The governor of Iran’s Sistan Balochistan province has called on businessmen from southern Kandahar province to play an active role in the development of the Chabahar port in the Persian Gulf. Governor Ali Hashimi issued the call during a recent meeting with provincial officials and businessmen in Kandahar City. He discussed trade activity at the port during the meeting at the Governor’s House. He said Iran did not need to use the Chabahar port for the development of its national economy because his country mostly relied on crude oil, whose price was determined abroad. He added that Tehran had decided to develop economic links and boost trade relations with other countries. Iran also desires safe exports and imports of Afghan products through the port. He believed other neighboring countries could also benefit from opportunities provided at Chahbahar by investing in the project.
Mohammad Yousuf Yousufi, speaking on behalf of the Kandahar chamber of commerce, cited problems of Afghan traders vis-à-vis absence of a shipping route to the Chabahar port as a major concern of Afghan traders. Goods-laden go to Abbas port before reaching Chabahar. He complained Afghan traders, who imported 500 types of edible and non-edible items from Iran, did not export anything via the neighbouring country due to transit issues. The balance of trade had to be corrected, he stressed. Harassment of Afghan traders in the name of Daesh and Taliban is another problem that needed to be resolved, Yousufi suggested. He said two Afghan traders accused of having connection with militants were detained for two days in Mashad some weeks ago. The traders were detained without any evidence, he alleged, saying an Afghan businessmen were obliged to pay 300 euros for the Iranian visa.
It appears that India is backing out from further investment, as Iran has asked India to help develop a full-fledged airport at Chabahar port in Iran. India is already committed to invest $500 million for the development of Chahbahar port. During a bilateral meeting between shipping minister Nitin Gadkari and Iran’s port minister Abbas Akhoundi, the Iranian side asked whether India would be willing to provide assistance for upgrading air transportation connectivity at Chabahar port. India also wants Iran to provide substantial land in the Chabahar SEZ for setting up of petrochemicals, fertilizer and other gas-based industries by Indian companies. India, Afghanistan and Iran had in May signed a trilateral trade treaty for developing the Chabahar port. The ministerial level agreement was signed in Iran in the presence of Prime Minister Narendra Modi, Iranian president Hassan Rouhani and Afghan president Ashraf Ghani.
Last week, Gwadar Port became operational, which was inaugurated by Prime Minister Nawaz Sharif and COAS General Raheel Sharif. Logistics will be transformed by CPEC, as container ships that were making nearly 13,000 km sea voyage from Tianjin to the Persian Gulf through the Strait of Malacca and around India can be replaced by cheaper container trucks that make a mere 2,000 km road journey from Kashgar to Gwadar. The infrastructure, which will connect Gwadar with the Chinese city of Kashgar in Xinjiang, includes highways and railways. Progress has been made on the highway network; a 335 km section of the Karakoram Highway between China-Pakistan border-city Khunjerab to Raikot has been upgraded, and a 59 km section of the Hazara Motorway between Burhan and Havelian is expected to be completed by the end of 2017. Most finances have been lined up by Chinese companies.
