Mauritius' Prime Minister Navinchandra Ramgoolam (file photo) | Photo Credit: Reuters

India and Mauritius will collaborate on developing a $1 billion container terminal project in the island nation, enhancing their strategic partnership.

While Mauritius is keen to project itself as a major transshipment hub, the project will help India further its maritime ambitions.

In his budget speech last Friday, Prime Minister Dr Navinchandra Ramgoolam said his government is implementing the island container terminal project to transform Mauritius into a premier port in the region.

“This high-impact project worth $ 1 billion is being undertaken under a government-to-government arrangement with the Government of India. The Mauritius Ports Authority will provide a second licence to an international operator for container handling, bunkering and transshipment,” he said.

In response to a businessline query on the ownership structure of the proposed terminal, the Mauritius Prime Minister’s Office (PMO) said that the agreement is still being discussed and has not yet been finalised.

“The project is expected to be a game changer for Mauritius, positioning the country as a major logistics and transshipment hub linking Asia, Africa and the Indian Ocean region. At the same time, it would offer India a strategic gateway to the African market, facilitate trade flows and further strengthen economic and maritime ties between India, Mauritius and the wider region,” the PMO office added.

In CY2025, Port Louis in Mauritius handled 10.14 million tonnes of EXIM cargo. It handled 5.25 lakh twenty-foot long containers. Over the last two years, the port has seen an increase in vessel calls as shipping lines opted for the longer Cape of Good Hope route instead of the Suez Canal because of piracy attacks in the Red Sea.

Special economic package

India and Mauritius share close ties bound by culture and commerce. The island is a key part of India’s neighbourhood first policy and MAHASAGAR vision that encompasses ideas of development, capacity building and mutual security for countries of the global South.

Last September, Prime Minister Narendra Modi announced a special economic package for Mauritius under which India will assist various projects in the fields of health and transport. On the strategic side, the two sides had also agreed in principle on “redevelopment and restructuring of the Port in Mauritius.”

Defence co-operation is also strengthening, with India announcing the positioning of a defence attaché in Mauritius in April.

Global plans

While India has previously developed Chabahar and Sittwe ports in Iran and Myanmar, the government is keen to widen its footprint in port infrastructure across the world.

Last February, Union ports and shipping minister Sarbananda Sonowal announced the creation of Bharat Ports Global - a consortium of government-owned companies that will build and run ports overseas. The consortium will help to streamline logistics, strengthen supply chains, and support the ‘Make in India’ initiative by boosting exports, Sonowal had said.

Among private companies the Adani group owns or operates terminals in Israel, Sri Lanka and Tanzania.

Queries sent to the Ministry of External Affairs and Ministry of Ports, Shipping and Waterways remained unanswered.

Published on June 24, 2026