India loses key Bangladesh port project to China. Should Delhi be concerned?
Amid turbulence in ties between India and Bangladesh, China seems to be stepping into that vacuum. Bangladesh Prime Minister Tarique Rahman, who chose China for
Amid turbulence in ties between India and Bangladesh, China seems to be stepping into that vacuum. Bangladesh Prime Minister Tarique Rahman, who chose China for his first foreign visit, has signed an agreement with a Chinese state-owned company to develop an economic zone near the strategic Mongla Port, which sits close to India's eastern coastline in the Bay of Bengal. Significantly, the land was originally earmarked for an Indian economic zone, but was delisted by the Muhammad Yunus regime as ties hit rock bottom. Read Full Story Mongla, Bangladesh's second-largest and second-busiest seaport after Chittagong, is just 188 km from Kolkata and sits close to the Sunderbans. The economic zone will be developed by China on 110 acres of land adjacent to Mongla Port in Bagerhat, according to a report in Bangladesh's Business Standard. China plans to set up manufacturing industries, warehouses and storage facilities in the zone. WHY INDIA SHOULD BE CONCERNED? For India, the concern is two-fold. First, a strategically key project has slipped out of its hands. Secondly, it opens the door for a larger Chinese presence in the Bay of Bengal and the wider Indian Ocean region. Even though investment in a port project does not automatically mean military access, China has previously been accused of using overseas ports where it has invested for intelligence gathering and surveillance activities.
The agreement signals a major policy shift by Bangladesh. It risks kicking off a strategic contest between India and China in a region that Delhi has traditionally viewed as its sphere of influence and backyard. Over the years, China has been actively expanding its influence across the Indian Ocean as part of its Maritime Silk Road initiative. It has invested heavily in ports from Gwadar in Pakistan to Djibouti in East Africa. In all, Chinese firms are involved in 17 Indian Ocean port projects. A major reason is energy security. China is the world's largest crude oil importer. About 80% of China's energy imports pass through the Indian Ocean. This underscores the strategic importance of ports like Mongla for China. HOW PORT PROJECT SLIPPED OUT OF INDIA'S HANDS? India had recognised the importance of the Mongla Port way early. It was in 2015, during the tenure of Sheikh Hasina, that Bangladesh and India signed an MoU to develop two economic zones - one in Mongla and the other in Chattogram's Mirsarai. India was to provide a line of credit to Bangladesh for the projects. Bangladesh wanted to modernise the Mongla Port and establish it as a capable port like Chittagong in the shortest possible time. To boost bilateral trade, the two countries also constructed a new railway line between Mongla Port and Khulna.
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