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China has strengthened its economic and strategic presence in the Bay of Bengal after Bangladesh signed an agreement to develop an industrial and economic zone near Mongla Port, replacing a project that had previously been allocated to India. The agreement marks another step in Beijing's expanding infrastructure footprint across the Indian Ocean while highlighting Dhaka's evolving foreign investment priorities.
The agreement was formalised during Bangladeshi Prime Minister Tarique Rahman's official visit to Beijing, where he held talks with Chinese President Xi Jinping. Under the deal, a Chinese state-owned enterprise will develop the economic zone adjacent to Mongla Port, Bangladesh's second-largest seaport after Chattogram. The land had initially been earmarked for an India-backed project before Bangladesh's interim government removed it from the proposal in 2025 following a deterioration in bilateral relations.
For the logistics and maritime sector, the project significantly enhances China's access to one of the Bay of Bengal's key commercial gateways. Mongla Port serves as an important hub for cargo movement into southwestern Bangladesh and provides connectivity to regional shipping routes. The development is expected to support manufacturing, warehousing and export-oriented industries while strengthening the port's role in regional supply chains.
The agreement also aligns with China's broader strategy of investing in maritime infrastructure across the Indian Ocean. Beijing has financed or developed port-linked projects stretching from Pakistan's Gwadar Port to facilities in East Africa, expanding commercial networks that complement its global trade ambitions. Analysts say the addition of Mongla further reinforces China's logistics presence in South Asia, although the project remains a commercial infrastructure investment at this stage.
Beyond the Mongla project, Bangladesh and China agreed to accelerate work on the Chinese Economic and Industrial Zone in Chattogram while expanding cooperation in water resource management, including the proposed Teesta River restoration initiative. The two governments also outlined plans to deepen collaboration in digital technologies, artificial intelligence, green development, agriculture, trade, maritime affairs and investment.
The joint understanding reflects Bangladesh's efforts to attract large-scale foreign investment to support industrial growth and logistics infrastructure. For China, the agreements reinforce long-term economic engagement with a country strategically positioned along key maritime trade corridors connecting South Asia with Southeast Asia and the wider Indian Ocean.
The shift is likely to be closely watched by India, which had originally been expected to participate in the Mongla economic zone project. While the latest agreement does not alter the commercial status of the port, it underscores the growing competition among regional powers to secure infrastructure partnerships that influence future trade flows, manufacturing investment and supply chain connectivity across the Bay of Bengal.
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V.O. Chidambaranar (VOC) Port has further strengthened its position as one of India’s leading gateways for renewable energy logistics after recording a remarkable 117.72% year-on-year increase in windmill blade handling during the first quarter (April–June) of FY 2026–27. The strong performance underscores the port’s growing importance in supporting the country’s expanding wind energy sector and specialized project cargo movement. The surge in cargo volumes reflects increasing demand for efficient logistics solutions capable of handling oversized and high-value renewable energy equipment. Wind turbine blades, among the largest and most delicate components in the renewable energy supply chain, require specialized infrastructure, precision handling, and meticulous operational planning. VOC Port’s continued investments in these capabilities have enabled it to emerge as a preferred logistics hub for wind energy cargo in southern India. Over the past year, the port has consistently achieved significant milestones in project cargo handling. It has established new national records for managing windmill blade consignments, including handling 147 blades from a single vessel—the highest ever recorded at an Indian port. The port has also expanded dedicated storage facilities and optimized cargo movement through specialized berths equipped with crawler cranes and harbour mobile cranes, ensuring safe and efficient handling of oversized cargo. The latest growth is expected to further enhance VOC Port’s strategic role in India’s renewable energy supply chain. As wind energy developers continue to scale up manufacturing and project installations, ports capable of efficiently managing complex cargo will play a critical role in reducing logistics costs and improving supply chain reliability. Beyond renewable energy logistics, VOC Port has maintained strong overall cargo performance through sustained infrastructure upgrades, digital transformation initiatives, and capacity enhancement projects. Recent investments in cargo storage, berth modernization, and smart port technologies have improved operational efficiency while reducing vessel turnaround time, positioning the port as a competitive maritime gateway for both conventional and project cargo. The impressive rise in windmill blade handling aligns with India’s broader clean energy ambitions and highlights the increasing integration of ports into the country's green logistics ecosystem. By continuously strengthening its infrastructure for specialized cargo, VOC Port is not only supporting the renewable energy industry but also reinforcing India's ambition to become a global manufacturing and export hub for wind energy equipment. With project cargo volumes expected to rise alongside renewable energy investments, VOC Port appears well positioned to sustain its growth trajectory and further establish itself as a critical logistics partner for India's energy transition. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
