Page 60 - IRANRptOct22

9.1.5 Transport sector news
Russia faces final decision on financing Iran railroad that would remove weakest link on INSTC trade route
Iran ready for long-term INSTC cooperation with India on developing Indian Ocean port Chabahar
Russia must make a final decision on whether to finance a relatively short railroad in Iran, the construction of which would remove the weakest link in the International North South Transport Corridor (INSTC). Moscow, looking for trade and cargo transport alternatives both East and South in the face of the sanctions imposed by the West in response to its invasion of Ukraine, sees the potential of a fully developed and efficient INSTC as offering it Iranian gateways to the Gulf and Sea of Oman (Indian Ocean). Iran’s role in the international North-South Transport is crucial. Yet, despite some railway infrastructure advancements, it is also the corridor’s weakest link. A Russian delegation visited the country for this purpose, examining how getting involved in completing crucial lines could also benefit the country in acquiring a gateway to the Persian Gulf and India. The line in question is the Rasht-Astara railway, which will practically complete a big part of INSTC. However, just 12 of the required 162 kilometres of the planned railroad between Astara, Azerbaijan, and Rasht near the southern coast of the Caspian Sea in northern Iran, have been completed.
“If the financial resources are provided, Rasht-Astara railroad, which is a missing link along the International North-South Transportation Corridor, will be completed within three to four years,” Kheirollah Khademi, head of the Construction and Development of Transportation Infrastructure Company of Iran, was on August 25 quoted by RailFreight.com as telling visiting Russian railroad officials on a fact-finding tour.
“Provide the needed finance, and we both benefit,” Khademi also told the delegates.
Khademi was also cited as saying that from a technical point of view, there were no obstacles in the way of implementing the rail project, which could be achieved within three to four years.
However, as RailFreight.com noted, in reality, there are some technical obstacles. The line will have to be built in a swampy area, “making it imperative to construct multiple bridges and carry out a meticulous and detailed implementation study,” the trade news outlet said.
One project that is nearing completion is the construction of rail line between Rasht and the port of Bandar Anzali on the Caspian Sea. As things stand, Russia largely uses the Caspian Sea route for sending shipments to Iran. A Banzar Anzali-Rasht rail link would provide a smooth option for loading shipped cargo on to the Iranian railway network. Iranian officials plan to finish the connection in 2023.
The Caspian Sea, however, can be hard to navigate. Russia would clearly prefer a direct rail route to Iran via Azerbaijan for trade flows. Some rail cargo from Russia already reaches Iran on rail, taking a geographically less advantageous route that goes via Turkmenistan.
Iran is ready to sign a long-term contract with India on developing Chabahar port, the sole Iranian oceanic port that is key to realising much of the Indian Ocean trade potential of the International North-South Transport Corridor (INSTC).
India, which is in the early stages of using INSTC and Chabahar on the Sea of Oman (Indian Ocean), to reach markets including those of Iran, Afghanistan, Central Asia, Russia and Europe, took over the operations of Chabahar port through its India Ports Global Limited (IPGL) and its wholly-owned subsidiary India Ports Global Chabahar Free Zone (IPGCFZ) in December 2018.
Iranian Minister of Roads and Urban Development Rostam Qasemi expressed
60 IRAN Country Report October 2022 www.intellinews.com