Indian firm, India Ports Global Limited, recently assumed operations at Iran’s Shaheed Beheshti Port at Chabahar. This move is a significant development in the triangular agreement between India, Iran, and Afghanistan. The trilateral Chabahar Agreement—a harmonization of transit, roads, customs, and consular matters—promises economic growth and improved commercial connectivity for the three nations.
Chabahar Port: A Central Node in a Trilateral Agreement
The port at Chabahar has been jointly developed by India, Iran, and Afghanistan. During their first meeting to implement the terms of the trilateral Chabahar Agreement, the three countries consented to finalizing a protocol that aligns their approaches to transit, customs, roads, and consular issues. Notably, they agreed to allow cargo movement at Chabahar under the provisions of the TIR (Transports Internationaux Routiers) Convention.
Significance of Chabahar Port
The implications of this agreement reach far beyond the shores of the three countries involved. Chabahar port is projected to greatly enhance India’s regional and trade connectivity plans. It provides an alternative trade route with Afghanistan and Central Asia, relieving dependency on routes through Pakistan. Furthermore, Chabahar is expected to strengthen India’s bilateral ties with Iran, a key oil supplier for India. Lastly, it promises to support Afghanistan’s development via infrastructure and education projects.
Chabahar and the International North South Transport Corridor
Chabahar plays a vital role as a link in the International North South Transport Corridor (INSTC)— a multi-modal network of ships, rail, and road routes facilitating freight movement from India to Russia via Iran. Moreover, Chabahar forms a crucial part of India’s Indo-Pacific strategy that aims to facilitate Eurasia’s connectivity with the Indian Ocean Region. Central Asian countries like Uzbekistan and Kazakhstan also recognize Chabahar as their gateway to the Indian Ocean Region.
Challenges Facing Chabahar Port
| Challenges | Impact |
|---|---|
| US Sanctions on Iran | Potential withdrawal of concessions granted to Chabahar port could destabilize operations. |
| Security Concerns | Withdrawal of U.S. troops from Afghanistan could introduce regional security issues, potentially affecting the Chabahar route. |
| Gwadar Port, Pakistan | Greater engagement with Pakistan due to reconciliation processes could impact Chabahar’s position as a rival port. |
| Supporting Connectivity Projects | To fully realize Chabahar’s potential, India must accelerate the development of a rail line from Chabahar to the Iran-Afghanistan border. |
The TIR Convention
The TIR Convention, or the Customs Convention on International Transport of Goods under cover of TIR Carnets, is an international transit system supervised by the United Nations Economic Commission for Europe (UNECE). Facilitating seamless movement of goods within and among its Parties, the Convention currently includes 76 Parties, including the European Union. India ratified the UN’s TIR Convention in 2017, becoming the 71st country to do so.
International North-South Transport Corridor (INSTC)
The INSTC is a multi-modal transportation system established in 2000 by Iran, Russia, and India. Its purpose is to promote transportation cooperation among member states by connecting the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran, and further on to St. Petersburg and Northern Europe via Russia. Over time, the INSTC has grown to include eleven new members including Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Belarus, Oman, Syria, and Bulgaria (observer).
