Half of global trade occurs through the Bay of Bengal, but the failure to modernise port infrastructure means this region is failing to adequately support global supply chains, a new report from the United States Studies Centre (USSC) at the University of Sydney found.
In Building bridges across the Indian Ocean: Australia-India cooperation for port development, USSC Maitri Fellow Riya Sinha analyses port infrastructure in the Bay of Bengal and recommends Australia and India leverage their shared interests and strengths to upgrade ports.
“Despite the need to facilitate half of all global maritime trade, the turnaround time in ports in the Bay of Bengal is far less efficient than other ports,” Director of Economic Security Hayley Channer noted. “Australia is a world leader in port logistics automation and green shipping. Through sharing our knowledge and expertise with India, Australia can support higher volumes of trade and better supply chain security,” Channer added.
Ports are essential to supply chains and play a key role in reducing risks in global trade. Despite its close ties to the region, the report finds that Australian engagement on Indian Ocean infrastructure has lagged behind other countries, like Japan and the United States. However, this can be remedied: some of the most impactful support Australia could offer is through information sharing and capacity building.
“If there is one area where Australia can have a multiplier effect, it would be in supporting port upgrades in this region,’ Channer said.
In addition to closing knowledge gaps, the report also recommends a targeted expansion of existing frameworks like the Australia-India Infrastructure Forum and South Asia Regional Infrastructure Connectivity framework to include port development in the Bay of Bengal.
The Maitri Fellowship was supported by the Department of Foreign Affairs and Trade and the production of this report was supported by the Centre for Australia-India Relations. All views expressed in the report belong solely to the author.
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