North-South Corridor: Iran’s Golden Link at the Heart of Eurasia
webangah news Agency, International Desk: In today’s world, regional hubs play a crucial role, making goods transit not just an economic activity but a strategic tool for countries to establish themselves as regional centers. Nations located along transit routes-such as Iran, Turkey, or the UAE-generate direct revenues through customs duties, port fees, and rail transport costs as well as indirect income by developing related industries, tourism, and attracting foreign investments. These revenues can reach billions of dollars and substantially strengthen national economies.
Moreover, these countries expand their political and geopolitical influence by creating economic dependencies on their infrastructure among other nations. for example, controlling transit routes frequently enough ties exporting countries to the interests of host nations. In this context, the North-South Corridor (INSTC) offers Iran a golden opportunity to capitalize on its geography and transform into Eurasia’s transit hub-generating stable foreign currency earnings while positioning Iran as a key player in global supply chains.
Background and Structure of the North-South Corridor
The International North-South Transport Corridor (INSTC) is a multimodal transport project launched in 2000 by Iran, Russia, and India; later joined by Azerbaijan, Armenia, Kazakhstan, Belarus among others. Stretching approximately 7,200 kilometers-from Mumbai port in India through Bandar Abbas or Chabahar ports in Iran-it continues via railways and roads through Azerbaijan and Russia before reaching Europe. INSTC aims to reduce shipping time between South Asia and Europe from 45-60 days via the Suez Canal down to 20-30 days while cutting costs by up to 30 percent.
The corridor’s infrastructure includes maritime routes (India to Iran), railways (notably the Rasht-Astara railway line), and highways. Iran plays a central role covering more than 1,600 kilometers of the route. Key projects include completing the Rasht-Astara railway-with Russia investing €1.6 billion in 2023-and expanding Chabahar port with Indian cooperation. These initiatives not only facilitate bilateral trade but also serve as alternatives for western sanction-affected routes critical for countries like Russia and Iran.
The Economic Importance of INSTC
For Iran especially one major benefit is economic diversification reducing reliance on oil exports. Estimates suggest that over 20 million tons of cargo could pass annually through INSTC generating direct transit fees worth billions for Tehran each year. Indirect benefits include growth in logistics industries plus tourism and agricultural exports-for instance Iranian agricultural exports routed via this corridor reached $1.2 billion in 2024 largely due to increased access into Russian markets.
Furthermore INSTC establishes Iran as a transit hub, making neighboring states increasingly dependent on Iranian infrastructure.
India exports billions worth of goods annually to Europe; using INSTC helps reduce its transport costs while forging strategic partnerships with Iran.
Russia uses this corridor extensively to bypass western sanctions boosting bilateral trade volume with Tehran from $4 billion in 2022 projected above $10 billion by 2025.
This interdependence enhances Iranian leverage during regional negotiations serving also as resistance against external pressures.
Geopolitical Significance & Challenges
On geopolitics level INSTC rebalances power dynamics across Eurasia-offering “sanctions-free” corridors bolstering resilience for Russia & Iran under Western pressure,
and positioning India strategically counterbalancing China.
For Tehran specifically it weakens effects of sanctions whilst strengthening participation within China’s Belt & Road Initiative (BRI); potential exists for integration between INSTC & BRI turning iran into crossroads between two major corridors.
Nevertheless infrastructural gaps remain such completion of railway lines plus security concerns especially near borders require significant investment.
Iran faces competition from rival corridors like Turkey-Azerbaijan’s Middle Corridor or traditional Suez Sea routes forcing efficiency improvements.
Tensions such as conflicts in caucasus could disrupt cargo flow too.
Still progress such as planned digitalization agreements signed between Russia & Iran aiming completion by 2025 signals strong potential overcoming hurdles ahead.
Conclusion
The North-South Transport Corridor serves not merely transporting goods but driving both economic change & geopolitical clout for Iran.
This corridor enables enduring revenue generation strengthens dependencies over neighbors leveraging geographic advantage effectively amid global supply chain realities making Iran emerge from margin toward Eurasian center stage.
With ongoing investments alongside careful management of challenges it stands poised become dominant regional economic power exemplifying how transit infrastructure forms cornerstone enabling autonomy & influence worldwide.
