Introduction
Chabahar port is a seaport located in Southeastern Iran, on the Gulf of Oman. It is situated in the province of Sistan and Baluchestan, near the border with Pakistan and Afghanistan. The port is strategically important as it provides a trade route to a large part of South Asia, mainly India, Bangladesh and Sri Lanka to Afghanistan and Central Asia, bypassing Pakistan.
The development of the Chabahar port has been a joint effort between India, Iran, and Afghanistan. In May 2016 above three states signed an agreement to establish a transit and transport corridor through Chabahar port. India has invested significantly to develop the port and associated infrastructure, including a railway line from Chabahar to Zahedan, a city in southeastern Iran, near the border with Afghanistan.
In December 2020, India formally inaugurated the strategic Chabahar port and its first phase of the Shahid Beheshti port, which is expected to increase regional connectivity and trade. It also offers Iran an alternative route for trade, bypassing Pakistan and reducing its dependence on the port of Karachi. The port has been the subject of significant investment by India, which has been keen to develop it as a gateway to Afghanistan and Central Asia, bypassing Pakistan. Moreover, it’s significantly helpful for Bangladesh and Sri Lanka to trade with not only Central Asia but also with some parts of Europe. Once fully operational, Chabahar Port is expected to become a gateway for trade between India and Afghanistan as well as between Central Asian countries. The port is also expected to facilitate cargo movement between the Middle East and Europe, bypassing the traditional sea route through the Suez Canal.
Chabahar Port has become a game changer for South Asian countries in terms of economic impact. The port can play a key role in connecting South Asia to Central Asia, Europe and beyond. This is possible through the International North-South Transport Corridor (INSTC), a multimodal transport network connecting India, Iran and Russia.
The development of Chabahar Port could lead to the generation of thousands of jobs in the area, thereby providing much-needed employment opportunities to the local communities.
Increased trade and connectivity can boost economic growth in the region, especially in Afghanistan, one of the world’s least developed countries.
The development of Chabahar Port has the potential to bring significant benefits to South Asian countries, particularly in terms of boosting trade, improving regional connectivity and creating jobs.
Furthermore, Chabahar port has been exempted from U.S. sanctions against Iran, allowing India to continue its investment in the port. The development of the port is also seen as part of India’s efforts to counter China’s Belt and Road Initiative, which seeks to establish a network of trade and infrastructure projects across Asia, Europe, and Africa. The Chabahar Port project is expected to have significant economic and strategic implications for the region and is a promising development to enhance regional connectivity and trade.
Geographical Importance of Chabahar port
Chabahar Port is geographically important due to its location on the southeastern coast of Iran, close to the Gulf of Oman and the Arabian Sea. Its proximity to these water bodies makes it an important port for trade and commerce, providing access to the Indian Ocean and beyond.
Chabahar Port is strategically located at the intersection of South Asia, Central Asia, and the Middle East, which makes it an ideal gateway for trade and commerce between these regions. It is also situated near the borders of Afghanistan and Pakistan, providing a direct trade route for these countries to access the Indian Ocean.
The development of the Chabahar Port and its connectivity with India through road and rail links has the potential to enhance regional connectivity and economic cooperation between India, Iran, Afghanistan, and Central Asia. The port can serve as a key transit hub for goods moving between these regions, thereby reducing transportation costs and time for businesses.
Furthermore, Chabahar Port is located outside the Strait of Hormuz, which is a critical chokepoint for global oil shipments. This location allows countries such as India to access oil and gas resources from Iran and other Central Asian countries without having to pass through the Strait of Hormuz, which can be vulnerable to geopolitical tensions and disruptions.
In summary, the geographic location of Chabahar Port provides it with significant strategic and economic importance, making it an essential hub for regional trade and connectivity.
Importance of Chabahar port to Asia
- Connectivity: Chabahar Port is part of the International North-South Transport Corridor (INSTC) that connects India with Russia and Europe via Iran. The development of the port and the INSTC provides a more direct and cost-effective trade route for Asia to reach these regions.
