Iran launches another shipping line to India

The Islamic Republic of Iran Shipping Lines (IRISL) has launched a direct container shipping line from Shahid Beheshti Port in southeastern Chabahar to India’s Nhava Sheva Port.

The direct container line from Chabahar Port to Nhava Sheva, with a transit time of five days and a very competitive price, is unique in its kind and is expected to have a significant impact on the development of trade and strengthening the regional and extra-regional position of Chabahar Port.

IRISL had previously launched similar container shipping lines from Shahid Beheshti Port of Chabahar to the main ports of China with competitive prices and a transit time of 12 days, which increased the container activity of Chabahar Port by five times.

Iran and India had previously launched shipping lines between Chabahar and the Indian ports of Mumbai, and Mundra.

The first shipping route between the two countries was put into operation in 2017 between Iran’s Chabahar port and Mumbai.

In January 2019, Iran and India inaugurated the second direct shipping route which passes through Mumbai, Mundra, Kandla, Chabahar, and finally Bandar Abbas in southern Iran.

India is using the mentioned shipping routes to transit goods to Afghanistan and Persian Gulf nations as well as the countries in Central Asia.

Through Chabahar Port India can bypass Pakistan and transport goods to Afghanistan and Central Asia, while Afghanistan can get linked to India via sea.

Iran has awarded India the project for installing and operating modern loading and unloading equipment including mobile harbor cranes in Shahid Beheshti Port in Chabahar.

The strategic Chabahar Port in southeastern Iran is the only ocean port on the Makran coast and it has a special place in the country's economic affairs.

Back in September 2021, Indian Prime Minister Narendra Modi had called on Central Asian countries to benefit from Chabahar Port capacities for expanding their trade in the region.

 

Lifting US sanctions on Iran not an easy job

The most complicated issue in the United States-Iran relationship is the intertwined US sanctions, which were aimed at punishing the Islamic Republic on multiple counts and in the worst possible manner. 

These include from activities related to the nuclear program and support of terrorism to missile proliferation and human rights abuses. Some of Iran’s major institutions, including the Central Bank Iran, were sanctioned, both for their roles supporting the nuclear program and for aiding the alleged terrorist attacks by proxy militias.

The Biden administration wants to lift the sanctions related to Iran’s nuclear program – as promised in the 2015 deal – if Tehran, in turn, rolls back recent breaches of the nuclear deal. The complicating factor in current and future diplomacy is that key Iranian institutions and individuals could remain sanctioned for secondary reasons, thus not providing Iran the economic relief it seeks.

Iran’s oil industry, the country’s main source of export revenue, is a prime example. Biden could lift sanctions on NIOC for its role in funding programs on weapons of mass destruction. But it would remain sanctioned for financially facilitating terrorism orchestrated by the Revolutionary Guards. The same problem of overlapping sanctions could arise in any future talks about Iran’s missile program because institutions involved in proliferation are also sanctioned for supporting regional terrorism.

The Biden administration has the authority to provide temporary exemption from sanctions; it would keep sanctions in place legally but nullify their effects until the Treasury formally revokes sanctions. “Iran is unlikely to be satisfied with such an approach and could demand formal removal of counter terrorism sanctions on these entities, a move that would be hugely unpopular in US domestic circles,” Brian O'Toole wrote for the Atlantic Council.

The issue of sanctions was further complicated when President Donald Trump abandoned the nuclear deal—brokered by the world’s six major powers over two years of intense diplomacy—in 2018. He then re-imposed earlier sanctions from the Bush and Obama administrations that had been lifted when the Joint Comprehensive Plan of Action (JCPOA) was implemented in 2016. He also took the unusual step of sanctioning Iran’s banking and oil sectors for funding the Revolutionary Guards and extremist proxies across the Middle East.

On April 2, Iran has begun indirect talks in Vienna with the United States on returning to compliance with the JCPOA. The Iranian delegation included representatives from the Central Bank of Iran and the Petroleum Ministry, which reflected Tehran’s interest in sanctions relief.

Therefore, there is an urgent need to assess the sanction imposed on Central Bank of Iran, National Iranian Oil Company, National Iranian Tanker Company, National Petrochemical Company, Islamic Republic of Iran Shipping Lines and 18 commercial banks. The filth of more than four decades can’t be cleaned in a few days or months.

Iran to launch direct shipping line to South Africa and Latin America

Iran has expressed its plan to launch a direct shipping line to South Africa and Latin American countries in near future; this was stated by an official with the Iranian Chamber of Cooperatives (ICC). Babak Afghahi, Head of non-oil trade and export development committee of ICC stated that the proposed shipping line will connect Southern Iranian ports to the ports of South Africa and then to Latin American countries, specifically Brazil.

He said, shipping line is going to be launched with the support of the Islamic Republic of Iran Shipping Lines (IRISL) and is aimed at developing Iranian non-oil trade with the countries in the mentioned regions.

“With the support of the Islamic Republic of Iran Shipping Lines, considering the capacity of Iran's cargo export to the mentioned destinations, the chambers of commerce across the country, the Trade Promotion Organization (TPO) of Iran and other export bodies have been informed about the new development,” Afghahi said.

As reported by IRNA, the Islamic Republic’s trade with South Africa reached US$43 million in the first six months of the previous Iranian calendar year, while the figure stood at US$27 million in the same period a year ago.

Following a new strategy for boosting non-oil trade and distancing the country’s economy from oil, Iran has been launching several direct shipping lines to its major trade destinations over the past few years.

Earlier this month, the Head of Iran-Syria Joint Chamber of Commerce Keyvan Kashefi announced the establishment of a direct shipping line between Iran’s southern port of Bandar Abbas and Syria’s Mediterranean port of Latakia.

Iran has also launched five direct shipping lines to Oman and is planning to establish direct routes to Qatar, India, Turkmenistan, and Russia as well.