Inked MoU with Iran for developing Chabahar port: N Gadkari

India has signed a Memorandum of Understanding with Iran for developing the Chabahar port that aims to improve trade connectivity between Southeast Asia and Central Asia.
"Inked the MoU for the development of the Chabahar port. Development of this port will improve Southeast Asia and Central Asia trade connectivity," Road Transport, Highways and Shipping Minister Nitin Gadkari tweeted.
Chabahar port is located in Sistan-Balochistan Province on Iran's southeastern coast and is of great strategic utility for India, which will get sea-land access route to Afghanistan bypassing Pakistan.
The port will be used to ship crude oil and urea, saving India transportation costs.

India intends to lease two berths at Chabahar for 10 years. The port will be developed through a special purpose vehicle (SPV) which will invest USD 85.21 million to convert the berths into a container terminal and a multi-purpose cargo terminal.
Gadkari said that he had "very fruitful discussion" on bilateral relation with President of Iran Mohsen Rouhani and also handed over the message of Prime Minister Narendra Modi to Rouhani.

The agreement was signed by Gadkari and Iran's Minister for Transport and Urban Development Abbas Ahmad Akhoundi, a Ministry of External Affairs statement said late yesterday.
"With the signing of this MoU, Indian and Iranian commercial entities would now be in a position to commence negotiations towards finalisation of a commercial contract under which Indian firms will lease two existing berths at the Port and operationalise them as container and multi-purpose cargo terminals," it added.

"The availability of a functional container and multi purpose cargo terminal at Chabahar Port would provide Afghanistan's garland road network system alternate access to a sea port, significantly enhancing Afghanistan's overall connectivity to regional and global markets, and providing a fillip to the ongoing reconstruction and humanitarian efforts in the country," it said.