Development of Chabahar port moves forward

13 Feb 2014

It was at the port of Chabahar in Iran that the White Rose Business Group first laid its foundations as an import and export consultancy to global organisations wanting to either trade with Iran or use its highly dynamic geographical position as part of a larger trading route. There has been news recently that after a period when trading had been restricted at the port, India is working closely with Iran to enhance its infrastructure in order to streamline resource – rich trade routes for India Afghanistan and India.

Fast-track development since easing of restrictions

Chabahar port has been under construction since 2002. Already a long running project, it was decided to fast-track it’s development after trade restrictions were eased following the November 24 Interim Nuclear Agreement between Iran and the six powers. Following the agreement’s implementation, there has been a significant boost in trade: especially on such items as petrochemicals products, aircraft parts and precious metals which in turn account for up to $7 billion of trade over the last six months.  For Iran, it means a centrally important position in the emerging pattern of trade between Europe and a rising Asia.


Economic growth with access to markets

The development of Chabahar will secure cost-effective access to markets vital for India’s future economic growth which is why it has played such a large part in the construction project.  Work was first initiated as an answer to New Delhi’s drive to construct a deep-sea port at the Iranian city of Chabahar along with transportation corridors running northward has been motivated by New Delhi’s economic rivalry with Beijing.


Streamlining imports and exports


One of Iran’s major commercial and economic trading weaknesses is it lacks a deep-water port. This means the port can only receive ships with up to 100,000 tons of cargo. Any cargo ship wishing to import materials must first of all offload at the UAE and then transport the cargo from there in smaller ships. The development at Chabahar will make the port a deep-water port.


This will clearly be a great asset to all countries wishing to trade with Iran or make use of the strategic trading routes. In fact, whereas the original Chabahar port project and transit corridors involved a trilateral agreement between Iran, India and Russia, the Indian- led 2012 resumption of the project involves the participation of 11 additional countries from Middle East, the Caucasus, Central Asia and Europe, each lured by the benefits of easier access to the Indian Ocean.


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