Afghanistan to use India- Iran developed Chabahar port for transit

[PARIKRAMA]

@PARIKRAMA

Any news about the North- South corridor to Russia?
It was supposed to run via Bandar Abbas. With Chahbahar becoming the port of choice for India and transport links being built, any chance the entry port to the route get transferred to Chahbahar?

its there see this as pasted above

Iran's Minister of Economic Affairs and Finance Dr. Ali Tayyebnia, who is visiting for the bilateral Joint Commission meeting co-chaired by Foreign Miniser Sushma Swaraj, also discussed with the host the connectivity projects including International North-South Transport Corridor (INSTC) project and rail link between Chabahar Port and Zahedan.

The credit ceiling of the Export-Import (EXIM) Bank of India to Iran has risen to about one billion dollars from 150 million dollars. 250 million dollars out of the amount will be spent on purchasing railroad tracks and related equipment from India. About 750 million dollars of the credit line can be spent on implementation of projects in Iran.



Source: Afghanistan to use India- Iran developed Chabahar port for transit

The Map

Some more source:
Government pitches for global north-south corridor - The Hindu
December 30, 2015 00:03 IST
In a bid to boost trade with former Soviet Union countries, Iran and Russia, the commerce ministry has pitched for popularisation of International North-South Transport Corridor (INSTC) as an alternative route through Tehran that significantly reduces costs and travel time.

The move comes at a time when the government has adopted a market diversification strategy to help Indian exporters reduce their dependence on traditional markets in the West where there is currently not much demand and instead gain more access in growing markets in Asia, Africa and Latin America not tapped as much previously.

At a stakeholder meeting held last week in Mumbai, the commerce ministry officials pointed out that even 15 years after the formalisation of the INSTC concept by India, Iran and Russia (in 2000), this alternative trade route has not taken off in a big way due to outstanding issues concerning logistics, banking connections, insurance cover as well as harmonisation of documentation and procedures for cargo.

The INSTC is a multi-modal route (ship, road and rail) from Mumbai to the Iranian port of Bander Abbas then via Tehran to Baku (Azerbaijan) and further to Astrakhan, Moscow and St Petersburg in Russia. Alternatively, there is also a road route from Iran to former Soviet Union countries such as Azerbaijan.

Poor rail connectivity and the shortage of wagons in Iran as well as the lack of incentives including discounts for using the INSTC were also flagged by the commerce ministry during the meeting. In addition, the need for improving scanning facilities—to do away with unloading/reloading of cargo and detention of vehicles/train—was highlighted.

The ministry also wanted banks (to help in trade finance) and insurance companies (to provide trade credit insurance, cargo insurance and risk management) to play an active role in boosting traffic through INSTC. Meanwhile, Export Import Bank of India has expressed interest in financing projects in the infrastructure sector and joint ventures involving Indian companies to better the prospects of INSTC.

Besides Iran, India and Russia, countries that are members of INSTC include Armenia, Azerbaijan, Belarus, Kyrgyztan, Kazakhstan, Ukraine, Turkey, Tajikistan, Oman, Syria and Bulgaria (observer status).

 

[Rajaraja Chola]

These 2 neighbors are hillarious. Aray baba use Iran port or Somalian port or Martian port, why making so many announcements every now and then, like f kin attention seekers.

Once CPEC is completed, Iran itself will distance itself from 3rd world India to join the progressive wagon of CPEC. Every one knows that the terrain from Chahbahar to Kabul is damn hard so no fcks are given.

First complete CPEC. Then talk.

 

[My-Analogous]

