Chabahar Port

Chabahar Port is a strategically significant deep-water seaport located in Sistan-Baluchestan Province, southeastern Iran, along the coast of the Gulf of Oman. It is Iran’s only oceanic port and provides direct access to the Indian Ocean, making it vital for international trade, regional connectivity, and geopolitics. Chabahar has gained global attention for its role in enhancing trade routes linking India, Iran, Afghanistan, and Central Asia, as well as for its potential to rival other major regional ports.

Geographic and Strategic Location

• Position: Located on Iran’s Makran coast, about 170 km west of Pakistan’s Gwadar Port.
• Access: Serves as a key outlet to the Indian Ocean, bypassing the Strait of Hormuz.
• Connectivity: Offers landlocked Afghanistan and Central Asian states a direct trade corridor that avoids reliance on Pakistan’s ports.
• Regional Rivalry: Seen as a counterbalance to Gwadar Port in Pakistan, which is developed by China under the China–Pakistan Economic Corridor (CPEC).

Historical Background

• Chabahar has historically been a fishing village and small trading centre, but its significance rose during the late 20th century when Iran and India began discussing port development for regional trade.
• In 2003, India and Iran signed their first major agreement to develop Chabahar, but progress was slow due to international sanctions on Iran.
• After the signing of the Joint Comprehensive Plan of Action (JCPOA) in 2015, development accelerated, with India playing a leading role.

Development and Infrastructure

Chabahar Port is divided into two main terminals:

• Shahid Kalantari Terminal
• Shahid Beheshti Terminal (newer and developed with Indian assistance)

Indian Involvement:

• India, through the India Ports Global Limited (IPGL), has invested in modernising the port.
• Development includes container terminals, cargo facilities, and expansion to handle large vessels.
• India has also committed to developing associated road and rail networks, notably the Chabahar–Zahedan railway, which links to Iran’s broader rail system and eventually to Afghanistan and Central Asia.

Economic Importance

• Trade Gateway for Afghanistan: Provides Afghanistan with an alternative trade route, reducing dependence on Pakistani ports such as Karachi and Gwadar.
• Access to Central Asia: Facilitates Indian and Iranian access to Turkmenistan, Uzbekistan, and beyond.
• India’s Strategic Interests: Helps India bypass Pakistan in trade with Afghanistan and Central Asia, strengthening its role in regional connectivity.
• Transit Corridor: Forms part of the International North-South Transport Corridor (INSTC), linking India to Russia and Europe through Iran.

Geopolitical Significance

• India–Iran Partnership: Strengthens bilateral ties and India’s strategic presence in the region.
• Counter to Gwadar Port: Seen as a counterweight to China’s presence in Gwadar, located less than 200 km away in Pakistan.
• U.S. Sanctions Context: While U.S. sanctions on Iran have hindered investment, the port has received partial exemptions due to its role in supporting Afghanistan’s development.
• Regional Balance: Chabahar enhances Iran’s role as a regional trade hub and strengthens India’s influence in the face of China–Pakistan cooperation.

Challenges

• Sanctions on Iran: International sanctions have slowed investment, financing, and expansion projects.
• Security Issues: The region of Sistan-Baluchestan faces insurgency and instability, which can threaten infrastructure and operations.
• Delays in Infrastructure Projects: Railway and logistical projects have experienced delays due to funding and geopolitical complications.
• Regional Rivalries: Competition with Gwadar and broader U.S.–Iran tensions affect long-term stability.