Roads & Transport Ministers of Iran, India and Russia took part in a meeting held in Peters Burgh concerning the ways of putting South – North Corridor into operation. This is a new corridor which connects these three countries to each other. Simultaneously, Iran and India ministers of Foreign affairs - Mr. Kamal Kharrazi and Mr. Singh emphasized on the importance and efficiency of the same corridor.

Mr. Kharrazi is now in New Delhi to attend the 12^th Iran – India Joint Economical commission. At the present time, the value of cargoes being transited between Iran and India is appx $350,000,000 but the value of cargoes being transited between India and Russia is estimated as $1,000,000,000. 

By complete exploitation of this new corridor, the volume of cargo being transited between India and the two countries of Iran and Russia will be extremely increased and simultaneously new economical chances will be established.

Disputes between India and Pakistan for many years and instability in Afghanistan were the reason why India was unable to find a short and safe economical route to western markets. For many years India used routes via Red Sea, Suez Canal and Mediteraneh to reach Baltic and the Red Sea countries. This route was a long route and was not economical at all. However, this new route which is known as Nostrac will connect India to Astrakhan/Russia via Iranian ports in south (B.Abbas) and in North (Bandar Anzali).  

It was estimated that this route will reduce 20% of all routing charges. On the other hand, since the capacity of this route is estimated as 20,000,000 Mt per year, it is expected that the cost for cargoes coming from South Asia and Far East to Iran and Russia Markets will be decreased. In this case Iran and Russia can increase their economical incomes by collecting transit taxes from transit goods and establish new occupation markets for economical and transportation industries. Another advantage with this route will bring for Iran is activating Mashhad - Sarakhs Railways which connects Iran to Turkmenistan. If this route becomes more active, Iran will reach CIS markets better. Also India will reach the same markets via a more safe and closer route. 

Reported by BBC