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Iran’s ‘Sanction-Proof’ Corridors : The Herat-Khaf Railway And The FNRC

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A Decade-Long Journey Towards Transformation

The Herat-Khaf Railway, spanning 225 kilometers, is a monumental project linking eastern Iran with western Afghanistan. Initiated in 2007 and funded by the Iranian government for $75 million, it aims to bridge economic and logistical gaps between the two nations. With 140 kilometers traversing Afghanistan and 85 kilometers in Iran, the railway promises to revolutionize trade, travel, and strategic connectivity in the region. A significant milestone was achieved on May 9, 2023, when the first trial cargo transported 655 tons of railway equipment, underscoring the tangible progress in the project’s completion.

This article discusses how this railway is not just a bilateral project, but a critical component of the Five Nations Railway Corridor (FNRC), an ambitious plan to link China, Tajikistan, Kyrgyzstan, Afghanistan, and Iran. By connecting Afghanistan’s heartland to Iranian ports like Chabahar and Bandar Abbas, it offers new trade routes and reduces reliance on traditional transit hubs. Amid a turbulent environment, the Herat-Khaf Railway and the Five Nations Railway Corridor (FNRC) serve as enduring symbols of determination and visionary ambition.

The FNRC: A Bold Step in Regional Cooperation

The Herat-Khaf Railway, a key component of the ambitious Five Nations Railway Corridor (FNRC), is poised to reshape economic landscapes across Central Asia. Beyond linking Afghanistan and Iran, it aims to integrate Afghanistan into global trade networks, facilitating the transport of over 6 million tons of goods and 1 million passengers annually. This enhanced connectivity is expected to lower transportation costs and support Afghanistan’s economic recovery, aligning with its National Infrastructure Plan. Herat, strategically positioned as a regional hub, stands to gain significantly, with the railway fostering industrial growth, job creation, and stronger ties to international markets. For Iran, the railway serves as a strategic lifeline, allowing it to advance trade ambitions and circumvent Western sanctions. The FNRC, spanning 2,100 kilometers, envisions a trade network connecting China’s Xinjiang province to Iran’s ports, with Afghanistan playing a central role. Nearly half of the corridor traverses Afghan provinces, highlighting its importance in regional dynamics. By promising access to European and Asian markets, boosting trade, and spurring employment, the $2 billion FNRC holds transformative potential.

FNRC: A Sanction-Proof Trade Corridor

The Five Nations Railway Corridor (FNRC) has emerged as a strategic response by nations like Iran and Afghanistan to mitigate the impact of Western sanctions. By aligning with non-Western powers such as China and Russia, the FNRC creates alternative trade routes that bypass Western-dominated systems. Iran, with decades of experience navigating sanctions, has spearheaded the development of “sanction-proof” corridors, leveraging its connectivity with Central Asia to sustain economic activity.

The FNRC’s integration with Iran’s Chabahar and Bandar Abbas ports provides Afghan and Central Asian goods access to global markets without relying on Western approval. Additionally, the ongoing Russia-Ukraine conflict has intensified efforts to establish transport networks independent of the West, adding urgency to FNRC-related developments. By prioritizing intra-regional trade and aligning with global shifts, the FNRC solidifies its role as a lifeline for economies facing Western restrictions.

Iran and Afghanistan: Navigating Challenges and Seizing Opportunities

Amid a volatile landscape, the Herat-Khaf Railway and the Five Nations Railway Corridor (FNRC) stand as testaments to ambition and resilience. Afghanistan’s unsteady security situation casts a long shadow over these projects, with insurgent threats disrupting progress and deterring critical investments. The $2 billion FNRC, supported partially by the Asian Development Bank, grapples with funding gaps and political complexities, as other initiatives like the International North-South Transport Corridor (INSTC) exist for regional influence. Afghanistan’s fragile infrastructure further compounds the challenges, demanding innovative solutions to sustain momentum.

For Iran, however, the railway is not just a logistical asset—it is a strategic lifeline. Decades of navigating Western sanctions have honed Tehran’s ability to thrive under isolation. By linking with Afghanistan and embedding itself in the FNRC, Iran aims to establish “sanction-proof corridors”, bolstering its global trade reach. The Herat-Khaf Railway underscores Tehran’s strategy to bypass traditional chokepoints, cementing alliances with China and Russia to counter Western pressure.

Meanwhile, for Afghanistan, the railway represents a long-awaited opportunity for economic revival. By connecting to Iranian ports, Afghanistan could emerge as a critical transit hub, boosting trade and creating jobs in regions like Herat. This potential economic lifeline offers an alternative to conflict-driven livelihoods, yet reliance on external investment introduces risks. Balancing these vulnerabilities with the promise of connectivity, the Herat-Khaf Railway symbolizes hope for a more stable, integrated future. Together, Iran and Afghanistan forge pathways to resilience amidst a landscape fraught with challenges.

India’s Balancing Act in the FNRC

India views the Five Nations Railway Corridor (FNRC) as both an opportunity and a challenge. While the FNRC could enhance regional connectivity and trade, its ties to China’s Belt and Road Initiative (BRI) and growing Chinese influence in Central Asia and Afghanistan pose strategic concerns. India counters Chinese expansion through its International North-South Transport Corridor (INSTC), a multi-modal trade network connecting Mumbai to Moscow via Iran, offering an alternative to China-led routes. India’s investment in Iran’s Chabahar Port anchors its strategy to bypass Pakistan and access Afghanistan and Central Asia. However, Afghanistan’s instability and potential FNRC extensions into Pakistan add to India’s apprehensions. By completing gaps in the INSTC, such as the Astara-Rasht link, India can offer Central Asian nations an efficient alternative, reducing reliance on the FNRC. India’s pragmatic approach involves strengthening partnerships with Iran and Central Asia, safeguarding its strategic autonomy while engaging selectively in regional connectivity initiatives.

Conclusion: A Vision for a Connected Future

The FNRC and Herat-Khaf Railway are deeply entwined with global geopolitics. As part of China’s Belt and Road Initiative (BRI), they offer Beijing a direct overland route to Iranian ports. The West remains sceptical, viewing these projects as tools for Chinese and Iranian dominance. Yet, they also acknowledge the economic potential and regional stability such connectivity could bring. Hence, this integrated railway corridor symbolizes more than just infrastructure—it represents aspirations for a connected, prosperous, and stable region. While challenges abound, the strategic foresight and collaboration required to overcome them could redefine regional dynamics. Afghanistan and Iran, at the heart of these projects, stand poised to bridge continents and unlock opportunities that echo far beyond their borders. The need to secure financing and maintain stability remains critical to realizing the railway’s full potential. Effective governance and strategic planning will be essential to avoid the pitfalls of debt dependency and ensure long-term benefits.

Author

  • Srishti Bera

    Srishti Bera holds her Master’s degree in International Relations from Amity University. She writes her analysis regularly on the areas of Geo politics, Foreign Policy and West

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