THE INTERNATIONAL NORTH-SOUTH TRANSPORT CORRIDOR (INSTC)

THE INTERNATIONAL NORTH-SOUTH TRANSPORT CORRIDOR (INSTC)

The INSTC is a common collective initiative of India , Iran and Russia signing an agreement in 2000 giving formal consent in 2002 where Azerbaigan joins the same. It’s an 7,200 km multifarious network of ship, rails and roadways route for moving consignment linking India, Iran, Afghanistan, Armenia, Azerbaigan, Russia , Central Asia and Europe.

It involves Cargo from India, Iran, Azerbaigan and Russia via ship, rails and roadways. This corridor connects Indian ocean, Persian Gulf to the Caspian Sea via Iran, Islamic Rep. and then to the Saint Petersburg and North European via Russia.

History

Russia, Iran and India signed the agreement for the NSTC project dated 16 May 2002. All three countries are founders of this initiative. Not much favour was received earlier while the development growth statistics showed up in 2005 and 2012. Over the few previous years from now were tremendously increased several milestones including two dry runs.

Member states

These are the member staes in NSTC project :-    India Iran Russia Turkey Azerbaijan Kazakhstan Armenia Belarus Tajikistan Kyrgyzstan Oman Ukraine Syria. Observer member —  Bulgaria.

Objectives

*   Primarily, its cost-effective and doesn’t take much of time too since the traditional route has been implemented.

*   The results could be observed in transportation cost cut by $2,500 per 15 tons and time could be reduced to 25-30 days from 40-60 days.

*   Presently taken up at Suez Canal Route.

*   The INSTC reduces carriage costs by 30% and transit time by 40%.

*   Also, the objective is to increase trade connectivity between major cities like MumbaiMoscowTehranBakuBandar AbbasAstrakhanBandar Anzali, etc.

North –South Corridor Advantages

1.          Asian and European countries could make their cargo transportation through North-South Corridor with advantage compared to Suez channel.

2.         Carriage cost – 30% less and Carriage Transit – 40% shorter

3.         Less border crossing is aslo one of perks to carry out easier transportation.

4.        The railways are emphasized.

5.         UN, UIC and ECO has also recommended.

Comparison of Old and INSTC Routes

Route

Distance

USD/TEU

USD/FEU

Transit

Nhava Sheva to Moscow via St.Petersburg

8700 nm

3500

5200

45 days

Nhava Sheva / Moscow via Kotka

8596nm

3900

5600

45–50 days

Nhava Sheva / B.Abbas

750 nm

200

300

5 Days

B/Abbas/Qazwin

1461km

3

Qazvin — Astara

380km

1

Astara — Yalama

504km

2

Yalama — Moscow

2260km

5

Nhava Sheva — Moscow via Bandar Abbas

4605 + sea

2100

3100

14+5 days

Nhava Sheva / St. Petersburg

5566+sea

2200

3037

15+5 days

 

The Major Challenges

1.                     Lack of private sector participation

2.                    Lack of application of digital technologies

3.                    Availability of containers and return cargo

4.                  Limitations in structural design

5.                    Limitation of shipping Lines

India’s Eurasia policy

With the International North-South Transport Corridor set to be operationalised, India moves closer to Central Asia

The INSTC is all ready to enlist from mid Januuary, 2018. Once fully initiated, the capacity is to carry 20-30 million tonnes of cargo yearly. This will bring a change to both (Geo-politics) and ( Geo-Economics ) of the region.

INSTC will improve India’s presence in Central Asia as a vital player. India,s access to Central Asian Region has always been disturbed due to the aggressive involvement of Pakistan and Afghanisthan.

TAPI stopped it’s operations due to the same issue.

Through INSTC, India will bypass and will then reach Central Asian markets, where demand for  Indian product is good. The Chabahar Post will boost the India’s access to the same. India had alot of strong and important historical and cultural linkages from the time of Kushan Empire (India’s extended neighbourhood).

India can now tackle the Chinese presence, INSTC is project is applied to be India’s answer to China’s Belt and Road Initiative. The corridor will also enhance Indo-Russian ties both economically and strategically, especially since Russia is getting cosy with Pakistan.

With the first consignment of goods ready to be transported from India to Russia next month, INSTC looks to be a trade corridor of immense potential that could help India to develop its economic and strategic importance in Eurasia and Central Asian region.

Refrences :-

https://en.wikipedia.org/wiki/International_North–South_Transport_Corridor

https://russiancouncil.ru/en/analytics-and-comments/analytics/instc-india-russia-s-trade-to-get-a-major-boost/

https://www.gica.global/initiative/international-north-south-transport-corridor-instc

https://economictimes.indiatimes.com/topic/instc

https://www.dnaindia.com/analysis/column-a-new-chapter-in-india-s-eurasia-policy-2566367

 

-AISHWARYA PARLE

THANK YOU

 

 

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