India Targets Increased Cargo Handling in Chabahar Port with Long-Term Contract

Chabahar, India’s first overseas port project, has a long-term agreement that is valid for 10 years and can be extended automatically. This agreement is meant to replace an initial pact that covers India’s operations at the Shahid Beheshti terminal in Chabahar port, which is renewed annually. Between 2018 and May 2023, the bulk and general cargo traffic at Chabahar reached 6.56 million tonnes.

India is aiming to handle 13,282 TEUs of cargo at the Shahid Beheshti terminal in 2023, compared to 3,096 TEUs in 2022. With cargo handling significantly increasing at the port, there is a possibility of future investments. India is currently in discussions with Iran to sign a long-term contract for Chabahar, which is expected to be finalized soon.

In May, the cargo handled at the Shahid Beheshti terminal rose by 25% month-on-month, reaching 3,503 TEUs. Bulk cargo handled also increased by nearly 150% in May compared to April. The Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, stated that May has been one of the best months in Chabahar’s history. Until May, 2,00,578 tonnes of cargo were loaded, while 5,87,884 tonnes were unloaded at the terminal.

According to Ali Akbar Safaei, the chief executive of Iran’s Ports and Maritime Organization, India and Iran have resolved a significant portion of their issues regarding the development of Chabahar Port. This resolution was reached after discussions held during an Indian delegation’s visit to Iran. The remaining issues are expected to be settled in upcoming meetings to finalize a long-term contract. So far, an initial investment of $25 million has been committed to Iran for the development of the port, as part of the memorandum of understanding among Iran, India, and Afghanistan. The details of the long-term contract are currently being worked out.

No tags for this post.

Source .