CHABAHAR (Realist English). Iran’s Chabahar Port, the country’s only deep-water gateway with direct access to the Indian Ocean, is taking on a central role in a major Eurasian trade initiative designed to connect India with Russia and Europe while bypassing traditional maritime chokepoints.
Located on the Gulf of Oman along Iran’s Makran coast, Chabahar is strategically distinct from Iran’s other main ports in the Persian Gulf. It provides ships with open-ocean access without navigating the Strait of Hormuz, a key global energy transit chokepoint. This geographic advantage has elevated the port’s importance in regional logistics and geopolitics.
Chabahar serves as the southern anchor of the International North-South Transport Corridor (INSTC), a 7,200-kilometer multimodal network of sea, rail, and road routes linking India to Russia and Europe via Iran and the Caspian Sea. Supporters of the corridor say it could reduce cargo transit time by nearly half compared with the traditional Suez Canal route, while lowering transport costs.
The port’s modern expansion began in the 1980s and has progressed in phases. Annual cargo capacity, initially 8.5 million tons, is projected to reach more than 77 million tons at full development. Facilities now include container terminals such as Shahid Beheshti, capable of handling large Post-Panamax vessels.
India has played a decisive role in the port’s recent development. A trilateral agreement signed in 2016 between Iran, India and Afghanistan laid the groundwork for long-term cooperation. In May 2024, New Delhi signed a 10-year agreement to develop and operate the Shahid Beheshti terminal — the first time India has assumed management of a foreign port facility.
For India, Chabahar provides a strategic trade corridor to Afghanistan and Central Asia that bypasses Pakistan. The port connects to a 218-kilometer highway built by India inside Afghanistan, offering landlocked Kabul a direct and sovereign route to global markets.
Chabahar is often compared with Pakistan’s Gwadar Port, developed with Chinese support under the Belt and Road Initiative. While international observers frame the two ports as strategic rivals, Tehran has emphasized a narrative of connectivity rather than confrontation, maintaining economic ties with both New Delhi and Beijing.
The port’s development has unfolded under the shadow of US sanctions on Iran. Successive US administrations have granted limited waivers allowing India to continue work at Chabahar, citing its importance for Afghanistan’s economic stability. However, these exemptions have been subject to review, creating uncertainty for investors.
India and Iran have explored alternative financial mechanisms — including non-dollar trade settlements and integration with non-SWIFT messaging systems — to shield operations from sanctions-related disruption.
A key missing link in the broader corridor is the proposed 750-kilometer railway from Chabahar to Zahedan, which would integrate the port into Iran’s national rail network and strengthen the INSTC. Once operational, the route could facilitate continuous freight movement from Mumbai to Moscow or St. Petersburg.
Beyond geopolitics, Chabahar’s expansion carries economic implications for Iran’s Sistan and Baluchestan province, one of the country’s least developed regions. Authorities say the adjacent free trade and industrial zone is intended to attract manufacturing and petrochemical investment while creating local employment.
Environmental considerations remain part of the development agenda. The surrounding coastline includes ecologically sensitive areas such as Gwater Bay, home to endangered marine species, raising calls for sustainable planning alongside industrial growth.
Chabahar’s trajectory reflects broader shifts in Eurasian trade patterns. As countries seek diversified routes and reduced reliance on traditional corridors, the port has become a test case for how infrastructure, diplomacy and regional cooperation intersect in an increasingly multipolar economic landscape.