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Research Article

The Chabahar Transit Project: Transition from Geo-Politics to Geo-Economics

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Published online: 22 Jul 2024
 

ABSTRACT

The Chabahar Transit Project is a multimodal network linking India, Iran, Afghanistan, and, recently, Uzbekistan, through maritime, rail, and road routes. The project results from a complex combination of interests and goals of the member countries and is a clear example of the transition from geo-politics to geo-economics. Iran looks at the Chabahar part as the only ocean port of the cautery and golden gate to landlocked Afghanistan and Central Asia to increase Iran’s capacity in the International North-South Transport Corridor (INSTC). India looks at the Chabahar transit project as a part of the “Diamond Necklace Strategy” against China’s “String of Pearls” Strategy and also bypassing the traditional rival, Pakistan, especially to counter China’s massive investment in the development of Pakistan’s Gwadar port, as well as the China-Pakistan Economic Corridor (CPEC). Finally, the Russo-Ukraine war and the block of east-west transit corridors traversing Russian territory into Europe have increased the role of the Chabahar transit project in the INSTC. However, the possible failure of negotiations to revive the JCPOA and the re-imposition of UN Chapter 7 sanctions against Iran is the most crucial challenge for the Chabahar transit project and the India-Iran-Afghanistan-Uzbekistan quadrilateral agreement.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

[1] Vali Kaleji, ‘The Taliban Takeover of Kabul and Implications for the India-Iran-Afghanistan-Uzbekistan Transit Corridor’, Jamestown Foundation, Eurasia Daily Monitor, 18(147), September 28, 2021. https://jamestown.org/program/the-taliban-takeover-of-kabul-and-implications-for-the-india-iran-afghanistan-uzbekistan-transit-corridor/ (Accessed October 3, 2022).

[2] Meena Singh Roy, ‘Iran: India’s Gateway to Central Asia’, Strategic Analysis, 36(6), November 2012, p. 957.

[3] Vali Kaleji, ‘The Taliban Takeover of Kabul and Implications for the India-Iran-Afghanistan-Uzbekistan Transit Corridor’, Jamestown Foundation, Eurasia Daily Monitor, 18(147), September 28, 2021. https://jamestown.org/program/the-taliban-takeover-of-kabul-and-implications-for-the-india-iran-afghanistan-uzbekistan-transit-corridor/ (Accessed October 3, 2022).

[4] ‘India, Iran and Afghanistan sign Chabahar port agreement’, Hindustan Times, May 24, 2016. https://www.hindustantimes.com/india/india-iran-afghanistan-sign-chabahar-port-agreement/story-2EytbKZeo6zeCIpR8WSuAO.html (Accessed October 3, 2022).

[5] Ibid.

[6] Saeed Jalili, ‘Iran Makran Coast Strategic Plan Gets Underway’, Financial Tribune, May 31, 2017. https://financialtribune.com/articles/economy-domestic-economy/65718/iran-makran-coast-strategic-plan-gets-underway (Accessed October 25, 2022).

[7] Ch. Jaffrelot, ‘A Tale of Two Ports’, Yale Global Online, 2011. https://yaleglobal.yale.edu/content/tale-two-ports. (Accessed March 20, 2024).

[8] H. Y. Malik, ‘Strategic Importance of Gwadar Port’, Journal of Political Studies, 19(2), pp. 57–69.

[9] E. Ezati and Sh. Shokri, ‘Investigating the Position of Chabahar in North-South Transit and its Role in the Development of Neighboring Cities’, Geographical Land Quarterly, 36, pp. 1–14. [In Persian]

[10] R. Daniels, ‘Strategic Competition in South Asia: Gwadar, Chabahar, and the Risks of Infrastructure Development’, The Journal of the National Committee on American Foreign Policy, 35(2), pp. 93–100.

[11] Zahid Ali Khan, ‘China’s Gwadar and India’s Chahbahar: An Analysis of Sino-India Geo-Strategic and Economic Competition’, Strategic Studies, 32(1), 2013, pp. 79–101.

[12] Alex Vatanka, Iran and Pakistan: Security, Diplomacy and American Influence, B. Taurus & Co. Limited, 2015.

[13] Mohammed Hassan Husseinbor, ‘Chabahar and Gwadar Agreements and Rivalry among Competitors in Baluchistan Region’, Arabian Gulf Center for Iranian Studies, Journal of Iranian Studies, Year 1(1), December, 2016, pp. 82–99.

