific trade routes, and mitigate risks from geopolitical tensions and natural disasters. Well-connected ports will facilitate trade and stimulate regional development while ensuring a reliable supply of energy resources like oil and gas,” said Pushpank Kaushik, chief executive officer and head of business development (subcontinent, Middle East and SouthEast Asia) at Jassper Shipping, a Hyderabad-based global shipping and logistics service provider.

“With initiatives like Sagarmala and the Amrit Kaal Vision, along with public-private partnerships, India is poised for significant expansion in the blue water economy. Companies like Adani Group are already investing $3 billion over the next 3-5 years to enhance global port capacity, targeting strategic acquisitions in Europe, Africa, and Southeast Asia and bolster the India-Middle East-Europe Economic Corridor,” he added.

The international foray is expected to expand India’s presence in the global maritime segment.

“We want to be a global leader in the maritime sector, and the policy initiatives are aimed to develop the ecosystem necessary for growth and development of the sector,” shipping minister Sarbananda Sonowal told Mint in an interview on 25 September.

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Along with global port ventures, India is also strengthening its domestic port facilities. The government has approved a ₹76,220 crore mega-port at Vadhavan in Maharashtra, which will not only help to scale up country’s port infrastructure but also create employment opportunities to the extent of 12 lakhs. Another mega port is proposed at Galathea Bay in the Andaman & Nicobar Islands. This ₹44,000 crore project will be developed under a public-private partnership model and aims to capture trans-shipped cargo currently handled outside India.