- Regional Integration: Chabahar Port could help promote regional integration by connecting South Asia, Central Asia, and the Middle East. The port could serve as a hub for trade and investment, promoting economic growth and cooperation among these regions.
- Energy Security: The development of Chabahar Port provides Asian countries with an alternative access point to Central Asia’s vast energy resources, reducing their reliance on traditional supply routes through the Strait of Hormuz, which is a potential chokepoint for oil shipments.
- Strategic Balancing: The development of Chabahar Port could also help to balance the growing influence of China in the region, which is a concern for many Asian countries. By investing in alternative economic corridors and ports, such as Chabahar, Asian countries can reduce their dependence on China and promote a more multipolar and diverse economic environment in the region.
Overall, Chabahar Port is seen as a key component of Asia’s strategic outreach to the wider region, providing greater connectivity, economic opportunities, and strategic leverage
(Roadmap) Source: The Hindu
Iran’s Chabahar Port: A gateway for South Asia
The Chabahar port holds significant strategic importance for India as it provides a key gateway for India to access landlocked Afghanistan and Central Asia, while bypassing Pakistan.
For decades, India has been asking Pakistan to provide land transit facilities to markets in Iran and beyond in return for the millions of dollars Islamabad earns in transit fees. Pakistan has never agreed.
India has then taken an alternative route through the multi-modal International North-South Transit Corridor (INSTC) that provides shipping services from Mumbai to Iran’s Chabahar port and bypasses Pakistan altogether. This is to restore a natural pathway. Before the partition of India into Pakistan and Bangladesh in 1947, India, Iran, and Afghanistan were India’s immediate neighbors for thousands of years. All three countries have very strong historical, cultural, and civilizational ties. There should be no reason to be afraid of restarting these links.
India’s Chennai, Kandala and Mumbai ports are all connected to Iran’s Chabahar port, which will be connected to INSTC and will be able to use connections via Iran, Afghanistan, Central Asian states, Russia and Europe. It is already working. India sent 75,000 tons of wheat as humanitarian food aid to Afghanistan via Chabahar last year and in June 2020 helped Iran fight its worst locust infestation by supplying 25 tons of the insecticide malathion.
Chabahar is therefore very important for the expansion of trade in the region and has a special resonance for Indian merchants and traders to export their goods to the Commonwealth of Independent States (CIS) countries and Europe. The Iranian Customs Administration has prepared the entire infrastructure to facilitate trade and traffic in the corridor. Bangladeshi exporters are also affected.
INSTC connects Mumbai and Moscow and passes through Iran and Azerbaijan. India is keen to include Iran’s Chabahar port to facilitate such connectivity. There are huge Indian investments in Iran. India maintains good relations with Armenia and Azerbaijan. INSTC stretches from Mumbai to Chabahar through Azerbaijan to Moscow, offering much potential for India’s regional connectivity plans.
Ports of Colombo in Sri Lanka and Chittagong and Mongla in Bangladesh are connected to ports in India. Sri Lanka and Bangladesh can use Iran’s Chabahar port through Indian ports to connect with INSTC, which means Sri Lanka and Bangladesh’s connectivity equates to trade development.
Chabahar Port is located on the Gulf of Oman, near the Iran-Pakistan border. It is Iran’s only major ocean outlet beyond the Strait of Hormuz and provides direct access to the Indian Ocean. It connects to Afghanistan on the Zaranj-Deleram highway. The port serves as India’s closest port gateway to Central Asia after the Pakistani ports of Karachi and Gwadar.
Chabahar Port has become a topic of interest for countries like Sri Lanka and Bangladesh, which are seeking alternative trade routes to reduce their dependence on traditional maritime routes through the crowded and often congested Strait of Malacca. Chabahar Port offers a direct sea route for these countries to access Central Asia and beyond, as well as to the markets of the Middle East, Europe, and Africa.
Sri Lanka and Bangladesh have also expressed interest in using Chabahar Port for their trade activities. In 2018, Sri Lanka signed a Memorandum of Understanding with Iran to cooperate on oil and gas exploration, and to explore the potential for Sri Lanka to use Chabahar Port for its trade activities. Bangladesh has also expressed interest in using the port as a gateway to Central Asia.
