India's Deep-Water Port Investment in Philippines: Strengthening Strategic Position Next to China.

Antipolo Magazine 2020 

India's latest move to invest in a deep-water port in the Philippines underscores its strategic positioning in key maritime hubs. With investments already in Iran, Sri Lanka, Myanmar, and Oman, this expansion solidifies India's presence and strengthens its strategic stance vis-à-vis China.

For years, China has pursued a "string of pearls" strategy, establishing infrastructure projects and staging posts across the Middle East and Asia to bolster its strategic influence and naval access. This initiative was later rebranded as the Maritime Silk Road. In 2024, India made significant strides in port investments abroad. Following Sri Lanka's experience of falling into a debt trap due to Chinese investments, the Sri Lankan government opted for Indian funding to renovate the Kankesanturai Port in the Northern Province. In a strategic move, India, in collaboration with a Russian firm, secured management rights for Sri Lanka's Mattala Rajapaksa International Airport in Hambantota. This airport, developed with Chinese loans, exacerbated Sri Lanka's financial woes, resulting in minimal flight activity and earning it the reputation of the "world's emptiest airport.

Management control over MRIA gives India significant leverage over the Hambantota port and makes it implausible for the Chinese Navy to develop a substantial facility at sight without controlling the airport.
Indian firm Adani Group has also signed an agreement with Sri Lanka’s John Keells Holdings and the state-owned SLPA (Sri Lanka Ports Authority) to develop the Colombo West International Container Terminal (CWICT) jointly. The investment is more than US $700 million, making it the largest foreign investment in Sri Lanka’s port sector.
Now, Adani Group, through its subsidiary Adani Ports and Special Economic Zone Limited (APSEZ), is planning to invest in a port in the Philippines. APSEZ, India’s biggest private port operator, is eyeing the Bataan province in the Philippines for its port development plan. The company aims to develop a deep port that can accommodate Panamax vessels.
On May 2, APSEZ Managing Director Karan Adani met Philippines President Ferdinand R. Marcos Jr. at Malacanang to discuss these plans. Adani Group, meanwhile, is also planning investments in ports, airports, power, and defense sectors.

India's investment in the Chabahar Port aims to enhance trade access with Afghanistan and Central Asian nations, diminishing reliance on Pakistan's land routes. Positioned as a pivotal transit point along the emerging International North-South Transport Corridor, the port holds the potential to evolve into a significant regional business hub. This venture marked India's inaugural operation of a port beyond its borders, formalized by a ten-year contract commencing on May 23, 2016.
Notably, Chabahar enjoys exemption from American sanctions, facilitating smoother international trade interactions. Recently, Indian arms destined for Armenia were successfully transported through this strategic port, underscoring its vital role in regional logistics.

Following its venture in Chabahar, India secured rights to operate a second overseas port, Sittwe, in Myanmar. In 2016, India spearheaded the construction of the deep-water Sittwe Port as part of the Kaladan Multi-Modal Transit Transport Project, aimed at connecting Myanmar's Sittwe Port to the Myanmar-India border.

Myanmar holds significant geo-strategic importance for both India and China. Despite political upheavals following the 2021 military takeover and the ousting of the civilian government led by Aung San Suu Kyi, both nations have maintained ties with the military regime. They have abstained from imposing Western sanctions, despite instances of political persecution and detentions in Myanmar.

Furthermore, India solidified its maritime posture in the Indian Ocean Region by striking an agreement with Oman for military utilization and logistical support in the newly developed Port of Duqm. This move aligns with India's broader strategy to bolster its maritime presence and influence in the region.