For India, a 70-km Iran rail line can open doors to Central Asia

[AVERAGE INDIAN]

A few years ago, fertiliser major Iffco dabbled with the idea of sourcing rock phosphate from Kazakhstan, which sits on 2 billion tonnes of the mineral.

But the Indian cooperative giant had to drop the plan midway discouraged by the high cost of logistics. Iffco is not alone; several Indian companies had to drop plans to trade with Central Asian countries such as Kazakhstan. But not any longer, it seems.

A proposed 70-km railway line in an obscure patch of northern Iran could change all that.

Once ready, the railroad could help India save crores of rupees in logistics to Central Asia, the 55-million-people market. One of the most prosperous and fastest growing regions in the world, Central Asia is a key source for uranium and fertilisers.

The line links the Iranian city of Gorgan to the Iran-Turkmenistan border. Gorgan lies 400 km away from Iran's capital, Tehran, and is some 30 km from the Caspian Sea.

The line will link another recently-built railroad that goes right up to Uzen town in southern Kazakhstan.

In fact, the Central Asian republics are closer to India than many of its trading partners — a flight to the farthest point in the region will take no more than three hours — but the presence of the Himalayas and Pakistan's refusal to allow Indian goods to pass through its territory make getting goods from Central Asia a logistics nightmare for India.

Doulat Kuanyshev, Kazakhstan's Ambassador to India, stresses that the economic relations between the region and India have been rather low due to difficult logistics.

For instance, a company exporting uranium from Kazakhstan should take it by land to the Black Sea and ship it all the way through the Mediterranean, the Suez Canal, the Red Sea and the Arabian Sea. The process could take 25 days. If the same comes through China's Lianyuangang port, 40 days.

In contrast, the Iran route could take just about 15 days. And India is now accelerating efforts to build a port in Iran's Chabahar. Gorgan is not too far from Chabahar. India's trade with Central Asian markets stood at $746 million in 2012-13 against China's $46 billion.

"Iran is an important, but unspoken, factor in India-Central Asia relations," says Arvind Gupta, Director-General, Institute for Defence Studies and Analyses.

Now that the Islamic republic has entered a nuclear pact with a host of western nations, experts hope the railroad project will also get a fillip. According to former Chief Economist of Fertiliser Association of India Uttam Gupta, the proposed railway line could help India diversify sources of fertilisers and control subsidy.

For India, a 70-km Iran rail line can open doors to Central Asia | Business Line

 

[arnabmit]

Just make sure to implement, not just plan, projects before China head-butts in.

 

[W.G.Ewald]

Now that the Islamic republic has entered a nuclear pact with a host of western nations, experts hope the railroad project will also get a fillip.

I don't see the connection. What am I missing?

The so-called pact is a joke, in my opinion.

 

[nirranj]

India should be more pro active. This will generate more economy and jobs in India. Just 746Million Dollars of trade??? It should be in tens of Billions. India should use both Iran and Afghanistan to access Central asia with Iran acting as to main Transit. This will also Help Iran to generate jobs with their men working in transport, Storage depots, repairing, May be even Indian Fertilizer companies can set up fertilizer plants in Iran and thus enhancing cooperation with them. I think the Americans cannot complain, after all Pakistan is their best man from time immortal, India became a friend just now.

 

[hello_10]

once this project is completed, we hope Iran to emerge as the financial hub of this region :thumb:

Iran is no weak on the side of technology, its fit in comparison with Israel/Turkey in that region too, while rest are just 'ally' of US. once Chabahar Port becomes gateway to Central Asia, along with the fact that Iran holds the second largest reserve of Gas and India is the biggest market in its closest proximity, along with Mineral/Metal rich Central Asia, ......... along with the recent nuclear deal which has opened all the trade opportunities for Iran too. here i would say that it won't be a wonder if we find Iran as one of the major financial capital of Asia Pacific by 2020/30 too

 

[nirranj]

once this project is completed, we hope Iran to emerge as the financial hub of this region :thumb:

Iran is no weak on the side of technology, its fit in comparison with Israel/Turkey in that region too, while rest are just 'ally' of US. once Chabahar Port becomes gateway to Central Asia, along with the fact that Iran holds the second largest reserve of Gas and India is the biggest market in its closest proximity, along with Mineral/Metal rich Central Asia, ......... along with the recent nuclear deal which has opened all the trade opportunities for Iran too. here i would say that it won't be a wonder if we find Iran as one of the major financial capital of Asia Pacific by 2020/30 too

It will be even great If india Can sell reactors developed by BARC to Iran, India should enhance full cooperation with Iran and there by doing all It can do to Access Central Asia. The next great rush is goiing to happen in the Central Asia along with Afghanistan. If India has to lead that Rush and make more out of that, Then India should make full use of Chabahar. Chabahar may well become the Singapore of the Middle east!

