India extends INSTC opportunities

India is exploring how Chabahar connectivity corridor can be extended to connect with Central Asia through the International North-South Transport Corridor (INSTC), Dr. Shoaib Khan, a Doctor of Philosophy on Centre for Central Eurasian Studies at the University of Mumbai, told Report.

According to him, the INSTC, as far as it is concerned, is one of those projects in the world which will be of greater benefit not only for an energy-starved country like India but to all the energy-producing and transit countries in it:

"The INSTC is a land- and sea-based multi-modal transport network that will connect the Indian Ocean and the Persian Gulf with the Caspian Sea and then onwards to Russia and even northern Europe. INSTC will be a game-changer for India’s strategic and economic goals in the Eurasian region. India is exploring how Chabahar connectivity corridor can be extended to connect with Central Asia through the INSTC."

Dr. Shoaib Khan said that figures indicate that it would take half the time from Mumbai to Europe and Russia on the INSTC than along the sea route, and savings amount to the tune of $2,500 for every 15 tonnes of cargo. According to him, it has been observed around the world in many international projects, disagreements and disputes in freights and tariffs are one of the big hurdles in the success path of any such projects:

"Other issues include the international sanctions, economic slowdown, uncertain political situation around the world and in India itself is proving to be a big challenge for this project."

The foundation of the North-South Transport Corridor was laid based on the intergovernmental agreement signed between Russia, Iran, and India on September 12, 2000. Azerbaijan joined the deal in 2005. In total, 13 countries have ratified the agreement (the Republic of Azerbaijan, the Republic of Belarus, the Republic of Bulgaria, the Republic of Armenia, India, the Islamic Republic of Iran, the Republic of Kazakhstan, the Kyrgyz Republic, the Sultanate of Oman, the Russian Federation, the Republic of Tajikistan, the Republic of Turkey and Ukraine).

The Corridor will reduce the time of cargo delivery from India to Russia, as well as Northern and Western Europe. At present, the delivery time on this route is over six years, but it is expected to be three weeks via North-South.

The Azerbaijani side has already completed the works on its territory. So, a 9.5-kilometer railway line and an 82.5-meter bridge were constructed between Astara (Azerbaijan) and Astara (Iran). Azerbaijan Railways also built a cargo terminal on an area of 35 hectares in Iran’s Astara and a 1.4-km railway line from the border to the terminal and took them on lease for 25 and 15 years. The expected cargo transportation capacity of the Corridor on the Azerbaijani side is 3 million tonnes in the first stage, 5.8 million tonnes in the second stage and 15 million tonnes in the third stage.