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Which Nations Control the World’s Ports?



The U.S. Isn’t on the List 


Just because the shipping port is in Morocco doesn’t mean the country owns it. In fact, even in the United States many ports are partly or even mostly owned by other countries. One hundred years ago we might have looked at commodity trading and politics and said, the biggest ports sit in the mightiest countries.  Today it’s a bit more complex. Today we say, whoever operates the most terminals in the most ports around the world is a powerful influence on the global economy. And with 80% of traded goods traveling along shipping lanes, power through ports is something to consider.


With at least nine significant shipping port projects underway possessing the potential to change international trade dynamics, and no doubt hundreds of small scale modifications in the works, it’s worth examining where investments are coming from.  Who is gaining a trade foothold in the form of port terminals and where exactly are they gaining it?


India’s Aims to Influence Global Trade


Of the many projects underway, India’s approval of a $9 billion build is notable, as is their strategic partnerships with ports in the Indo-Pacific region. If ports are a projection of power, then India appears intent on using them to foster influence overseas and economic development at home.  


Their new port, Vadhvan, will be the county’s largest and is already being called India’s “gateway to global trade”.  Once finished, Vadhvan will move 298 metric tons of cargo per year and become a major connection point between India, Russia, and Central Asia as well as strengthen trade routes between India, the Middle East, and Europe. For over thirty years India has had goals of solidifying a place in the global economy. A port that is already expected to be among the top ten most trafficked ports in the world certainly says, we are here to stay. 


Today, India is also investing in port projects and transportation infrastructure abroad, which underscores the nation’s desire to secure trade influence. If you are part of building it, surely you have a say in who uses it. India’s current position as owner of, and investor in trade route ground could increase stability in volatile regions. But, a ten-year trade agreement with Iran to build Chabahar port stands to make waves for trade with the United States. The United States warns of sanctions which would create obstacles for both nations. America is an important trading partner, purchasing plastic, rubber, textiles, rice and produce from India.


While the new Vadhvan port is primarily funded by Indian shipping companies, the UAE is also investing in the project. Location and handling capacity will cut shipping costs for goods coming in and going out of the port. Vadhvan will be able to accommodate the largest container ships and handle liquids and heavy equipment. It’s a prime partnership for the UAE who last year committed to funding new terminals for their use at existing ports in India. Together the nations have also secured the majority of terminals in a Tanzanian port. 


Industry in India is diverse and comprises high value items like petroleum, iron, steel, electronics, and machinery.  All of which have maintained strong sales in recent years. The port will allow these goods to reach more markets including countries looking to diversify their own imports and rely less on Chinese goods.


India aims to be a force in global trade. While the building of a new port stands to create at least 1.2 million jobs in India and millions more port adjacent jobs domestically and overseas, we can’t ignore the fact that these port projects create political power. A couple billion dollars scattered around the world in building new trade routes might be a small price tag if it buys you political position.


China Continues to Claim Shipping Ground 


China’s commitment to global trade infrastructure, also called the Belt and Road Initiative, surpasses all other nations. They operate shipping terminals on every continent except Antarctica. And, they’ve funded the railways and roads that support ports they want to run efficiently. Over 150 countries have received financial help from China to work on more than 200 projects. The country has invested an estimated $94 billion dollars so far with negotiations for more in the works.


Top recipients in the last two years include the Philippines, Argentina, Singapore, and Saudi Arabia. China has funded projects in Africa, the Middle East, and operates terminals in California. They own a 50% share of ports in Australia, France, Myanmar, Iraq, Belgium, Spain, Greece, Turkey, Brazil, Jamaica, Cameroon, and Nigeria; to name a few.


Since 2000 China has built a strong trade relationship with South American countries, particularly Brazil and Venezuela. In fact, South America credits an overall boom in commodity trading to the Chinese investments and the expanded market that new infrastructure has created. If it continues, trade between South America and China could value $700 billion. China relies on their raw materials for their own industrial endeavors and in return, South America has been flooded with cheaper Chinese products


In theory, the New Silk Road as it is sometimes referred to, is an ingenious plan to connect trade routes in such a way that bottlenecks are virtually non-existent and goods flow efficiently. It creates jobs, fuels innovation and brings prosperity to regions of the world whose goods are plentiful but have no way of getting to a shipping port. Yet, like India, we can’t help but notice that through these trade routes and the financial investments they’ve accrued, China has extended its reach very far. Could this also be a case of port power?


Skeptics and analysts alike speculate on the motives behind the magnitude of investments. Some see the project ushering in global debt to China as emerging nations who’ve accepted financial help realize they are in a debt trap.  Others maintain that while the New Silk Road is creating economic development it could just as easily be the actual groundwork for a new geopolitical landscape. And we find ourselves in a situation where China wields significant trade power. The more ground they invest in the more they can influence trade standards that favor Chinese markets. 


No matter who controls them, ports can very easily become power positions and commodity supplies weaponized. At the very least, securing a trade foothold across the globe in the form of a shipping terminal is an investment in future prosperity. Both China and India are banking on it and their projects are sure to reshape the geopolitical landscape.



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