Chabahar fast-track to beat US sanctions

Industry Database

A deal to hand the operation of Iran’s Chabahar Port to India has been sped up after being hampered by a pay dispute and impending US sanctions on Iran.

India and Iran are working on amending the clause that mandates activation of the deal with the application for payment of $18m made by Iran under consideration, reported Zee Business.

India was initially due to pay $150m to Iran as part of the May 2016 pact that it would operate Chabahar for 10 years.

However, India was accused of delaying the development process and that Iran didn’t submit the application seeking payment on time and kept changing its decisions.

“A few amendments are likely to be made soon before things can move to signing of the main contract,” a senior government official aware of the development said.

An agreement for the start of interim operations was signed on May 6, but following this, the US announced its decision to re-sanction Iran, expected in November. This slowed the process as India is not able to provide a bank guarantee for the project.

“So even the interim operation is in a slight problem. We should have started the operations by June. Everything is ready, but not being able to provide bank guarantee is a problem. So certain amendments are being made even is this regard, following which we can hope to start interim operations by November,” a senior official said.

LATEST PRESS RELEASES

Important concession for Jan De Nul in Bangladesh

Jan De Nul enters into concession agreement with the Government of Bangladesh for the dredging of Pa... Read more

ShibataFenderTeam offers Berthing Energy Calculation Tool

Calculating the berthing energy of vessels is the first and most important step in the fender design... Read more

New digital technology project that aims to work with North East ports

A NEW programme that aims to pilot smart digital initiatives to boost trade and foster economic grow... Read more

CargoChain – New Zealand’s blockchain solution for global logistics

18 December 2018 - Jade Logistics Group, New Zealand’s leading port software company today announced... Read more

TRELLEBORG TAKES ITS NAVIGATION AND PILOTING OFFERING TO THE MAX

Trelleborg’s marine systems operation has bolstered its industry leading navigation and piloting off... Read more

View all