Chabahar Port - India's link to Central Asia

Dear friends,

Chabahar port is situated in Southeastern Iran on the Gulf of Oman and it is the only oceanic port of this country. India, Iran and Afghanistan these three countries are the major beneficiaries of this newly constructed port. Each of the three country will be benefited by this conduit. India is not only developing this port but also developing the rail link between Chabahar and Zahidan in Iran and also road ways from Zahidan to kabul via Zaranj, Dilaram and Kandahar. Zaranj is the border city between Iran and Afghanistan. India is also constructing an iron & steel project based on Asia's biggest iron ore mine in Hajigak, Afghanistan. This will boost several times more trade in central Asia. Chabahar route will result in 60% reduction in shipment costs and 50% reduction in shipment time from India to Central Asia.

In July 2016, India began shipping US$150 million worth of rail tracks to Chabahar to develop the port container tracks and built US$1.6 billion Chabahar–Zahedan railway by India's Ircon International for which India pledged additional US$400 million and Iran allocated US$125 million in December 2016, thus taking the total allocation to US$575 million till the end of 2016. In October 2017, India's first shipment of wheat to Afghanistan was sent through the Chabahar Port. In December 2018, India took over the port's operations. This development has significant economic, diplomatic and strategic impact.

1. A trade route through Pakistan into land-locked Afghanistan would have been the logical step considering the distance of just 990 KM from New Delhi to Kabul but, to trade with Afghanistan India needs to trespass Pakistan which is not possible due to hostile relation between India and Pakistan. Pakistan borders Afghanistan to its south and east and has used its strategic location to have a controlling hand over Kabul in terms of trade. This way Pakistan took some premium price whatever she exported to Afghanistan. Both Afghanistan and India quite naturally wanted to expand trade between them as India offered competitive price cheaper than Pakistan but Pakistan repeatedly refused to allow land passage to Afghanistan through her territory. In 2003 India began exploring alternative route bypassing Pakistan. Helping Iran develop the Chabahar port emerged as a viable alternative option even it meant a longer route. In it was the birth of a historical trilateral agreement between India, Iran and Afghanistan signed in May, 2016 to make use of Chabahar port for trade and transit into Central Asia and also Europe.

2. Gain for Iran - Ever since the Iraq-Iran war in the early 1980s , Iran has been looking to reduce her dependence on the ports in the Persian Gulf. Shifting eastwards has been widely seen as a logical step to ensure the security of trade routes and corridors. So Chabahar becomes vital for the nation. Partnering India , one of the biggest Asian Economy also is in the best interest of Iran. The port becomes the starting point for several other collaborations. Trade with Russia will also increase. As Iran has a frosting relation with the US, she looks forward for other big economy like Russia and India.

3. Gain for Afghanistan - Like Iran Afghanistan also wants to expand trade with India. Since long time India-Pakistan thorny relation has hampered Indo-Afghan direct trade. India receives 50% of total Afghan exports. this figure will rise in rapid pace. Chabahar not only opens up the country to competitively priced Indian consignments but also gives access to south and south east Asian market for Afghan products. Trade with Bangladesh will grow exponentially.

4. Gain for India- For India this route becomes very viable and strategically attractive for increasing trade with Afghanistan by bypassing Pakistan. Through this route India can reach Caucasus and Turkey by the Lapis-Lazuli route which was signed in 2016 among Afghanistan, Georgia, Turkey, Azerbaijan and Turkmenistan to enhance trade relation.

5. Loss for Pakistan :- The trade of India-Afghanistan through Chabahar port in Iran is a massive blow to Pakistan. It erodes Pakistan's influence over Afghanistan. After opening the Chabahar port Pakistan's export to Afghanistan decreased havoc.

On the other hand China is also developing a deep-sea port situated on the Arabian Sea at Gwadar in Balochistan province of Pakistan. The port falls under the China–Pakistan Economic Corridor (CPEC) plan, and is considered to be a link between the ambitious One Belt, One Road and Maritime Silk Road projects of China.China Overseas Port Holding Company will solely operate the port from 2016 to 2059. It is about 120 kilometres southwest of Turbat in Southern Balochistan, Pakistan and 170 kilometres to the east of Chabahar Port in Iran's Sistan and Baluchestan Province. It will help China to import oil & gas from Arabian countries in shorter time and at cheaper rate. 80% of China's energy import is channelized or passed through strait of Malacca near Singapore. Being the biggest energy importer China needs to provide security for safe transportation of energy. The strait of Malacca is frequently patrolled by US Navy. Again currently the south China sea is also the source of tension among China, Taiwan, Vietnam, the Philippines and the United States. On the other hand the Indian Navy has recently increased maritime surveillance of the Straits of Malacca region from its base on the Great Nicobar Island. The CPEC project will allow Chinese energy imports to circumvent these contentious areas and thereby decrease the possibility of confrontation between the United States and China. The sea-route via the Straits of Malacca is roughly 12,000 kilometre while the distance from Gwadar Port to Xinjiang province is approximately 3,000 kilometre and another 3,500 kilometre from Xinjiang to China's eastern coast. So there is a save of 5500 Kilometre. These all have enhanced Chinese interest for CPEC project. Moreover this project will also improve the connectivity in west China.

Here China's main interest is a safe route for energy import and in case of Chabahar conduit India's primary interest is to enhance trade and business development with the Central Asian countries. So these two project will not counter-fare each other but Pakistan will not be the gainer in neither of these projects. Pakistan will fall under China's debt trap gradually like Srilanka.

Thanking you all and waiting for your comments.....