The Chabahar Port has received renewed interest from New Delhi and high-level talks between India and Iran were conducted to activate the shorter and sanctions-proof route between Russia and India. It’s a transcontinental trade route that originates from Iran and has an increasing overland trade with Russia.
The new route will benefit other dozen countries in Central Asia as it is sanctions-proof, 40% shorter & 30% cheaper. A trail run was conducted in June wherein a cargo was shipped from Russia to India via the International North-South Transportation Corridor (INSTC) that connects Mumbai, Bandar Abbas, Bandar Anzali, Baku, Astrakhan and Moscow.
Opening a long-pending multimodal transportation corridor via Iran will greatly boost the bilateral trade between India and Russia. This exchange is considered a bold move against the threat of US sanctions.
As per Iranian media, a pilot transit of two 40-ft containers comprising wood laminate sheets bound to India left St. Petersburg for the Caspian Sea port city of Astrakhan and reached Nhava Sheva port, India within 25 days
In the first two test runs on the trade lane between India and Iran, the cost of shipment had dramatically reduced by $2500 per 15 tons of cargo. The reason shared for this reduction was a single bill of lading for the whole transport route which had cut time in paying individual tolls for ports & customs offices, reduced waiting period on containers, and quick delivery of the consignment.