Chabahar port inaugurated, Iran looks to be key transit route to Central Asia
The first phase of the Chabahar port was inaugurated on Sunday Dec 03,2017 by Iranian President Hassan Rouhani, opening up a new strategic transit route between Iran, India and Afghanistan, bypassing Pakistan.
The port, whose new extension will take its capacity from 2.5 million tonnes to 8 million tonnes of cargo a year, is seen as an important route for India and Afghanistan to bypass obstacles posed by Pakistan for trade on the direct route.
It is also seen as a feeder port to the International North-South Transport Corridor (INSTC) to Russia as well as land route to Central Asia. It is also seen as a rival to the Chinese-built Gwadar port off Pakistan, about 80 km away, which is a critical link in China’s Belt and Road Initiative (BRI) and China-Pakistan Economic Corridor.
The port in the Sistan-Balochistan province on the energy-rich nation’s southern coast lies outside the Persian Gulf and is easily accessed from India’s western coast and is considered as a “gateway to golden opportunities” for trade with central Asian countries.
The first phase of the Chabahar port project is known as the Shahid Beheshti port and it was inaugurated by Rouhani in the presence of representatives of several countries of the region.
According to the ministry of external affairs, minister of state for shipping Pon Radhakrishnan represented India at the inauguration.
“The routes of the region should be connected on land, sea and air,” Rouhani said at the inauguration ceremony, according to his office.
The port is likely to ramp up trade between India, Afghanistan and Iran in the wake of Pakistan denying transit access to New Delhi for trade with the two countries.
India has been closely working with Afghanistan to create alternative, reliable access routes, bypassing Pakistan.
Under the agreement signed between India and Iran in May last year, India is to equip and operate two berths in the Chabahar Port Phase-I with capital investment of $85.21 million and annual revenue expenditure of $22.95 million on a 10-year lease.
Rouhani’s office said the president noted that transit is the best communication tool for nations, adding “the routes of the region should be connected on land, sea and air”.
Ahead of the inauguration of the port, external affairs minister Sushma Swaraj on Saturday met her Iranian counterpart Javed Zarif in Tehran during which the implementation of the Chabahar port project was discussed among other issues.
Swaraj made a stopover at Tehran on her return from Russian city of Sochi where she had attended the annual summit of the Shanghai Cooperation Organisation (SCO).
The port is likely to ramp up trade between India, Afghanistan and Iran in the wake of Pakistan denying transit access to New Delhi for trade with the two countries.
Over a month ago, India sent its first consignment of wheat to Afghanistan by sea through the Chabahar port, marking opening of the new strategic transit route
5 ways India will benefit from Iran’s Chabahar port
Bypassing Pakistan: The Chabahar port is being considered a gateway to golden opportunities for trade by India, Iran and Afghanistan with central Asian countries besides ramping up trade among the three countries in the wake of Pakistan denying transit access to New Delhi. This the port will also help India bypass Pakistan. India has been closely working with Afghanistan and Iran to create alternative, reliable access routes for trade.
Counter to China: The port is easily accessible and seen as a counter to Pakistan’s Gwadar Port, which is being developed with Chinese investment and is located at distance of around 80 kms from Chabahar. China is aggressively pursuing its own Belt and Road Initiative (BRI) under Chinese President Xi Jinping’s One Belt One Road (OBOR) project —many in Delhi view this as one of India’s projects to counter Xi’s BRI.
India-Iran-Afghanistan partnership: The route connecting Iran, India and Afghanistan reflects growing convergence of interests among the three countries. Three countries assessed the progress in the development of the port and reiterated their commitment to complete and operationalise it at the earliest, which they felt would provide alternative access to landlocked Afghanistan to regional and global markets.
The geographical importance of Chabahar port: Interestingly, this strategic-economic cooperation between India and Iran took place in the backdrop of both countries being against the Taliban regime, and both being among the key backers of the Ahmed Shah Massoud-led Northern Alliance. To add to that, India’s ambition of reaching Afghanistan — since Pakistan had blocked land transit and access through its territory — fuelled the need for developing the strategic project of Chabahar.
Huge potential of Chabahar port: To make it a commercially and strategically viable option, Indian policymakers will have to use the Chabahar project as a lynchpin to integrate it with its larger connectivity project — the International North South Transport Corridor (INSTC). The INSTC, initiated in 2000 by Russia, India and Iran, is a multi-modal transportation route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran, and onward to northern Europe via St Petersburg in Russia.
Ahead of the inauguration of the port, External Affairs Minister Sushma Swaraj yesterday met her Iranian counterpart Javed Zarif in Tehran during which implementation of the Chabahar port project was discussed among other issues. Swaraj made a stopover at Tehran on her return from Russian city of Sochi where she had attended the annual summit of the Shanghai Cooperation Organisation (SCO). Over a month ago, India had sent its first consignment of wheat to Afghanistan by sea through the Chabahar port, marking opening of the new transit route.
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