Indian Firm Takes Over Chabahar Port Operations | 27 Dec 2018

Indian firm India Ports Global Limited took over the operations of the Shaheed Beheshti Port at Chabahar on the southeastern coast of Iran.

• The Chabahar port has been jointly developed by India, Iran, and Afghanistan.
• In the first meeting for implementation of the trilateral Chabahar Agreement, the three countries agreed to finalize the Protocol to harmonize transit, roads, customs, and consular matters.
• It was agreed to allow cargo movement at Chabahar using TIR (Transports Internationaux Routiers) Convention provisions.

Significance

• It will boost India’s regional connectivity and trade connectivity plan. Chabahar port opens up a permanent alternative route for trade with Afghanistan and Central Asia by bypassing the route through Pakistan.
• It gives a boost to India’s bilateral ties with Iran which is a major oil supplier for India.
• It will facilitate India’s role in Afghanistan’s development through infrastructure and education projects.
• It will allow Afghanistan to have a commercial fleet under the Afghan flag sailing from Chabahar.
• The port is also a key link in the International North South Transport Corridor (INSTC), a multi-modal network of ships, rail and road routes to move freight between India to Russia via Iran.
• Chabahar Port is a key element in India's Indo-Pacific strategy that also includes Eurasia's connect with the Indian Ocean Region.
• Central Asian countries like– Uzbekistan and Kazakhstan– also view Chabahar Port as their gateway to the Indian Ocean Region.

Challenges

• The US Sanctions: As of now, Chabahar port has received a waiver from the U.S. sanctions on Iran, but these concessions could be withdrawn at any time, given the constant upheaval in the administration.
• Security Concern: The possibility of the withdrawal of U.S. troops from Afghanistan will add to security concerns in the region and will impact the Chabahar route as well.
• Gwadar Port, Pakistan: The reconciliation process of the US and Russia with the Afghan Taliban might lead to greater engagements with Pakistan in the region. The Chabahar port is seen as a rival warm water port to China financed Gwadar port in Pakistan.
• Supporting Connectivity Projects: To tap the full potential of Chabahar Port for benefit of Afghanistan, India should pace up the development of a rail line from Chabahar to Zahedan at Iran-Afghanistan Border which will be further connected to Zaranj-Delaram Highway in Afghanistan.