The 10-year agreement was signed by Iran’s Minister of Roads and Urban Development Mehrdad Bazrpash and India’s Minister of Ports, Shipping and Waterways Sarbananda Sonowal in Tehran on Monday.The two sides agreed on the partnership of the India Ports Global Ltd (IPGL) in equipping and operation of the freight and container terminals of Shahid Beheshti Port in Chabahar.Under the contract, Iran’s Ports and Maritime Organization (PMO) will hand over parts of the freight and container terminals of the Shahid Beheshti Port of Chabahar to India for 10 years while India invests $120 million for the supply of strategic equipment of the Port and $250 million on the transport infrastructure of Chabahar.The parties are committed to fulfilling their obligations in facilitating transit along the International North-South Transport Corridor (INSTC), developing shipping lines between the ports of the two countries and attracting container transit freights.
Both India and Iran see Chabahar as a hub for the International North–South Transport Corridor (INSTC) that will allow shipping companies to use an alternative route that bypasses the sensitive and busy Persian Gulf and Strait of Hormuz.India agreed in 2016 to finance the development of the Iranian port but the process was stalled two years later due to the US sanctions reimposed after Washington’s unilateral withdrawal from the 2015 nuclear agreement.US State Department Deputy Spokesperson Vedant Patel warned on that Washington’s sanctions on Tehran remain in place and warned that the United States will continue to enforce them.”Any entity, anyone considering business deals with Iran – they need to be aware of the potential risks that they are opening themselves up to and the potential risk of sanctions,” Patel told reporters.
Following the signing ceremony, Bazrpash said Chabahar can act as “a focal point in the transit development of the region”.”We are pleased with this agreement and we have full confidence in India,” Bazrpash continued, adding that this agreement is a start for the further development of trade between the two countries, and India’s access to Afghanistan and Central Asia, Turkey, Azerbaijan and Europe through Chabahar Port will be facilitated”.Sonowal, for his part, praised the long-term contract as a symbol of “enduring trust and effective partnership” between India and Iran.”Iran and India are seeking to develop Chabahar Port as much as possible, taking into account the interests of the two countries for joint access to regional markets,” the Indian minister said.“Chabahar Port’s significance transcends its role as a mere conduit between India and Iran; it serves as a vital trade artery connecting India with Afghanistan and Central Asian Countries,” he stated, adding, “This linkage has unlocked new avenues for trade and fortified supply chain resilience across the region.”
