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Chabahar: A new transit route

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Chabahar: A new transit route
Global Village Space |

Dr. Zafar Jaspal |

India, Iran, and Afghanistan have been laboring to establish a new transit route. The new transit route would link Afghanistan and Iran with India through Chabahar Port. The port would facilitate a landlocked Afghanistan and also open a trade route for Indian goods and products to Afghanistan and Central Asia. With the construction of a new transit route, India would not only bypass Pakistan but also realize its decades-old dream to encircle Pakistan.

Islamabad needs to initiate a productive and result-oriented negotiation process for enhancing it’s economic, political and diplomatic relations with Tehran

New Delhi has systematically cultivated its strategic and economic relations with Tehran since the beginning of the twenty-first century. India and Iran signed a defense pact in November 2003 and revised it in 2009.

Neither the United States nor other Western countries solicit India to honor United Nations Security Council directives or sanctions levied against Iran. New Delhi and Kabul signed the strategic partnership with the connivance of United States in 2011. Since then, Afghanistan and Pakistan bilateral relations have been deteriorating.

Read more: Modi revisits Iran ties

Strategically, Chabahar port is very significant. It is located in the Sistan-Balochistan province near Strait of Hormuz and Pakistan’s Gwadar port in Balochistan. The Indians consider it as a gateway to Afghanistan and Central Asia. In May 2016, Prime Minister Narendra Modi announced that India would invest $500m to develop and operate strategically important Iran’s Chabahar port.

New Delhi promised to invest in the Iranian railway for laying railway lines connecting Iran, Afghanistan and Central Asia. Indeed, the new trade route would assist India to get a foothold in the region. The transformation in Global Politics and cementing the strategic partnership between India and United States has not obstructed the former relations with Iran.

The leadership rhetorical support for improving bilateral relations needs practical initiative(s) for sustainable cordial bilateral relations between the neighboring states

On August 6, 2017, the Indian Union minister for transport, highways, and Shipping, Nitin Gadkari announced that Chabahar port would be operationalised by 2018. He stated: “Civil construction work has started there. We have finalized tenders worth Rs3.8 billion for equipment out of Rs 6bn and once the port becomes operational it will become a growth engine.”

Read more: Tehran hits Delhi’s underbelly as Modi hugs Trump and Netanyahu

India built the 220-kilometre road in the Nimroz province of Afghanistan and now planning to extend this road to Chabahar. Interestingly, the Indian ruling elite is giving an impression that it would be able to develop the port within stipulated time. Whereas; Western manufacturers are shying away from supplying equipment for Chabahar port.

They are afraid of the probability that the United States may reimpose sanctions on Iran. The Trump Administration has already expressed its concerns over the Iranian nuclear program. It gave an impression that it could quash the 2015 Joint Comprehensive Plan of Action known commonly as the Iran deal or Iran nuclear deal.

The Iranians have confidence in the continuity of the Indian investment in Chabahar because even before the nuclear deal was reached, India was doing billions dollars trade with Iran

President Trump declared 2015 Joint Comprehensive Plan of Action “the worst deal ever negotiated”. It was reported in Foreign Policy (July 2017), “the president has assembled a special team of White House aides whose sole task is to figure out a way to claim that Iran is violating the deal.” The termination of the deal would automatically reimpose sanctions against Iran.

Read more: Pakistan must outline and work to achieve its own future for…

The Iranians have confidence in the continuity of the Indian investment in Chabahar because even before the nuclear deal was reached, India was doing billions dollars trade with Iran. Ironically, Washington did not compel New Delhi to oblige the United Nations Security Council sanction imposed against Iran. However, Washington indirectly hindered the construction of Iran-Pakistan gas pipeline.


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Chabahar: A new transit route
 
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Far far far away from infrastructure being in place. Even long after that there is commercial and business cost related questions

- loading to ship in india
- unloading it in Chabahar port
- loading it in rail or truck
- port fees etc.
- time for multiple loading and unloading
- ship TO train/truck transport requires huge fleet and train/cargo capacity that can match bulk capacity that a ship has.

does all that commercially make sense for business to use india Chabahar corridor?

NOT by a long shot. india as usual acting on "chest thumping" ego without any sense of reality.
 
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Far far far away from infrastructure being in place. Even long after that there is commercial and business cost related questions

- loading to ship in india
- unloading it in Chabahar port
- loading it in rail or truck
- port fees etc.
- time for multiple loading and unloading
- ship TO train/truck transport requires huge fleet and train/cargo capacity that can match bulk capacity that a ship has.

does all that commercially make sense for business to use india Chabahar corridor?

NOT by a long shot. india as usual acting on "chest thumping" ego without any sense of reality.

You think that Chabahar is meant exclusively for India? Perhaps you need to look deeper than engaging in your usual anti-Indian "chest thumping."
 
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Far far far away from infrastructure being in place. Even long after that there is commercial and business cost related questions

- loading to ship in india
- unloading it in Chabahar port
- loading it in rail or truck
- port fees etc.
- time for multiple loading and unloading
- ship TO train/truck transport requires huge fleet and train/cargo capacity that can match bulk capacity that a ship has.

does all that commercially make sense for business to use india Chabahar corridor?

NOT by a long shot. india as usual acting on "chest thumping" ego without any sense of reality.

if pakistan denies afghanistan trading privileges it will make sense
 
.
Far far far away from infrastructure being in place. Even long after that there is commercial and business cost related questions

- loading to ship in india
- unloading it in Chabahar port
- loading it in rail or truck
- port fees etc.
- time for multiple loading and unloading
- ship TO train/truck transport requires huge fleet and train/cargo capacity that can match bulk capacity that a ship has.

does all that commercially make sense for business to use india Chabahar corridor?

NOT by a long shot. india as usual acting on "chest thumping" ego without any sense of reality.

Really genius? Name a port that can do cargo exim without loading, unloading, local train/truck network connection etc.
 
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Iran is facing heavy sanctions from the Trump admin. If I understand, very little is actually being built on the ground, its mostly rhetoric.
 
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Iran is facing heavy sanctions from the Trump admin. If I understand, very little is actually being built on the ground, its mostly rhetoric.
India is financing it and will be operational by 2018.
 
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It's going to be a huge windfall for Iran.

And a relief for more than one country being armtwisted for trade access.

A win win situation. For most.

Cheers, Doc
 
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India is financing it and will be operational by 2018.

"Western manufacturers are shying away from supplying equipment for an Iranian port that India is developing for fear the United States may reimpose sanctions on Tehran, Indian officials say, dealing a blow to New Delhi's strategic ambitions in the region.
...
India committed $500 million to speed development of the port after sanctions on Iran were lifted following a deal struck between major powers and Tehran to curb its nuclear program in 2015.

But the state-owned Indian firm that is developing Chabahar is yet to award a single tender for supplying equipment such as cranes and forklifts, according to two government sources tracking India's biggest overseas infrastructure push."
http://www.firstpost.com/business/i...-see-light-as-us-weighs-sanction-3538289.html

Reality is a bit different. India barely has enough clout to supply cranes and basic equipment. Actually operationalising the port is a whole different ball game. Iranians are not exactly on friendly terms with anyone...
 
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Laughable, really. Chabahar is no match for Gwadar.

Besides Iran is a sanctioned nation. Good luck with working with a pariah state.
USA may sanction India if India gets too cozy with Iran.
 
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Laughable, really. Chabahar is no match for Gwadar.

Besides Iran is a sanctioned nation. Good luck with working with a pariah state.
USA may sanction India if India gets too cozy with Iran.

Good luck to the US with that.

Cheers, Doc
 
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