Charting India's Course: The Strait of Malacca

The Strait of Malacca, a narrow stretch of water between Peninsular Malaysia and the Indonesian island of Sumatra, is one of today's most active and vibrant waterways. It has been relevant for India's maritime trade and strategic security for an extended period. It is one of the most travelled maritime straits in the entire world, handling more than 90 per cent of the global vessel traffic.

 The Global Vessel Traffic in the Strait of Malacca

Dr. R.P. Pradhan, Associate Professor, Department of Humanities and Social Sciences at the BITS Pilani Goa, speaking with Dr Preety, Fellow, SaGAA, discussed the navigation patterns of the Malacca and points towards the need for greater research initiatives and infrastructure in the maritime domain. Dr. Pradhan has developed a unique digital data lab that maps all the seaports of the world (< 8,000 ports) along with their vessel traffic on a daily basis.

     

SaGAA: How important is the Strait of Malacca for India’s maritime trade?

 

Dr Pradhan: Roughly, there are around thirty straits in the world that provide arterial maritime linkage to international maritime and shipping. Each of them is relevant in its own way. The Strait of Malacca, however I would imagine, is far more important to international maritime traders and the shipping community. It is like a check gate between the Indian Ocean Region (IOR) and the Indo-Pacific Region (IPR). Nearly 90, 000 to 100, 000 vessels cross the Strait of Malacca in a year, i.e., more than 95 per cent of all international vessel traffic. Empirically, there is no parallel to the Strait of Malacca. For India, rightfully called the ‘Resident Power’ in the IOR, it is even more important as it defines India’s maritime geographic boundary in the Eastern maritime frontier; it is our critical gateway to the East Asian Sea and Pacific. We, in India, see the Strait of Malacca as a natural vantage point of naval strength, extended maritime boundary, and a strategic point of advantage.

 

 

SaGAA: Has Indian trade in the Strait of Malacca increased in recent years? 

 

Dr Pradhan: Malacca Strait is a major oil shipment waterway; around 15 million barrels of oil a day is shipped through this route. India’s eastern flank strategic security perimeter is closely linked to Malacca Strait. Sitting right at the epicenter of this huge maritime space, India has expectations as well as role and responsibility in the security and peaceful transit of merchant marine in the IOR. India, therefore, has naval deployments in the region both for strategic reasons as well as for the peaceful transit of merchant marine from IOR to Pacific via Malacca Strait.

 

SaGAA: Has Indian diplomacy contributed towards the growth of India’s maritime trade?

 

Dr Pradhan: Post-Independence, India adopted the ISI trading model and was building her economic infrastructure from scratch, but our trade potential and performance was minimal. Post 1991 economic liberalisation and economic globalisation, India’s growth trajectory has shifted positively.

 

Indian diplomacy undoubtedly has played a creative role in this entire politico-economic growth flight. International Solar Alliance (ISA) is a praiseworthy initiative in the world of geopolitics and energy diplomacy. While China surprised the world by announcing Belt and Road Initiative (BRI), India, slowly but steadily, got the trilateral contract to develop Chabahar Port in Iran. Despite the American sanctions against Iran and several geopolitical hurdles, we not only see Chabahar as a gateway to Central Asia but as an opportunity to develop a multi-modal International North-South Transport Corridor (INSTC). India’s ‘Sagarmala Project 2015-2035’ and ‘India Maritime Vision 2030’ are critical pathways to India’s future maritime modernisation and efficiency trajectory.

 

Additionally, Chennai Port and Vladivostok Port have already signed Smart Port MoU in 2019. In the Western Coast, India’s forward multimodal transport concepts like INSTC have already gone through ground testing. Now, Armenia offers additional passage opportunities to INSTC, connecting Mumbai Port to St. Petersburg Port seems more attainable. Exemplary acts of diplomacy and statesmanship have elevated India into a state of strategic position.

 

 

 

SaGAA: What are the major environmental, political/diplomatic, and economic implications of increasing traffic on the Malacca?

 

Dr Pradhan: The biggest challenge of Strait of Malacca is managing the rising vessel traffic in the narrow water way as it is accident prone. Piracy has been a long-standing issue in the Strait of Malacca too; in the early 2000s, piracy in the Malaccan strait accounted for around 40 per cent of piracy worldwide. Several regionally coordinated efforts have helped improve piracy control. There are vigilant patrols and constant operations by Royal Malaysian Marine Police, and the Malacca Strait’s Coordinated Patrol, codenamed MALSINDO.

 

SaGAA: Has India taken any measures to address the effects of vessel traffic on India’s trade?

 

Dr Pradhan: Several necessary and visionary policy initiatives like ‘Sagarmala 2015-2035’, ‘India Maritime Vision-2030’, ‘Project Mausam’, India’s Blue Economy initiatives are policy visions to modernise India’s maritime efficiency and trade outreach. India Maritime Vision-2030 aims to develop the Indian port and shipping sector in smart and green shipping mode. Project Mausam aims to rebuild maritime cultural connections with the 39 countries bordering the Indian Ocean.

 

                   

 

 

 

     Mixed Country Port Vessel Traffic Pattern (March 26 to April 08, 2022)

                             Figure Source: Dr RP Pradhan’s Data lab

 

 

 

India’s ship recycling industry is likely to grow from the present 30 per cent of the global share to about 60 per cent with the promulgation of the ‘Recycling of Ships Act 2019’ which ratifies the Hong Kong Convention for environment friendly recycling processes. This will also raise the contribution of this industry to USD 2.2 billion from the present USD 1.3 billion. The government has now introduced the ‘Shipbuilding Financial Assistance Policy’ offering a financial incentive of 20 per cent to shipyards over the next ten years which is likely to have beneficial effects on the shipbuilders of India.

 

However, India continues to have several structural issues. Most of our seaports don’t have adequate draft (depth) to handle large ships. As a result, we use transshipment which adds to our vessel handling cost and time. Ship building sector must be given incentive and facilitation so that international commercial shipbuilding orders can be directed to Indian shipbuilders. It’s a big business and India must get a fair share of the pie.

 

SaGAA: What are views on the development in the shipping sector? 

 

As infrastructure becomes a new mode of power, we must have a smart infrastructure vision for the maritime sector. This requires India to have suitable, dedicated, and critical maritime research institutions and universities. Also, India’s glorious maritime history and outreach is not at all captured in India’s school education curriculum. As a result, there is ignorance and apathy resulting in the lack of bright talents in the sector. Given the scope and possibility, India may have to have designated maritime career specialists and experts to guide the growth prospect of the sector.  We must have far wider international maritime engagement for capital, technology, market and ideas.