Indian Ports Global scouts for overseas buyout targets: report

Government-backed port operator Indian Ports Global Ltd (IPGL) is weighing the acquisition of about 20 commercial ports across Asia and Africa, Mint reported, citing two people aware of the development.

IPGL currently operates Iran’s Chabahar terminal and is exploring the acquisition of ports in Bangladesh, Sri Lanka, East and West Asia, and Africa, along with a few other domestic ports, the report said.

IPGL and a group of state-run firms jointly submitted a proposal to the Union shipping ministry, which has forwarded it to the Centre for Maritime Economy and Connectivity for review, the report added, citing the people.

IPGL runs the Shahid Bheshti terminal at Chabahar port, a key gateway for India’s trade with Afghanistan and Central Asian countries.

The port is India’s strategic link to the International North-South Transport Corridor (INSTC), which aims to reduce transit times and costs for the country’s trade with Eurasia.

IPGL’s consortium includes Sagarmala Development Co. Ltd (SDCL) and the Indian Port Rail and Ropeway Corp. Ltd (IPRCL).

While IPGL handles day-to-day port operations, IPRCL looks after infrastructure development, and SDCL raises project funds.

The consortium collectively facilitates India’s acquisition and development of foreign ports, focusing on strategic corridors and trade routes.

The IPGL consortium may take up development work at the Mongla port in Khulna, Bangladesh, and Kanakeshwari near Jaffna in Sri Lanka.

Indian presence at Mongla port will enhance Northeast India’s access and improve the country’s trade connectivity with Nepal and Bhutan.

IPGL is also evaluating the development of infrastructural projects in the strategic South China Sea up to Vladivostok, the report said.

India is keen to develop the Eastern Maritime Corridor linking eastern Russian ports in Vladivostok. This project incorporates the acquisition of ports, terminals, or trans-shipment presence along the route.

Similarly, a few African countries have allowed India to operate their terminals, and IPGL may evaluate some of them, the report added.