A new route for goods transportation between two potent Asian countries India and Russia to become a reality soon with the memorandum of understanding signed between Container Corporation of India (CONCOR) and Joint Stock Company, Russian Railways Logistics for cooperation and collaboration in promoting intermodal transportation of cargo over the International North-South Transport Corridor (INSTC).
While Russia is currently facing US sanctions and the US president’s recent visit to India is in the concoction, none of the factors could hinder India and Russia’s trade relations.
The MoU signed between the two bodies will pave a new route for the transportation of goods between the two countries via Iran. It is important to note the new route will cut transportation time on the fact that it will avoid the route through Suez Canal, the route which is currently in order.
In accordance with the MoU, both the organizations have signed the Service Agreement on Tuesday in New Delhi. ” This Service Agreement gives the broader responsibilities for transporting the cargo from India to Russia and vice-versa under a single invoice,” CONCOR said in a press communication.
Terming it to be ‘seamless transportation’, CONCOR stated that containerised cargo will profit both exporters and importers in India and Russia. It will also assist the progress of the reduction in transit time and the cost of transportation compared to the existing transportation via Suez Canal.