Tehran, May 13, 2024 (MRUD NEWS)—Iran Minister of Roads and Urban Development, Mehrdad Bazrpash, met with India's Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, today in Tehran in order to sign the contract for partnership of the India Ports Global Ltd (IPGL) in equipping and operation of the freight and container terminals of Shahid Beheshti Port in Chabahar.
The signing of this contract is considered a turning point in bilateral and regional cooperation and facilitate strategic partnership between Iran and India.
One of the major goals of concluding this contract, which was achieved as a result of the expert negotiations of joint task forces, are realizing goals of the International North-South Transport Corridor (INSTC), the tripartite transit agreement of Iran, India and Afghanistan for international transit and transport through the Chabahar Port signed in 2016, and development of multimodal transit and transport cooperation between Iran and India in the Central Asian region within the framework of the strategic cooperation between India and Central Asia.
Further, strengthening and facilitating transit cooperation between India and Afghanistan through Iran's territory, developing the eastern parts of the Makran coasts, and developing regional cooperation between Iran, India and Russia for joint investments in the regional transport and transit infrastructure are among other goals of this contract.
As per this agreement, in order to equip and develop the Shahid Beheshti Port of Chabahar, Iran's Ports and Maritime Organization (PMO) will hand over parts of the freight and container terminals of the Shahid Beheshti Port of Chabahar to India for 10 years while India invests $120 million for supply of strategic equipment of the Port and $250 million in the transport infrastructures of Chabahar Port.
According to this contract, the parties are committed to fulfill their obligations in facilitating transit along the International North-South Transport Corridor (INSTC) and will develop shipping lines between the ports of the two countries and attracting container transit.
In January 2024, Iran Minister of Roads and Urban Development, met with India's foreign minister, Subrahmanyam Jaishankar, in Tehran in order to negotiate finalizing the agreement for development of Chabahar Port. The two sides conferred on previous actions for equipping Chabahar Port and also a final agreement in this regard.
Also, in August 2022, Iran and India's transport Ministers visited in Tehran to expand the role of Chabahar Port in regional transit and trade.
There are two important transport protocols between Iran and India with regards to the Chabahar Port. One is the joint cooperation on the development of the Shahid Beheshti Port at Chabahar signed in 2015. This is meant to realize the vision of Chabahar Port as a major regional and international hub for freight transit. Additionally, there is the trilateral transit agreement for international transit and transport through the Chabahar Port signed by Iran, India, and Afghanistan in 2016.
The Chabahar Port as an ocean Port located in the southeastern Province of Sistan and Baluchestan Province in Iran is considered a crucial gateway for India to gain access to Afghanistan, Central Asia, and Russia bypassing Pakistan.