 

[hello_10]

It will be even great If india Can sell reactors developed by BARC to Iran, India should enhance full cooperation with Iran and there by doing all It can do to Access Central Asia. The next great rush is goiing to happen in the Central Asia along with Afghanistan. If India has to lead that Rush and make more out of that, Then India should make full use of Chabahar. Chabahar may well become the Singapore of the Middle east!

i remember, there used t be a time when we used to pray for peace in this region for the cheapest energy/ metal/ mineral options for India. for example if we compare Central Asia with Mineral/ Metal rich Australia, located in this Asia Pacific region, then we find per capita income of Australia at a very high side while that of Central Asia are Middle Order Countries so obviously any contract for metal/ minerals from this region would come at a lesser price for India.....

also the recent happenings in this region like nuclear deal between Iran and US, along with a gateway to Central Asia will obviously result in fall of energy/ metal prices as we now have more suppliers for the same, who are based in Central Asia and hence at a very close distance from India too. also, if we have a look on the way always have a political bargaining on the trade side, and the way India would emerge as the major customer for energy/ metal/ minerals of this whole region from Iran to Central Asia, hopefully after few years when ChaBahar port and this above project comes in operation, it all will result is long term political benefits for India too, along with saving $ on the import side of these items

i do remember how this road of Afghanistan was built to fulfill the same purpose, to have a road link to central Asia through Afghan region, which itself tells us strategic importance of an operational Chabahar port

"In fact, for the construction of (every) 1.5 km of road, one human life was sacrificed." akistan:

The road, which cost $150 million and was entirely funded by India, runs from Delaram in Nimroz to Zaranj on the Iranian border, which connects to the Iranian port of Chahbahar. :thumb: It opens up an alternate route into Afghanistan, which now relies mostly on goods transported overland from ports in Pakistan.

Afghanistan, India unveil strategic road | Reuters

 

[datguy79]

Chabahar port has been operational for months and trade is happening. Obviously India would have to expand it in order to accommodate the increased traffic.

Central Asia will be most interesting to watch in the upcoming future. China has already expanded trade and acquisition of raw materials as well as Russia. India probably has a short window before it is too late.

 

[Abhijeet Dey]

India should take back Pakistan Occupied Kashmir or POK illegally occupied by Pakistan. This will open India's access to Wakhan Corridor north of Afghanistan into Tajikistan in Central Asia.

India should have planned this railway line from Chabahar port to Gorgan a little bit earlier. I think those Chinese fertilizer companies are already eyeing phosphate reserves due to strong ties between China & Kazakhstan.

Kazakhstan giant oilfield: India's loss is China's gain

LINK: articles.economictimes.indiatimes.com/2013-09-08/news/41873799_1_biggest-overseas-oil-deal-kashagan-kazakh-north-caspian-sea

NEW DELHI: After blocking ONGC Videsh Ltd's USD 5 billion deal, Kazakhstan has transferred a 8.4 per cent stake in its giant Kashagan oil field to China National Petroleum Corp (CNPC).

The deal transferring the stake in the Kashagan offshore oilfield was signed yesterday during the visit of Chinese President Xi Jinping to the energy-rich Central Asian nation, industry sources said.

OVL had last year struck a deal to buy US giant ConocoPhillips' 8.4 per cent stake in the giant Kashagan offshore oil project in the Caspian Sea. While the partners in the project approved the transaction, Kazakhstan in July exercised its preemptive buy-out right and acquired the 8.4 per cent stake ConocoPhillips held in Kashagan.

Kazakhstan's national oil and gas producer KazMunaiGaz bought the stake as a representative of the Kazakh state at the same price as agreed between OVL and ConocoPhillips.

KazMunaiGas yesterday signed a deal to sell that stake to CNPC for about USD 5 billion, they said.

Under the deal, China will help arrange a loan of up to USD 3 billion for KazMunaiGas to help it finance the second stage of Kashagan's development, due to begin after 2020.

KazMunaiGas entered the Kashagan consortium as a shareholder in 2005 and has since then doubled its stake to 16.81 per cent.

