India observes Chabahar Day with emphasis on linkage with Central Asia

India observes Chabahar Day with emphasis on linkage with Central Asia

Subject: IR

Section: International organisation

Context: The Ministry of Port, Shipping and Waterways (MoPSW) on Sunday observed ‘Chabahar Day’ in Mumbai to mark the Chabahar – Link to International North-South Transport Corridor (INSTC) – Connecting Central Asian Markets.

Chabahar

• Chabahar is located strategically off Makran coast in the Gulf of Oman at the southern end of Persian Gulf and Iran’s closest and best access point to the Indian Ocean.
• It is far away from Iran’s other major port of Bandar Abbas that currently handles the bulk of its transshipments but is constrained due to capacity and inability to berth large ships.
• In contrast, Chabahar is an oceanic port and capable of handling much larger vessels. Developing it and utilising its true potential is in Iranian interest as that will reduce the distance. When linked with the Iranian railway network, it will connect the port with the rest of Iran.
• The development of Chabahar-Zahedan railway line and its development has provided an opportunity to Iran to initiate developmental projects in the region since it enjoys exemptions from the new round of the US. sanctions that were obtained due to Indian pressure and leverage with the USA, due it being the preferred port of transit for goods destined for Afghanistan for providing relief and humanitarian assistance to the people of Afghanistan.
• The impetus to the development of the port came in May 2016 when India, Iran and Afghanistan signed a key trilateral deal, known as the Chabahar Agreement, to establish a strategic India-Iran-Afghanistan Trilateral Agreement on Transport and Transit Corridors to facilitate trade with Afghanistan, Central Asia, Russia and Europe for utilizing Chabahar port as a hub, giving a boost to Indian access to Afghanistan and creating the International North-South Transport Corridor (INSTC).

INSTC

• The INSTC is a key trade corridor project, wherein India is partnering with 12 countries to establish an economic corridor.
• 7,200-km multi-mode transport (Rail, sea, Road) project to move freight among India, Iran, Afghanistan, Armenia, Azerbaijan, Russia, Central Asia and Europe.
• Aim is to increase trade connectivity between major cities such as Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan, Bandar Anzali, etc.
• Dry runs of two routes were conducted in 2014, the first was Mumbai to Baku via Bandar Abbas and the second was Mumbai to Astrakhan via Bandar Abbas, Tehran and Bandar Anzali.