Australia stands at a pivotal crossroads in the Indian Ocean Region (IOR), where its potential to expand influence through port development is ripe for the taking. The country boasts a wealth of expertise in maritime operations, a resource that could be mobilized to counterbalance China’s growing sway over regional maritime infrastructure. However, despite its geographical advantage, Australia has yet to earn the trust of many IOR nations, particularly the smaller island states, as a go-to partner for infrastructure development. This perception isn’t unfounded; the modest scale of Australia’s investments has painted a picture of a nation that’s not fully committed to the region.
Yet, the winds of change are blowing. Australia’s advanced know-how in port operations could fill significant gaps in the IOR, where many ports are struggling with outdated infrastructure, inefficiency, and congestion. The statistics are telling: none of the ports in the northeastern part of the region rank among the top ten globally for container handling, even as they collectively manage about 30% of global shipping traffic. Ports like Colombo in Sri Lanka and Chittagong in Bangladesh lag behind in both infrastructure and regulatory standards, which only aggravates inefficiencies.
The absence of uniform standards across the IOR presents an opportunity for Australia. By leveraging its advanced port processes and high regulatory standards, Australia could not only enhance operational efficiency but also promote sustainability. A 2022 report on Australian ports indicated that they are aligned with international benchmarks in areas such as crane productivity and port security. While domestic productivity issues stem from inefficient labor practices, these challenges would not be exported to regional partners.
Australia’s commitment to the World Trade Organisation’s Trade Facilitation Agreement has been fully realized, improving the movement and clearance of goods and leading to reduced customs clearance times. In contrast, many IOR nations have only implemented about 40% of the agreement. This gap highlights the potential for Australia to step in as a mentor and partner, sharing its experience in creating streamlined, efficient port operations.
Moreover, Australia is leading the charge in integrating decarbonization measures into port operations. The adoption of green technologies, such as shore-to-ship electricity and automated systems, positions Australia as a forward-thinking player in sustainable shipping practices. Collaborations like the Green and Digital Shipping Corridor with Singapore further bolster its credentials as a responsible partner in the region.
The Quad Ports of the Future Partnership presents an additional platform for Australia to solidify its role alongside the United States, India, and Japan. By focusing on soft initiatives—like training in digitization and regulatory standards—Australia can complement the port development efforts of its Quad partners in critical locations such as Sri Lanka and Bangladesh.
Australia’s advanced port infrastructure and regulatory framework set the stage for a more significant role in the IOR. By actively engaging with regional nations and addressing their developmental challenges, Australia can enhance its geo-economic presence while simultaneously supporting its Quad commitments. The time is ripe for Australia to step up, not just as a player in the IOR but as a leader in shaping the future of maritime infrastructure in a region that is crucial to global trade.
