India Signs 10-Year Deal with Iran to Manage Chabahar Port

On May 13, 2024, Sarbananda Sonowal, India's Minister of Ports, Shipping, and Waterways, visited Chabahar, Iran to attend the signing ceremony of the Long-term Main Contract for the development of Shahid Beheshti Port Terminal.

1. The agreement between India Ports Global Limited (IPGL) and Iran's Ports and Maritime Organization (PMO) has been strengthened, an official press release announced.

Key Points:

1. Long-Term Agreement:
   1. A valid 10-year agreement with the possibility of extension was negotiated over the past 3 years.
   2. It replaces the initial agreement signed in 2016, which is renewed every year, covering India's operations at the Shahid Beheshti terminal.
2. Management of Overseas Port:
   1. For the first time, India will supervise the management of an overseas port.
   2. India Ports Global Chabahar Free Zone (IPGCFZ), a subsidiary of India Global Ports Limited (IGPL), runs the Shahid Beheshti terminal in Chabahar.
3. Chabahar Port Significance:
   1. A deep-water port situated in Iran's Sistan-Baluchistan province.
   2. Located on the Gulf of Oman at the mouth of the Strait of Hormuz.
   3. Iran's only port with direct access to the Indian Ocean.
   4. Consists of 2 separate ports: Shahid Beheshti and Shahid Kalantari.
   5. Situated as a major transit hub on the International North-South Transport Corridor (INSTC), Afghanistan enjoys geographical proximity to countries such as Pakistan and India.
4. India's Strategic Goals:
   1. The Chabahar Project, signed in 2016 as a tripartite agreement with Iran and Afghanistan, aims to establish an international transport and transit corridor.
   2. Bypassing Pakistan and gaining access to Afghanistan and Central Asia.
   3. Serving as a hub for transit trade between India, Iran, and Afghanistan.
   4. Providing an alternative to the traditional Silk Road that goes through China.

Which countries border the Gulf of Oman?

• The Gulf of Oman is bordered by Pakistan and Iran in the north, the United Arab Emirates in the west, and Oman in the south.

 

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