World

Iran, Afghanistan, India sign three-way transit accord

The accord will significantly boost the role of the undertapped port of Chabahar, says Iranian presidency's statement

Afp May 23, 2016

Iranian President Hassan Rouhani on May 23, 2016 shows him (right) walks alongside Indian Prime Minister Narendra Modi during a welcome ceremony in Tehran on May 23, 2016. PHOTO: AFP

TEHRAN: Iranian President Hassan Rouhani, Afghan President Ashraf Ghani and Indian Prime Minister Narendra Modi on Monday signed a three-way transit agreement on Iran's southern port of Chabahar.

The accord, which calls for joint investments, will significantly boost the role of the undertapped port of Chabahar, connecting Iran through India and Afghanistan to central Asia, the Iranian presidency said on its website.

"Today is an important and historical day of development of relations between the three countries," Rouhani said in a televised speech, seated between the two other leaders.

India in deal to turn Iran port into trade hub

"From Tehran, New Delhi and Kabul, this is a crucial message ... that the path to progress for regional countries goes through joint cooperation and utilising regional opportunities."

Modi said: "We want to link to the world, but connectivity among ourselves is also a priority."

This is a corridor of peace & prosperity. It will positively impact the lives of people & deepen economic ties. https://t.co/LOTg2BYRbP
— Narendra Modi (@narendramodi) May 23, 2016

"Our will starts from Chabahar today, but its end will be an all-out comprehensive development and economic-cultural cooperation," said Ghani.

COMMENTS (35)

Sandip | 7 years ago | Reply @Golden Horde: Agree - It's very difficult to get a rentier state at the price that US, or for that matter China, get Pakistan at. India in any case isn't available for rent. So you are quite right. US is not going to stop supporting Pakistan and neither would China.

Golden Horde | 7 years ago | Reply @Raj: You seem to ahve very short memories. The fact is, Pak is a current US ally. Officially. And India isnt. US supplies arms to pakistan for free. And India pays through its nose. And there is a reason for that. US needs pak to keep India in check. Indians think that only if they buy more from US, the US will dump pakistan. It hasnt happened and it will not happen because as India grows, there is greater and greater need by the US to keep india in line. None of you indians understand this and keep wondering why US supports pakistan so much :) So all this fantasy of US destroying gwadar will remain that for you. Gwadar will become another shanghai. While you keep waiting for US to destroy Gwadar. Tomorrow...the next month, next year, next decade, next century :)

VIEW MORE COMMENTS

abhi | 7 years ago | Reply China is lending money for assured return which is committed by Pakistan government. About 18%. Which is highest in the world. They will pay all transit money as a interest. As they are paying in rental power projects. And cost of construction will be escalate because of unrest in Baluchistan.

truthbetold | 7 years ago | Reply @salman: "Chahabar port is even not 10% viable and important than Gwader Port. Economic activity through CPEC is way enormous than very limited and specific trade from Chabahar" Just try to use your brain. The population together of both Tibet and Xinjiang is only about 22 million. Even Karachi is much bigger in population. How is this going to generate any huge trade? 99% of China's population and industrial complex are located in the south and eastern part of China. If oil/energy transportation is the goal, wouldn't it be a lot cheaper and more efficient to have a corridor through Bangladesh and India to southern/eastern China? Face it. China is playing a game with Pakistan. It is using Pakistan to gain leverage against India. The only reason it is interested in Gwadar is to deploy its submarine fleet there to intimidate India. All the CPEC talk is cheap. Let's talk when Chna puts its money ($46B) where its mouth is. In summary, Gwadar is a port to nowhere.

Pnpuri | 7 years ago | Reply D@Chacha Jee: We all have learnt story of Vascodegama in our school, how he found a sea route to India. By going around afrika.The sea route totally changed the economy of the world. Prior to that goods (spices) from Indian subcontinent will travel by sea/ land route to present day Egypt , where goods were unloaded and further taken to other side by land route / Nile and reloaded for further journey to Europe. The effect was Arabs who controlled land route lost their clout and money.

Raj - USA | 7 years ago | Reply Many comments here comparing CPEC (Gwadar port) and India-Iran_Afghanistan trilateral agreement (Chabahar Port). Some comments make some points but Pakistanis have not understood the most important point. Grader port under the control of China will never be accepted by USA and India. As I have said many times earlier, it won't be accepted by Iran, and any of the Gulf countries in the region. Let me make the point. One drone strike in Baluchistan has brought Pakistan's army and the political leadership to its knees. Everyone in Pakistan is afraid what taliban would do to take revenge on the death of Mullah Mansour. With this done strike US has sent a clear signal that it will strike anywhere in Pakistan, if required. Just think for a moment what will happen if US drones strike Muridke, Muzaffarabad or Bahawalpur? Pakistan's army will not be able to handle the fallout of such an operation by USA. Pakistan's army has already raised a special commando force of 30,000 commandos and to protect CPEC land routes. It is also planning to raise a special naval force of specially trained navy men to protect Gwadar Port. These are the demands from China. Under so much uncertainty and determined action from USA and India, will CPEC ever come to fruition? The facts are that when China and Pakistan went ahead on CPEC, they thought that only India will object. Objection from India alone does not matter much to China because China knows India on its own cannot do much against China. Both Pakistan and China failed to realize that USA will be against Gwadar port being handed over to China and in fact USA will object it much more than India. China making Gwadar its naval port will enable it challenge US fleet in the region. USA will never allow it.

