Places in News: Shahid Beheshti Port at Chabahar
Context:
India and Iran signed a landmark 10-year bilateral contract for India to operate the Shahid Beheshti terminal at Chabahar Port
Following this, the U.S. has provided India with a six-month waiver on its sanctions against Iran for the port, allowing for the flow of essential supplies to Afghanistan
Strategical Location of the Port:
The Shahid Beheshti Port is a key terminal of the Chabahar Port
It is located in Iran's Sistan-Baluchestan Province.
It is situated on Gulf of Oman and offers an alternative maritime route that bypasses the Strait of Hormuz.
Geographically, it is located about 100 miles from Pakistan's Gwadar Port (which is a crucial component of the China-Pakistan Economic Corridor).
With its strategic location near the Strait of Hormuz and the Indian Ocean, the port provides a vantage point across various regions such as West Asia, Indian Ocean and Africa.
Significance
The 10-year deal is the first time India has taken over the management of an overseas port.
It is considered India's gateway to Afghanistan, the Central Asian states, and Russia.
It is often dubbed India's answer to Gwadar.
The port is vital for sending relief materials.
India used it to send 20,000 metric tons of wheat to Afghanistan in 2023
Under the agreement, Indian Ports Global Limited (IPGL) will invest $120 million, and India will provide a $250 million line of credit to Iran
Regional Trade and Connectivity
India has been pushing for Chabahar to be part of the 7,200 km long International North-South Transport Corridor (INSTC)
This connects India with Europe via Russia.
Chabahar is a crucial link in the INSTC, connecting India–Iran–Afghanistan–Central Asia–Russia–Europe, as it reduces travel time and cost for trade between India and Eurasia. For example, shipping goods via Chabahar and INSTC is nearly 40% cheaper and 60% faster than the Suez Canal route.
In May 2016, India, Iran, and Afghanistan signed an agreement to create a transit hub, with Chabahar as a regional hub.