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Iran and India have agreed to finalize agreements to develop Iran’s Chabahar Port, Tasnim reported. Iran’s Roads and Urban Development Minister Mehrdad Bazrpash and India’s External Affairs Minister Subrahmanyam Jaishankar met in Tehran yesterday to establish “a long-term cooperation framework with respect to Chabahar port,” Jaishankar said. No further details regarding financials or timelines were disclosed.
Background: India and Iran have mostly settled issues regarding the terms of the contract for the port development, with only one paragraph remaining under negotiation. Both sides were expected to finalize the long-term agreement by early October. Iran and India have so far relied on one-year agreements for the development and running of the terminal at Chabahar Port, and have been looking to implement a longer term, self-renewing 10-year agreement. They also recently agreed that they would not turn to commercial arbitration for disputes that arise between users and operators at the port.
There are concerns: India has so far shelled out some USD 25 mn for developments at Chabahar, with the lion’s share of investments going towards gantry and coastal cranes. India’s state-owned India Ports Global has been on the lookout for cranes and other container handling equipment for use at Chabahar Port from suppliers in the GCC, but multiple attempts to acquire necessary equipment have been scrapped as contractors are wary of engaging with Iran due to sanctions.
What else is on the table? Iran and India also shared views on collaboration on the International North-South Transport Corridor (INSTC) whereby Bazrpash proposed the establishment of a joint transport committee to apply transit capacities and benefit from the INTSC. Jaishankar also expressed India’s willingness to launch new transportation and transit-related investments at Chabahar Port, Tasnim said.
