Chabahar Port Effects on India, Iran, Afghanistan and Pakistan

Chabahar Port is a seaport in Chabahar located in southeastern Iran, on the Gulf of Oman. It serves as Iran’s only oceanic port. Chabahar Port Effects on India, Iran, Afghanistan and Pakistan

• India-Iran-Afghanistan MoU and plans have committed at least $21bn to Chabahar-Hajigak corridor
• This includes $85m for Chabahar port development by India, $150m line of credit by India to Iran, $8bn India-Iran MoU for Indian industrial investment in Chabahar Special Economic Zone, $11-billion Hajigak iron and steel mining project awarded to seven Indian companies in central Afghanistan, and India’s $2bn commitment to Afghanistan for developing supporting infrastructure including the Chabahar-Hajigaj railway.
• It has a potential for several times more trade via connectivity to 7,200-km-long multi-mode North-South Transport Corridor (INSTC) connecting to Europe and Turkey, R297 Amur highway and Trans-Siberian Highway across Russia, and planned Herat to Mazar-i-Sharif railway providing access to Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan.
• Chabahar Port also provides direct access to India’s Farkhor Air Base in Tajikistan.
• Chabahar route will result in 60% reduction in shipment costs and 50% reduction in shipment time from India to Central Asia.

IRAN’S INTERNATIONAL STRATEGY

• Consistent with its desire to be seen as a significant regional player, Iran has taken the initiative to engage with all the neighbouring countries to enhance the transit potential of Chabahar.
• It has signed a Memorandum of Understanding (MoU) with Afghanistan and Tajikistan on the construction of railway lines, water pipelines and energy transmission lines.
• It has been keen to extend the Khvaf-Herat rail line to connect to the railways of Central Asia, Turkey, and Europe.
• It has entered into an agreement with Oman, Qatar, Turkmenistan and Uzbekistan to establish a transport corridor between these countries.
• It is also a key partner in the International North-South Transport Corridor (INSTC) along with Russia, Ukraine, Turkey, Oman, Syria, India and the Central Asian countries, which aims to connect South and Central Asian countries to Northern Europe via Iran and Russia.
• Specifically, with respect to Chabahar, Iran has envisioned it as a key port in linking India with Afghanistan and Central Asian countries. Initiatives in this regard include a roadway from Chabahar to Milak on the Afghanistan border, Chabahar-Faraj-Bam railway, Chabahar-Zahedan-Mashhad rail link, which will be further extended to Herat and Mazar-e-Sharif in Afghanistan and Termez in Uzbekistan.
• Iran also plans to build the Iranrud, Suez canal like canal through Iran to connect Caspian sea with the Persian Gulf.

IMPORTANCE TO INDIA

• The sea route connects Gujarat’s Kandla port to Chabahar from where the shipment will be taken to Afghanistan through a land route.
• Bypassing Pakistan’s Resistance: India has strategically circumvented Pakistan which has opened up new opportunities for trade and transit from and to Afghanistan and enhances trade and commerce between the three countries.
• Connectivity with Europe and Central Asia: When linked to the International North-South Transport Corridor (INSTC), it would connect South Asia and Europe & Central Asia, which would provide Indian business better opportunities to expand in Central Asia.
• Geostrategic Location: This port is located very close (around 100kms) to Pakistan’s Gwadar Port, which has been developed by China. Thus, the location is strategic to balance the increasing footprint of China in Asia through the policy of ‘String of Pearls’.
• Reducing Transportation Cost: The distance between India’s Kandla Port and Chabahar Port is quite short, thereby reducing the transportation costs of the goods and freight time.
• Important for the Stability of the Region: In the long term, the project is expected to improve the economic conditions of the region with the introduction of newer opportunities.

SECURITY ISSUES

• Chronic instability in Afghanistan may limit the usefulness of Chabahar as a conduit to Afghanistan and Central Asia. Road networks between Chabahar and Afghanistan rely upon connections to the Afghan Ring Road. In August 2016, insurgent activity by Afghanistan’s Taliban militant group forced a closure of the Ring Road between Kandahar and Helmand Province.
• Iran’s Sistan and Baluchestan Province, site of Chabahar port, is also the stage for insurgent activity by the insurgent group Jundallah, which claims to be fighting for the rights of Sunni Muslims, and the local ethnic Baloch. In 2010, Jundallah militants dispatched a suicide bomber to a Shi’ite mosque in Chabahar, killing 38 people.