News around you

India, Iran sign 10-year contract for operation of Chabahar port

Minister of Shipping, Ports and Waterways Sarbananda Sonowal witnessed the signing of the 10-year contract between India Ports Global Ltd (IPGL) and Ports & Maritime Organisation of Iran (PMO).

Chabahar portNEW DELHI: India and Iran on Monday signed a 10-year contract for the operation of the Shahid Beheshti Port in Chabahar.

Minister of Shipping, Ports and Waterways Sarbananda Sonowal witnessed the signing of the 10-year contract between India Ports Global Ltd (IPGL) and Ports & Maritime Organisation of Iran (PMO).

IPGL will commit to further equip and operate the port for the duration of the contract. At the end of the 10-year period, both sides would further extend their cooperation in Chabahar.

IPGL will invest approximately $120 million in equipping the port. India has also offered a credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure.

“We are scripting a new chapter in the bilateral partnership as we signed a long term contract for the operation of Shahid Beheshti Port in Chabahar (between India Ports Global Limited and Maritime Organisation of Iran). The contract will give a boost to regional connectivity and India’s linkages with Afghanistan, Central Asia and Eurasia,” said Ministry of External Affairs spokesperson Randhir Jaiswal.

Chabahar is a deep water port located in the Sistan-Baluchistan province of Iran. It is the closest Iranian port to India and is located in the open sea, providing easy and secure access for large cargo ships.

India has so far supplied six mobile harbour cranes (two 140 tons and four 100 tons capacity) and other equipment worth $ 25 million.

Meanwhile, India Ports Global Limited (IPGL), through its wholly owned subsidiary, India Ports Global Chabahar Free Zone (IPGCFZ), took over the operations of the Chabahar port on 24th December 2018.

Since then, it has handled traffic of more than 90,000 TEUs of container traffic and more than 8.4 MMT of bulk and general cargo. The port has also facilitated the supply of humanitarian assistance, especially during the COVID-19 pandemic.

Until now, a total of 2.5 million tons of wheat and 2000 tons of pulses have been trans-shipped from India to Afghanistan through Chabahar. In 2021, India supplied 40,000 litres of environment friendly pesticide (Malathion) to Iran to fight the locust menace through the port.

The Chabahar port has provided much needed sea-access to the landlocked countries of the region including Afghanistan and emerged as a commercial transit hub for the region. It is a more economical and stable route for landlocked countries of the region to reach India and the global market.

It may be recalled that during the visit of Prime Minister Modi to Iran in May 2016, a trilateral agreement to establish the International Transport and Transit Corridor (Chabahar Agreement) was signed by India, Iran and Afghanistan.

You might also like

Comments are closed.