PressTV: Iran wants China in Chabahar development

[Shotgunner51]

PressTV-Iran wants China in Chabahar port project

Thu Oct 8, 2015 9:27AM

Iran says it welcomes China’s investments in the development of Chabahar port in its southeastern Sistant-and-Baluchestan province.

Sistant-and-Baluchestan Governor General Ali Oset-Hashemi has emphasized that the Chinese enterprises can participate in a series of projects in Chabahar including the development of its rail network as well as the key petrochemical and steel projects.

“Iran stands ready to provide lucrative business opportunities to the countries that stood by it during hard times,” Oset-Hashemi told a Chinese business delegation that was visiting Chabahar to inspect its investment potentials.

“We will be glad to work with China to make our relations solid and strong,” IRNA quoted the official as saying.
Oset-Hashemi further emphasized that he will meet the ambassadors of China and Pakistan in Tehran within the next few days to discuss the potentials for investments of the two countries in Chabahar.

The exact scope of China's planned investment in Chabahar is not known yet. However, the port is largely planned to be developed through a much-awaited investment by India. It is in fact central to India's efforts to circumvent arch-rival Pakistan and open up a route to landlocked Afghanistan where it has developed close security ties and economic interests. The port can also serve as a gateway to the resource-rich countries of Central Asia.

India’s media reported earlier that New Delhi will take a decision on Iran's latest offer in October after obtaining reports from other ministries including petroleum, chemical and fertilizer, and steel.

 

[Shotgunner51]

Is this the port project? I suppose Iran and China can have great partnership, since China has world's best credentials in the port & logistics business, and that can definitely be useful to our Iranian friends.

I believe the two countries are already working on two nuclear power plants in the same area.

 

[Albatross]

So here goes to drain all the strategic depth of India ....

It makes sense as India is currently the biggest weapon buyer of Israel and post sanction Iran having an economy bigger than India would not like to strength indian economy so that she can buy more weapons from Israel thus making rich Irans biggest enemy.

Besides Iran knows India only used Iran recently buying Iranian oil at a much lower price than international one so that was a relationship pf necessity for Iran but India took full advantage and got good quality and lower price so Iranians are right if they are looking for more trust worthy partners for chabahar.

 

[Shotgunner51]

So here goes to drain all the strategic depth of India ....

It makes sense as India is currently the biggest weapon buyer of Israel and post sanction Iran having an economy bigger than India would not like to strength indian economy so that she can buy more weapons from Israel thus making rich Irans biggest enemy.

Besides Iran knows India only used Iran recently buying Iranian oil at a much lower price than international one so that was a relationship pf necessity for Iran but India took full advantage and got good quality and lower price so Iranians are right if they are looking for more trust worthy partners for chabahar.

Good analysis from a geo-political point of view.

Even from a pragmatic business point of view, Iran has many partners to select.

• On port design, construction & equipment, Shanghai Zhenhua Port Machinery Corp (ZPMC) is the world's dominant port tech/machinery provider, supplying 78% of global demand on cranes/equipment. ZPMC is the leading supplier in port tech by far, has signed contract to build the 1st Fully Automated Port in Qingdao (青岛). Other than Chinese ports, prospects for this Sustainable Integrated Next Generation Advanced (SINGA) Port concept include Busan (South Korea), Dubai, Singapore and hopefully Colombo.

• Many mega-sized engineering companies can offer service, say China Harbour Engineering Corp (CHEC), China Communications Construction Company Limited (CCCC; Ranked 187th in 2014 Fortune 500), which have credentials in building the world's best, largest mega-infratructures.

• China can offer experience in managing ports. In 2013, Chinese ports handled close to 200,000,000 TEU of container traffic, almost doubles that of US-Korea-Japan-Germany-combined. Shanghai is the world #1 port, and 7 out of world's top 10 are also in China.

• On logistics, other than numerous mega operators from China Mainland (China Merchants, COSCO, CHEC, etc.), Iran may talk to other global powerhouses from Hong Kong (Hutchison Whampoa), Taiwan (Evergreen Group), Singapore (PSA Int'l), Netherlands (APM), UAE (DP World), South Korea (Hanjin Group) or Japan (JICA).

Top 100 port players ranked by container throughput - Lloyd's List​

• For value-adding investment & ecosystem (industries, energy plants, infrastructure & defence along the port value chain) building, Asian Infrastructure Investment Bank (AIIB) and many Sovereign Welfare Funds (SWF; e.g. CIC) are among some from China that are excellent co-investors.

But India? Note there are only some small local operators, no port tech, no port-industrial capacity, even their best Mumbai is just a tiny insignificant port (check ranking below) which has to use ZPMC equipment. What can they offer compared to the big guys in this global business?

 

[SOHEIL]

 

[Brickwall]

So here goes to drain all the strategic depth of India ....

It makes sense as India is currently the biggest weapon buyer of Israel and post sanction Iran having an economy bigger than India would not like to strength indian economy so that she can buy more weapons from Israel thus making rich Irans biggest enemy.

Besides Iran knows India only used Iran recently buying Iranian oil at a much lower price than international one so that was a relationship pf necessity for Iran but India took full advantage and got good quality and lower price so Iranians are right if they are looking for more trust worthy partners for chabahar.

Pakistan should be worried about this then indian..if china joins Chabbar , gwadar importance would come down further

 

[Kaniska]

This is a good news...Now with additional funds from China, Chabbar port and in general the development of the region will happen for Iran.

 

[Shotgunner51]

Pakistan should be worried about this then indian..if china joins Chabbar , gwadar importance would come down further

Gwardar, being part of the multi-billion CPEC, is central to this project of strategic importance to both PK as well as to CN. Note PK is an ally, while IR is strategic partner, there is also difference.

Moreover, for China homeland economy alone, it takes 7 out of world's top 10 ports to meet the logistical demand. For a prospering Eurasian economic belt centered around CAS, the demand is going to exceed what Gwardar and Chabahar can offer combined. Not to mention the two ports might also have focus on different fields of logistics.

China is on the Iran+P5+1 deal and is a key driver, knows the whole game plan from day one. The nuclear plants, Chabahar, other projects, were not surprise for China.