Chabahar Free Zone special attraction for investors

In this century, transit and routes for transporting goods and passengers have become extremely important. One of the ways that countries can increase their economic and political power and consequently their national power at a lower cost is the optimal use of the strategic position.

The location of a country next to the open sea, oceans, important straits, etc. provide capacities, if properly planned and used, can help in creating economic prosperity and compensating for many of the country's deficiencies in other areas.

Iran's strategic position enables it to play a role as an important transit route in the transit of goods in the east-west and north-south routes.

This issue causes countries without access to open waters, including Afghanistan and Central Asian countries, to depend on Iran more than before.

The transit of goods from Iran through rail and road transport and then sea transport through the port of Chabahar plays an important role in attracting investment, developing industry, and creating employment, especially in the eastern regions of the country.

Lying on the coast of the Gulf of Oman in Iran’s southeastern Sistan-Baluchestan Province, Chabahar is the country’s only oceanic port and given its strategic location in the North-South Transport Corridor (NSTC) development of the port is of high significance for Iran, so the government has some major projects to create multi-dimensional transportation facilities in this port.

As announced by the managing director of Chabahar Free Zone Organization, US$8 billion of investment was made in different sectors in this zone during the past Iranian calendar year 1401 (ended on March 20).

Amir Moqadam said that the result of the actions taken in the field of investment attraction last year was that the total investments made reached from US$4.9 billion at the end of 1400 to US$8 billion at the end of 1401, and for 1402 it is targeted to reach US$14 billion.

Chabahar port has two significant docks, namely Shahid Beheshti and Shahid Kalantari, which are mostly referred to as ports, i.e. Shahid Beheshti Port and Shahid Kalantari Port.

Development of Shahid Beheshti Port, construction of Chabahar International Airport, and building Chabahar-Zahedan (center of Sistan-Baluchestan Province) railway are three of the major projects to make Chabahar a complete logistics platform.

In addition, Chabahar Free Zone has been suggested as a transit and logistic gateway for Iran's domestic market which, while reducing the cost and time of transportation it has also provided profitable economic opportunities in the development of logistics facilities.

Chabahar Free Zone is a multi-purpose zone with educational, industrial, tourism and transportation sectors.

Considering all the above-mentioned points, making investment in this zone is a necessity.

It is worth mentioning that one of the major potentials of Chabahar free zone, which makes investment in this area very profitable, is the existence of cheap workforce in all fields, especially in the field of industries.

This has caused this area to have a high potential for establishing factories and industrial units.

 

Russia and Iran conspiring to weaken US dollar, alleges Israel

Russian Presidential Aide Igor Levitin, who is currently on a two-day trip in Tehran, met with the Secretary of Iran's Supreme National Council Ali Shamkani, and the two discussed ways to thwart Western sanctions.

During the meeting, Shamkhani expressed his satisfaction with the volume of economic cooperation between Russia and Iran, praising the path that started to reduce the influence of the dollar in regional and international economic exchanges.

These plans, he said, "will limit the dominance of the West over the world economy to the minimum."

The representatives also discussed the ongoing joint project, the North-South Transport Corridor (NSTC), which Shamkhani described as having a decisive role in changing the geometry of goods transit in the region.

The NSTC is a transport network for moving freights between Iran, Russia, Azerbaijan and other countries in Asia and Europe.

The transport corridor aims at creating new networks to avoid the US and the West as sanctions grow on Iran.

Levitin, for his part, expressed Moscow's readiness to invest in Iran's steel, oil and petrochemical industries.

Despite Russian efforts to weaken the US dollar, the currency has continued to gain this week, while the Russian rouble is having the worst week of the year so far.

The Russian rouble suffered its worst week against the dollar this year, tumbling on a lack of foreign currency in Moscow and on the sale of Western businesses in Russia, despite gaining slightly on Friday afternoon as traders locked in profits.

