India Global Ports Limited (IGPL) is committed to investing up to $500 million to develop Chabahar Port in southern Iran as part of series of projects worth hundreds of millions of dollars, a senior official said.
Alireza Jahan, the representative of the Iranian partner of IGPL, said the investments will be made over the next 10 years to equip the port of Chabahar with special loading and unloading harbor facilities.
IGPL has been tasked with administering and running the terminal of the first phase of ‘Beheshti harbor’ at Chabahar Port.
IGPL also officially is in charge of navigation in the port of Chabahar from January with $85 million investment.
According to Jahan, as soon as the Chabahar-Milak and Qazvin-Rasht railways are connected to Iran’s national railway network, Chabahar Port will have a bigger share in the Asian transportation market.
The port is a key trade hub, providing Afghanistan with direct sea access.
Iran, India and Afghanistan signed a trilateral agreement on the development of Chabahar Port in Tehran in May 2016 to establish a strategic transit and transport route connecting the three countries. The agreement aims at developing the southern Iran port into a regional trade hub. India began commercial activity at Chabahar on January 8th.
In line with the plans to boost regional connectivity, Afghanistan formally started sending goods to India through Chabahar Port on February 24.