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Chabahar Port, a deep-water seaport located in southeastern Iran along the Gulf of Oman, holds significant strategic importance. As the only oceanic port in Iran, it is being developed collaboratively by India and Iran, with India Ports Global Limited (IPGL) managing its Shahid Beheshti terminal. This development is crucial for advancing India’s regional trade and connectivity objectives.
The expansion of Chabahar Port is a joint initiative by India and Iran to increase its capacity from 100,000 to 500,000 TEUs (Twenty-foot Equivalent Units). TEU is the standard measure for containerized cargo, with one TEU representing the capacity of a 20-foot container. This expansion will enable the port to manage five times more cargo, elevating its status as a major trade and transit hub.
A 700-kilometer railway line is planned between Chabahar and Zahedan to connect the port to Iran’s inland rail system. This linkage will facilitate seamless transportation of goods into Iran and beyond to Afghanistan, Central Asia, and Eastern Europe, positioning Chabahar as a crucial node in the International North-South Transport Corridor (INSTC).
The Chabahar project offers alternative trade routes that bypass Pakistan, minimizing costs and political risks. This reduces transit times and logistical challenges for Indian goods destined for Afghanistan, enhancing exports in sectors like pharmaceuticals, textiles, and machinery. Iran benefits from investments, infrastructure development, and increased port revenues.
Chabahar serves as a strategic counterbalance to Pakistan's Gwadar Port, developed by China under CPEC. India’s foothold in Chabahar enhances its strategic presence near the Strait of Hormuz, a critical maritime chokepoint for global oil shipments. This strengthens India’s westward connectivity and influence in Central Asia and the Middle East.
The port is integral to India’s strategy to establish alternate routes for accessing energy and markets in Eurasia, avoiding unreliable regions. It supports regional connectivity via the INSTC, linking India with Russia and Europe through Iran. Strengthening ties with Iran enhances India’s regional diplomacy, especially in the context of growing Chinese influence in Pakistan.
Both the port expansion and railway construction are progressing, albeit slower than anticipated due to geopolitical and financial challenges. Completion is expected by mid-2026. Despite hurdles like US sanctions and equipment delivery delays, India and Iran remain committed to the project.
Chabahar offers landlocked nations like Afghanistan and Central Asian republics maritime access through a stable route. For instance, India has routed wheat and aid to Afghanistan via Chabahar, positioning itself as a reliable partner in regional development and connectivity.
This project underscores India’s ambition to emerge as a regional infrastructure power. By investing in Chabahar, India promotes multipolar trade, connectivity, and South-South cooperation, showcasing its capacity to engage in strategic, long-term projects with partner countries despite global pressures.
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