IPGL thrust into domestic frontlines ahead of African expansion

The State-run firm—until now limited to strategic outposts like Iran’s Chabahar and Myanmar’s Sittwe—is being deployed to grab operational control of key domestic terminals, including high-value oil handling facilities, as New Delhi prepares for an ambitious overseas push into Africa At the center is Bharat Global Ports, a newly formed State-owned consortium unveiled in February by Minister of Ports, Shipping and Waterways, Sarbananda Sonowal.

There is a comprehensive plan of end-to-end port infrastructure solutions —from terminal operations and financing to logistics and connectivity – by the consortium. IPGL will be the operations arm of this entity. For some years now IPGL is running operations at the Chabahar Port in Iran, a strategic foothold in Western Asia, and recently took up operations at Sittwe in Myanmar and is investing into Kankesanthurai in Sri Lanka (another strategic position).

The government now wants the company in the trenches of commercial port operations— starting at home. This is seen as a strategic move to ensure that the port operator gets “experience” in running operations within the country. The domestic pivot is seen as a launchpad. “So in G2G discussions, we have pushed IPGL as a State-backed port operator. But, a repeated question has cropped on its experience in the domestic market that is what are its operating parameters within the country? Ahead of further international expansion, especially into Africa, we are looking to provide it operations in domestic ports,” an official said.

Backed by the Ministry, IPGL is being lined up to take over jetties, terminals, and soon-to-expire concessions at major Indian ports some through direct nomination, others via public-private partnership (PPP) tenders. The objective: fast-track its transformation from a strategic puppet to a commercially competent port operator.

“Preferably we can push IPGL into operating domestic terminals. There are talks to grant it access on a nomination basis as some openings happening; or when expansion takes place in existing ports,” the official in the know added.IPGL is already eyeing African ports while ramping up operations in Chabahar, where a ₹4000 cr capex is underway. “But a repositioning is required wherein there is more visibility for IPGL as part of Bharat Global Ports,” the official said.

The repositioning of the State-owned entity, clearly a part of a larger strategy with Bhart Global Ports, is seen as the lead entity with all required expertise in port building and maintenance operations.

In this, IPGL will handle operations (commercial and administrative), Sagarmala Development Company – soon to be a maritime NBFC – will bankroll the ventures, and IPRCL (Indian Port Rail & Ropeway Corp)  building connecting infrastructure that includes rail, ropeways, etc. Bharat Global is being seen as the future entity to offer “comprehensive port-based end-to-end solutions” ranging from op-mgmt, financing, transport solutions, etc. “So we have complete solutions under one brand, each with a set of expertise,” the official said.

The template is not original—Singapore and the UAE have done it for decades, using State-owned port powerhouses like PSA and DP World.