India, Iran About to Sign MoU on Chabahar Port

zoom Indian Shipping Minister Nitin Gadkari has left for Iran to sign a memorandum of understanding on investment in Chabahar Port, situated on the Gulf of Oman, near Irans border with Pakistan. Shipping Minister Nitin Gadkari will travel on a day-long tour to Iran to sign a memorandum of understanding for development of Chabahar port, a Shipping Ministry source with direct knowledge of the matter told Reuters. The deal is expected to be signed today. The visit comes in the wake of heightened tensions between Iran and the West, primarily the United States amid arrest of Marshal-Islands-flagged ship Maersk Tigris which has prompted US Navy to star accompanying ships through the Strait of Homuz. The Government of India assigned USD 100 million for upgrading the port of Chabahar in Iran, the final objective being trade boost with Afghanistan and other Central Asian countries. However, the deal, which dates back to 2013 has had little progress so far due to economic sanctions imposed on Iran. The investment underlies development of a multiple-use cargo jetty and two container terminals that would decrease transport costs of Indian goods by around 30 % when compared to the countrys other waterways. Indias decision is said to be backed by the pending agreement on Irans nuclear program which is expected to be reached between Iran and world powers in June. The talks between Iran and the EU rae scheduled to resume on May 12, whereas the P5+1 group of world powers the United States, Russia, China, France, Britain, and Germany -are expected to join the talks on May 15. The Port of Chabahar is the only Iranian port with direct access to the ocean. It is located in southeastern Iran and has access to both the Oman sea and the Persian (Arabian) Gulf.  India helped build the port in the 90ies, as it provides access to Afghanistan and Central Asia, bypassing Pakistan. World Maritime News Staff