The Chabahar Port Project is close to an agreement between India And Iran. During Foreign Minister Jaishanker’s visit to Tehran, he held extensive discussions with Iranian Foreign Minister Hossein Amirabdollahian on Chabahar port and North-South connectivity.

Amidst the tension with Pakistan, Iran has made preparations to defeat it on the diplomatic front also. Recently during Foreign Minister S. Jaishankar’s visit to Iran, both the countries have come close to an agreement on this ambitious Chabahar Port project. The issue of construction of this port has been pending between the two countries for a long time. It came into limelight in 2017 when Prime Minister Narendra Modi visited Tehran.

India has finalized the Chabahar Agreement at a time when the Middle East is going through great turmoil and relations between Iran and Pakistan are tense. Moreover, International Naval Trade Waterways are under threat such as Somalia Pirates and attack Houthi terrorists. The US and Britain are continuously attacking Houthi rebel positions in Yemen to eliminate disruptions to the smooth movement of commercial ships through the Red Sea.

What is the Chabahar Port Project?

Chabahar Port is a connectivity project located in Sistan Baluchistan province in the south-eastern part of Iran. In this project, Chahbahar Port has been developed in collaboration between India and Iran since 2003 in the Gulf of Oman.

It has two main ports, but India will develop only one of the two, namely Shaheed Beheshti Port. An investment agreement of $8 billion was signed between the two countries on this project. The Chabahar Port Project is a multinational initiative to develop a deep-sea port in southeast Iran and establish a key trade route connecting India, Iran, Afghanistan, and potentially Central Asia.

Plans have been drawn up to build a 628 km long railway line to Zahedan and then more than 1,000 km long tracks to Sirakhs on the Iran-Turkmenistan border.

Here’s a breakdown of its key aspects:

Location and Significance:

• Chabahar is Iran’s only oceanic port, offering crucial access to the Indian Ocean and beyond.
• It’s considered a “Golden Gateway” to Afghanistan and Central Asia, as it provides an alternative to Pakistan-controlled routes for accessing these regions.

Chabahar Port Project Elements:

• Port Development: India has invested heavily in expanding Chabahar port’s capacity, with Phase 1 already operational and further phases planned.
• Road and Rail Connectivity: India has built a 240-km road connecting Chabahar with Zaranj in Afghanistan. Moreover, Iran is constructing a crucial railway link between Chabahar and Zahedan.
• Chabahar Special Economic Zone: Plans are underway to establish an industrial zone near the port. It includes facilities for aluminium smelting, urea production, and other industries.

International Collaboration:

• The project is a trilateral partnership between India, Iran, and Afghanistan. Each country is playing a critical role in its development and utilization.
• The International North-South Transport Corridor (INSTC) aims to integrate Chabahar into a broader trade network connecting Russia, India, and Central Asia.

Challenges and Potential:

• US sanctions on Iran: Sanctions have posed hurdles in terms of financing and international engagement.
• Change of power in Afghanistan: The Taliban’s takeover of Afghanistan in 2021 added further uncertainty to the project’s future.
• Despite these challenges, Chabahar holds immense potential as a hub for trade, regional cooperation, and economic development.

Current Status:

• Although progress has been slower than initially anticipated, the project continues to move forward.
• India’s recent commitment to send aid to Afghanistan through Chabahar indicates continued interest in the initiative.
• Iran’s efforts to complete the Chabahar-Zahedan railway are another positive development.

How the Chabahar Port Project will be beneficial

According to the Indian Commerce Ministry, freight transportation through the Chabahar Port and International North-South Transport Corridor (INSTC) will be 30% cheaper than the Mediterranean-Suez route. Natural gas from Central Asia can be brought to India through Chabahar port. India is already part of projects like the TAPI gas pipeline originating from the Central Asian Republic of Turkmenistan.

Moreover, the Chabahar project will end the dominance that China has created in the region regarding connectivity through the CPEC project with Pakistan.