India should start shipping service to Chabahar, say experts

Logistics experts and think-tanks feel India should speed up $500-million Chabahar Port in Iran and, start a regular shipping service to the Iranian port from India.

In May 2016, Prime Minister Narendra Modi signed pacts with Iranian President Hassan Rouhani for developing the Chabahar port as India’s gateway to Afghanistan, Russia and parts of Europe by land, bypassing Pakistan.

Located in the Gulf of Oman, Chabahar is in the Sistan and Baluchestan province in the South Western tip of Iran; close to the China-controlled Gwadar port in Balochistan of Pakistan. While Gwadar is a deep sea port, Chabahar needs to be developed to accommodate bigger ships.

Indian Ports Global, a joint venture between the Jawaharlal Nehru Port Trust and the Kandla Port is slated to develop two terminals and five multi-cargo berth in Phase-1 of the project.

The port suffers from last mile connectivity. India agreed to help develop a rail line from Chabahar to Zahedan, near the tri-point of Iran, Afghanistan and Pakistan, to connect Iranian railway.

Logistics experts having knowledge of the region, however, point out that even after seven months of the signing of the agreement, there is little activity on the ground.

Shakti Sinha, India’s former envoy to Afghanistan and Director of Nehru Museum and Library, says that the Indian establishment might be busy in preparatory work. “Normally six months to one year is spent in preparing the detailed feasibility report,” he said.

Sachin Chaturvedi, Director-General of MEA-sponsored think-tank Research and Development System for Developing Countries (RIS), however stresses that India should start a shipping service to help develop trade infrastructure at Chabahar and boost trade both with Iran and Afghanistan.

India currently has a shipping service to Bandar Abbas in Western Iran.

Apparently the service doesn’t attract adequate traffic as Iranian trade was hit due to western sanctions.

Afghanistan trade is limited to India supplying essentials like medicine and importing dry fruits, carpets etc by air. Chanturvedi says the cost of air cargo is subsidised by India.

While a regular shipping service to Chabahar wouldn’t be financially viable at this juncture, Chaturvedi said that India should bear the cost to open the land route to Afghanistan without further delay.

An international logistics consultant supports the view. According to him, India in the past opened such services to Yangon by initially incurring losses. But with time, it helped develop a demand for such services.

“Opening new avenues has a cost and India should show the urgency to bear it,” he said.

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