Member countries of the SCO should collaborate to fully capitalize on the potential of the Chabahar Port: PM Modi
The Prime Minister has suggested that the member countries of the Shanghai Cooperation Organisation (SCO) should collaborate to fully capitalise on the potential of the Chabahar Port, especially with Iran's recent accession to this major regional organisation.
An Overview of the News
During a virtual summit hosted by India, Iran was formally inducted as a full member of the Shanghai Cooperation Organization (SCO).
The induction took place within the influential SCO, with the virtual summit serving as the forum for this announcement.
Location and Access: The Chabahar Port is located in Iran's Sistan-Balochistan province, at the mouth of the Strait of Hormuz.
It provides direct access to the Indian Ocean and is situated outside the Hormuz Strait.
Importance and Potential: As Iran's only seaport, the Chabahar Port has the potential to become a significant commercial hub in the region.
Its strategic proximity to countries like Afghanistan, Pakistan, and India, along with its role in the International North-South Transport Corridor, contributes to its importance.
Tripartite Agreement: In May 2016, India, Iran, and Afghanistan signed a tripartite agreement to develop the Shahid Beheshti Terminal at Chabahar.
This marked India's first foreign port project.
Objectives: The agreement aimed to establish an International Transport and Transit Corridor at Chabahar.
Key highlights of the project include the construction of the Chabahar Port and a rail line connecting it to Zahedan.
Bypassing Pakistan: The Chabahar Port provides India with an alternative route to access Afghanistan and Central Asia, bypassing Pakistan.
This offers increased trade and connectivity opportunities.
International North-South Transport Corridor (INSTC):
Description: The INSTC is a multimodal transportation route that connects the Indian Ocean and the Persian Gulf to the Caspian Sea.
It further extends to northern Europe through St. Petersburg, Russia.
Components: The corridor encompasses seaports in the Persian Gulf and the Caspian region, as well as road and rail networks.
Objective: The primary aim of the INSTC is to reduce transportation costs and transit time between India and Russia.
Once fully functional, it is expected to significantly decrease transit time by nearly half.
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