India has effectively secured operational rights for a terminal at the Mongla port in Bangladesh, even as Chinese influence in the Indian Ocean Region is rapidly growing, South China Morning Post said. This agreement is perceived as a component of New Delhi’s attempts to overtake Beijing in the global competition to acquire quasi-control over overseas ports.

Though the Indian government has not confirmed any such development, some media sources cited a top official from the Ministry of Ports, Shipping, and Waterways saying that the Mongla port terminal secured by India would be run by Indian Port Global Limited (IPGL). Earlier, IPGL indicated it was looking to expand its business and acquire some overseas ports.

EurAsian Times reached out to the Indian Ministry of External Affairs (MEA), but the ministry declined to comment. However, a previous MEA press briefing had emphasized the joint inauguration of the Khulna-Mongla Port rail line in 2023 by Bangladesh Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi to highlight the “robust” ties between the two South Asian countries.

Additionally, several Indian media reports last month indicated India was keen on operating Bangladesh’s Mongla Port and constructing a new terminal there. The Mongla Port is the second largest and second busiest seaport of Bangladesh. Traffic to the port has risen since Chittagong Port began rerouting shipments due to significant congestion.

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The Mongla seaport currently has five jetties handling bulk carriers and cargo ships. Since the Padma Bridge’s construction shortened the port’s distance from the capital, shippers have shown an increased interest in using the port, prompting the development of two new jetties to improve its capacity.

Earlier, Bangladesh took a big step by allowing India to use the Chittagong and Mongla ports for cargo vessels in transit and trans-shipment.

The recent reports come weeks after Sheikh Hasina’s two-day visit to India last month, during which she had a meeting with Indian Prime Minister Narendra Modi. Both states signed several cooperation agreements, at least one of which was reportedly a maritime agreement. SCMP speculated that the decision may have been taken during that visit.

More importantly, though, the move would be a strategic win against China expanding its presence in the IOR by injecting huge capital and securing key infrastructure. The Indian Ocean Region (IOR) is vital for China’s Maritime Silk Road project.

For a long time, China has implemented its “String of Pearls” strategy, establishing infrastructure projects and strategic locations from the Middle East to Asia to enhance its influence and naval access. Subsequently, Beijing rebranded this geopolitical initiative as the Maritime Silk Road initiative.

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Beijing is investing heavily in ports, spending US$1.6 billion in Gwadar, Pakistan, and US$78 million in Djibouti. It also secured a 99-year lease for Hambantota Port from a cash-strapped Sri Lanka.

Currently, Chinese companies are building 13 of the 17 Indian Ocean ports and own interests in eight of the projects. Ports in the Indian Ocean region play a crucial role in China’s strategic interests, with nearly 80% of its energy imports passing through this area.

China has access to Chittagong in Bangladesh, Gwadar in Pakistan, and Hambantota in Sri Lanka, all in India’s backyard. Some observers label this as India’s “triangle of death,” speculating that China might use these ports to station its warships and submarines in the future.

China has made no bones about its plans for the IOR, as highlighted by an innocuous statement from a Chinese defense official: “The Indian Ocean is not India’s ocean.”

With Mongla likely in India’s fold, experts predict that management of the port terminal will strengthen India’s position in regional security and increase its control over strategic maritime sites on the western and eastern sides of the Indian Ocean. Moreover, it would expand India’s influence, as it would be the third overseas port New Delhi secured after Chahabar in Iran and Sittwe in Myanmar.

Additionally, it could highlight the robustness of India-Bangladesh relations at a time when Beijing has been paying more attention to Bangladesh.

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Bangladesh is strategically located between India, an emerging Asian powerhouse with a long-standing border conflict with China, and Myanmar, once an ally of China but now facing internal turmoil.

Amidst growing tension over territorial disputes and resources, China and Bangladesh reaffirmed their relations during Bangladeshi Prime Minister Sheikh Hasina’s visit to Beijing earlier this month.

According to Xinhua, following their meeting, Hasina is said to have “upgraded their relationship to a comprehensive strategic cooperative partnership” with Chinese President Xi Jinping. While no specific details were provided, such an upgrade typically indicates the formation of closer economic ties, primarily backed by Chinese policy banks. The two parties also signed 21 Memoranda of Understanding (MoUs).

Earlier this year, as the Hasina government came under pressure from the West to hold free and fair elections, China openly supported the leader. As Bangladesh’s foreign exchange reserves are running low, China has been expressing a willingness to support the country’s economy.

However, Bangladesh maintains autonomy in its foreign policy and has repeatedly pushed for closer ties with India. This was evident when Sheikh Hasina visited India twice, once during Narendra Modi’s swearing-in ceremony and again a few weeks later in June.

A senior government official in Bangladesh summarized his nation’s “balanced diplomacy” by saying that China was a friend Bangladesh needed to achieve its development goals and that India was a tried-and-true political ally.

Speaking at a Dhaka event ahead of Prime Minister Sheikh Hasina’s upcoming four-day visit to China starting on July 8, Obaidul Quader, the powerful general secretary of the ruling Awami League, stated that Sheikh Hasina’s detractors could not bear the thought that during her tenure, Bangladesh had completed significant developmental projects with the assistance of China and India. He also praised India specifically, citing the signing of the 2015 Land Boundary Agreement as evidence.

Against that backdrop, securing Mongla would grant India a bigger role in Bangladesh as well as in the wider IOR. “Mongla is a potentially major opportunity for India to establish its credibility as an equitable port partner for Indian Ocean littorals seeking such expertise, former Indian naval officer Commodore C Uday Bhaskar was quoted as saying by SCMP.

Besides positioning India as a major player in regional security and countering China in the region, the port would also enhance bilateral trade between New Delhi and Dhaka and prevent the latter from completely slipping into the Chinese fold.