India has sealed a monumental 10-year agreement with Iran for the development and operation of the strategic port of Chabahar.
Spearheaded by the Narendra Modi-led government, this landmark pact underscores India's commitment to fortify its regional connectivity, particularly with Afghanistan and Central Asian nations.
The port of Chabahar, nestled along Iran's south-eastern coast along the Gulf of Oman, emerges as a pivotal conduit for India's trade ambitions, bypassing traditional routes via the ports of Karachi and Gwadar in Pakistan.
The signing ceremony, held in Tehran, witnessed India's Shipping Minister Sarbananda Sonowal emphasizing the port's transcendent role in fostering trade and enhancing supply chain resilience across the region.
"This linkage has unlocked new avenues for trade and fortified supply chain resilience across the region," remarked Minister Sonowal, underscoring the port's strategic significance beyond mere bilateral trade facilitation.
Facilitated by Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation of Iran, the long-term accord entails an investment of approximately $120 million from IPGL, complemented by an additional $250 million in financing, culminating in a total contract value of $370 million, revealed Iranian Minister of Roads and Urban Development Mehrdad Bazrpash.
Since assuming operations at the end of 2018, IPGL has navigated substantial container traffic of over 90,000 TEUs and handled bulk and general cargo exceeding 8.4 million tonnes, affirmed an Indian government official. Notably, the port has served as a vital conduit for the transportation of 2.5 million tonnes of wheat and 2,000 tonnes of pulses from India to Afghanistan, accentuating its pivotal role in regional trade dynamics.
Foreign Minister S. Jaishankar, in Mumbai, hailed the agreement as a harbinger of enhanced investment prospects in the port, echoing India's steadfast commitment to bolstering its maritime infrastructure and fostering robust regional connectivity.
The India-Iran collaboration at Chabahar port not only underscores the convergence of strategic interests but also heralds a new chapter in the evolving regional trade landscape, setting the stage for broader economic synergies and enhanced connectivity across South Asia and beyond.
