India on May 13 signed a 10-year contract with Iran to develop and run the operations of Shahid Beheshti Terminal of the Chabahar Port on the southeastern 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.
— Sarbananda Sonowal (Modi Ka Parivar) (@sarbanandsonwal) May 13, 2024
India will develop and operate Iran's strategic Chabahar Port for 10… pic.twitter.com/iXwekIk8ey
According to an official statement, the contract was signed by India Ports Global Ltd (IPGL) and Iran's Port & Maritime Organisation (PMO), in the presence of Ports, Shipping and Waterways Minister Sarbananda Sonowal.
What is the strategic importance of the port?
The Chabahar port will provide Indian goods a gateway to reach landlocked Afghanistan and Central Asia using a road and rail project called International North-South Transport Corridor, bypassing Pakistan.
Chabahar port was last year used by India to send 20,000 tonnes of wheat aid to Afghanistan. In 2021, the same was used to supply environmentally friendly pesticides to Iran. Located in the Sistan-Balochistan province on the energy-rich Iran's southern coast, the Chabahar port is being developed by India and Iran to boost connectivity and trade ties.
This is the first time India will take over the management of an overseas port that will also have a multiplier effect on trade among India, Iran and Afghanistan as efforts continue to directly tap the potential in Central Asia, bypassing neighbouring Pakistan.
Chabahar is an oceanic port. By leveraging Chabahar Port, India aims to bypass Pakistan and establish direct access to Afghanistan and beyond, into Central Asia. Kandla port in Gujarat is the closest to the Chabahar port at 550 nautical miles while the distance between Chabahar and Mumbai is 786 nautical miles.
India and Iran have projected the port as a key hub for the INSTC project. The INSTC is a 7,200-km-long multi-mode transport project for moving freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.
Ports, Shipping and Waterways Minister Sarbananda Sonowal has said that the Chabahar port is not only the closest Iranian port to India but it is also an excellent port from nautical point of view.
(With PTI inputs)