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Why The Thilafushi Port Shift To China Matters For India

Chinese involvement in Thilafushi could eventually provide Beijing with a commercial and logistics platform closer to Indian waters, adding to New Delhi’s strategic concerns

Why The Thilafushi Port Shift To China Matters For India
Summary

The Maldives’ decision to hand the first phase of the Thilafushi Port project to a Chinese company marks a setback for India’s infrastructure and strategic engagement in the Indian Ocean.

Maldives Ports Limited (MPL) has signed an agreement with China Harbour Engineering Company (CHEC) for the first phase of the project to relocate the Malé Commercial Port to Thilafushi, abandoning an earlier understanding with India to jointly develop the port. 

Under the deal, signed at MPL’s head office by the company’s chief executive, Mohamed Rishwan and CHEC’s country manager, Mao Bao, the design and quay-wall construction have gone to CHEC, while some components, including a 100-metre domestic quay wall and three hectares of paving, have been awarded separately to the Maldives Transport and Contracting Company (MTCC).

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