Golden Horde | 7 years ago | Reply Iran already has ports, Iran already exports to india. India already uses iran ports to access central asia. And none of that has changed anything. There is no value that this chabahar port brings that didnt already exist. Thats why the port has been lying idle. Now if india is stupid enough to spend money on the port, why would iram say no? Go ahead, develop the port. Iran gets a free new port is about all thats new.

Np | 7 years ago | Reply @Pukhtoon: Afghan Taliban control Helmand in south Afghanistan. This route will be through North Afghanistan to Central Asia.

Np | 7 years ago | Reply @pk007: China is spending less than a billion on the Gwadar port. Rest is to make power plants and highway from west China to Gwadar. Of course India does not have land border with Iran but it has many ports. That is why it is building a port at Chabahar. Goods will be shipped from Indian ports to Chabahar from where they can go via land route not just to Afghanistan but Central Asia.

Np | 7 years ago | Reply @Rahul: China is spending less than a billion on Gwadar port. Of the 46 billion, 34 billion relate power plants. About 11 billion is for the highway between west China and Gwadar.

Np | 7 years ago | Reply @quatro: Anger and resentment on Pakistan side who refused to give transit to Afghanistan and India.

RL | 7 years ago | Reply @pk007: Have you ever heard about Sea route? its going to take place from Gujarat to Iran by Sea which is shorter distance from Delhi to Mumbai. It does not require land or road to transport goods. LOGIC

truthbetold | 7 years ago | Reply @Haider: "Why is China spending 90 times more.coz that project requires 90 time more" China has actually spent peanuts to date. Talk doesn't equal hard money on the ground.

khattak khushal | 7 years ago | Reply @Rex Minor...Very will put. Lajward Route(Lapis Lazuli trade corridor), i.e Afghanistan, Turkmenistan, Azerbaijan,Georgia,Romania & Turkey have already have transit agreement & this route is shortest to Europe. But if Russia connects Chabahar with Black Sea by building Canal like the Egyptian or Panama Canal, that will do wonder for our part of the world. Pashtun don't deserve to live in misery for another 100 years.

Sandip | 7 years ago | Reply @Haider: Dude, China is not spending 90 times more. It is lending 90 times more. When it's all said and done, it will be Pakistan that will be paying the bill and China laughing all the way to the bank. Don't get so blinded by hate that you lose sight of the facts. Also, the entire CPEC is based on transit through territory that belongs to India. When the time comes and India takes back the Jammu and Kashmir now occupied by Pakistan, where will that leave Pakistan? I can hazard a guess - at the gates of IMF seeking yet another bailout. Correct me if I am wrong.

vinsin | 7 years ago | Reply @Haider: And who will buy products from those Chinese companies? Your thinking is right but that is only possible in case of a market.

M.S. | 7 years ago | Reply Only a fool or jealous would be worried. Any economic activity in this part of the world should be welcomed. Once infrastructures are built and trade begins, businessmen and traders take over the decisive role. Politicians, media and generals would bought by those who have the money.

Kushal | 7 years ago | Reply @Pukhtoon: how much area does your army control in Baluchistan? Look at yourself before mocking poor Afghans.

Ahsan | 7 years ago | Reply Chabahar is 25,000 DWT port vs Gawadar is 500,000 DWT port.

Haider | 7 years ago | Reply @Rahul Seriously Gawadar is the world's biggest deep sea..China is thinking for long term investment.Why is China spending 90 times more.coz that project requires 90 time more which India doesn't have money to pay. by ending load shedding Chinese companies will be made on free economic zones for more trade... It clearly States scale of Chabahr is much lower than that of Gawadar

Pukhtoon | 7 years ago | Reply @Rupesh In the real world, the so-called Afghan Govt controls only 10% of Afghanistan abs doesn't doesn't the biggest ethnic group, the Pukhtoons. With US exit from Afghanistan mostly compete, Indian dream of trade through Afghanistan is almost certain to never come true- especially once US just shot itself in the foot killing Afghans' powerful leader, and with it, any prospects of talks.

Parvez | 7 years ago | Reply I wonder what Donald Trump thinks of this ?

