TEHRAN – In a major step forward, the first phase of Iran’s Chabahar port, which holds significant strategic and economic importance for India, was launched on Sunday. The port allows India to bypass Pakistan and reach land-locked Afghanistan and Central Asian countries.
New Delhi views the Chabahar port project as a strategic response to China’s development of the Gwadar port in Pakistan, and its aggressive pursuit of the Belt and Road Initiative. It is also key to accessing the Central Asian markets for Indian goods.
Iran’s President Hassan Rouhani inaugurated the Shahid Beheshti Port’s first phase in a ceremony that was attended by ministers, envoys and officials from 17 countries, including Minister of State for Shipping Pon Radhakrishnan.
President Rouhani said during the ceremony that the inauguration marked a “historic” day for Iran, particularly for the people of Chabahar.
He emphasised that the project was specifically important, given that it connects the trade corridors that pass through Iran to the sea route. “This port is also significant from the political point of view given that it connects Iran with its eastern and northern neighbours and at a later stage to European states,” Rouhani said.
The move to develop Shahid Beheshti Port started in 2007 through an investment that officials previously said amounted to $1 billion. However, India’s intention to become a partner in the project was made clear as long ago as in 2003.
From 2.5 million tonnes, the annual cargo tonnage of Shahid Beheshti Port, Iran’s only oceanic port, is now expected to almost triple and reach 8.5 million tonnes. It can also accommodate 100,000-tonne ships, which India feels has strategic and economic potential as a rival to the Gwadar port.
The overall development of the port is planned in four phases and is expected to bring its total annual cargo capacity to 82 million tonnes.
India, Iran and Afghanistan have signed an agreement to grant preferential treatment and tariff reductions at Chabahar to Indian goods headed toward Central Asia and Afghanistan.
Chabahar provides India with an easier land-sea route to Afghanistan. The Indian government has committed USD 500 million to Chabahar, with an aim to join an increasingly important transport corridor to resource-rich regional countries.
India has prepared massive investment plans, which will include a network of roads and railways at a cost of USD 15 billion, as part of its strategic push in the area.
Once the project is complete, Chabahar will be linked with the International North-South Transportation Corridor (INSTC), which currently stretches from the Iranian port of Bandar Abbas in the Gulf to Russia, Eurasia and Europe.
“We are happy that the first wheat shipment for Afghanistan has been sent to the country’s people via the Iranian port,” Rouhani said, according to IRNA news agency.