[14] Sh. Amirthan, ‘What is India, Iran, and Afghanistan’s Benefits from the Chabahar Port Agreement?’, Strategic Analysis, 41(1), 2017, pp. 87–93.

[15] H. Veicy, ‘Investigation of Geopolitical and Geo-economic Competitions of Pakistan and Iran to Create South-North Corridor of Eurasia: Preferences and Threats’, Geopolitics Quarterly, 13(2), 2017, pp. 101–124. [In Persian]

[16] Harsh Pant, ‘India-Iran Cooperation at Chabahar Port: Choppy Waters’, Center for Strategic & International Studies, China, March. 1, 2018. https://catalog.lib.kyushu-u.ac.jp/opac_detail_md/?lang=0&amode=MD824&bibid=6603325 (Accessed 3 October 2022).

[17] Kadira Pethiyagoda, ‘India’s Pursuit of Strategic and Economic Interests in Iran’, Brookings Doha Center Analysis Paper, Number 23, September 2018. https://www.brookings.edu/wp-content/uploads/2018/09/Indias-Pursuit-of-Strategic-and-Economic-Interests-in-Iran.pdf (Accessed March 20, 2024).

[18] H. Kürşad Aslan and Yasir Rashid, ‘The Increasing Role of Geoeconomics: Competition between the Chabahar and the Gwadar Ports’, Center for Iranian Studies in Ankara (İRAM), Ankara, June 2020. https://C:/Users/t-m/Downloads/TheIncreasingRoleofGeoeconomicsCompetitionbetweentheChabaharandtheGwadarPorts.pdf (Accessed March 20, 2024).

[19] Ali Omidi and Gauri Noolkar-Oak, ‘Geopolitics of Chabahar Port for Iran, India and Afghanistan’, South Asia Research, Vol. 42, Issue 1, November, 2021, pp. 21–39.

[20] Vali Kaleji, ‘The Taliban Takeover of Kabul and Implications for the India-Iran-Afghanistan-Uzbekistan Transit Corridor’, Jamestown Foundation, Eurasia Daily Monitor, 18(147), September 28, 2021. https://jamestown.org/program/the-taliban-takeover-of-kabul-and-implications-for-the-india-iran-afghanistan-uzbekistan-transit-corridor/ (Accessed March 20, 2024).

[21] Yasir Rashid, ‘Russia-Iran-India Triangle: INSTC’, Center for Iranian Studies in Ankara (İRAM), Ankara, September 2022. file:///C:/Users/t-m/Downloads/Russia-Iran-India_Triangle_INSTC-080922_v3.pdf (Accessed March 20, 2024).

[22] Vali Kaleji, ‘Chabahar Port Transit Project: The Eastern Wing of the International North—South Transport Corridor (INSTC)’, Valdai Discussion Club, Moscow, May 19, 2023. https://valdaiclub.com/a/highlights/chabahar-port-transit-project-the-eastern-wing/ (Accessed March 20, 2024).

[23] Fariborz Saremi, ‘Overcoming Geopolitical Obstacles in Iran-India Relations’, The Emirates Policy Center (EPC), Abu Dhabi, United Arab Emirates (UAE), August 3, 2023. https://epc.ae/en/details/brief/overcoming-geopolitical-obstacles-in-iran-india-relations. (Accessed March 20, 2024).

[24] Kenta Aoki, ‘Diversification of Iran’s Diplomacy and its Connectivity Strategies: Focusing on Chabahar Port and the International North-South Transport Corridor (INSTC)’, Middle East Institute of Japan, March 18, 2023. https://www.meij.or.jp/english/research/2023/12.html (Accessed March 20, 2024).

[25] Edward N. Luttwak, ‘From Geopolitics to Geo-Economics: Logic of Conflict, Grammar of Commerce’, The National Interest, (20), 1990, pp. 17–23.

[26] Edward N. Luttwak, The Endangered American Dream: How to Stop the United States from Becoming a Third-World Country and How to Win the Geo-economic Struggle for Industrial Supremacy. New York:

Simon & Schuster, 1993.

[27] D. Cowen, and N. Smith, ‘After Geopolitics? From the Geopolitical Social to Geo-economics’, Antipode, 41(1), 2009, pp. 22–48.

