India and Iran have signed a 10-year contract for the operation of Shahid-Behesti Terminal at the strategically important Chabahar post in Iran. The signatories include Indian Post Global Limited (IPGL) and the Port and Maritime Organisation (PMO) of Iran.
Key highlights
- IPGL will invest around $120 million to further develop the port.
- India has also opened a credit window of around $250 million in order to improve the infrastructure associated with the port.
- This pact is expected to herald a new era of trade, maritime cooperation, and trans-shipment and will boost trilateral trade between India, Iran and Afghanistan.
- With this agreement, India will be managing a seaport of a different country for the first time.
- This pact also highlights India’s commitment to the region’s economic development.
Chabahar Port
- A deep water port, Chabahar is located in the Sistan-Baluchistan region in Iran.
- Chabahar is a vital port as it serves as a key trade route that connects India with Afghanistan and Central Asian Countries.
- An MOU between India and Iran was signed in 2015 and was executed in 2016.
- In 2016, a trilateral agreement was signed by India, Iran, and Afghanistan to establish the International Transport and Transit Corridor (Chabahar Agreement).
- Chabahar Port, which is situated on Iran’s southwest coast, is easily accessible from the Indian west coast.
- In the International North-South Transport Corridor (INSTC), which is a multi-mode transport project spanning 7,200 km, Chabahar Port serves as a vital link.
