New Delhi: In a significant move aimed at enhancing its geopolitical influence and economic connectivity in Central Asia, India is set to expedite the expansion of the strategically crucial Chabahar Port. This decision is being driven by efforts to fortify rail links from Chabahar to the Iranian border, which will ultimately connect India with Central Asia, bypassing the China-Pakistan Economic Corridor (CPEC) and the adversarial geopolitical landscape that Pakistan presents.

The Chabahar Port serves as a vital alternative for India, facilitating direct access to Afghanistan and Central Asia. By leveraging this access point, India aims to reduce its dependency on Pakistan and increase its regional trade opportunities. Sunil Mukundan, Managing Director of India Ports Global Ltd (IPGL), the state-owned entity managing operations at Shahid Beheshti terminal in Chabahar, recently announced, We have been told by Iranian authorities that a key railway line connecting Chabahar port with the Iranian railway network would be ready in a year's time. We are also on course to expanding port capacity five times to 5 lakh TEUs (twenty-foot equivalent units) while expecting to carry 5 million tonnes of bulk cargo this year.

A TEU is a standardized unit of measure for cargo capacity in container transportation. Mukundan highlighted the importance of this railway connectivity in fostering the growth of trade through Chabahar as it is positioned as the gateway to the International North-South Transport Corridor (INSTC), aimed at boosting trade relations for Central Asian and Eurasian countries located on the eastern side of the Caspian Sea.

The urgency to enhance railway infrastructure is underscored by a significant uptick in cargo movement through the Chabahar port. Reports indicate that cargo handling increased to 80,000 TEUs and 3 million tonnes in bulk cargo during the fiscal year 2025, a notable rise from just over 64,000 TEUs the previous year. This increase highlights Chabahar's evolution into a pivotal trading hub for India.

Additionally, the upcoming visit of Iranian Foreign Minister Abbas Araqchi to India in May is set to further prioritize discussions around Chabahar's development. Given the strategic nature of this port, its operational readiness is deemed essential for improving connectivity for humanitarian aid and other cargo movements from India to Afghanistan.

As part of the expansion plan, India and Iran are collaborating to develop a new rail route connecting Chabahar with Zahedan city, enhancing access to the INSTC corridor. Despite a Memorandum of Understanding (MoU) signed back in 2016 for the 700-km Chabahar-Zahedan railway, progress on the project has been slow. However, current developments indicate a renewed focus on bringing the project to fruition, especially as Chabahar emerges as Irans next significant commercial port following the primary Shahid Rajaee Port.

Chabahar's strategic location just outside the Strait of Hormuz provides it with unique advantages, offering a more direct shipping route for Central Asian and Eurasian countries. The ports operational capabilities have been bolstered by a long-term contract signed between India and Iran in May last year, which established IPGL as the operator of the Shahid Beheshti terminal. This facility includes a multi-cargo berth and has begun providing services for both bulk and container cargo.

The deep draft of Chabahar Port allows it to accommodate larger vessels, which can avoid the congestion and delays often experienced in the Strait of Hormuz. Moreover, the road connections to Zahedan and onward to Zaranj in Afghanistan facilitate seamless transport of humanitarian aid from India.

Chabahar port is designed to handle a variety of goods, including automobile spare parts, agricultural products, and iron ore, with ongoing efforts to expand the range of products that can be managed at the port. Strategically located in the Sistan-Baluchistan province of Iran, Chabahar is approximately 550 nautical miles from Kandla Port in Gujarat, India, making it a prime point for Indian exports.

The establishment of a free zone at Chabahar further enhances its attractiveness to traders, supported by Indias incentives such as discounts on vessel-related charges. Plans are underway to expand the port's capacity from its current 8 million tonnes to 18 million tonnes in subsequent phases, requiring an investment of around 4,000 crore.

Historically, India's involvement with Chabahar dates back to 2003 when an agreement was made during Iranian President Khatamis visit to India. Despite several delays, including the reimposition of sanctions on Iran, India has been steadfast in its commitment to develop Chabahar as a critical trade corridor. The current agreement aims to strengthen regional connectivity, particularly among India, Iran, and Afghanistan, laying the groundwork for enhanced trade and cooperation in the region.