We need to first understand some basics about the objectives and drivers of the two initiatives.
CPEC is one of the trade routes that are part of Chinese OBOR initiative. The main driver is China. The objective is to reach China for import or export. GCC and Africa is at the other end importing or exporting from China. OBOR and CPEC would collapse the moment you take China out of the picture. CPEC is primarily a Road + Water transport corridor. Road Transport is costlier than Rail-Road hence China would be using the existing central Asian Rail-Road network for any trade with Iran, Iraq and Turkey.
On the other hand, INSTC is a multi-lateral initiative. At one end we have EU & Russia and the other end we have Iran, India and SE Asia. So the amount of trade is not dependent on any one participating country. Hence the infrastructure costs are easily justifiable and recoverable. INSTC is primarily a Rail-Road + Water transport corridor.
Deutsche Bahn wants to use INSTC to trade with Iran
By
Dipanjan Roy Chaudhury, ET Bureau | Updated: Oct 28, 2016, 11.24 AM IST
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Deutsche Bahn, a leading German railway company, has expressed interest in using INSTC and delivering goods from Europe to Iran via Azerbaijan and vice versa
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NEW DELHI: The International North-South Transport Corridor (INSTC), which carried out the first test shipment this month between India and Russia, has received a shot in the arm with Germany's decision to trade with
Iran via this connectivity project.
Deutsche Bahn, a leading
German railway company, has expressed interest in using INSTC and delivering goods from
Europe to Iran via
Azerbaijan and vice versa, according to people familiar with the development. This will boost India's plans to use INSTC to reach not just Russia but also beyond Europe in shorter time than required at present.INSTC is a landand sea-based 7,200 km long network comprising rail, road and water routes that is aimed at reducing costs and travel time for freight transport in a bid to boost trade between Russia, Iran, Central Asia, India and Europe.
The network is expected to provide faster and more efficient trade connectivity between Europe and Southeast Asia, Deutsche Bahn said. A study, conducted by the Federation of Freight Forwarders' Associations in India, showed that INSTC will be 30% cheaper and 40% shorter than the existing routes.
http://economictimes.indiatimes.com...c-to-trade-with-iran/articleshow/55109430.cms