Iran is preparing to receive container ships in its southeastern port of Chabahar.
Chabahar Port development project has witnessed 92 percent progress and there is a 30-hectare terminal area for containers, cranes and installing related equipment.
These developments will enable the port to provide facility for the loading/unloading of 120,000 tons of freight.
So far, investment to the tune of $940 million has been made in developing the port which will turn it into a commercial hub linking Iran to India to the south, and provide access to the North-South Corridor that will stretch to Europe.
Chabahar is a seaport located on the Gulf of Oman. It serves as Iran's only oceanic port, and consists of two separate ports named Shahid Kalantari and Shahid Beheshti, each of which have five berths.
India and Iran first agreed to plans to further develop Shahid Beheshti port in 2003.
In May 2016, India and Iran signed an agreement in which India would refurbish one of the berths at Shahid Beheshti port, and reconstruct a 600-meter-long container handling facility at the port.
On Sunday, India's Minister for Shipping and Road Transport and Highways Nitin Gadkari in a meeting with Iran's First Vice President Es'haq Jahangiri highlighted the activation of contract of Chabahar port development noting that India Ports Global Limited (IPGL) has finalized procurement of critical equipment such as Rail Mounted Gantry Crane (RMGC), and is close to finalizing orders relating to Rubber Tire Mobile Crane (RTMC), MT Container Handlers(MTCH), Truck and Tractor Trailers Containers and related equipment.
He also expressed India's readiness to aid Iran in taking up operations in Chabahar port during the interim period between the actual activation of contract.
He requested the Iranian side for an early submission of loan application for Chabahar Port Development to EXIM Bank of India so that the contract between the two countries can be activated.
The Iranian side had requested India to provide up to $150 million and had made it a condition for activation of the Chabahar Port contract. The application for loan to EXIM Bank of India is still awaited.
Jahangiri said relations between Iran and India have always been outstanding and important.
He further called for closer economic ties and said the Islamic Republic welcomes India's participation in implementing oil industry projects.
What matters is that the interests of the two countries should be considered in implementing the projects, the vice president added.
He also said Iran is fully prepared to supply India's energy needs and can be reliable partner for the country in this field.
Later on Sunday, Gadkari, in a meeting with Iran's Minister for Roads and Urban Development Abbas Akhoundi , conveyed to him the latest update on procurement of equipment for the two terminals — multipurpose and container — that are covered by the Chabahar Port agreement.
He also requested Akhoundi that in the interest of supporting Chabahar Port operations, the Iranian side should consider waiving the condition to submit loan application as it was time consuming.
The Iranian side assured that the application shall shortly be presented to EXIM Bank of India.
The Foreign Investment Promotion and Protection Act (FIPPA) application was also presented by the MD, IPGL to the Iranian authorities in the presence of Gadkari and Akhoundi . India has opened an IPGL office in Teheran.
In his meeting with Akhoundi, Gadkari stressed the need for attracting cargo to Chabahar Port. He said, Iran and India should organize a workshop at Chabahar for this purpose at an early date.
Gadkari also underlined the need to develop rail connectivity from Chabahar to Zahedan, and said that the MoU with India in this respect may be extended. Ratification of the trilateral Transit Agreement between India, Iran and Afghanistan was also discussed. While India and Afghanistan have endorsed the agreement, Iran is yet to do the same.
