Russia sends two coal trains to India via INSTC
RAILWAYS & METRO RAIL

Russia sends two coal trains to India via INSTC

For the first time, Russia has dispatched two trains carrying coal to India through the International North-South Transport Corridor (INSTC), which links Russia to India via Iran, according to Russia?s national railway company. The corridor, spanning 7,200km from St. Petersburg to Mumbai's port, integrates railway, roadway networks, and seaports.

The initiative is part of Russia's strategy to establish new trade routes amidst Western sanctions, redirecting trade flows from Europe towards Asia and the Middle East, as reported by RT. "Two trains loaded with Kuzbass coal are making their maiden journey to India via the INSTC's eastern branch through Kazakhstan, Turkmenistan, and Iran's Bandar Abbas port," stated the Russian Railways.

The development of the INSTC holds significant implications for India's trade landscape, especially amid Russia's constraints on sea trade due to on-going geopolitical tensions. India views the corridor as an alternative to China's Belt and Road Initiative and recently assumed management of Iran's Chabahar Port for ten years. This strategic move enhances the INSTC's importance, facilitating regional connectivity, trade with Central Asia and Afghanistan, and offering an alternative route connecting the region to Russia and onward to Europe.

Trade experts highlight that the INSTC not only streamlines access to Iran, Russia, Azerbaijan, Baltic, and Nordic countries but also positions itself as a viable alternative to the Suez Canal, which remains vulnerable to disruptions. The corridor reduces transit times to approximately 25 days compared to the usual 45 days via the Suez Canal, significantly cutting freight costs by 30%.

Moreover, the INSTC's role extends beyond trade efficiencies, potentially transforming India's energy sector by facilitating cheaper imports of coal and enhancing energy security through connectivity with Central Asian nations.

"This corridor holds immense geostrategic potential for India to expand its footprint in Central Asia," remarked Ajay Srivastava, Cofounder of Global Trade Research Initiative (GTRI). "It offers a cost-effective route for sectors like energy, pharmaceuticals, IT, agriculture, and more," added Nisha Taneja, Professor at the Indian Council for Research on International Economic Relations (ICRIER).

As India continues to navigate its energy needs and explore new trade avenues, the INSTC emerges as a pivotal asset, fostering economic resilience and strategic alliances across the Eurasian continent. (Source: ET)

For the first time, Russia has dispatched two trains carrying coal to India through the International North-South Transport Corridor (INSTC), which links Russia to India via Iran, according to Russia?s national railway company. The corridor, spanning 7,200km from St. Petersburg to Mumbai's port, integrates railway, roadway networks, and seaports. The initiative is part of Russia's strategy to establish new trade routes amidst Western sanctions, redirecting trade flows from Europe towards Asia and the Middle East, as reported by RT. Two trains loaded with Kuzbass coal are making their maiden journey to India via the INSTC's eastern branch through Kazakhstan, Turkmenistan, and Iran's Bandar Abbas port, stated the Russian Railways. The development of the INSTC holds significant implications for India's trade landscape, especially amid Russia's constraints on sea trade due to on-going geopolitical tensions. India views the corridor as an alternative to China's Belt and Road Initiative and recently assumed management of Iran's Chabahar Port for ten years. This strategic move enhances the INSTC's importance, facilitating regional connectivity, trade with Central Asia and Afghanistan, and offering an alternative route connecting the region to Russia and onward to Europe. Trade experts highlight that the INSTC not only streamlines access to Iran, Russia, Azerbaijan, Baltic, and Nordic countries but also positions itself as a viable alternative to the Suez Canal, which remains vulnerable to disruptions. The corridor reduces transit times to approximately 25 days compared to the usual 45 days via the Suez Canal, significantly cutting freight costs by 30%. Moreover, the INSTC's role extends beyond trade efficiencies, potentially transforming India's energy sector by facilitating cheaper imports of coal and enhancing energy security through connectivity with Central Asian nations. This corridor holds immense geostrategic potential for India to expand its footprint in Central Asia, remarked Ajay Srivastava, Cofounder of Global Trade Research Initiative (GTRI). It offers a cost-effective route for sectors like energy, pharmaceuticals, IT, agriculture, and more, added Nisha Taneja, Professor at the Indian Council for Research on International Economic Relations (ICRIER). As India continues to navigate its energy needs and explore new trade avenues, the INSTC emerges as a pivotal asset, fostering economic resilience and strategic alliances across the Eurasian continent. (Source: ET)

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