The rouble RUBUTSTN=MCX skidded more than 2% against the US dollar on Friday to an intraday low of 83.50, its weakest since April last year, and fell more than 2% against the euro to an intraday low of 91.32 against EURRUBTN=MCX.

The rouble had nosedived to 113 per US dollar after President Vladimir Putin ordered the invasion of Ukraine in February 2022, but the central bank and finance ministry helped stabilize the currency, and it strengthened to 50 per dollar in July 2022.

The West then imposed a price cap on Russian oil - the lifeblood of the Russian economy - late last year, since which the rouble has weakened from about 60 per US dollar to more than 80 US dollar this week.

Traders said the Russian currency has come under pressure recently from a cocktail of problems including the sale of Western assets to domestic investors, which stoked demand for dollars, while lower oil prices in March cut the country's export revenue.

The rouble is the third-worst performer among global currencies so far this year, behind only the Egyptian pound and the Argentine peso, Reuters calculations show.

"The Russian currency remains in fundamentally weak conditions," said Vladimir Evstifeev, head of analysis at Bank Zenik. He said exporters were reluctant to swap their export revenues for roubles in the expectation that the dollar would strengthen while importers were buying foreign currency in the expectation of a bounce back in consumer confidence.

"The rate of weakening of the Russian currency is increasing, so it is likely that the authorities will get involved in the situation on the foreign exchange market and conduct a series of verbal interventions in support of the rouble."

OIC vehemently denounces Israeli assaults on Al-Aqsa Mosque

The Organization of Islamic Cooperation (OIC) has strongly denounced the hazardous escalation by Israeli occupation forces and terrorist settlers who repeatedly attacked the sacred Al-Aqsa Mosque during the month of Ramadan.

The OIC issued a communiqué on Saturday following an unusual open-ended meeting of the organization’s Executive Committee. The communiqué decried ongoing Israeli aggression on the blessed Al-Aqsa Mosque.

The full text of the communiqué is as follows:

The Executive Committee of the Organization of Islamic Cooperation (OIC) reaffirmed the centrality of the Palestinian Cause, with Al-Quds Ash-Sharif and its sanctities at its heart, for the entire Islamic Ummah, and the eternal attachment of Muslims all over the world to the blessed Al-Aqsa Mosque, the first of the two Qiblas and the third of the Holy Mosques, as well as affirming the Arab and Islamic identity of occupied East Al-Quds, the capital of the State of Palestine and dismissing any prejudice to that in any way:

1. Condemns in the strongest terms the dangerous escalation by the Israeli occupation forces and terrorist settlers by repeatedly storming the blessed Al-Aqsa Mosque / Al-Haram Al-Qudsi Ash-Sharif during the blessed month of Ramadan, culminating in the atrocious brutal attack on the night of Ramadan 14 on worshipers and those stationed in its courtyards while performing their prayers and rituals, including women and children, wounding and arresting hundreds of them, and damaging the Qibli Mosque in a flagrant provocation to the feelings of Muslims all over the world, an attack on the existing legal and historical situation, and a severe violation of international law and relevant United Nations resolutions,

2. Warns of the consequences of the continued infringement by the Israeli occupation authorities, their officials, and terrorist settlers on the sanctity of the blessed Al-Aqsa Mosque / Al-Haram Al-Qudsi Ash-Sharif, including continuous provocations, abuses, daily severe assaults, and incursions in gross violation of international law and unprecedented tampering with the existing historical and legal situation to perpetuate the temporal and spatial division of the blessed Al-Aqsa Mosque, and stresses that the Israeli occupation has no sovereignty over any part of the blessed Al-Aqsa Mosque / Al-Haram Al-Qudsi Ash-Sharif and that Muslim worshipers have the absolute right to pray freely and safely in and around it, at any time, without any hindrance or violence inflicted on them,

