China established its first direct shipping line to Iran’s Chabahar Port after one of its container ships docked at the strategically located port on Saturday, Amir Moghaddam, head of the Chabahar Free Zone Organization, told the ISNA news agency.
BENEFITS
The move significantly reduces the time and distance required for Chinese ships to transport cargo to Iran. “Previously, Chinese ships were unloaded in Bandar Abbas and their cargo was transferred to Chabahar by smaller ships,” Moghaddam said.
The Bandar Abbas Port is about 500 kilometres from Chabahar and located at the Strait of Hormuz chokepoint, a hotbed for geopolitical tensions. The region has seen regular clashes between the Iranian and the United States’ navies. Iran’s military also began a large-scale naval exercise in the Strait of Hormuz last week.
The Chabahar Port is located in the Gulf of Oman and allows for much easier navigation of vessels. It is also near the Chinese-operated Gwadar Port in Pakistan’s Baluchistan province.
Moghaddam also mentioned that the new route would allow China to greatly reduce costs, noting that $400 can be saved in loading and unloading costs for each container alone. Furthermore, the cargo will reach the owner ten days earlier than if it were unloaded at Bandar Abbas.
CHABAHAR PORT
The Chabahar Port is Iran’s only oceanic port and comprises two terminals—Shahid Kalantari and Shahid Beheshti. Tehran has taken a host of measures to develop the port and opened numerous investment opportunities.
Accordingly, countries like China and India have shown interest in the port’s development.
IRAN-CHINA RELATIONS
Ties between Iran and China have been improving significantly in recent years. Last year, both countries signed a 25-year strategic cooperation agreement focusing on bilateral cooperation in various fields, including economic and cultural ties. With the pact’s signing, China aims to bring Iran into its flagship Belt and Road Initiative (BRI). In turn, it hopes to expand its regional economic and political influence.
Moreover, Beijing has expressed its support for Tehran in the nuclear deal tensions with the West and demanded that the US remove sanctions imposed on Iran.
INDIA’S INTEREST IN CHABAHAR
For the past few years, India has shown interest in developing the strategically located port. In 2015, New Delhi and Tehran signed an agreement to create India Ports Global Ltd to oversee the development of the Shahid Beheshti terminal.
The Port would be significant for India as it:
- Provides a direct route to Afghanistan bypassing Pakistan, as the latter has, in the past, blocked Indian trucks headed to Afghanistan from using its territory.
- Helps in countering Chinese projects in the region, including the China-Pakistan Economic Corridor (CPEC) and the Gwadar Port.
- Reduces import-export and logistics costs.