According to Iranian media, the Bangladesh ambassador in Tehran said after a visit to Chabahar port that relations between Iranian and Bangladeshi traders and investors will help develop trade in the South Asian region. Bangladesh is willing to promote shipping from Bangladesh to Iran, which means that there is great potential and potential for Bangladeshi investors and traders to explore and take advantage of this relationship.
Bangladesh, Sri Lanka, and Central Asia can be connected through this route. There is a large market for Sri Lankan and Bangladeshi products. Although cotton and other materials are needed, the garment sector in Sri Lanka and Bangladesh is one of the largest in the world. Sri Lanka and Bangladesh can easily import cotton from Central Asian states and wheat from Russia, and are looking to invest from these countries. Bangladesh can export leather, garments and potatoes to Central Asian states, Russia and China.
Sri Lanka and Bangladesh will be able to increase exports to Iran and attract investment from Tehran through the use of Chabahar port. Iran and Russia are suffering from US sanctions but India can help Sri Lanka and Bangladesh in this regard. Bangladesh’s goal is to become a developed country. India will be a great development partner for Sri Lanka and Bangladesh. This connection will also boost inter-regional cooperation in Central and South Asia, and if Bangladesh and Sri Lanka use the INSTC, it will increase its strategic importance. Tapping into influence means that Russia and Central Asian countries such as Uzbekistan are more interested in investing in Sri Lanka and Bangladesh. Russia has already invested in the Ruppur nuclear power plant on the banks of the Padma River in Bangladesh, 90 km west of the capital Dhaka. Sri Lanka and Bangladesh want to connect regionally and globally. Iran’s Chabahar port creates significant opportunities for Sri Lankan and Bangladeshi businesses. Now is the time to engage and reconnect with the Bangladeshi and Sri Lankan business communities.
However, there are some challenges to using Chabahar Port as a trade gateway. The port is still under development, and its capacity is limited. There are also geopolitical factors at play, including international sanctions on Iran, which could impact the port’s development and usage. Nonetheless, the potential benefits of using Chabahar Port as a gateway to Central Asia and beyond are significant, and it is likely that interest in the port from countries like Sri Lanka and Bangladesh will continue to grow.
International North South Transport Corridor (INSTC)
Importance of Chabahar port to Sri Lanka
As a member of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Sri Lanka is part of a regional grouping that aims to enhance economic and technical cooperation among the countries surrounding the Bay of Bengal. The development of the INSTC and Chabahar Port could provide Sri Lanka with new opportunities to enhance its trade and investment links with Iran, Afghanistan, Central Asia, and beyond.
Sri Lankan products and goods can be exported and imported to Central Asian states and West Asian countries using Iran’s Chabahar port and Sri Lanka will be able to use Chabahar port to import essential goods from not only Iran and Central Asia but also from Russia and Europe.
In several occasions, Sri Lanka has been a supporter of the Iranian government and people in international forums. There is great potential for developing the level of bilateral relations between the two countries. Sri Lanka and Iran have strengths in energy, trade and commerce.
Additionally, the development of Chabahar Port could help to balance the growing influence of China in the region, which is a concern for Sri Lanka and other South Asian countries. By supporting the development of alternative economic corridors and ports, such as Chabahar, Sri Lanka and other countries can reduce their reliance on China and promote a more multipolar and diverse economic environment in the region.
Abbreviated
Chabahar Port (Persian: باندر چابهار) is a port in Chabahar, southeastern Iran, on the Gulf of Oman. It serves as Iran’s only seaport and consists of two separate ports named Shahid Kalantari and Shahid Beheshti, each with five berths. It is located about 170 km west of Gwadar port in Pakistan.
The development of the port was first proposed by the last Shah of Iran in 1973, although development was delayed by the 1979 Iranian Revolution. The first phase of the port was opened during the Iran-Iraq War in 1983 when Iran began shifting sea trade towards the East Pakistan border to reduce its dependence on ports in the Persian Gulf, vulnerable to attack by the Iraqi Air Force.