Exxon Mobil, Royal Dutch Shell, Italy's Eni, Total of France and KazMunaiGaz each hold 16.8 per cent of Kashagan. Japan's Inpex Corp has 7.56 per cent stake.

The Kashagan field, located in the shallow waters (about 5-8 metres) of the Kazakh North Caspian Sea, is the world's largest current development project.

The field, which is set to produce 370,000 barrels of oil a day, is to start output by September, eight years later than initially planned and with costs nearing USD 48 billion, double the early estimates.

Sources said this is not the first time that OVL has lost out to Chinese in Kazakhstan.

CNPC beat India by agreeing to pay USD 4.18 billion in August 2005 for PetroKazakhstan, then China's biggest overseas oil deal. At that time, Oil Minister Mani Shankar Aiyar had stated that India's bid for PetroKazakhstan was thwarted as the "goalposts were changed after the game began."

The Chinese firm had trailed ONGC and its partner Lakhsmi N Mittal's USD 4 billion bid at the close of bidding on August 15, 2005. But post-close of bidding, it was allowed to raise the offer price to USD 4.18 billion, which saw PetroKazakhstan, a Canadian oil firm operating in Central Asia, go to CNPC.

Kashagan, with reserves estimated at 35 billion barrels of oil in place, is expected to produce its first oil this month.

 

[Abhijeet Dey]

Double Post

 

[nirranj]

India should take back Pakistan Occupied Kashmir or POK illegally occupied by Pakistan. This will open India's access to Wakhan Corridor north of Afghanistan into Tajikistan in Central Asia.

India should have planned this railway line from Chabahar port to Gorgan a little bit earlier. I think those Chinese fertilizer companies are already eyeing phosphate reserves due to strong ties between China & Kazakhstan.

Kazakhstan giant oilfield: India's loss is China's gain

LINK: articles.economictimes.indiatimes.com/2013-09-08/news/41873799_1_biggest-overseas-oil-deal-kashagan-kazakh-north-caspian-sea

Instead of making such a costly endeavour, We can make sabotage attacks on the proposed Karakhoram Highway and Rail line between Pakistan and China. this will give us more leverage. This will provoke the pakistanis and also make this route costly for transporting anything. Pakistan should bleed. Bleed and should feel what hell will really be like.

 

[roma]

We can make sabotage attacks on the proposed Karakhoram Highway and Rail line between Pakistan and China. this will give us more leverage. .

we should use our mba and organizational, human resource management abilities to get talebs, nwfp-ians, balouchis and sindhu-deshi's
to do that !

 

[IBSA]

USD667m allocated for Chabahar-Mashhad Railroad

The government has allocated about $667 million for the construction of Chabahar-Zahedan-Mashhad Railroad.

Ali Osat Hashemi, the province's governor general, also said on Sunday that with the allocation of the fund, the project's implementation will be accelerated, IRNA reported.

He added that the project will help expand transit in the province.

Hashemi stressed that the province's long distance from the center of the country should not be an obstacle to its development.

The official noted that the province should have more cinemas, theater halls and cultural and art centers. Referring to the province's high potentials in different fields, Hashemi said, "The whole country should join hands and make efforts to use them."

Once completed, the railroad will link Chabahar to the provincial capital city of Zahedan via the cities of Iranshahr and Khash. It will finally reach the holy city of Mashhad in the northeastern province of Khorasan Razavi.

USD667m allocated for Chabahar-Mashhad Railroad - Zawya

 

[hello_10]

we should use our mba and organizational, human resource management abilities to get talebs, nwfp-ians, balouchis and sindhu-deshi's
to do that !

among the Sindhu-Deshi's, one personality was the most impressive i found, he was from Mohazir group of Pakistan, Mr Adnan Shami. he was in his 20s when there were too many anti-mohariz riots in capital of Sindh, Karachi. and once he was caught by the mob who asked him, "are you Mohazir or not." and the brave man answered, "Im an Indian as my family came from there." and it was touching....... since then i was among the front liner to help him get Indian citizenship, who confirmed his patriotism even in Pakistan

once i even favored him in front line Indian politics too, because of his patriotic statement on the streets of Pakistan in open as below. i always argued him to be more deserving for a high political position in India as compare to Sonia Gandhi

Does that make me a Pakistani? We've an example of a very important and beloved
leader (Sonia Gandhi) coming from Italy," he added.
"How Italian would you consider this beloved leader who is dedicated to Indian politics?
Nationality is a state of mind. I am Indian. I dare anyone to prove otherwise," he says.

I am Indian: Adnan Sami | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.