Iran: Chabahar Port promise and
nuclear deal threat
NEWS / PAKISTAN
IAEA chief: Iran is living
up to the nuclear deal
Iran Pakistan United States
Afghanistan Asia
SIGN UP
President Hassan Rouhani poses during the
inauguration of a newly built extension of the port
of Chabahar on Sunday [Ebrahim Noroozi/AP]
Iran has launched one of its major post-
nuclear deal projects - the port of
Chabahar - pushing further for
engagement with the global community,
days before the US Congress' expected
decision on whether Washington will
pull out of the landmark international
accord.
On Sunday, President Hassan Rouhani
officially inaugurated the southeastern
port in Iran's Sistan-Baluchestan
province with great fanfare as officials
from 17 countries attended a ceremony
marking the opening of a new
extension of the strategic trade
corridor.
The Chabahar port's development was
accelerated after Tehran signed the
nuclear pact, formally known as the
Joint Comprehensive Plan of Action,
with Washington and five other major
powers in 2015 to put curbs on its
disputed nuclear programme in
exchange for relief from punishing
economic sanctions.
In a visit by reporters earlier last week,
Swiss-made cranes installed in the first
operational jetty were unloading
containers bearing the trademark of
Iran's national shipping company -
Islamic Republic of Iran Shipping Lines
(IRISL) - off a vessel that had just
arrived from India carrying wheat
shipments, which will be trucked to
Afghanistan. It was the third
consignment arriving this year as part
of a contract to transit 1.1 million
tonnes of wheat from Indian ports to
the landlocked neighbouring country.
Containers are moved to the vast empty
area of the Shahid Beheshti container
terminal whose construction was
recently completed. Equipment
financed through an $85m investment
by India will be supplied by companies
in Europe and Asia to fill the empty lot.
Soon, Shanghai Zhenhua Heavy
Industries Co Ltd (ZPMC) will supply
four gantry cranes to accommodate
large container ships in the first 8.5
million-tonne jetty.
Once two-thirds of this capacity is
realised, five other jetties will be built
to increase the capacity of the port to
82-85 million tonnes. Planned
completion of another under-
construction multi-purpose terminal
and a 610km north-south railway to
Afghanistan and Central Asia will turn
the port into a strategic asset to India
in the face of its geopolitical rivalry
with China and Pakistan.
Those nations are developing the $46bn
China Pakistan Economic Corridor that
winds down to Pakistan's port of
Gwadar, less than 100km from
Chabahar.
"This is a strategic route for India,"
Amirhossein Esmaeili, director of
Shahid Beheshti Port Terminal's
Development project, told Al Jazeera.
"For them to carry goods to Afghanistan
via Pakistan is either impossible
because of security concerns or it is
subject to excessive costs."
At a press conference last week, the
head of Sistan-Baluchestan's Ports and
Maritime Bureau said costs for each 20-
foot container were $1,000 lower if
transported through Chabahar to
Afghanistan compared to the Pakistan
route.
Nuclear deal spoils
A few months after the nuclear deal
with Iran went into effect in January
2016 and sanctions were lifted, Indian
Prime Minister Narendra Modi visited
the country where he agreed to open a
$500m line of credit to develop the port
- nearly half of what Iran is planning to
invest. The lifting of embargoes enabled
Iran to enter negotiations with India,
China, and Europe on investment and
supply of equipment.
However, the burgeoning success of
Chabahar and other post-sanctions
deals Iran has signed are now
overshadowed by Unites States'
opposition to the nuclear deal.
Despite International Atomic Energy
Agency saying Iran has fully adhered to
the terms of JCPOA, US President Donald
Trump - an outspoken opponent of the
accord - refused to "certify" that Iran
was in compliance. This gave the
Republican-dominated Congress 60 days
to decide if Washington should put
sanctions back in place.
Iranian officials
have noted the
fact that other
signatories to
the nuclear deal
- China, Russia,
Germany, the
UK, and France -
still stand by it.
Asked whether Iran is prepared for the
US to return to sanctions, Mohammad
Rastad, Iran's Deputy Transport
Minister in ports and maritime affairs,
said "Nothing's happened as yet, has
it?"
"We have held successful negotiations
with international partners following
the JCPOA," Rastad told Al Jazeera. "We
think these investments will help
further foster our international
relations. We hope this will help us
bring about better future for our port
and maritime activities."
Billions of trade and investment deals
were signed in the wake of the nuclear
deal between Iranian companies and
those in India, China, Russia, western
Europe and the US itself.
Aside from the United States, all other
parties to the nuclear deal have
defended it, stressing it has been
effective.
Siding with Iran's regional rival Saudi
Arabia and arch-foe Israel, the Trump
administration has accused Tehran and
its elite military force, the Islamic
Revolutionary Guards Corp (IRGC), of
creating instability in the region by test
firing long-range missiles and trying to
increase influence in Yemen, Iraq,
Syria, and Lebanon by supporting
militias there.
Iran says its missile programme is for
defensive purposes and denies the
other accusations.
In late October, the US Treasury
Department added major IRGC-linked
companies such as the port
construction and operation companies
Tidewater Middle East Co and Iran
Marine Industrial Company to its SDN
list. IRGC-affiliated firms have had a
significant share in Iran's port
activities.
IRGC's economic arm, Khatam Al-Anbia
Construction Headquarters, has been a
big player in the construction of the
port of Chabahar in particular.
So far, India has received the go-ahead
from the US with regards to its
economic activities in Chabahar.
US Secretary of State Rex Tillerson was
quoted as saying in a visit to India in
October that his country does not want
to "interfere with legitimate business"
done with Iran, "whether they be from
Europe, India or agreements that are in
place or promote economic
development and activity to the benefit
of our friends and allies".
Whether Tillerson's words still stand
remains to be seen.
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