India will begin
full-scale operations, by the end of May, in its first foreign port venture at
Iran’s Chabahar Port, a facility that opens on the Gulf of Oman. This will help
New Delhi aim to facilitate more South Asia, Central Asia and Middle East trade
while bypassing Pakistan.
New Delhi has doubled down and accelerated the project
But the US
sanctions on Tehran had slowed down the development of the port and now with
the new US administration’s attitude toward Iran, Indian officials are hopeful
to move forward with the $500 million of investment. As such, New Delhi has
doubled down and accelerated the project, banking like others on a new
breakthrough on the Joint Comprehensive Plan of Action (JCPOA) nuclear
agreement and a broader US-Iran warming trend, highlights AsiaTimes.
India developing two terminals at the port
to Iranian media reports, is developing two terminals at the port including the
Shahid Beheshti complex and under an agreement signed with Iran, it would run
the terminal for 10 years.
Indian Minister of State for Ports and Shipping, told Reuters that he would be
visiting Iran in April or May for the inauguration of full operations. He said
the port had already commenced operations in a limited way and the growth
potential was evident.
handled 123 vessels and 1.8 million tonnes of bulk and general cargoes from
February 2019 to January 2021. This is much higher than our expectations.
Imagine the scale of operations and freight saving once it is fully
operational,” the minister said.
With this, New
Delhi intends to ultimately link Chahabar to its International North-South
Transport Corridor (INSTC), a project initially proposed by India, Russia and
Iran in 2000 and later joined by 10 other Central Asian nations. Analysts say
that some see INSTC as a less-monied rival to China’s BRI, which has invested heavily
in Pakistan’s road, power and trade infrastructure, including huge
multi-billion dollar investments at Gwador port.
Multimode network INSTC connecting Mumbai with Europe via Moscow and
The INSTC, as per reports,
envisions a 7,200 kilometer-long, multimode network comprising of shipping,
rail and road links connecting Mumbai with Europe via Moscow and Central Asia.
It could cut current carriage costs by about 30% and travel times by half.