Inaugurating Chabahar Port early this week, Iranian President Hassan Rouhani said he looked forward to “more engagement and unity” in the region, explaining, “We should go after positive competition. We welcome other ports in the region, we welcome Gwadar’s development.”
Achieved 15 years after the initial agreement in 2003, the Indo-Iranian project of Chabahar is often seen as a rival or competitor for Pakistan’s Gwadar Port, which is the main seaport of the flagship China-Pakistan Economic Corridor, the most important land route of Beijing’s Belt and Road Initiative.
Making efforts to dispel any illusions of an imminent rivalry between and Gwadar, Iran has tried to indicate that the two new ports will be complementary to each other, and the presence of Mir Hasil Khan Bizenjo, Pakistan’s minister for maritime affairs, as well as the chairman of Gwadar Port at the inauguration ceremony on Sunday conveyed as much.
Apparently, Iran has plans to export electricity to Gwadar and even has a memorandum of understanding with Pakistan for the further convergence of the two “sister” ports. As far as India is concerned, it is a dream come true, as it visualizes Chabahar as the gateway to a transit and transport corridor connecting India, Iran and Afghanistan.
Additionally, India intends to build a US$1.6 billion rail line to Zahedan in Iran, which can provide access to Central Asia. Having no common borders with Afghanistan, India could not get a trade route to it through Pakistan in the past because of friction between the two neighbors, so it has great expectations from the launching of Chabahar.
Countering Gwadar Port is India’s main goal. It lies less than 100 nautical miles from Chabahar, and India has plans to invest $500 million in the project and secure two berths there as well as develop economic zones later on. Increasing port capacity to 8 million metric tons of cargo from just 2.5 million tons a year, the new harbor extension is all set to facilitate the International North-South Transport Corridor (INSTC) to Russia as well.
Even though Iran currently faces stringent restrictions on any projects linked to its Islamic Revolutionary Guard Corps, Chabahar remains an exception, even though sanctions were a hurdle in the past. Recently, US Secretary of State Rex Tillerson has been on the record saying that Washington would not block “legitimate” business activities with Iran by India as there was “no contradiction” between US sanctions on Iran and the Chabahar project.
Having dwelt on the main benefits from Chabahar, let’s take a short overview of Gwadar Port in Pakistan. To begin with, the port happens to be situated on a main trade route, and ships have direct access to it without having to venture into the Strait of Hormuz. Close proximity of the two ports also means that all of Chabahar’s traffic has to pass by Gwadar first.
Not only that, Gwadar’s natural layout and depth enable the largest ships to dock there, whereas both Chabahar and Dubai lack these advantages. Whereas the maximum planned capacity of Chabahar is 10 million to 12 million tons per annum, that of Gwadar will be 300 million to 400 million tons once it reaches complete capacity and it is also projected as a city of 2 million residents once it is ready. If things go according to plan and the port operates full capacity, Gwadar could outstrip all of India’s 212 ports that collectively handle 500 million tons a year.
Geopolitically, if we consider the possibility of instability in Baluchistan, one cannot ignore the fact that Chabahar is located in one of Iran’s most volatile regions, which was rocked by the Jundullah insurgency in recent years. One cannot forget the Shia-Sunni dimension either, as countries such as Saudi Arabia and the United Arab Emirates would prefer Gwadar over Chabahar considering the ongoing Yemen scenario and other matters.
As for Afghanistan using Chabahar, even that seems unlikely in the near future, as that country remains unstable and US forces are still required to maintain peace there.
Realistically, the fact remains that China’s trade is on such a scale that even if only China uses Gwadar Port in the beginning, it would equal all the trade with other countries combined.
Another future aspect is the $100 billion worth of energy deals Iran could have with China as well as the Iran-Pakistan gas-pipeline proposal, so naturally Iran sees Chabahar as complementing Gwadar, not competing with it.
Finally, any rivalry on the part of Iran’s Chabahar Port is still mainly speculative and all these plans are mainly on paper. The other side of the picture remains that Iran has also been expressing the wish to join the CPEC, thus Chabahar could even become part of that corridor further down the road.
Another Indian pipedream!
Apparently Chabahar Port will benefit Iran more than it benefits India.
After all, once you built it you cannot take it away.
It is far better to use the funds to launch a toilet revolution in India.
Great summary. Thank you.
"Whereas the maximum planned capacity of Chabahar is 10 million to 12 million tons per annum, that of Gwadar will be 300 million to 400 million tons once it reaches complete capacity and it is also projected as a city of 2 million residents once it is ready. If things go according to plan and the port operates full capacity, Gwadar could outstrip all of India’s 212 ports that collectively handle 500 million tons a year." THIS IS THE ESSENCE OF THE ARTICLE.
