Transportation security

Russia, India & Iran want to create alternative trade route to Suez Canal – report

Officials from India, Iran, and Russia are going to meet next month to negotiate a large joint project aimed at launching a new cargo transport corridor that could become a cheaper and shorter alternative to the Suez Canal.

The new shipment passage, North-South Transport Corridor (INSTC), is set to connect the Indian Ocean with the Persian Gulf through Iran to Russia and Europe, according to Iranian state-owned news outlet Press TV. The 7,200-kilometers long corridor will combine sea and rail routes.

“The INSTC is the shortest multimodal transportation route linking the Indian Ocean and Persian Gulf via Iran to Russia and North Europe,” India’s Ministry of Commerce and Industry said in a statement, adding that trilateral talks between the parties are scheduled on November 23.

The route will make it possible to deliver cargoes from India to the Iranian port of Bandar Abbas. Then, the goods will be transported by land to Bandar Anzali, Iran’s port on the Caspian Sea. After that, goods will be shipped to the Russian southern port of Astrakhan, from where they will move to Europe by rail.

The new transport artery will potentially reduce the time and costs of shipping by up to 40 percent. Transport time between Mumbai and Moscow will reportedly be reduced to 20 days. Annual capacity of the transport artery is expected to reach 30 million tons.