Development of Chabahar Port to help India enhance logistical capabilities: GTRI

15 May 2024 Evaluate

The Global Trade Research Initiative (GTRI) has said that the development of Chabahar Port will help India enhance its logistical capabilities and expand its trade routes to Central Asia and for that there is a need to ensure necessary infrastructure, and processes to effectively manage the cargo flow at the port. It suggested that the government stick to the fact that the Chabahar Port is not under international sanctions despite being Iran's only ocean port as despite the strategic advantages, the project's success is intricately tied to the complex geopolitical environment it operates within.

According to the GTRI, Chabahar Port, comprising the Shahid Kalantari and Shahid Beheshti terminals, is strategically located about 170 km west of Pakistan's Gwadar Port. It offers an alternative maritime route to the congested Strait of Hormuz. Chabahar is also an integral component of the International North-South Transport Corridor (INSTC), a 7,200-km multi-modal transportation route connecting India with Iran, Azerbaijan, Russia, Central Asia, and Europe. This corridor aims to reduce transit times to about 25 days -- 20 days fewer than the Suez Canal route -- and cut freight costs by 30 per cent.

On May 13, 2024, India signed a 10-year contract to operate the strategic Iranian port of Chabahar. The long-term agreement was signed by Indian Ports Global (IPGL) and the Port & Maritime Organisation of Iran. IPGL will invest about $120 million while another $250 million will be raised as debt. 


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