Iran's Chabahar cargo port can be a new transshipping point that connects India, Iran and Central Asia

Translation of the article Иранский порт Чабахар может стать новым перевалочным узлом, соединяющим Индию, Иран и Среднюю Азию

Chabahar port: a new transport hub connecting India, Iran and Central Asia.

Iran's Chabahar port can be a new transshipping point that connects India, Iran and Central Asia. The first step was made by India which initiated including of Chabahar port in the International North-South Transport Corridor.

The International North-South Transport Corridor (INSTC) is a 7,200 km long cargo route that connects India, Iran, Azerbaijan and Russia via ship, rail and road. The route reduces travel time between Mumbai and Moscow from 40 to 14 days. The route's main aim is to provide alternative way to traditional routes that cross the Suez canal, Mediterranean and Baltic Sea.

The INSTC is an imposrtant project for the Central Asia as well. When the route will be finished, it will ensure easy access to Afganistan, Uzbekistan and states that are in relation to India and other South-Asian countries. In particular, Chabahar port is an important intersection due to its close proximity to India.

The first point of the INSTC is Iran's Bender-Abbas port. This loaded port in the south of Iran hs connection to the railroad which is an advantage in comparison to Chabahar port which is located further east. However, Chabahar port is located closer to India, than Bender-Abbas. Moreover, the US santions are not imposed on this port, explained Amir Asra from Iran's MAPNA Locomotive company in the RailFreight Live.

India was interested in promotion of the port as transshipping point and offering to include the Chabahar port to the INSTC will increase such role. The offer appeared at the same time with the establishing of Chabahar port sharing quadripartite working group. The first meeting of the working group probably will be held this year. However, India is has been conducting negotiations concerning more effective use of Chabahar port since 2003. In 2014, India and Iran signed a Memorandum of Understanding which turned into a 10-years contract for equipping and use of the port.

Including the Chabahar port in the INSTC is important for many countries of the region. Bangladesh can increase exports to Iran and raise investments from Iran using Chabahar port. This route can connect Bangladesh and Central Asia. Bangladesh can easily import cotton from Central Asia countries, wheat from Russia and export its leather, clothes and potato.

Only from Iran's efforts will depend the functioning of the port as the transshipping hub, and only Iran will have to finish the construction of the rail line to the port.