India Plans to Increase the Chabahar Port Capacity Fivefold

India is set to invest nearly 4,000 billion rupees to expand operations at the Iranian Chabahar port, with the goal of increasing its capacity by five times to 500,000 teus in the next decade. To support this expansion, orders have been placed for five mobile harbor cranes, with plans for a second berth to accommodate extended operations. The port, financed by India, is expected to handle 100,000 teus from the GJ 26 and is on track to reach full capacity soon.

During the 10-year concession period, India Ports Global LTD (IPGL), the Indian operator of Chabahar, aims to modernize the port and attract Indian shipping lines. Marketing efforts are underway to enhance the port’s viability. India’s economic survey 2024-25 highlights Chabahar’s strategic importance in connecting Mumbai to Eurasia through the International North-South Transport Corridor (INSTC), leading to increased shipping and container traffic.

In May 2023, IPGL signed a 10-year contract with Iranian ports and maritime organization to operate Chabahar’s Shahid Beheshti Terminal. India has increased assistance for port equipment and provided credit lines to support the port’s development. India’s waiver of US sanctions against Chabahar for humanitarian aid to Afghanistan and regional trade connectivity is uncertain due to changing US guidelines.

Beyond Chabahar, India is strengthening its regional maritime influence by overseeing operations at the Sittwe Port in Myanmar and developing the Kankesanthurai port in Sri Lanka. Plans for a ferry service between Nagapattinam and Kankesanthurai are in place to improve commercial and passenger connectivity.

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