India’s ambitions at Iran’s Chabahar Port face setbacks after the resignation of all government-appointed directors from India Ports Global Ltd amid new US sanctions. With a critical compliance deadline approaching, officials must navigate the dual pressures of financial commitments and geopolitical risks, complicating their strategic initiatives in the region.
Exporters are exploring the shift of freight operations from Bandar Abbas to Chabahar due to the rising Iranian-Israeli conflict threatening vital trade routes. With air freight costs already up 15%, further increases loom. Discussions to enhance connectivity to Uzbekistan aim to mitigate disruptions while ensuring robust trade across affected regions.
India plans to invest nearly 4,000 billion rupees to expand the Iranian Chabahar port, aiming to quintuple its capacity to 500,000 TEUs by 2034. Orders for five mobile harbor cranes have been placed, and marketing efforts will enhance the port’s viability, strengthening India’s maritime influence in the region.
The Third Working Group meeting on Chabahar Port, with India, Iran, and Uzbekistan, occurred in Mumbai on 22 November 2024. Afghanistan Chambers of Commerce delegates attended. The vital role of the port in Afghanistan’s development and creating a trade route to Central Asia was emphasized. They discussed increasing transit traffic and enhancing regional connectivity. India Ports Global showcased the port’s facilities to encourage trade and transit. The next meeting will be scheduled soon.
ET Infra reported that Iran’s PMO will procure essential cargo handling equipment for the Indian-financed Chabahar Port. IPGL will increase investment to $120 million from $85 million for the equipment supply. Delays due to Western sanctions on Iran have hindered the port’s operations, but a new agreement aims to expedite equipment procurement.
India and Iran have reached a final agreement on the Chabahar port project, replacing the original contract with a ten-year term. Jaishankar began his Tehran visit by meeting with Minister Bazrpash to discuss long-term cooperation and the International North-South Transport Corridor. India has been promoting the Chabahar port for regional trade and connectivity to Afghanistan.
Following Stories compiled in this News Digest for the week from 22 Aug 2022 to 28 Aug 2022 in descending…
