Markets

India's Urgent Need: Dual-Use Ports for Trade and Security

By Hazle Jakubowski

September 8, 2024

284

The Indian Ocean, covering approximately one-fifth of the world's sea area, plays a vital role in global trade, supporting about 80% of worldwide maritime oil transactions. Its strategic significance has not escaped China's attention. Over the past decade, China has been strategically securing foreign port access for dual use—logistical and military purposes—in an attempt to encircle India within the Indian Ocean region. 
 
Ports designated for dual use do more than just cater to ocean-going vessels; they allow countries to strengthen their positions at key locations, gather intelligence, and establish themselves as reliable bilateral partners amid increasing global instability. 
 
China seems to hold a first-mover advantage with its extensive coastline that houses 34 major ports, including some of the largest globally. Additionally, Chinese entities own or operate nearly 100 ports across around 50 countries. It is also worth noting that China ranks among the top three merchant shipbuilders and controls the world’s second-largest merchant fleet. 
 
A July 2023 report by AidData identified eight potential sites where Beijing could establish naval bases over the next five years: Bata (Equatorial Guinea), Gwadar (Pakistan), Hambantota (Sri Lanka), Kribi (Cameroon), Nacala (Mozambique), Nouakchott (Mauritania), Ream (Cambodia), and Vanuatu in the Pacific Islands. 
 
Accordingly, establishing overseas naval bases appears as a logical progression in Beijing's pursuit of greater Indo-Pacific influence. The report highlights how China funded $29.9 billion towards developing or expanding 78 ports across 46 countries through its Belt and Road Initiative, suggesting an intentional strategy beyond mere commercial interests. 
 
Beijing announced plans for such dual-use ports back in its defense white paper published in 2015, which labeled "overseas interests" as a "strategic task." By opening its first overseas base near Djibouti’s port on Africa's Horn in 2017, China demonstrated its commitment to this strategic task. 
 
However, not all attempts have been successful. For instance, construction work on a suspected secret Chinese military facility at the Khalifa port in the UAE was halted upon US intelligence alerting the Emirates. Similarly, efforts to establish military bases in Equatorial Guinea and Gabon were unsuccessful. 
 
Despite these setbacks, it is clear that China’s aggressive expansion of ports domestically and globally poses a significant challenge for India amidst their great game within the Indo-Pacific region. 
 
India has taken note of China's strategy and is beginning to understand the importance of dual-use port infrastructure within this geopolitical context. With 12 major and approximately 200 minor ports along its coastline under various jurisdictions, India possesses potential assets worth developing for dual use—serving both commercial trade needs as well as national security interests. 
 
Moreover, India has proven itself as a reliable partner by successfully operating overseas ports, such as Duqm Port in Oman, granted access earlier this year. In April 2023 alone, Indian Ports Global Ltd. (IPGL) took over operations at Myanmar's Sittwe port while also securing a decade-long contract with Iran to develop two terminals at Chabahar port. 
 
Given these developments alongside China’s expanding influence across the Indo-Pacific region via its maritime network, it becomes increasingly crucial for Indian policymakers to expedite development plans concerning dual-use ports, safeguarding both commerce and national security interests alike.


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