Indian firm starts work on Iran's southeastern port

Business Materials 25 May 2018 15:01 (UTC +04:00)

Tehran, Iran, May 25

By Kamyar Eghbalnejad- Trend:

The state-owned Indian company India Ports Global Limited (IPGL) has started the development of Shahid Beheshti International Port in Chabahar, Sistan-Baluchestan Province, the head of Iran's Ports and Maritime Organization said.

The IPGL has undertaken the Shahid Beheshti project at the Iranian port of Chabahar under a build-operate-transfer (BOT) agreement worth $85 million, Mohammad Rastad said on May 25, ILNA news agency reported.

The port is expected to become operational by June 6, he added.

The Indian side investing only $85 million in Chabahar, and this is not a big figure compared to $403 million of investment being made by Aria Banader Iranian Co.

However, the state-owned Indian company will provide $150 million in finance to the Ports and Maritime Organization of Iran for purchases, Rastad further said.

In 2017, Iranian President Hassan Rouhani launched the first phase of a strategic southeastern port which it expects to open a multi-modal trade corridor connecting India to Central Asia.

The first phase of Shahid Port was inaugurated by the president during a ceremony also attended by officials and dignitaries from 17 countries.

The annual cargo tonnage of Shahid Beheshti Port – Iran’s only oceanic port – has now almost tripled to reach as high as 8.5 million tons.

It can also accommodate 100,000-tonne ships – what officials say can help promote the country’s international trade activities.

The overall development project is planned in four phases and is expected to bring the port's total annual cargo capacity to 82 million tons.

Tehran plans to use Chabahar for transshipment to Afghanistan and Central Asia.