North-South Corridor safe substitute for Suez Canal

Tehran, IRNA – The International North-South Transport Corridor (INSTC) is paid attention to by numerous countries because the route can be a safe substitute for the long route of the Mediterranean Sea via the Suez Canal. The INSTC is one of the strategic routes in the eastern hemisphere. Iran’s geo-economics, as well as geostrategic, and geopolitical situation, has been given importance by great states, and many international producers have paid heed to Iran’s appropriate condition in terms of railway and road transportation as well as its long shores in the Persian Gulf. The corridor is considered one of the most important transit routes, which connects western and southern Asia regions. The INSTC was set up by three states of Russia, India, and Iran on September 12, 2000, in order to promote transportation cooperation. The transit route links the Indian Ocean and the Persian Gulf to the Caspian Sea and then via Russia to Saint Petersburg and North Europe. The corridor is the most vital trade route between Asia and Europe, which is 40 percent shorter in distance and time and 30 percent cheaper in costs. Now, the corridor has been expanded and accepted 11 new members, including Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Belarus, Oman, Syria, and Bulgaria. Iran has been selected as a trustee, who is tasked with informing other members about other members' joining or quitting. In March 2021, a Japanese-owned container ship en route from China to Europe was stuck in the Suez Canal for days, and the problem brought about the daily loss of 9 billion dollars for the global economy, so Iran’s Ambassador to Russia Kazem Jalali said that there is a dire need for speeding up the completion of the infrastructure of the International North-South Transport Corridor as a substitute for the Suez Canal. The objectives of the establishment of the INSTC have been mentioned as the development of transit exchanges for organizing transport of goods and passengers, increase of access of aligned parties of the agreement to global markets via railway, road, sea, river, and air transportation facilities, cooperation in line with boosting the scale of international transportation of goods and passengers, guarantee for travel safety, coordination of transport policies, and preparation of laws and regulations for transportation. – Russia’s role in INSTC Russian President Vladimir Putin said in the presence of heads of states from Azerbaijan, Kazakhstan, Turkmenistan, and Iran in the Sixth Summit of the Caspian Sea Littoral States in Ashgabat, Turkmenistan, that the five littoral countries of the Caspian Sea, including Russia, have numerous plans for the improvement of infrastructures of the INSTC. The Russian president underlined that his country intends to facilitate trade with India via Iran, adding that the West-imposed sanctions on Russia have made Moscow more determined to expand trade and economic ties with countries, with whom Russia has a close relationship. Therefore, Russian authorities focus on the International North-South Transport Corridor because the route can decrease the time and cost of transit of goods and passengers. – An opportunity for new businesses Russia is suffering from the West-imposed sanctions and its economy has been affected by the aftermaths of the embargo, so Moscow is seeking a way out of the dilemma and find an opportunity to create new businesses. It was reported in April that Russia’s most advanced industrial province, Ryazan, seeks to enhance economic cooperation with India. Ryazan’s governor visited India and interviewed Economic Times, saying that he kicked off a worldwide tour from India and Russia is keen on expanding trade exchanges with selected countries. Aimed at transiting Russian commodities to India, Russia transports its cargoes from Saint Petersburg to Bandar Anzali in northern Iran; then, the goods are carried to southern Iran by trucks; and then the containers will be shipped to Mundra, a port in western India. Follow us on Twitter @IrnaEnglish