Chabahar Port

Chabahar Port is a strategically significant seaport located in south-eastern Iran, along the Gulf of Oman in the Sistan and Baluchestan Province. It is the country’s only oceanic port and serves as a vital maritime outlet for trade and regional connectivity. Positioned outside the Strait of Hormuz, Chabahar has considerable geopolitical importance, particularly in linking landlocked Afghanistan and Central Asian states to global markets.

Location and Geography

Chabahar lies on the Makran coast of the Arabian Sea, facing the Gulf of Oman. The port’s location provides a shorter and safer maritime route for trade compared to other regional ports, particularly because it avoids the highly congested Strait of Hormuz.
The port consists of two main terminals:

• Shahid Kalantari Terminal
• Shahid Beheshti Terminal

Of these, the Shahid Beheshti terminal has been the focus of modern development projects, supported in part by India’s investment.

Historical Background

The idea of developing Chabahar Port dates back to the 1970s, when the last Shah of Iran sought to establish a naval and commercial hub. However, the Iranian Revolution of 1979 and subsequent geopolitical tensions delayed progress.
From the late 1990s onwards, Iran, India, and Afghanistan began cooperating to modernise the port, with the objective of facilitating trade routes that bypass Pakistan. The port gained further importance following the U.S.-led intervention in Afghanistan (2001), which increased the need for alternative access points to the landlocked country.

Economic and Strategic Importance

Chabahar is designed to function as a regional trade hub and a gateway to Afghanistan and Central Asia. Its advantages include:

• Bypassing Pakistan: It provides India and other countries a direct route to Afghanistan without relying on transit through Pakistan.
• Connectivity projects: Linked to the International North-South Transport Corridor (INSTC), which connects India, Iran, Russia, and Europe.
• Regional trade: Facilitates the movement of goods to and from Central Asia via road and rail networks under development.
• Energy transit: Serves as a potential hub for energy transport, given Iran’s proximity to major oil and gas resources.

India has been particularly active in investing in Chabahar, contributing to port upgrades, road construction, and rail links connecting the port to Zahedan and further to Afghanistan.

Development and Modernisation

The Shahid Beheshti terminal has undergone significant expansion, with new berths, modern cargo handling facilities, and increased capacity. When fully developed, Chabahar is expected to handle millions of tonnes of cargo annually.
India’s involvement includes:

• Upgrading port infrastructure.
• Financing and constructing road links to Delaram in Afghanistan, connecting further to Central Asian markets.
• Participating in railway projects extending from Chabahar to the Iranian national rail network.

Geopolitical Significance

Chabahar Port plays a central role in regional geopolitics:

• India: Sees Chabahar as a counterbalance to Gwadar Port in Pakistan, which is developed with Chinese assistance under the China–Pakistan Economic Corridor (CPEC).
• Iran: Uses Chabahar to diversify trade routes and reduce dependence on the Strait of Hormuz.
• Afghanistan: Gains a vital access point to the sea, reducing its reliance on Pakistan for imports and exports.
• Global actors: The United States has shown mixed reactions, granting some sanctions waivers for Chabahar due to its importance for Afghanistan’s economic development.

Challenges

Despite its potential, Chabahar faces several challenges:

• U.S. sanctions on Iran: These have limited foreign investment and slowed infrastructure development.
• Security concerns: The port is located in a region prone to insurgency and cross-border tensions.
• Competition: Gwadar Port in Pakistan poses strong regional competition, backed by significant Chinese investment.
• Infrastructure gaps: Rail and road links remain incomplete, limiting the port’s immediate impact.

Future Prospects

Chabahar Port is expected to play an increasingly significant role in regional trade and logistics. Future developments may include:

• Integration with the INSTC for direct connectivity to Russia and Europe.
• Expansion of trade between India, Afghanistan, and Central Asia.
• Greater use as an energy and industrial hub within Iran’s economic strategy.

If fully developed, Chabahar has the potential to transform regional trade dynamics, offering an alternative to routes through Pakistan and strengthening connectivity across South Asia, Central Asia, and the Middle East.