Strength and Opportunities

1. The Iranian side suggested participation of India's public and private sectors in development of Chahbahar Port and Chahbahar Free Trade Zone (FTZ) and in setting up industrial units in the FTZ,
2. India has plans to invest $ 15 million in the Chabahar port complex (targeted Jan 2016)
3. Plans for early completion of all necessary procedures for India's participation in Farzad-B field in Iran.
4. India's desire to participate in other oil and gas explorations led by Indian companies
5. India plans to increase its oil imports from Iran. Before the sanctions imposed on Iran, Tehran was providing 16 percent of New Delhi's oil needs. The figure has reached 6 percent during sanctions.
6. Iranian officials also stated that it does not intend to keep oil sale incomes in India. Iran wants to receive the frozen money in Euro.
7. The credit ceiling of the Export-Import (EXIM) Bank of India to Iran has risen to about one billion dollars from 150 million dollars. 250 million dollars out of the amount will be spent on purchasing railroad tracks and related equipment from India. About 750 million dollars of the credit line can be spent on implementation of projects in Iran.
8. It will provide an access route to land-locked Afghanistan
9. Close proximity to the Strait of Hormuz which facilitates about 40 per cent of the world’s oil trade
10. It would give India access to markets and mineral resources in Afghanistan and central Asia
11. Provide access to Hajigak iron ore mine developed by Steel Authority of India
12. Opportunity to monitor Militarily the region
13. It will provide Market for farm products from Afghanistan
14. It will help in combating drug trafficking.
15. Chabahar-Zaranj-Delaram-Hajigak rail: Indian-Iranian project, would link future Indian iron-ore mining operations at Hajigak to Chabahar, 900 kilometres away.
16. Zaranj-Delaram highway: Indian-built road, completed in 2009, connects Iran via the highway to the main Kandahar-Herat highway. (At present business people had complained that area is infested by smugglers and drug lords.)
17. The possibilities in cooperation in railways, including by supply of rails, rolling stock, signalling and other works and India's participation in Chahbahar - Zahedan -Mashhad railway line

Weakness and Threats

1. Businesses complain the region has become dangerous because of Islamist gangs and criminals
2. Long time taken by GOI to initialize the investments
3. Disputes over tariffs and transit regulations
4. Pressure from US
5. Chinese competition for port development and nearest port Gwadar
6. In ability to militarily support the base and region and investments.

One more problem and that is if Pakistan asked not to use its sea territory for this port then India first have to go Oman and then to Iran and it will cost India another 20 to 36 hours to reach Iran and cost of goods will be increased. Or if Pakistan impose more tax of India Iran trade route which can give Pakistan more revenue and price of Indian goods may increase dramatically. Bottomline is that without Pakistan approval India can't get benefit from this route as well. Now internet warriors say what ever they want but this is the universal truth.

 

[Indiran Chandiran]

• • One more problem and that is if Pakistan asked not to use its sea territory for this port then India first have to go Oman and then to Iran and it will cost India another 20 to 36 hours to reach Iran and cost of goods will be increased. Or if Pakistan impose more tax of India Iran trade route which can give Pakistan more revenue and price of Indian goods may increase dramatically. Bottomline is that without Pakistan approval India can't get benefit from this route as well. Now internet warriors say what ever they want but this is the universal truth.

Put another way , Pakistan's loss is Iran's gain.I believe the Indians are much more comfortable dealing with Iran , even after their extortionary attitude than they are dealing with Pak.I suspect it's mutual too going by the tone & tenor of your post & otherwise .

 

[My-Analogous]

Put another way , Pakistan's loss is Iran's gain.I believe the Indians are much more comfortable dealing with Iran , even after their extortionary attitude than they are dealing with Pak.I suspect it's mutual too going by the tone & tenor of your post & otherwise .

Read the post again

 

[H.B.]

One more problem and that is if Pakistan asked not to use its sea territory for this port then India first have to go Oman and then to Iran and it will cost India another 20 to 36 hours to reach Iran and cost of goods will be increased. Or if Pakistan impose more tax of India Iran trade route which can give Pakistan more revenue and price of Indian goods may increase dramatically. Bottomline is that without Pakistan approval India can't get benefit from this route as well. Now internet warriors say what ever they want but this is the universal truth.

Pakistan can only deny transit use of sea to India or any other country within its territorial waters i.e. about 12 nautical miles, not in its EEZ.

territorial waters | international law | Britannica.com
NOAA Office of General Counsel International Section - Ballast Water - Maritime Zones and Boundaries

 

[Indiran Chandiran]

Read the post again

I did.In the normal seated posture in front of my PC & after doing a headstand too.Didn't find anything different.

 

[Blue Marlin]

well this is going to end badly. why do i have the feeling that afganistan is not playing ball.... the previous afgan government did not like pakistan and it resulted badly for his country now ghani is more willing but they need to realize that pakistan can solve their problems and coupled with china they cant go wrong. what can india do to provide stability and hardcore investment? next to nothing. even the afgan army is scared of the taliban in some areas. as for the port in iran well afganistan produces opium/heroin and when going through iran which has one of the strictest laws ever the punishment is capital. and a huge amount of it and hardly anything else and will be used to import things to afganistan. afganistan should stabilize its country first then worry about its economy.
dont get me wrong there is massive ways of investment there mainly in mining.(i have my eyes of that too)
the chinese have got that covered $3 billion in a copper mine thats stalled
Chinese demands, rebels and Buddhist ruins stall Afghan copper dream| Reuters

god give them brains.