[28] S. Scholvin, and M. Wigell, ‘Power Politics by Economic means: Geo-economics as an Analytical Approach and Foreign Policy Practice’, Comparative Strategy, 37(1), 2018, pp. 73–84.

[29] M. Wigell, “Conceptualizing Regional Powers” Geo-economics Strategies: Neo-imperialism, Neo-mercantilism, Hegemony, and Liberal Institutionalism’, Asia Europe, 14(2), 2016, p.136.

[30] For further details see: Andrew Scott Cooper, The Oil Kings: How the U.S., Iran, and Saudi Arabia Changed the Balance of Power in the Middle East, Simon and Schuster, 2011. and, Alex Vatanka, Iran and Pakistan: Security, Diplomacy and American Influence, B. Taurus & Co. Limited, 2015.

[31] Saeed Jalili, ‘Iran Makran Coast Strategic Plan Gets Underway’, Financial Tribune, May 31, 2017. https://financialtribune.com/articles/economy-domestic-economy/65718/iran-makran-coast-strategic-plan-gets-underway (Accessed October 25, 2022).

[32] ‘Chabahar Port: Iran’s Fading Strategic Dream’, The Emirates Policy Center (EPC), August 22, 2022. https://epc.ae/en/details/scenario/chabahar-port-iran-s-fading-strategic-dream (Accessed October 25, 2022).

[33] ‘Iran Signs $3.2b FDI Agreements for Chabahar’, Financial Tribune, January 27, 2017. https://financialtribune.com/articles/economy-business-and-markets/58330/iran-signs-32b-fdi-agreements-for-chabahar (Accessed October 25, 2022).

[34] ‘Raisi arrives in Chabahar on his second provincial trip’, Iran Press, September 3, 2021. https://iranpress.com/content/47031/raisi-arrives-chabahar-his-second-provincial-trip (Accessed October 25, 2022). and, ‘President Raisi highlights Makran coasts Iran’s strategic area’, Taghrib News, November 27, 2022. https://www.taghribnews.com/en/news/574792/president-raisi-highlights-makran-coasts-iran-s-strategic-area (Accessed October 25, 2022).

[35] ‘Chabahar Port Throughput Rises Over 33 Percent in Four Months’, Financial Tribune, August 8, 2022. https://financialtribune.com/articles/domestic-economy/114631/chabahar-port-throughput-rises-over-33-percent-in-four-months (Accessed December 10, 2022).

[36] ‘Chabahar Port’s place in Iran’s “looking to the East” policy’, Iran Electrical Industry Syndicate, July 17, 2020. http://www.ieis.ir/en/news/chabahar-port%E2%80%99s-place-in-iran%E2%80%99s-%E2%80%9Clooking-to-the-east%E2%80%9D-policy/ (Accessed September 20, 2022).

[37] Vali Kaleji, ‘Iran and the 3 + 3 Regional Cooperation Format in the South Caucasus: Strengths and Weaknesses’, Jamestown Foundation, Eurasia Daily Monitor, 18(96), June 16, 2021. https://jamestown.org/program/iran-and-the-33-regional-cooperation-format-in-the-south-caucasus-strengths-and-weaknesses/ (Accessed October 5, 2022).

[38] Vali Kaleji, ‘The Taliban Takeover of Kabul and Implications for the India-Iran-Afghanistan-Uzbekistan Transit Corridor’, Jamestown Foundation, Eurasia Daily Monitor, 18(147), September 28, 2021. https://jamestown.org/program/the-taliban-takeover-of-kabul-and-implications-for-the-india-iran-afghanistan-uzbekistan-transit-corridor/ (Accessed October 3, 2022).

[39] Ibid.

[40] Mohammed Hassan Husseinbor, ‘Chabahar and Gwadar Agreements and Rivalry among Competitors in Baluchistan Region’, Arabian Gulf Center for Iranian Studies, Journal of Iranian Studies, Year 1 issue 1-Dec. 2016, pp. 92–93.

[41] Lu Hai Liang, ‘Sri Lanka hands over port to China to pay off debt’, The National News, September 11, 2018. https://www.thenationalnews.com/world/asia/sri-lanka-hands-over-port-to-china-to-pay-off-debt-1.684606 (Accessed November 20, 2022).

