Trade route diversification in Eurasia continues. A small infrastructural step on a global scale, but a huge step for Kazakhstan: the landlocked nation is going to build a terminal on Iran’s Indian Ocean coast.
Kazakhstan’s Vice Prime Minister and Minister of National Economy Serik Zhumangarin announced the plans behind the scenes of a parliamentary meeting, according to Kazakh media. “We are planning to build a terminal there for the transshipment of goods”, he said. “This is in the port of Bender-Abbas, on a plot of land of 15 hectares.”
The government in Astana is not allocating any budget to the terminal’s construction. Rather, it is counting on the private sector to fund the project. “For as far as I know, the agreement is already in the final stage: the rental conditions are already agreed”, said Zhumangarin.
Middle Corridor–Indian Ocean
Kazakhstan already has rail access to Iran through Turkmenistan and Uzbekistan. The Bender-Abbas terminal would enable Kazakhstan to export its products to countries in South and Southeast Asia.
“The railway starts in Aktau [a key node on the Middle Corridor], then goes through Turkmenistan. There are two border crossings: Etrek and Serakhs. In both cases, the route leads to the Persian Gulf, where one of the largest ports of the region is located — Bender-Abbas”, elaborated Zhumangarin.
“This gives Kazakhstan direct access to the markets of India, East Africa, the countries of the Persian Gulf and Southeast Asia. This is precisely the goal of the project”, the minister added.
Countering geopolitical risk
Kazakhstan is counting on the cancellation of sanctions when the US and Iran sign a peace deal. This would allow it to export any product through Iranian territory. However, alternative routes will still remain important to reduce geopolitical risk. One such route could run through Afghanistan and Pakistan.
“This route is even more advantageous, as it avoids the Strait of Hormuz”, Zhumangarin commented on such an alternative route. “Recently, the Iranian Minister of Roads informed me that construction of the railway to the port of Chabahar is almost complete. It is located outside the Strait of Hormuz, while ports within the strait remain vulnerable under certain circumstances. I hope a similar situation won’t recur in the near future, but for us, this is a serious signal to consider alternative logistics routes”.