INSUBCONTINENT EXCLUSIVE:
India agreed to help Iran expand Chabahar port in 2003, construct multipurpose cargo, container terminal
A remote Iranian port could be the next trigger for
geopolitical tensions between rivals China and India.India has pledged more than $500 million to develop the strategically located port of
Chabahar -- roughly 1,800 kilometers (1,110 miles) from the capital Tehran -- since it first expressed interest in 2003
Yet repeated delays have prompted Iran to turn to China in the hope of speeding up construction.On a March trip to Islamabad, Iran Foreign
Minister Javad Zarif said he'd welcome Chinese and Pakistani investment in Chabahar, according to Dawn newspaper
He cited China's development of Gwadar, a port down the coast that is a showcase of President Xi Jinping's Belt-and-Road infrastructure
initiative.The shift makes sense for Iran, which wants to ensure Chabahar is an economic success
But it could be a strategic loss for India, which opposes China's expansion in the Indian Ocean and is already worried that Gwadar could one
day be used as a military base -- along with other China-backed ports from Myanmar to Bangladesh to Sri Lanka.Any formal investment from
Beijing would further weaken the strategic advantage for India to invest in Chabahar, which is close to Pakistan's western border
The Gwadar port is part of Xi's plan to finance $50 billion in infrastructure investments in Pakistan, and Chinese merchants already have a
strong foothold in Chabahar.China's foreign ministry did not immediately respond to an email seeking comment."Delhi would likely take the
view that any Chinese presence at Chabahar, even if not involved in the operation of the port, could be used as a way of undermining India's
influence with local authorities," said David Brewster, a senior research fellow with the Australian National University's National Security
"It could also be potentially used to facilitate surveillance of India's activities."Iran InviteWhile it's unclear whether China will take
up Iran's offer, the involvement of a cash-rich and expansionist Beijing would almost certainly speed up development of the port.China has
overland train connections linking China to Iran and "huge" investments in the country, said Manoj Joshi, a distinguished fellow at the
Observer Research Foundation think-tank
"China is much deeper there than India."Iran's invitation to invest was welcomed in Pakistan
"It's a positive statement that came for the first time from their side," Dostain Khan Jamaldini, chairman of the Gwadar Port Authority,
The two countries are already discussing a new ferry service that would link ports in Gwadar and Karachi with the Iranian ports of Chabahar
and Bandar Abbas, Jamaldini said.Cooperation between the two ports could be awkward
India and Pakistan are historic foes that have fought several wars, while India and China -- which recently faced off in the Himalayas --
are battling for geopolitical influence in South Asia.Still, for Iran the port's development is important
It will be a vital trading hub in the Gulf of Oman, said Ebrahim Jamili, head of the Iran-India Chamber of Commerce in Tehran."The priority
is with the Indians -- they've been involved and came forward first," Jamili said
"But if another investor comes along and is interested in Chabahar, there is certainly enough space and opportunity for them and for their
investment."While there's been talks on Chinese and Pakistani involvement, Jamili said Pakistan is not a serious contender in terms of
investment.India first agreed to help Iran expand Chabahar port in 2003, constructing two terminals -- a multipurpose cargo terminal and a
Progress slowed particularly as Western nations imposed sanctions on Iran, which were lifted in 2015
Delays have persisted since then, including a two-year dispute over whether India would pay $30 million of excise duties on port equipment
imported into Iran.Foreign ministry spokesman Raveesh Kumar said Monday construction was going well and both sides were meeting regularly
He was unable to give a completion date."Significant progress" has been made at Chabahar, Mr Kumar said, noting it was Iran's "prerogative"
to choose its partners.Cooperation with China would help Iran to relieve its financial situation and promote infrastructure development,
said Yang Guang, a researcher on international relations with state-run Chinese Academy of Social Sciences."China and Iran, as increasingly