[42] Vali Kaleji, ‘The Taliban Takeover of Kabul and Implications for the India-Iran-Afghanistan-Uzbekistan Transit Corridor’, Jamestown Foundation, Eurasia Daily Monitor, Volume. 18, Issue. 147, September 28, 2021. https://jamestown.org/program/the-taliban-takeover-of-kabul-and-implications-for-the-india-iran-afghanistan-uzbekistan-transit-corridor/ (Accessed October 3, 2022).

[43] Kallol Bhattacherjee, ‘India ships wheat to Afghanistan via Chabahar’, The Hindu, October 29, 2017. https://www.thehindu.com/news/national/india-ships-wheat-to-afghanistan-via-chabahar/article19945498.ece (Accessed October 3, 2022).

[44] Vali Kaleji, ‘The Taliban Takeover of Kabul and Implications for the India-Iran-Afghanistan-Uzbekistan Transit Corridor’, Jamestown Foundation, Eurasia Daily Monitor, 18(147), September 28, 2021. https://jamestown.org/program/the-taliban-takeover-of-kabul-and-implications-for-the-india-iran-afghanistan-uzbekistan-transit-corridor/ (Accessed October 3, 2022).

[45] Mohammed Hassan Husseinbor, ‘Chabahar and Gwadar Agreements and Rivalry among Competitors in Baluchistan Region’, Arabian Gulf Center for Iranian Studies, Journal of Iranian Studies, Year 1 (1)-Dec. 2016, p. 94.

[46] ‘India Wants Chabahar Port to be a Conduit for Trade to Central Asia, Russia’, India Briefing, August 10, 2022. https://www.india-briefing.com/news/india-wants-chabahar-port-to-be-a-conduit-for-trade-to-central-asia-russia-25666.html/ (Accessed October 3, 2022).

[47] Ibid.

[48] ‘India calls on central Asian countries to expand trade through Chabahar’, Tehran Times, September 18, 2021. https://www.tehrantimes.com/news/465181/India-calls-on-central-Asian-countries-to-expand-trade-through (Accessed October 3, 2022).

[49] ‘India: Afghanistan under the rule of the Taliban will not be part of the Chabahar project’, The Islamic Republic News Agency (INRA), August 24, 2021. https://www.irna.ir/news/84446853/%D9%87%D9%86%D8%AF-%D8%A7%D9%81%D8%BA%D8%A7%D9%86%D8%B3%D8%AA%D8%A7%D9%86-. (Accessed on December 25, 2022).

[50] ‘Taliban’s desire for inclusion in CPEC termed encouraging’, DAWN, September 7, 2021. https://www.dawn.com/news/1644938 (Accessed February 5, 2023).

[51] Sidhant Sibal, “Taliban back usage of India-built Chabahar port, say ‘ready to provide facilities”, Wion News, December 9, 2022. https://www.wionews.com/south-asia/taliban-back-usage-of-india-built-chabahar-port-say-ready-to-provide-facilities-541441 (Accessed October 3, 2022).

[52] Bibi Amina Hakimi, ‘Mullah Baradar’s Meeting with Senior Iranian Officials Continues’, TOLO News, November 6, 2023. https://tolonews.com/afghanistan-185912. (Accessed March 20, 2024).

[53] ‘Taliban makes surprise $35 m investment in Iranian port’, The Middle East Eye, 29 February 2024. https://www.middleeasteye.net/news/iranian-press-review-taliban-makes-surprise-35m-investment-iranian-port (Accessed March 20, 2024).

[54] Vali Kaleji, ‘The SCO Summit in Samarkand: Reviving Iran and Uzbekistan relations on an oil and transit axis’, The Middle East Institute, Washington D.C., November 1, 2022. https://www.mei.edu/publications/sco-summit-samarkand-reviving-iran-and-uzbekistan-relations-oil-and-transit-axis (Accessed December 20, 2022).

[55] ‘India’s far-sighted investment in Chabahar port for trade with Central Asia’, South Asia’s Leading Multimedia News Agency (ANI), October 12, 2022. https://www.aninews.in/news/world/asia/indias-far-sighted-investment-in-chabahar-port-for-trade-with-central-asia20221012094643/ (Accessed December 20, 2022).

[56] Timur Dadabaev and Nigora Djalilova, ‘Connectivity, energy, and transportation in Uzbekistan’s strategy vis-à-vis Russia, China, South Korea, and Japan’, Asia-Europe Journal, Vol. 19, 2021, p. 106.

