India intends to sign an agreement with Iran on the management of the Chabahar port within the next ten years and connect it with the International North-South Transport Corridor (INSTC), where Azerbaijan is a significant transport hub, Report informs, citing The Economic Times.
According to the publication, Indian Minister of Ports, Shipping and Waterways Sarbananda Sonowal will visit Iran on Monday to sign the agreement. This is the first time that India has taken over the management of a foreign port.
The new contract will be valid for 10 years and will be automatically renewed. In the future, it is planned to connect India to the INSTC through Chabahar port.
This trade route is intended for the transportation of goods from India and the Persian Gulf countries through the territories of Iran, Azerbaijan and Russia, as well as connecting the railways of these three countries to Western and Northern Europe.
The main advantage of the corridor is the reduction of cargo delivery time by two to three times. Chabahar port is located in the southeast of Iran. In 2003, India and Iran agreed to jointly develop the port, but the project was later shelved due to international sanctions against Iran.
During his visit to Tehran in 2016, Indian Prime Minister Narendra Modi announced his intention to invest $500 million into the construction of the port infrastructure of New Delhi.
In May 2016, India signed a tripartite agreement with Iran and Afghanistan for the construction of the Shahid Beheshti terminal at the port.