Which port opened first?
Somewhere the writer forgot to mention that 91% of revenues of Gawdar will go to China & a fact which may rile the Pakistanis but they cant do much as they are hugely in DEBT with China. However Chabahar is a win win for both Iran & India. Besides in the geo political scenario of Iran Saudi feud over supremacy in the Arab region, Pakistan is on the side of the Saudis.. a fact not taken happily by the next door neighbour Iran.
Nice article but it only Pakistani point of view
That sort of thing happens, 100% of the revenue from Australia’s North West shelf gas field, goes to the US.
Gwadar received 40 ships in Nov.
You are disappointing them with your location…:-)
SO DEAR YOU CAN ALSO GIVE YOUR POINT OF VIEW instead your MODI led govt is sponsoring state terrorism in pakistan through KALBUSHAN TYPE AGENTS
Just a couple of points:
1) Indian ports handle 1,100+ million tonnes per annum (Source: Indian Ports Association)
2) There is no physical reason why Chabahar port capacity cannot be expanded beyond 10-15 million tonnes initial planned
3) With Zahedan rail line getting functional, cost economics of Afghanistan using Chabahar port will beat Gwadar cost economics any day. Rail line cost 1/3 of road transport
"Hope is not a strategy"
Allan Jeffreys Yes.. But Pakistan needs the money.. but they are hoodwinked into taking a 70 BN dollars loan which will nothing but a highway & a port – made by Chinese engineers (no jobs to locals except menial stuff) with Chinese materials ( Chinese factories benefit) to bring Chinese goods for export (China wins again) to the Chinese built port of Gawdar (still to find Pakistan anywhere) to be laden on Chinese frieght lines for Chinese exports. Now exactly who wins 100% & who got a bad deal & smiling through the pain called CPEC.
Naveed Waqas Just being objective here (otherwise Paksitan is known as a terrorism sponsorer worldwide & hence suffers in reputation. 91% Gawdar port revenues will go to China.. so how will Pakistan pay back China ever with such less contributions. Your politicians & army have sold Pakistan to China.. only you & your children will come to know in 5 years if ofcourse the fog of CPEC clears for you & you dont dance on red herrings called Modi & Indian Terrorism (fed by your Army). YOU WILL NEVER BE ABLE TO PAY BACK 65BN DOLLARS – GUARANTEED. Same thing happened to Sri Lanka , Laos & some African countries. The terms of Chinese loans are too steep.. they will own the units if you guys cant pay.. they only target bad economies with their LOANS knowing that they will not be paying back. Ask your ministers. So if the village loan shark doesnt get paid back on time – what does he do.. ?? Good day.
Jo Snow We have modern toilets everywhere; and our streets are safe for female tourists, domestic or foreign.
Abhijit Gupta
Do you mean Pakistan will not receive any benefits from the port of Gawdar development?
Or, do you mean China forced the CPEC project on Pakistan? Pakistan is an independent democratic country; Pakistanis are highly educated people. They know where their best interest lies and they can make wise decision. Don’t you ever playdown Pakistanis people’s intelligence!
The assumption that it will outstrip all indian ports combined is based on the comparison between present indian ports’ handling capacity against Gwadar’s future handling capacity,as if India and its TEU handling capacity and requirements wont grow. -_-
Zhang Mike Agreed Gwadhar will have more capacity.But where is the business? It makes more sense for China to transport goods including crude by the longer sea route via South China sea. Ultimately, China will gain for acquiring the port for strategic reasons i.e., forcing Pakistan to sell it just as it did with Sri Lanka.
Zhang Mike We are aware you have modern toilets. Why not a few Consulates?
Both ports can work together and prosper business among nations may create confidence and trust, I suggest even they may put a cargo train in between two ports and this may enhance trade to and fro.
Hahaha which country shezz from probably porkistan
India and Pakistan are both poor countries, then why we are competing with each other and pushing one another towards more poverty. European history is full of wars including recent two world wars. But they resolved their issues and formed European Union. While we both are still fighting not resolving our issues and confronting each other every where. Lets try to bring some harmony with each other. We shouldn’t be a prey of media war. Lets work together and accept each other existance and fight poverty.
Zhang Mike If you look at Pakistan over 1947.. you will seriously question their (leaders) intelligence. Indulging in serious forms of terrorism and fundametalism as a state policy.. no wonder their break way part Bangladesh is set to overtake their GDP by 2020.