3. Holds Israel, the occupying power, accountable for the consequences of these dangerous and provocative actions of its racist government, as it continues to seek, through systematic brutal attacks, deliberate provocation, and repeated incitement, to inflame the situation and provoke a religious confrontation with unforeseen consequences, warns of the possible repercussions on international peace and security, and calls on the international community, and in particular the UN Security Council, in its capacity as responsible for the maintenance of international peace and security, to assume its responsibilities and take urgent action and necessary measures to deter and stop the dangerous Israeli escalation and all other illegal and provocative measures and policies that affect the occupied city of Al-Quds and the sanctity of the blessed Al-Aqsa Mosque / Al-Haram Al-Qudsi Ash-Sharif, without selectivity or double standards,

4. Appreciates the positions of the countries that expressed their rejection and condemnation of the provocative and aggressive Israeli incursions into the blessed Al-Aqsa Mosque, calls on them to take practical steps, including imposing sanctions on the Israeli colonial regime, to stop these practices and all its illegal measures and policies, and stresses in this context the responsibility of the state parties in the Geneva Conventions, that Israel, the illegal colonial occupying Power, must be held accountable for all its violations of international humanitarian law, whether by its government officials, military forces, or extremist settlers,

5. Pays tribute to the steadfast Palestinian citizens in the city of Al-Quds, and affirms its standing with them and supporting their heroic steadfastness in all possible ways. It also affirms the sovereignty of the Palestinian people over Al-Quds Ash-Sharif and all its holy places and the old town of Al-Quds and its walls and that all measures taken or intended to be taken by the Israeli colonial occupation authorities, which seek to change the character and legal status of the city or its demographic composition, are null and void and have no legal effect,

6. Affirms the historical Jordanian Hashemite Custodianship over the Islamic and Christian holy places in the city of Al-Quds and its role in protecting these sanctities and preserving the existing legal and historical status therein and emphasizes that the Department of Al-Quds Endowments and Affairs of the Blessed Al-Aqsa Mosque / Al-Haram Al-Qudsi Ash-Sharif affiliated to the Jordanian Ministry of Awqaf, Islamic Affairs, and Holy Places is the authority authorized to manage the affairs of the Blessed Al-Aqsa Mosque / Al-Haram Al-Qudsi Ash-Sharif,

7. Reaffirms the important role of the Al-Quds Committee under the leadership of His Majesty King Mohamed VI, of Morocco, in challenging the detrimental policies implemented by the Israeli occupation authorities in Al-Quds Al-Sharif to change the character and legal status of the city as well as its demographic, cultural and historical composition; and values the role of Bayt Mal Al-Quds Agency.

8. Calls on the OIC Member States and General Secretariat to take urgent action to address these severe attacks and activate the mechanisms stipulated in its relevant resolutions to move at all levels and send urgent messages to the concerned international bodies, including the UN Security Council, reflecting the OIC positions in this regard and stressing the request to provide international protection for the

Palestinian people and the occupied city of Al-Quds Ash-Sharif and its sanctities, specifically the blessed Al-Aqsa Mosque / Al-Haram Al-Qudsi Ash-Sharif, in the face of illegal attempts to change their current legal and historical situation,

9. Reaffirms the importance of continuing coordination and cooperation among the OIC, the League of Arab States (LAS), and the African Union (AU) to protect the occupied city of Al-Quds against systematic Israeli policies and attacks.

10. Calls on the ambassadors of the OIC Member States to act and convey the contents of this communique to the capitals of influential countries around the world.

11. Calls on the Islamic Group at the relevant international organizations to act and initiate the necessary consultations and measures to confront and stop the systematic Israeli aggressions in the occupied city of Al-Quds.

12. Affirms its continued follow-up of all developments related to the Holy City of Al-Quds, specifically the blessed Al-Aqsa Mosque/ Al-Haram Al-Qudsi Ash-Sharif, and to take the appropriate steps in this regard, as stipulated in the resolutions of the Islamic summits and the Councils of Foreign Ministers.

