Neighbouring India now wants to operate Bangladesh’s second seaport Mongla, where both New Delhi and Beijing are also keen to invest in new terminal construction.
India already has secured transshipment facilities at Bangladesh’s two seaports in Chittagong and Mongla for carrying cargoes to its landlocked seven-sister states in the North East to avoid travelling over 1,650 kilometres.
Earlier in May, a delegation of India Ports Global Limited, led by its Managing Director Sunil Mukundan, visited Mongla Port to see the facility and had a meeting with high-ups of the port authority where they expressed their interest in operating the port.
“Yes, they came to visit our port and expressed interest to be involved in port operations,” confirmed a senior official of the Mongla Port Authority.
If successfully negotiated, Mongla will be the third international port operation for India after Chabahar Port in Iran and Sittwe in Myanmar, which both are managed by India Ports Global Limited.
The Indian company has been asked to submit a detailed written proposal to the Mongla Port Authority for consideration. The representative of the Mongla Port Authority said the delegation was told that after receiving the proposal it would be evaluated and if found profitable then would be sent to the government for a decision.
However, the official noted that a few weeks have already passed, but the written proposal from the Indian state-run company has not been received. “Maybe they are calculating the pros and cons to prepare the proposal,” pointed out the spokesperson.
Presently the Mongla Port has five jetties through which it handles container and bulk carrier vessels. Construction of two more jetties is going on to handle increased volume of cargo generated thanks to transshipment facilities given to India, Nepal, and Bhutan.
India offered a line of credit worth US$600 million to Bangladesh in 2015 to upgrade Mongla port facilities and subsequently a project was approved in 2018. In late 2022 the Mongla Port Authority signed a deal with Egis India Consulting Engineers to take forward the development works.
In 2016, China enlisted 27 Bangladeshi projects for funding, including a US$400 million fund for the expansion and modernization of Mongla port facilities. Although China was slow to release the funds, in December 2022, Beijing informed Bangladesh that it was ready to proceed with the project.
Sharar Nayel
Asia Correspondent