8/7/24 India to build special port to handle Russia / INSTC goods

The Indian government has approved a proposal for building a large deep water port on its western coast to connect it with major global trade networks and handle trade with Russia, New Delhi has announced. The port, to be built at Vadhavan in the Maharashtra state, would aid trade flow through the International North-South Transportation Corridor (INSTC) and the India Middle East Europe Economic Corridor (IMEEC). The facility will become a vital part of the International North-South Transportation Corridor for shipping goods via Iran and onto Russia and other destinations.

During his July visit to Moscow, Indian Prime Minister Narendra Modi stressed the importance of improving connectivity with Russia, which would mean developing the INSTC. The two countries have set a trade target of US$100 billion by 2030.

An agreement for the IMEEC corridor, which aims to improve connectivity and economic integration between Asia, the Persian Gulf, and Europe, was signed last year at the G20 summit held in New Delhi. However, the project has run into delays due to the conflict between Israel and militants in Gaza.

Including the acquisition of land, the Vadhavan port would cost 76,220 rupees (US$9 billion), Indian Ports, Shipping and Waterways Minister Sarbananda Sonowal told the Indian Parliament. The port will be developed through a public-private partnership led by the Jawaharlal Nehru Port Authority and Maharashtra Maritime Board, according to Sonowal, who expects the project to create one million jobs. The location is about 10 km from India’s National Railway grid and about 35-40 Km from National Highway 8, which leads to New Delhi. Both will develop spurs to reach Vadhaven.

The facility will handle 15 million TEU (twenty equivalent unit) containers after the first phase of construction is complete and 23.2 million TEUs after the commissioning of its second phase. Once completed, the port would rank among the world’s ten biggest container ports, and is expected to be operational by 2030. The Indian government currently operates 12 major ports across the country.

The move to develop Vadhaven Port is one of the most significant investments yet made by a foreign country to specifically assist the development of trade with Russian and is indicative that the country is considered a long-term growth prospect in the Global South.

Source: portal "Russia's Pivot To Asia"