Jaishankar, Iranian Ministers Explore Long-Term Cooperation Framework for Chabahar Port Development

Union minister of external affairs S Jaishankar met Iranian minister of roads and urban development Mehrdad Bazrpash and Iranian foreign minister Hossein Amir-Abdollahian during his visit to Iran this week where they discussed establishing a long-term cooperation framework with respect to Chabahar port.

Bazrpash said a working committee will enable the activation of transit capacities and the use of the North-South corridor and both nations, as per Iranian state media report, proposed forming a joint transportation committee to expand cooperation between the two countries.

The external affairs minister during his meeting with his Iranian counterpart said regional connectivity is a critical pillar of India-Iran relations. The connectivity-related matters were prominent in the agenda during Jaishankar’s discussions with Hossein Amir-Abdollahian.

“I reiterated India’s interest in benefiting from Iran’s unique geographical position to access markets in Central Asia, Afghanistan and Eurasia. We discussed the prospects of energising the International North South Transport Corridor,” Jaishankar said.

The International North–South Transport Corridor (INSTC) envisions a freight corridor through a comprehensive network of shipping, rail, and road routes connecting South Asia to the Middle East, and Europe. The 7200km corridor will encompass India, Iran, Azerbaijan, Russia, Central Asia, and Europe.

Two dry runs were conducted to test the feasibility of the corridor in 2014. The first route connected Mumbai to Baku via Bandar Abbas, while the second linked Mumbai to Astrakhan via Bandar Abbas, Tehran, and Bandar Anzali.

Both ministers also discussed India’s involvement in the development and operation of the Chabahar port. Hossein Amir-Abdollahian pointed out that both nations have been working together on this project for two decades now.

“I emphasised India’s commitment to this project, and discussed how we can establish a firm, sustainable and long-term roadmap, for India’s continued involvement over the coming years. Given the importance of this project for both nations, I emphasised the need to monitor its progress under the direct supervision of the political leadership,” he said.

Why Chabahar Port Is Important

The Chabahar port is situated in southeastern Iran, along the Gulf of Oman and has both strategic and commercial interest overlooking the maritime gateway providing access to Central Asia and Europe.

India wants to develop the Chabahar port because it aims to bypass Pakistan as the route provides a more secure and direct trade route for Indian goods to Afghanistan.

India has mostly sent its aid shipments for the Afghan people which included 50,000 tonnes of consignment of wheat via Chabahar port. Previous shipments were transported on trucks via the Wagah-Attari border crossing and then through Pakistan.

Jaishankar also met Iranian President Ebrahim Raisi where he highlighted India’s interest in signing concluding a comprehensive and long-term cooperation agreement on the development of Chabahar port.

The Union minister stressed India’s commitment to the Chabahar project and discussed the need for a firm, sustainable and long-term roadmap for India’s continued involvement.

“While announcing the country’s interest in concluding a comprehensive and long-term cooperation agreement with the Islamic Republic of Iran, the Minister of Foreign Affairs of India emphasised India’s complete adherence to its commitments in the Chabahar port development project as well as comprehensive development of cooperation with Iran,” the Iranian President’s office said in a release.

Raisi “stressed the need to follow up and accelerate the implementation of the agreements between the two countries including the Chabahar Port Development Plan”.

Both the INSTC and Chabahar hold immense strategic importance for India. They are key components of New Delhi’s foreign policy and economic outreach as these projects will help contribute to economic growth by facilitating smoother trade flows.

The movement of goods and services through these routes will open up new markets and enhance opportunities for Indian exporters. The diversification of routes is also necessary for mitigating geopolitical risks and ensuring a more secure and direct passage for Indian goods to other parts of the world.

Why Delays

India and Iran agreed that India would run the Shahid Beheshti terminal at the port for 10 years in 2016. The finalisation of the long-term deal got delayed because of disagreement on where to solve disputes, if they arise in the future.

India wanted a neutral country but Iran preferred its own courts or a friendly nation. Due to the difference of opinions, the agreement kept getting delayed.