Maharashtra has identified Dighi in Raigad district as the preferred location for a proposed ₹20,000-crore greenfield shipbuilding cluster, with state-owned Mazagon Dock Shipbuilders Ltd (MDL) expected to serve as the anchor shipyard. The project is part of the Centre's broader strategy to expand India's domestic shipbuilding capacity and strengthen the country's maritime manufacturing ecosystem. The proposed cluster will be developed through a 50:50 special purpose vehicle (SPV) formed by the Mumbai Port Authority and the Maharashtra government. The SPV will be responsible for creating common infrastructure, including marine and landside facilities, while attracting shipyards and ancillary industries to the site. According to officials, MDL has expressed its willingness to support the project and is expected to play a key role in establishing the core shipbuilding facilities. The proposed site is located south of Dighi Port, providing access to deep-water infrastructure and supporting future industrial development. The Dighi project will be developed under the Union government's Shipbuilding Development Scheme, which has an allocation of nearly ₹20,000 crore to support the creation of three to four greenfield shipbuilding clusters across the country. The scheme provides capital assistance for essential infrastructure such as breakwaters, dredging, land reclamation, utilities, internal roads, and shared maritime assets. Maharashtra had evaluated multiple coastal locations, including Nandgaon and Vijaydurg, before narrowing its focus to Dighi. A detailed project report and feasibility study are currently being prepared to finalise the development plan. The planned cluster is expected to span around 2,000 acres, with dedicated areas for large shipyards and supporting industries such as marine equipment manufacturing, steel fabrication, engines, and ship components. The integrated approach is intended to create a complete shipbuilding and repair ecosystem capable of serving both domestic and export markets. Government guidelines envisage each cluster housing one or more large shipyards with a combined production capacity of approximately 1.2 million gross tonnes annually. At least one anchor shipyard is expected to achieve a design capacity of 0.5 million gross tonnes within ten years of commissioning. The initiative aligns with India's long-term objective of significantly increasing domestic shipbuilding output and improving its position in the global maritime industry. Alongside central funding, the Maharashtra government is expected to facilitate land allocation, statutory clearances, connectivity and policy support to enhance the project's viability and attract private investment. Follow CARGOCONNECT for more such updates.
Prime Minister Narendra Modi reaffirmed India’s commitment to strengthening maritime security and deepening strategic cooperation with Seychelles during his visit to the island nation for its 50th Independence Day celebrations. The visit also marked five decades of diplomatic ties between India and Seychelles, underscoring the growing importance of their partnership in ensuring stability, connectivity and sustainable development across the Indian Ocean Region. Describing Seychelles as a “valued maritime partner and a close friend in the Indian Ocean,” Prime Minister Modi highlighted the enduring relationship built on mutual trust, shared democratic values and regional cooperation. His participation in the National Day celebrations reflects India’s continued engagement with Indian Ocean island nations under its vision of promoting peace, security and prosperity in the region. For the global supply chain and logistics sector, the visit carries strategic significance. The Indian Ocean remains one of the world’s busiest maritime trade corridors, facilitating the movement of energy supplies, manufactured goods and raw materials between Asia, Africa and Europe. Strengthened maritime cooperation between India and Seychelles contributes to safer sea lanes, enhanced maritime domain awareness and improved disaster response capabilities, all of which are essential for resilient international supply chains. During the visit, Prime Minister Modi reiterated India’s support for Seychelles in areas such as maritime security, capacity building, defence cooperation and sustainable development. The two countries have consistently collaborated on coastal surveillance, maritime infrastructure and regional security initiatives aimed at combating piracy, illegal fishing and other transnational maritime threats. The partnership also aligns with India’s broader vision of fostering a secure, open and inclusive Indo-Pacific. Enhanced cooperation with Seychelles is expected to support the development of the “Blue Economy,” encourage sustainable use of marine resources and strengthen regional connectivity for port development and sea-trade. India has emerged as one of Seychelles’ most reliable development partners, supporting the island nation through infrastructure projects, healthcare initiatives, education, defence cooperation and capacity-building programmes. These efforts have further reinforced bilateral ties while contributing to economic resilience and institutional development. As geopolitical competition intensifies across the Indo-Pacific, stronger collaboration between India and strategically located island nations such as Seychelles assumes greater importance. Stable maritime governance and coordinated security frameworks are increasingly critical to safeguarding global shipping routes against emerging risks and ensuring uninterrupted trade flows. Prime Minister Modi’s visit not only commemorated 50 years of enduring friendship but also reaffirmed India’s long-term commitment to regional maritime security, sustainable economic growth and stronger strategic partnerships. For the logistics and supply chain industry, the evolving India-Seychelles partnership represents a positive step towards enhancing maritime resilience, securing vital trade corridors and supporting the future of global commerce. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
