From UPSC perspective, the following things are important :
Prelims level: Rasht-Astara Railway Link
Mains level: INSTC
Russia and his Iran has signed a deal to finance and build the 162 km Rasht-Astara Iranian railway, the main connection in the emerging North-South Transport Corridor.
Rasht-Astara Railway Link
- The Rash Astra Railway is a 162-kilometer railway connecting Rasht (Iran) and Astara (Azerbaijan) on the border.
- It is part of the International North-South Transport Corridor (INSTC) and will significantly diversify global traffic flows.
- The railway will facilitate connections between Russian ports on the Baltic Sea and Iranian ports in the Indian Ocean and the Gulf.
About INSTC
- The INSTC is a 7,200-kilometer Multi-Mode Transit System connecting India, Iran, Azerbaijan, Russia, Central Asia, and Europe.
- It promotes transportation cooperation among member states and includes ship, rail, and road routes.
- Membership has expanded to include additional countries, and observer states and Baltic countries have expressed interest in joining.
Significance of INSTC for India
- Central Asia trade: India has invested in the Chabahar Port in Iran, which serves as a doorway for trade with Central Asian countries.
- Extended connection: INSTC offers potential connections to the Baltic, Nordic, and Arctic regions.
- Bypassing Pakistan: INSTC provides an alternate route for India to connect with Central Asia, bypassing obstacles in Pakistan.
- Fastest freight: It reduces transit time by 40% and freight costs by 30% compared to the Suez Canal route.
- Alternative to Suez: Russia claims the project could ultimately rival the Suez Canal in terms of trade flows.
Challenges of INSTC
- Challenges include limited financial support from major international institutions due to US sanctions on Iran.
- Harmonization of tariffs and customs, increased private sector involvement, and improved informational connectivity are necessary for success.
Conclusion
- More financing, cooperation, political will, and strategic planning are required to realize the full benefits of INSTC.
- Addressing demand deficits and enhancing informational connectivity are crucial.
- Collaboration and the establishment of industrial parks and special economic zones can contribute to the corridor’s development and commercial value.
Key terminologiesMulti-Mode Transit System: A system that integrates multiple modes of transportation, such as ship, rail, and road, for efficient movement of goods. Joint Comprehensive Plan of Action (JCPOA): An agreement reached in 2015 between Iran and world powers regarding Iran’s nuclear program. Suez Canal: A major global trade route connecting the Mediterranean Sea to the Red Sea. Chabahar Port: A port in Iran’s Sistan-Balochistan province, providing India with access to Central Asian countries. Baltic Countries: Countries located in the Baltic region of Northern Europe, including Latvia and Estonia. |
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