India stresses Chabahar Port’s huge potential to transform the region

TABNAK: Indian Ambassador to Iran Rudra Gaurav Shresth in a meeting with members of Iran-India Chamber of Commerce said Chabahar Port has a huge potential to make a development in the region in terms of logistics and transportation.

The meeting focused on leveraging synergies and complementarities to foster economic growth and development in both nations. A key highlight of the discussion was the recently signed agreement concerning the Chahbahar Port.

The Indian diplomat also called for employment of economic institutions of both countries to put the project into practice.

On June 5, Iran’s Deputy Minister of Roads Ali Akbar Safaei said India has agreed to allocate $1 billion to the project on the development of Iran’s southeastern Chabahar Port.

Implementation of the contract with India on developing Chabahar Port is the priority of the programs of the Ports and Maritime Organization, he said.

Negotiations were held with the Indian investors three months ago and signing the contract on the provision of the relevant parts and equipment at Chabahar Port is at the final stage, the deputy roads minister added.

In May, Iran and India signed a contract for partnership with India Ports Global Ltd (IPGL) in equipping and operating the freight and container terminals of Shahid Beheshti Port in Chabahar.

India expects the project will improve its connection with an international north-south transport corridor being developed with Iran and Russia and also improve trade links with Central Asia.

The Chabahar port serves as a gateway for Indian goods to reach markets in Afghanistan and Central Asia while bypassing India’s rival and neighbor Pakistan. India sent 20,000 tons of wheat aid to Afghanistan through the Chabahar port last year.

The cooperation between Iran and India on the strategic port dates back to 2003, when New Delhi agreed to develop the port as well as accompanying infrastructure links during the visit by then-President Muhammad Khatami to India. The project has suffered several delays since then and was weighed down by sanctions on Iran.

As Iran's only oceanic port on the Gulf of Oman, Chabahar Port holds great significance for the country both politically and economically. The country has taken serious measures to develop this port in order to improve the country’s maritime trade.