GG News Bureau
New Delhi, 14th May. India and Iran inked a 10-year agreement on May 13 to develop and manage the Shahid Beheshti Terminal of the Chabahar Port, located on the southeast coast of the Persian Gulf nation.
At Tehran, Iran today, delighted to be part of the signing of the Long Term Bilateral Contract on Chabahar Port Operations in presence of HE Mehrdad Bazrpash, Minister of Roads & Urban Development, Iran.
India will develop and operate Iran's strategic Chabahar Port for 10… pic.twitter.com/iXwekIk8ey
— Sarbananda Sonowal (Modi Ka Parivar) (@sarbanandsonwal) May 13, 2024
In the presence of Ports, Shipping, and Waterways Minister Sarbananda Sonowal, India Ports Global Ltd. (IPGL) and Iran’s Port & Maritime Organization (PMO) signed the agreement, according to an official release.
What is the port’s strategic significance?
Through the International North-South Transport Corridor, a road and rail project, the Chabahar port will give Indian commodities an access to landlocked Afghanistan and Central Asia, avoiding Pakistan.
India used the Chabahar port last year to ship 20,000 tons of wheat supplies to Afghanistan. The similar method was employed in 2021 to provide Iran with environmentally acceptable herbicides. India and Iran are developing the Chabahar port, which is situated in the Sistan-Balochistan region on the southern coast of energy-rich Iran, to increase connectivity and trade ties.
In an attempt to directly tap into the potential in Central Asia without going through neighboring Pakistan, India is taking over the operation of an overseas port for the first time. This will also have a multiplier impact on trade among India, Iran, and Afghanistan.
Chabahar is a port located on the ocean. India wants to get around Pakistan and have direct access to Afghanistan and Central Asia by using Chabahar Port. Chabahar and Mumbai are separated by 786 nautical miles, with Kandla port in Gujarat being the closest port at 550 nautical miles.
The port is envisioned by Iran and India as a major INSTC project hub. A multi-modal transport project spanning 7,200 km, the INSTC is designed to move freight between India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia, and Europe.
The Iranian port of Chabahar is the closest to India, according to Minister of Ports, Shipping, and Waterways Sarbananda Sonowal. It is also a top-notch port from a nautical standpoint.
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