[57] Vali Kaleji, ‘With Russian Route Blocked, Uzbekistan Looks to Indian-Iranian-Afghan Chabahar Port Project’, Jamestown Foundation, Eurasia Daily Monitor, 19(155), April 18, 2022. https://jamestown.org/program/with-russian-route-blocked-uzbekistan-looks-to-indian-iranian-afghan-chabahar-port-project/ (Accessed December 20, 2022).

[58] Ashot Yeghiazaryan, ‘North-South and Persian Gulf-Black Sea Transport Corridors: Iranian Perspectives for Development’, Hetq, December 20, 2016. https://hetq.am/en/article/73999 (Accessed December 20, 2022).

[59] Vali Kaleji, ‘The Rise of Multimodal Transportation Among Russia, Iran and India’, Jamestown Foundation, Eurasia Daily Monitor, 19(105), July 13, 2022. https://jamestown.org/program/the-rise-of-multimodal-transportation-among-russia-iran-and-india/ (Accessed December 20, 2022).

[60] ‘12 m Tons of Russian Goods to Transit via Iran to India’, Financial Tribune, November 29, 2022. https://financialtribune.com/articles/domestic-economy/116198/12m-tons-of-russian-goods-to-transit-via-iran-to-india (Accessed December 20, 2022).

[61] Vali Kaleji, ‘With Russian Route Blocked, Uzbekistan Looks to Indian-Iranian-Afghan Chabahar Port Project’, Jamestown Foundation, Eurasia Daily Monitor, 19(155), April 18, 2022. https://jamestown.org/program/with-russian-route-blocked-uzbekistan-looks-to-indian-iranian-afghan-chabahar-port-project/ (Accessed December 20, 2022).

[62] Ibid.

[63] Mohammad Monsan, ‘The difference between the performance of the Chinese in Gwadar and the Indians in Chabahar; From the ground to the sky!’, TIN News, September 9, 2022. https://www.tinn.ir/%D8%A8%D8%AE%D8%B4-%D8%AF%D8%B1%DB%8C%D8%A7%DB%8C%DB%8C–49/246820 (Accessed February 5, 2023).

[64] ‘Chabahar Port: Iran’s Fading Strategic Dream’, The Emirates Policy Center (EPC), August 22, 2022. https://epc.ae/en/details/scenario/chabahar-port-iran-s-fading-strategic-dream (Accessed October 25, 2022).

[65] Ibid.

[66] Ibid.

[67] Vali Kaleji, ‘The SCO Summit in Samarkand: Reviving Iran and Uzbekistan relations on an oil and transit axis’, The Middle East Institute, Washington D.C., November 1, 2022. https://www.mei.edu/publications/sco-summit-samarkand-reviving-iran-and-uzbekistan-relations-oil-and-transit-axis (Accessed December 20, 2022).

[68] ‘Methods of Payment: Letter of Credit’, The International Trade Administration, United States, https://www.trade.gov/letter-credit (Accessed October 30, 2022).

[69] Vali Kaleji, ‘Banking Cooperation between Iran and Russia: Capacities and Constrain’, Valdai Dissuasion Club, Moscow, September 20, 2023. https://valdaiclub.com/a/highlights/banking-cooperation-between-iran-and-russia/. (Accessed March 20, 2023).

[70] ‘Chabahar Port: Iran’s Fading Strategic Dream’, The Emirates Policy Center (EPC), August 22, 2022. https://epc.ae/en/details/scenario/chabahar-port-iran-s-fading-strategic-dream (Accessed October 25, 2022).

[71] ‘Iran opens first section of railway link to Chabahar port’, Press TV, November 11, 2022. https://www.presstv.ir/Detail/2022/11/11/692547/Iran-opens-first-section-of-railway-link-to-Chabahar-port (Accessed 30 December 2022).

[72] ‘Uzbekistan stops freight trains to Afghanistan over Taliban’s “breach of contract”, Amu TV, February 1, 2023. https://amu.tv/en/34516/ (Accessed February 5, 2023).

[73] Ali Omidi and Gauri Noolkar-Oak, ‘Geopolitics of Chabahar Port for Iran, India and Afghanistan’, South Asia Research, 42(1), November, 2021, p. 32.

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