 

Saudi oil derivatives grant arrives in Yemen

According to Saudi Gazette, the fourth batch of the Saudi Oil Derivatives Grant for Yemen, consisting of 150,000 metric tons of diesel and 100,000 metric tons of mazut, has arrived at the oil port in Aden.

This initiative is part of Saudi Arabia's ongoing efforts to support the Yemeni people, in response to a request by the Yemeni government to help provide oil derivatives to operate over 70 power generation plants across Yemen.

The directive to provide this grant was issued by Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed bin Salman.

The grant is a testament to the Kingdom's commitment to achieving security, stability, and development in Yemen and is an extension of previous grants amounting to US$4.2 billion.

The Saudi Oil Derivatives Grant is part of the Saudi Program for the Development and Reconstruction of Yemen (SDRPY), which has implemented 229 projects and initiatives across Yemeni governorates to serve Yemenis in seven main sectors, including education, health, water, energy, transport, agriculture, and fishery, as well as building the capacity of government institutions, in addition to other development programs.

Saudi, Omani envoys hold peace talks with Houthi leaders in Sanaa

According to Reuters, Saudi and Omani delegations held talks with Houthi officials in Yemen's capital Sanaa on Sunday, as Riyadh seeks a permanent ceasefire to end its military involvement in the country's long-running war.

The visit indicates progress in the Oman-mediated consultations between Riyadh and Sanaa, which run in parallel to UN peace efforts. The peace initiatives have gained momentum after arch-rivals Saudi Arabia and Iran agreed to re-establish ties in a deal brokered by China.

Oman, which shares borders with Yemen, has been trying for years to bridge differences between Yemen's warring parties, and more broadly between Iran and Saudi Arabia and the United States.

The envoys, who landed late on Saturday, met with the head of Houthi Supreme Political Council, Mahdi al-Mashat, in Sanaa's presidential palace, Houthi news agency SABA reported.

President Al-Mashat reiterated the group's position that it seeks an honourable peace and that the Yemeni people aspire to freedom and independence, SABA said.

Both sides will negotiate ending hostilities and the lifting of a Saudi-led blockade on Yemeni ports, it added.

Sources have told Reuters that the Saudi-Houthi talks are focused on a full reopening of Houthi-controlled ports and the Sanaa airport, payment of wages for public servants, rebuilding efforts and a timeline for foreign forces to exit the country.

Yemen's war is seen as one of several proxy battles between Iran and Saudi Arabia. The Houthis, aligned with Iran, ousted a Saudi-backed government from Sanaa in late 2014, and have de facto control of north Yemen, saying they are rising up against a corrupt system and foreign aggression.

They have been fighting against a Saudi-led military alliance since 2015 in a conflict that has killed tens of thousands and left 80% of Yemen's population dependent on humanitarian aid.

A Houthi official said on Saturday the group had received 13 detainees released by Saudi Arabia in exchange for a Saudi detainee freed earlier, ahead of a wider prisoner exchange agreed by the warring sides.

At talks in Switzerland last month attended by the United Nations and the International Committee of the Red Cross, the Yemeni government and the Houthis agreed to free 887 detainees. The 13 prisoners are part of that agreement, Houthi official Abdul Qader al-Mortada said.

The Saudi government media office did not respond to Reuters requests for comment on the prisoner exchange and the delegation visiting Sanaa.

 

 

 

 

Singapore faces shortage of drivers

The Singapore Tourism Board (STB) expects the Republic’s tourism sector to recover fully from the pandemic by 2024, but some local travel agencies say they have not been able to shift up a gear due to a shortage of tour bus drivers.

A WTS Travel spokesman told The Straits Times that at least 50% of the travel agency’s coaches are currently not in operation due to a tremendous shortage of drivers.

WTS Travel offers coach services to popular destinations in Malaysia, such as Genting Highlands and Melaka, and also provides tours here. It has had to turn down potential customers owing to the shortage, the spokesman added.

