The port of Chabahar needs 91 million euros, India will only invest 11

Image: Wikimedia Commons. Ksardar1359

In its budget for the coming fiscal year, which in India goes from April to April, the Indian government has allocated only a little over 11 million euros for the development of the Chabahar port. However, the tenders launched by India Ports Global Limited (IPGL), the Indian state-owned company operating the Iranian port, are well over 91 million euros.

IPGL has already issued tenders for quite a lot of equipment that have been repeatedly delayed. The delay is due to the fact that bidders are refraining from placing bids in face of the current geopolitical situation and sanctioned imposed by the West on Iran. These tender include the purchase of 14 rubber tyre country cranes, three rough terrain yard cranes, two reach stackers, two empty container handlers, forklifts, terminal tractors, and trailers.

India’s role in the port of Chabahar

India’s involvement in the port of Chabahar started taking place in late 2018, when the India Ports Global Chabahar Free Zone, a subsidiary of IPGL, took over the port’s operations. The port, given to India on a government-to-government basis, therefore acts as an outlet for the country on the Persian Gulf on the International North-South Transport Corridor. However, the cooperation hit a few obstacles already in October 2022. Iran lamented the fact that IPGL’s performance and investments are not meeting Iran’s expectations.

The Secretary of the Shipping Association of Iran, Masoud Polmeh claimed that it may be time to look for an additional operator to increase throughput. Things have been heating up recently also because of the pressure brought on by the completion of a railway connection to the port. Since Iran could not secure any official investments from the Indian side, it could also look towards Russia to do so. In any case, Russian companies already invest in other infrastructure in the country and value Chabahar as their gateway to India.

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Author: Marco Raimondi

Marco Raimondi is an editor of RailFreight.com, the online magazine for rail freight professionals.

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The port of Chabahar needs 91 million euros, India will only invest 11 | RailFreight.com