India and Iran first agreed in 2003 to plan further development of the Shahid Beheshti port, but it was not carried out due to sanctions against Iran. As of 2016, the port has ten berths. In May 2016, India and Iran signed a bilateral agreement under which India will renovate one berth at Shahid Beheshti Port and renovate a 600-meter-long container handling facility at the port.
In October 2017, India’s first shipment of wheat to Afghanistan was sent through Chabahar port. India took over operations of the port in December 2018.
Iran’s international strategy with regard to the Chabahar port involves establishing it as a key transit point for regional trade and a gateway to Central Asia and Afghanistan.
The Chabahar port is located in southeastern Iran and is strategically situated on the Indian Ocean, making it an ideal location for trade with India and other countries in the region. Iran has been investing in the port’s infrastructure to increase its capacity and efficiency and has also signed agreements with India, Afghanistan, and other regional countries to develop the port’s trade potential. One of Iran’s key objectives with the Chabahar port is to bypass Pakistan and establish a direct trade route with Afghanistan and Central Asia.
In May 2016 Transit Trade Agreement between India, Iran, and Afghanistan regarding the Chabahar port was a significant development in regional trade and economic cooperation. Under the agreement, India agreed to invest in the development of the Chabahar port, which would give it access to Afghanistan and Central Asia via a more direct and secure route. Iran also agreed to provide landlocked Afghanistan with a sea outlet and transit access to other countries, which would boost its economic development. Moreover, it is highly importance for some South Asian countries, mainly Bangladesh and Sri Lanka to trade with Iran, Central Asia.
The Chabahar port agreement was seen as a strategic move by India to counter China’s growing influence in the region, as it provided an alternative to the Chinese-built Gwadar port in Pakistan. It also enhanced Iran’s position as a regional player and gave Afghanistan greater access to international markets. Since the agreement was signed, there has been progress in the development of the Chabahar port, with India investing in infrastructure and equipment to increase its capacity. The first shipment of wheat from India to Afghanistan through the Chabahar port was completed in 2017, marking a milestone in regional trade cooperation.
Overall, the May 2016 Transit Trade Agreement between India, Iran, and Afghanistan regarding the Chabahar port has the potential to transform regional trade and economic cooperation, and enhance the strategic position of the three countries in the region. Furthermore, it would help certain South Asian nations such as Sri Lanka and Bangladesh significantly. This is strategically important as a transit point for regional trade and a gateway to Central Asia and Afghanistan. Iran has been investing in the port’s infrastructure to increase its capacity and efficiency and has signed agreements with India, Afghanistan, and other regional countries to develop the port’s trade potential. Iran’s international strategy with the Chabahar port is to enhance its trade and economic ties with regional countries, expand its influence in the region, and reduce its dependence on other countries for trade and transit routes. The May 2016 Transit Trade Agreement between India, Iran, and Afghanistan regarding the Chabahar port was a significant development in regional trade and economic cooperation, which provided for the establishment of a trilateral trade and transport corridor among the three countries, and marked a milestone in regional trade cooperation.
Hasitha Kasun Hapuarachchi
(Hasitha Kasun Hapuarachchi is Colombo based independent researcher mainly in the field of economics. He has completed his Bachelor of Economics special degree with first class honors at Gujarat University, Ahmedabad, India)
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References
- https://newsin.asia/first-meeting-on-implementation-of-india-afghanistan-iran-pact-on-chabahar-port/
- https://www.geopoliticalmonitor.com/backgrounder-irans-chabahar-port/
- https://www.dailynews.lk/2022/01/04/features/269251/iran%E2%80%99s-chabahar-port-gateway-sri-lanka-and-bangladesh
- https://byjus.com/free-ias-prep/chabahar-port/
- https://www.wionews.com/south-asia/taliban-back-usage-of-india-built-chabahar-port-say-ready-to-provide-facilities-541441
- https://www.csis.org/analysis/india-iran-cooperation-chabahar-port-choppy-waters-0
- https://www.insightsonindia.com/2018/12/25/chabahar-port/
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Thanks for that.😊