New Delhi: India and Iran signed a memorandum of understanding (MoU) with regards to the development of the Chabahar Port in the Islamic Republic.

Union Minister for Shipping and Road Transport and Highways Nitin Gadkari and Iran Minister for Transport and Urban Development Dr. Abbas Ahmad Akhoundi signed the MoU on behalf of their respective governments.

This MoU will allow Indian and Iranian commercial entities to commence negotiations towards the finalisation of a commercial contract under which Indian firms will lease two existing berths at the Chabahar Port and operationalise them as container and multi-purpose cargo terminals.

As per reports, Chabahar Port will provide Afghanistan`s garland road network system an alternate access to a sea port, which will significantly enhancing that nation`s overall connectivity to regional and global markets as well as boosting the reconstruction and humanitarian efforts in the country.