“In fact, India, Iran and Russia had in September 2000 signed the INSTC agreement to build a corridor to provide the shortest Multi-Model transportation route linking the Indian Ocean and the Persian Gulf to the Caspian Sea via Iran and St Petersburg. 

However it was only in 2014 that a Trail run could take place on this Multi Modal Connectivity project with the Joint efforts of Indian Ministry of External Affairs and Ministry of Commerce along with concerned Ministries of Counterparts Countries. It all started with a trail run of two Containers starting from Nhava Sheva Port in Mumbai to Bandas Abbas in Iran because during those days the Chabahar Port Project was under development and a lot of infrastructure was yet to be developed then.

INSTC Background 

INSTC is a 7,200-km-long Multi-Modal Network of Ship, Rail, and Road route for moving freight primarily involving India, Iran, Azerbaijan and Russia. 

The objective of the corridor is to increase trade connectivity between major cities such as Mumbai, Moscow, Tehran, Baku, Bandar Abbas, Astrakhan, Bandar Anzali etc. Today there are in all more than 

10 Countries on Board and more are ready to join this Project in days to come. We feel, a Regular Shipping Service on this route in the need of the hour, which can ensure a consistent cargo flow. 

From the Government side, we are looking forward for a healthy Banking Relation to be built up between the partner countries for the easy movement of Cargo flow. Currently we are facing the challenges concerning the Bill of Lading owing to ongoing sanctions on some of the partner countries. Insurance sector has to strengthen even further. On Shipping Front, we need a National Shipping Line to be operated on the route. May be, a support from Public Sector Unit can go a long way in helping us to realize the true dream of INSTC. Customs can also play a more proactive role in offering more relaxation.    

Opportunity & Challenges   

There are great many opportunities for many logistics companies – Shipping Lines, NVOCC, MTO, SOS to operate on this route given the play of high bilateral trade between these partner countries. However the challenges remain with lack of participation from Logistics companies, availability of Container, Containerized Cargo vis-a-vis Dry Bulk Cargo.  

The Way Going Forward 

“Technology can play a major role is realizing the true dream of INSTC. A Common IT Platform  - tracking (GPS/RFID) enabled  system in place can be of great help.  Further integration of Corridors is the need of an hour. It should be supplementary rather than competing with each other coupled with more TIR Accession. We are looking forward to a Competitive and Consistence Services which can include Trade Promotion and Participation, International Railway Co-operation and aligning infrastructure to realize the true benefits of INSTC.”