IPGL consider Gulf entities for equipment procurement for Chabahar Port

24 Oct 2023 CW Team

India Ports Global (IPGL) is exploring solutions to acquire cranes and container handling equipment for Chabahar Port in Iran. One option being considered involves a partnership with an entity based in Abu Dhabi, Dubai, or Sharjah, which would procure the equipment and facilitate their transfer to the India-funded port. This initiative stems from the challenges faced by IPGL in purchasing equipment, which has hindered the full-scale operation of Chabahar Port for six years.

Previously, IPGL had issued tenders for equipment procurement, but these efforts were unsuccessful due to non-participation by suppliers, despite multiple deadline extensions. To overcome this hurdle, IPGL is now exploring a new approach. An entity from Abu Dhabi, Dubai, or Sharjah will acquire the necessary equipment and have it delivered to their respective ports. From there, the equipment will be transported to Chabahar Port.

The difficulty in procuring equipment dates back to 2017 when suppliers refrained from bidding on contracts due to sanctions imposed on Iran by Western nations concerning its nuclear program. Although the United States issued a document exempting Chabahar Port from these sanctions, it lacked clarity, leading banks to reject it. Consequently, equipment manufacturers struggled to open letters of credit, essential for finalising the deals. Despite these challenges, India remains persistent in its efforts to facilitate the smooth operation of Chabahar Port.

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