India's Government announced that they have taken over control of the strategic Chabahar port in the Balochistan province in Iran. The transition was agreed during the Chabahar Trilateral Agreement meeting held in Iran on December 24, 2018.
The inauguration of the office of the India Ports Global Chabahar Free Zone (IPGCFZ) was attended by the heads of Indian, Iranian, and Afghanistan delegation. The shipping ministry of India's statement said that the physical take-over of the terminal area, cargo handling equipment, and office building was completed on December 29, 2018.
The statement added that the operation of the port started with the arrival of a vessel, a Cyprus registered bulk carrier, at Chabahar carrying 72,458 metric tons of corn cargo. The MV Macheras arrived at the port at 0130 hrs on December 30 and the port started its cargo operation by unloading the imported cargos using their un-loaders.
The ministry's statement also said that the challenges they faced in activating the contract caused them to lay down the foundation of an interim contract during the visit to New Delhi in February 2018 of President Hassan Rouhani of the Islamic Republic of Iran. The statement noted that the short-term contract was signed on May 6, 2018.
In December 2017, the first phase of the Chabahar port was inaugurated by the Iranian president which opened a new strategic route connecting Iran, India, and Afghanistan as they bypass Pakistan.
Many consider the new port as a gateway to golden opportunities for trade between India, Iran, and Afghanistan along with central Asian countries. It ramps up trade between the three nations after they were denied access to the route that passes through Pakistan to New Delhi.
The agreement states that India will equip and operate two terminals in Chabahar Port Phase-I. The part of the port currently has a capital investment of USD 85.21 million and an annual revenue expenditure of around USD 22.95 million on the 10-year lease.
Iran is a significant factor for India's connectivity to Eurasia. It is a major key that links to the International North-South Transport Corridor (INSTC) that connects Russia to India in shortest possible time. The port is a key element in India's Indo-Pacific strategy that includes Eurasia's connection with the Indian Ocean Region.
Foreign Secretary Vijay Gokhale said during a conference that they are planning to develop the port as a gateway for onward connectivity to and from Afghanistan and Central Asia.
