Doubts Over India’s $25m Investment in Chabahar

TEHRAN (Iran News) In an interview with ILNA, Palmeh discussed the performance of Indian operators at Chabahar following a ten-year contract, as well as the potential for India to withdraw from the port due to U.S. pressures. He emphasized that increasing foreign investment in Iran’s ports naturally enhances the economic security of these ports. Connecting Iran’s interests with other countries in the maritime sector could provide stronger defenses against sanctions.

While Palmeh acknowledged the importance of foreign investment, he criticized the current situation. Originally, India had planned to invest $220 million in Chabahar. However, on the ground, the actual investment appears far less, with only partial investments visible, such as the arrival of six cranes. Despite these efforts, critical infrastructure, such as “gantry cranes,” which are essential for speeding up unloading and loading processes, is still lacking.

Palmeh also pointed out that Iranian private sector companies should be in charge of managing commerce, marketing, and operations at Chabahar. He highlighted the positive changes resulting from the presence of the Islamic Republic of Iran Shipping Lines at the port, which has contributed to a significant increase in container operations compared to the previous year. He stressed the need to strengthen such mechanisms to boost private investment in the port.

On the issue of monopolistic practices, Palmeh criticized the Shipping Company for not supporting the private sector in transporting containers, particularly those owned by private shipping companies and forwarders. This practice, he argued, harms the port’s development and could be improved by collaborating with the private sector to optimize the use of shipping space.

Palmeh also revealed that the Shipping Company has been monopolizing the port for over a year. He hopes that within the next two weeks, the first private-sector-managed shipping service from the UAE to India via Chabahar will be launched, which could lead to reduced shipping rates and more competition.

Finally, in response to concerns about Chinese investment in Pakistan’s Gwadar Port, Palmeh stated that China’s presence in Gwadar does not preclude potential Chinese investment in Chabahar. He emphasized the need to make Chabahar attractive enough to incentivize China to invest, despite its significant investments in Pakistan. For China to shift its focus from Gwadar to Chabahar, Palmeh stressed that the port would need to offer substantial advantages that outweigh its investments in Pakistan.

This comes as Chabahar Port’s future investment prospects remain uncertain, with ongoing geopolitical and economic challenges affecting foreign participation in the project.