Explained: What is Rasht-Astara Railway

Russia and Iran have signed an agreement to construct the Rasht-Astara railway in Iran as a component of the International North-South Transport Corridor (INSTC). This railway is considered a crucial connection within the corridor, aiming to link India, Iran, Russia, Azerbaijan, and other nations through railway and sea transportation.

Russia believes that this route has the potential to become a significant global trade route, comparable to the Suez Canal.

What is Rash Astra Railway?

Drishti IAS

The Rash Astra Railway is an upcoming 162-kilometre railway that will seamlessly link Rasht, a coastal city in Iran near the Caspian Sea, with Astara, a border town in Azerbaijan. This railway connection will reduce travel time by four days.

It is significant within the North-South transport artery, a unique transportation network designed to diversify global traffic flows. By being a part of this strategic corridor, the railway will unlock substantial competitive advantages, resulting in notable reductions in travel duration and expenses. Furthermore, it will contribute to the establishment of innovative logistics chains.

The railway's presence along the Caspian Sea coast will be crucial in connecting Russian ports on the Baltic Sea with Iranian ports in the Indian Ocean and the Gulf. This intercontinental linkage will facilitate smoother trade and enhanced connectivity between these regions.

What is International North-South Transport Corridor?

INSTC is a 7,200-kilometer transportation network that connects ship, rail, and road routes for moving cargo between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.

BCCL/Representational image

Launched in 2000 by Iran, Russia, and India to promote transportation cooperation, its membership has expanded to include 10 more countries, and Bulgaria is an observer state.

New transportation routes and modes have been established to boost trade and connectivity between countries. The Central Corridor connects Mumbai's Jawaharlal Nehru Port to Iran's Bandar Abbas Port, passing through Iranian territory and along the Caspian Sea to reach Russia's Olya and Astrakhan Ports.

The Western Corridor establishes a railway network between Azerbaijan and Iran, extending to India's Jawaharlal Nehru Port via a sea route. Additionally, the Eastern Corridor connects Russia and India through Central Asian countries like Kazakhstan, Uzbekistan, and Turkmenistan.

These corridors aim to strengthen economic cooperation and foster closer ties among nations, facilitating smoother trade and increased connectivity in the region.

Significance of INSTC for India

INSTC provides an alternative route for India to connect with Central Asia, which is rich in hydrocarbons and holds strategic importance. This alternate route bypasses the obstacles of the straight route through Pakistan and creates a permanent trade route between Afghanistan and Central Asia.

BCCL/Representational image

India sees the INSTC as a way to reduce transit time and freight costs. The corridor consists of sea routes, rail links, and road connections that connect Mumbai in India to Saint Petersburg in Russia, passing through the Chabahar port in Iran.

It is projected to reduce transit time by 40%, shortening it from 45-60 days to 25-30 days. Freight costs are expected to decrease by 30% compared to the Suez Canal route.

India has invested in the Chabahar Port and signed an intergovernmental agreement for the INSTC. The Chabahar port, located in Iran's Sistan-Balochistan province, provides a gateway for India, Iran, and Afghanistan to trade with Central Asian countries.

It is Iran's only port with direct access to the sea and is situated in a region rich in energy resources.

The INSTC is also seen as an alternative to the Suez Canal route, especially after the blockage of the Suez Canal in 2021 disrupted global trade. The INSTC is considered a cheaper and faster alternative multimodal transit corridor, which can mitigate such disruptions in the future.

Furthermore, the INSTC has the potential to expand further and connect India with the Baltic, Nordic, and Arctic regions. This connectivity initiative has the potential to transform the region by facilitating not only trade but also humanitarian assistance and overall economic development.