News Highlight
With the visit of the Union Minister of Ports, Shipping & Waterways to Iran’s Chabahar port this month, the Union government has increased its interest in using the port to link to Afghanistan and Central Asia for trade.
Key Takeaway
- Ahead of the visit to Iran, where the Union Minister of Ports, Shipping & Waterways met with senior ministers as well as officials connected to the Shahid Beheshti terminal project development, an official statement said that the visit would be a chance to “strengthen ties and the maritime relationship” between the two countries.
The Chabahar Port
- The port is located in the Sistan and Baluchestan provinces in the southeastern part of Iran, on the Gulf of Oman.
- In 2018, India took over the operations of the port.
- It was being operated by India Ports Global Private Limited (IPGPL).
- While Iran and India are signatories to the port development project, a second agreement on connectivity was also signed by Iran, India and Afghanistan.
- It has provided sea access to the landlocked countries of the region.
Reasons why Chabahar port is important for India:
- India can bypass Pakistan:
- The port is that India can bypass Pakistan in transporting goods to Afghanistan and other central Asian countries.
- The port will boost India’s access to Iran, the key gateway to the International North-South Transport Corridor that has sea, rail, and road routes between India, Russia, Iran, Europe and Central Asia.
- Countering the Chinese presence:
- The port will benefit India in countering the Chinese presence in the Arabian Sea, which China is trying to ensure by helping Pakistan develop the Gwadar port.
- Gwadar port is less than 400 km from Chabahar by road and 100 km by sea.
- Military ally with Iran:
- With India’s Chabahar port being developed and operated, Iran has also become a military ally to India.
- Chabahar could be used in case China decides to flex its navy muscles by stationing ships in Gwadar port.
- Economic benefits:
- With Chabahar port becoming functional, there will be a drop in the oil cost for India and a considerable decline.
- This port will reduce dependency on the Suez Canal and transportation time for Iran and India.
- Humanitarian operations:
- From a diplomatic perspective, Chabahar port could be used as a point from which humanitarian operations could be coordinated.
- Chabahar port will establish politically sustainable connectivity between India and Afghanistan.
Challenges associated with port development
- The US sanctions:
- Although India’s development of the Chabahar Port now has been exempted from US sanctions, the possibility of its withdrawal shortly could be a significant hindrance for India.
- It is because the tensions between the USA and Iran over Iran’s nuclear policy and enrichment programme and the imposition of sanctions are yet to be resolved.
- The Chinese factor:
- The growth of ports in the area also reflects India and China’s rivalry for dominance in the region.
- As part of its expansive China Pakistan Economic Corridor (CPEC) project under the Belt and Road Initiative, China has begun constructing the rival Gwadar port in Pakistan.
- The Taliban issue:
- Even after avoiding Pakistan, numerous logistical issues may still hamper trade between India and Afghanistan.
- The Taliban controls most of the area around the Delaram highway.
India’s developmental project in Iran
- Chabahar-Zahedan railway project:
- It is a collaboration between the governments of India and Iran.
- It is to provide faster connectivity from the Chabahar Port in Iran to Afghanistan and further to Central Asia.
- It will bolster connectivity by road from the Chabahar port to Afghanistan.
- Farzad b gas field:
- Farzad B is a gas and condensate field located within the Farsi block in the Persian Gulf, offshore Iran.
Content Source: The Hindu