India To Operate Chabahar Port Eyeing Trade With Iran & Afghanistan

New Delhi, May 14 (KNN) India and Iran have formalised a long-awaited agreement for the comprehensive development and operation of the strategic Chabahar Port in southeastern Iran.

After years of negotiations, the two nations signed a 10-year bilateral contract during an official visit to Tehran by India's Shipping Minister Sarbananda Sonowal.

The agreement between Indian Ports Global Limited (IPGL) and Iran's Port & Maritime Organisation (PMO) grants India full operational control of Chabahar's Shahid Beheshti terminal. It replaces the short-term contracts previously used, providing greater stability desired by shippers.

“This deal heralds a new era of trade, marine cooperation and transshipment between India, Iran and Afghanistan,” Sonowal stated at the signing ceremony alongside Iranian Minister Mehrdad Bazrpash. He highlighted Chabahar's role as a vital trade artery linking India to Afghanistan and Central Asia.

With India continuing investments, the ministers expressed confidence that port efficiency and capacity will increase, boosting regional economic integration. Regular shipping services between Chabahar and Indian ports are expected to enhance supply chain resilience.

Earlier, India's External Affairs Minister S. Jaishankar indicated the long-term contract would facilitate significant new Indian investments in the port. He noted difficulty attracting investment under the previous short-term arrangements.

As part of the agreement, India will procure equipment like reach stackers and forklifts to expand Chabahar operations. Officials stated the deal opens avenues for increased regional trade and investment vital to India's economic development.

(KNN Bureau)