“We are not fully utilizing our entire fleet and are not able to service and complete all business demands,” he said.

The company did not reveal how many coaches it has in its fleet.

STB said in January that international visitor arrivals to Singapore are expected to hit 12 million to 14 million in 2023, with full tourism recovery expected by 2024.

Singapore saw a total of 6.3 million visitors in 2022, a fraction of the record 19.1 million in 2019.

But factors such as the retirement of ageing drivers, a lack of new young drivers and the Covid-19 pandemic have contributed to the severe shortage of tour bus drivers, said travel agencies and bus companies, which have not been able to capitalise on the tourism boom.

A National Association of Travel Agents Singapore (Natas) spokesman said irregular working hours and the availability of other jobs with more flexible hours are some potential reasons for the lack of new blood coming through.

“Many locals who are keen on driving as a career have chosen to be private-hire drivers, food and parcel delivery riders,” the spokesman said. “There are perks to being self-employed with flexible working hours and days, especially for those below 50 years old.”

A spokesman for bus chartering firm ST Lee Transport – which has only 60% of its bus driver positions filled – noted that most foreign workers from China and Malaysia had gone home when the pandemic began and were not willing to return and work in Singapore after the pandemic subsided, citing better work opportunities in their home countries.

ST Lee and fellow bus chartering company LongLim said new hires are hard to come by, even though both companies have increased the base salaries of drivers by up to 40%.

LongLim operations manager Ang Zi Wei said the company is currently paying its tour bus drivers a maximum of more than $5,000 a month after pay adjustments, taking into account factors such as overtime pay and peak-season demand.

Both firms said they have had to forgo up to 40% of new business opportunities and hire subcontractors to complete existing projects – but this comes at added expense.

“During peak periods, our own fleet may not be able to support the demand. The industry partners are engaged at rates between 1½ times and twice the value of our existing projects,” said the spokesman for ST Lee Transport.

Rates for new projects have also increased by 50% to 80% compared with before the pandemic due to a rise in operational costs such as manpower and certificate of entitlement prices, added the spokesman.

The Natas spokesman said that other than bus drivers, there is also a shortage of tour guides, and workers in the reservations and operations positions.

Amid the shortages, the newly launched Manpower for Strategic Economic Priorities scheme has helped some agencies with the recruitment of foreign workers, the Natas spokesman added.

Introduced in December 2022, the scheme allows firms that advance Singapore’s key economic priorities to temporarily hire a few more foreign workers beyond prevailing S Pass and work permit quotas for their industry.

Other industries that can benefit from this scheme include the maritime, logistics and supply chain, and hospitality sectors.

The companies interviewed hoped that more can be done to help the transport and tourism sectors recover.

“The Government aims to reduce dependency on foreign labour but overlooks the fact that there are certain jobs locals would not take up,” said the ST Lee Transport spokesman.

The WTS Travel spokesman said that to attract more new bus drivers, the agency hopes the Government can help to cover some operating costs, such as by reducing diesel taxes so that it can spend more on hiring these drivers.

Noting that the transport industry is classified under the service sector, the ST Lee Transport spokesman said: “We hope the Government can reclassify our industry under a new category and allow for flexibility in hiring foreign workers, as they are the ones who are actively supporting the industry right now.”

Bangladesh: Quest for ensuring energy security

Bangladesh was in the middle of an energy crisis last year, with rampant electricity shortages owing to the protracted Russia-Ukraine conflict which has had implications for the entire South Asia. The latter half of last year saw Bangladesh facing a shortage of 1000-1500 MW electricity on a daily basis, resulting in regular hour-long episodes of load shedding. Yet, it was more than the comfort of its citizens at stake, if the problem of frequent power cuts was not dealt with.