Zhang Mike If you look at Pakistan over 1947.. you will seriously question their (leaders) intelligence. Indulging in serious forms of terrorism and fundametalism as a state policy.. no wonder their break way part Bangladesh is set to overtake their GDP by 2020.
Strange article. In order to go to Chabahar, first ships have to go to Gwadar. I just checked the map. That is foolish. Second, Chabahar is located at volatile area. Vow. What about Baluchistan? Third, once it reaches to 000 million tonnes (may be in the next 500 years), it will be greater than Indias total tonnage at the ports. The writer forgets that India is growing by leaps and bounds. By that time, the total capacity of India will be in billions of tonnes. India obsessions cannot go easily. She is day dreaming that Indias main goal is to counter Gwadar. Vow. India needs access to central asia. Why are we comparing two. What are we comparing. Who is denying that China and India will be next superpowers. Who is denying that China is 5 times bigger than India economically now. Who is denying that China and India may potentially be the greatest trading partners. What are we comparing. Why are we comparing.
The last trip of IK to China has yielded the following: China refuse to amend CPEC even by a single word. China refuses to give any repreive on the past loans. Finally, IK got back empty handed. Pakistan has only 500 million dollars in foreign reserves, while India got 500 billion dollars. I understand the frustration of the writer.
Last, but not least. Modi is the only foreign delegate who was recieved by the current Chinse President twice outside Bejing. Twice. No pakistani got that kind of reception.
Strange article. In order to go to Chabahar, first ships have to go to Gwadar. I just checked the map. That is foolish. Second, Chabahar is located at volatile area. Vow. What about Baluchistan? Third, once it reaches to 000 million tonnes (may be in the next 500 years), it will be greater than Indias total tonnage at the ports. The writer forgets that India is growing by leaps and bounds. By that time, the total capacity of India will be in billions of tonnes. India obsessions cannot go easily. She is day dreaming that Indias main goal is to counter Gwadar. Vow. India needs access to central asia. Why are we comparing two. What are we comparing. Who is denying that China and India will be next superpowers. Who is denying that China is 5 times bigger than India economically now. Who is denying that China and India may potentially be the greatest trading partners. What are we comparing. Why are we comparing.
The last trip of IK to China has yielded the following: China refuse to amend CPEC even by a single word. China refuses to give any repreive on the past loans. Finally, IK got back empty handed. Pakistan has only 500 million dollars in foreign reserves, while India got 500 billion dollars. I understand the frustration of the writer.
Last, but not least. Modi is the only foreign delegate who was recieved by the current Chinse President twice outside Bejing. Twice. No pakistani got that kind of reception.
Two takeaways from the article:
1. The scale and scope between these two ports is no comparison, hence no competition to speak of.
2. Even India intends Chabahar to be some kind of competition to Gawdar, it may not suits Iran, who may see it more as complementary than competition to Gawdar.
3. Those Indians who talk up "debt trap" can shove it. It is not "debt trap" when India invest in Chabahar Port? Laughable they come up with this diatrite when it cannot match China’s wallet.
Two takeaways from the article:
1. The scale and scope between these two ports is no comparison, hence no competition to speak of.
2. Even India intends Chabahar to be some kind of competition to Gawdar, it may not suits Iran, who may see it more as complementary than competition to Gawdar.
3. Those Indians who talk up "debt trap" can shove it. It is not "debt trap" when India invest in Chabahar Port? Laughable they come up with this diatrite when it cannot match China’s wallet.
Zhang Mike
Ignoramus, Pakistanis are not educated people. They are DUMB! They spend only $600m on education, while spending $6Billion on defence. Former Prez R Nixon described Pakistanis as extremely stupid BUT loyal! Loyal to anyone who gives then money. Like a crack whore waiting on sufferance, Pakistanis bend over and grease up for their next tranche of money from other countries. Well, there is no such thing as a free lunch anymore and the Pakis are reeling from their litany of stupid actions in the past and facing economic difficulties and a mountain of debt!
Zhang Mike
Ignoramus, Pakistanis are not educated people. They are DUMB! They spend only $600m on education, while spending $6Billion on defence. Former Prez R Nixon described Pakistanis as extremely stupid BUT loyal! Loyal to anyone who gives then money. Like a crack whore waiting on sufferance, Pakistanis bend over and grease up for their next tranche of money from other countries. Well, there is no such thing as a free lunch anymore and the Pakis are reeling from their litany of stupid actions in the past and facing economic difficulties and a mountain of debt!