The show of affection between India and the US during President Donald Trump’s visit has not deterred India from taking a step forward in announcing the use of the transport infrastructure to connect to Russia much faster through Iran, a country in spotlight facing the US sanctions.
Within three months, exporters and importers from India and Russia can move goods between the two countries through Iran, said Concor CMD V Kalyana Rama on Tuesday evening.
Container Corporation of India (Concor) and RZD Logistics JSC (Russian Railways) on Tuesday signed a service agreement to transport cargo between India and Russia using a single invoice. The two entities had signed an MoU last year to this effect.
Exporters from India can book their goods through a single invoice issued by Concor and exporters from Russia can book their goods using RZD Logistics.
The containers will move between the two countries using the International North South Transport Corridor (INSTC) through the Iran and Azerbaijan. The move will benefit the traders by lowering transit time and cost of transportation.
The new route will cut the time of moving goods by almost half as it will avoid the present circuitous sea route through the Suez Canal, and also result in significant cost savings.
As per preliminary estimates, which may have to be updated, containerised cargo will be transported between the two countries in 25-30 days, down about 40 per cent from the present 45-50 days to reach various destinations between the two countries, reckons Concor. Transportation cost is also expected to drop to $3400 per twenty foot equivalent unit (TEU) sized container, from the $4900 per TEU.