Bangladesh, one of the fastest growing economies in the world is largely dependent on the export of textiles and readymade garments. In fact, Bangladesh is one of the largest garment exporters in the world, making the garment industry its biggest source of foreign exchange. The looming energy crisis was, and if not dealt with properly, will, continue to affect the efficient operation of the Bangladeshi garment industry. The workers in the industry operate within a strict time frame in order to meet their international clients’ deadlines. It is an energy intensive industry and frequent power cuts on a daily basis would result in many industries relying on generators – so that the flow of work is not disrupted- driving the production costs up, ultimately affecting the efficacy of the industry and its desirability for foreign clients and investment.

Energy generation has been a priority for the Awami League government since they took office more than a decade ago and it is clear that Sheikh Hasina understands the importance- now more than ever- of a long-term energy security plan through regional cooperation. For that purpose, Bangladesh has, over the last decade increasingly looked at India for collaboration and support in the energy sector.

The inauguration of the India-Bangladesh Friendship Pipeline (IBFPL) a few days ago is the most recent manifestation of this strategy. The 131.5 km long pipeline connecting Siliguri in West Bengal to Parbatipur in Dinajpur district of Bangladesh will supply one million metric tons per annum of diesel to the seven districts of north Bangladesh. As Bangladesh imports most of the fuel for electricity, the cost reduction aspect of transporting diesel- from each barrel now costing 5 dollars (when earlier it cost 8 dollars per barrel)- is extremely important along with the shortened transportation time.

Furthermore, prioritizing the energy security of the traditionally backward North Bangladesh is in line with Sheikh Hasina’s policy of ensuring equitable distribution of the benefits of development equally across all regions in Bangladesh. The Rangpur and Rajshahi districts of North Bangladesh have also been the focus of other development projects under Sheikh Hasina’s leadership. Traditionally, the western part of the country has been worse affected by poverty than the eastern part. In 2010, a year after Awami League had come into power, Rangpur had a poverty rate of 42.3%. This was the impetus for launching the Northern Bangladesh Integrated Development Project in 2013 that was aimed at infrastructural development and greater availability of and accessibility to public services in order to reduce the regional disparity in economic development.

Apart from this, Sheikh Hasina, having being encouraged by Prime minister Narendra Modi to allow Indian companies entry in the power generation sector of Bangladesh during his Dhaka visit in 2015, had signed US$4.5 billion worth of deals with the Indian government, that would allow private companies as well as companies run by the government of India to sell electricity in Bangladesh.

One of these deals involved the Bangladesh Power Development Board (BPDP) signing a 25-year Power Purchase Agreement (PPA) with Indian billionaire Gautam Adani’s Adani Power (Jharkhand) in 2017. Under this agreement, Adani Power is to build a 1600 MW coal power plant, worth US$1.7 billion in Godda, Jharkhand, to supply power to Bangladesh.

With Bangladesh gaining a strong presence within South Asia as well as outside of it, India has also sought to increase energy cooperation with Bangladesh. This is evident from the Modi-Hasina summit in September of last year and India’s aim to expand cooperation and dialogue amongst the BBIN countries (Bangladesh, Bhutan, India and Nepal).

The Sheikh Hasina government has proved itself adept at balancing great powers while securing investments that best suit their interests. The Russia-Ukraine war has likely expedited Sheikh Hasina’s policy of reaching out to alternate sources of investment for the energy sector, like the oil rich gulf countries for example. She recently spoke at the Doha Investment Summit, calling for the formation of a joint trade and investment committee by both Bangladesh and Qatar governments.

She especially welcomed Qatari investment in the energy sector. Nearer to home, it has steadily strengthened its relationship with its key neighbour, India. Now, the revitalisation of energy trade with India might also lead to energy trade with Nepal and Bhutan, thus opening up hitherto unexplored opportunities for harnessing the hydropower potential of its Himalayan neighbours. This would help Bangladesh access renewable energy at low cost, facilitating a smooth transition into green energy, which is the only viable future of energy generation.

Courtesy: South Asia Journal