G. Din | 7 years ago | Reply @pk007: " India does not have any land border with Iran and Afghanistan, making it unsustainable." Britain had no contiguity to the far flung countries comprising the British empire. How did that empire sustain for a few centuries? The countries in that empire decided to form a Commonwealth even though they were as disparate as ever and was based on exploitation. This compact is about cooperation. Pakistan has once again missed the bus. I expect that in the not too distant future, Pakistan will beg to join this grouping. My friend, where there is a will, there is always a way.

someone | 7 years ago | Reply I don't think Pakistanis have realized it but lets help them to understand few things here. 1. Cha Bahar is needed for India to reach Afghanistan and Central Asia. It has no competition with Gawadar which is for China to provide it access to Arabian sea. 2. With this deal, Afghanistan would have an alternate route to India and would not depend upon Pakistan. This also means it would be Afghanistan that would dictate and not Pakistan because Afghanistan would be able to block Pakistani truck to central Asia via it's territory which would also mean Pakistan would have to depend upon Iran , a Shia country, which then would put further strain their ties to Saudi Arabia. 3. Consider this, India is just spending over 600 million dollars for this port and rail link and road from Iran to Afghanistan. On the other hand China is spending 46 billion dollar , most of which is soft loan to Pakistan that Pakistan would have to pay. This is a staggering difference. Beside few power plants, what else China is adding to this CPEC , that is costing almost 46 times more to Pakistan that eventually Pakistan would have to pay???

Biswadeep | 7 years ago | Reply I am amazed at comments Pakistanis are making. Comparing Chahbahar with Gawadar, Ridculing one over the other. CPEC and this transit corridor are two separate things. This is a port and a transit route to Afghanistan & other land locked countries. Why make a big deal? Had Pakistan allowed India the land route to trade with Afghanistan; this transit route might not have been needed. Think about it, China is Pakistan's last remaining ally and it has a relationship which is nothing more than that of charity. While India has roped in true economic and strategic allies in KSA, Iran & Afghanistan. And FYI China Pakistan trade is less than 20B USD. While China India bilateral trade volume is almost 80B USD. Trade and economy is the name of the game. And like it or not, China is only interested in milking Pakistan. Just like it's milking Africa, without having any other strategic interest or the real will to improve the lives of the indigenous people.

Anon | 7 years ago | Reply @pk007.....lol, kid first check the trade between India and Iran, it's around 38 billion dollars, it looks something is burning :)

Rahul | 7 years ago | Reply @pk007: Check Panama for the other 99% being spent by China. BTW Pakistan treasury will be billed for 100%.

pk007 | 7 years ago | Reply This corridor is a joke. India will be spending 1% of what China will be spending in Gwadar, and besides, India does not have any land border with Iran and Afghanistan, making it unsustainable.

Rahul | 7 years ago | Reply India is spending $ 500 million to develop Chhabar, the road as well as rail links to Afghanistan while China is spending $ 46,000 million on CPEC and developing Gwadar. Something does not quite add up. Why is China spending 90 times India on projects that are essentially similar in scope. Is China bailing out its construction companies with the bill being paid by Pakistan?

Shahdab | 7 years ago | Reply Hope both are two different routes and won't be competing against each other.

salman | 7 years ago | Reply @Rex Minor: LOL growing economic giant is China not India. Get out of this delusional. Chahabar port is even not 10% viable and important than Gwader Port. Economic activity through CPEC is way enormous than very limited and specific trade from Chabahar and that even International analyst believes as well. Since India and Afghanistan is trying their best to sabotage the CPEC project now its time for Pakistan to strike back when finally Chabahar has been officially announced.

Rupesh | 7 years ago | Reply Now... Pakistan will get shocked by another consequence. It's a great game of diplomacy. Now Afghanistan will block Pakistan's route to central Asia.

Chacha Jee | 7 years ago | Reply But TV achors keep telling me that Pakistan has strategic location and nothing will trade in this part of world without Pakistan's approval and soon Gawadar will control world's oil supply. What is going on....

Rex Minor | 7 years ago | Reply Along with other international corridors—the North-South International Transit Corridor and the Kyrgyzstan-Tajikistan-Afghanistan-Iran Road Corridor and the Ashgabat Agreement on International Transportation signed by Uzbekistan, Turkmenistan, Iran and Oman—the construction of the Iran-India-Afghanistan international transit corridor will not only promote the development of regional trade, but would also be an important historical event, The key about this project being that it connects the growing economic giant india with central asian countries bypassing the awkward Pakistan which since its creation in 1947 has undertakn nothing tangible for the development of Pashtun land or that lies beyond it. Economic growth improves living style which in terms brings peace for the inhabitants. Rex Minor

quatro | 7 years ago | Reply Could/should have been India/Pakistan/Afghanistan trade accord but sometimes anger/resentment gets in the way of common sense. I remember when Pakistan closed down an automobile factory because the sole source of one of the parts necessary to complete the car came from India ... spiteful move that destroyed the lives of the Pakistan employees who were left unemployed.

Replying to X