India Secures Access to Bangladesh's Mongla Port, Strengthening Maritime Ties

India has achieved a significant strategic advantage by acquiring operational rights to a terminal at Mongla Port, Bangladesh's main seaport. This development has enormous ramifications for regional dynamics and strengthens India's maritime influence, especially in the Indian Ocean. It also forms part of India's border policy to resist China's expanding influence in the area.

This plan builds on India's earlier successful bids to handle overseas ports, such as Chabahar in Iran and Sittwe in Myanmar. The details of the Mongla port contract are unknown, although sources indicate that Indian Port Global Limited (IPGL) will operate the terminal. Despite being relatively new to the global port management scene, India has begun to make considerable investments in the field.

The management of the Mongla port terminal is projected to greatly improve India's trade linkages and regional influence. Bangladesh granted India full transit and cargo shipping access to its Chittagong and Mongla ports in 2018, boosting bilateral trade.

China, on the other hand, has been actively increasing its influence across the Indian Ocean through its Maritime Silk Road plan, with investments in ports ranging from Gwadar in Pakistan to Djibouti in East Africa. Chinese firms are active in 17 Indian Ocean ports, building 13 and having shares in 8 projects. China relies heavily on the Indian Ocean for 80% of its energy imports, making maintaining its position in the region critical.

However, the Mongla port marks a historic turning point for Bangladesh, necessitating careful management of its relations with both China and India. Bangladesh benefits from a win-win arrangement, regardless of which of the two companies operates Mongla Port. Recent travels by Bangladesh Prime Minister Sheikh Hasina to India and China highlight this balancing act. During her visit to India, she signed many cooperation agreements, including one in the maritime sector. In contrast, her journey to China yielded a very meager USD 137 million in financial support, far short of the USD 5 billion loan she requested.

India's operation of the Mongla Port will help boost bilateral trade with Bangladesh significantly. Second, it will provide alternate access to the Kolkata port, bypassing the crowded Siliguri corridor and facilitating maritime trade in India's landlocked northeast region. The Mongla port, located near Kolkata, has the potential to dramatically shorten cargo delays and boost commercial efficiency.