The Union Shipping Ministry has decided to expedite development of the Chabahar port project in Iran. It may be recalled that the two countries had signed a memorandum of understanding (MoU) to develop the facility.
According to reports, the contracts would be finalised within six months and, thereafter, tenders would be floated for berth construction. The project, once completed, would give India sea-land access route to Afghanistan bypassing Pakistan.
Chabahar, located on the confluence of the Indian Ocean and the Sea of Oman in southeastern Iran, provides India access to Afghanistan, Central Asia and beyond. As per the MoU, India would invest around $86 million to construct a container terminal and a multi-purpose cargo terminal.
The port’s strategic importance for India is that it reduces the country’s dependence on Pakistan for trade with Afghanistan.
The investment in Chabahar would be routed through the India Ports Global SPV, which is a joint venture company of Kandla Port Trust (KPT) and Jawaharlal Nehru Port Trust (JNPT).
This post was written by Atlantic Admin