India is looking to continue capacity building at Iran’s Chabahar Port.
Located in - Iran's Sistan and Baluchistan Province on the Gulf of Oman, owned by the Iranian government.
It serves as Iran's only oceanic port.
It consists of two separate ports named
Shahid Kalantari and
Shahid Beheshti.
Regional Connectivity - It is a key trade route for India, Iran, Afghanistan, and Central Asian countries.
Geopolitical Importance - It is seen as a strategic counter to China's Belt and Road Initiative and its development of the Gwadar port in Pakistan.
Significance for India - Chabahar Port was a coveted strategic interest for India.
It is a critical gateway for the proposed International North-South Transport Corridor (INSTC).
INSTC is a multi-modal route between India, Central Asia and Russia, reducing transit time for trade between the three regions.
Chabahar agreement – India, Iran, and Afghanistan signed a trilateral agreement to establish the International Transport and Transit Corridor, also known as the Chabahar Agreement.
Aim - To improve transportation and trade connectivity between the three countries by utilizing the port of Chabahar in Iran as a key transit point.
It is a 10-year contract signed in May 2024.
It allows India to operate the Shahid Beheshti terminal at Chabahar port in Iran.
Operated by - State-owned India Ports Global (IPGL).
The signed Chabahar agreement includes a clause on cargo targets, but no penalties will be imposed if such traffic is not achieved.
Revenue-sharingarrangement – It has been confirmed as following,
For exports – From the Shahid Behesti terminal, both IPGL and Iran will retain 50% of the revenue share.
For imports – Iran’s maritime organization will receive 60% of the revenue.
Recent Negotiation between India and Iran – Among the negotiations for the contract
India requested not have a minimum guaranteed traffic (MGT), under which an operator is penalized for failing to meet minimum targets.
