India is looking at a nearly ₹4,000 crore capex-led expansion of operations at Iran’s Chabahar port. Orders for nearly five mobile harbour cranes have been placed as India looks at a five-fold capacity expansion there to 500,000 TEUs (twenty equivalent units) over a 10-year-period, Shipping Ministry officials in the know said.
A second berth – for expanded operations – is being explored too. India-funded Chabahar port is expected to handle nearly 100,000 TEUs by FY26, at nearly full capacity.
So far FY25, the port is expected to handle close to 75,000 TEUs (container traffic) and by “January-end has crossed 65,000 TEUs” – which is FY24 levels, a second official told businessline.
The terminal handled 64,245 TEUs (twenty equivalent units), data from India’s Shipping Ministry show and it was just 9,126 TEUs in FY23.
“Over the 10-year concession period, we intend to up capacities to 500,000 TEUs. Around ₹4,000 crore of investments are to be made and orders for mobile cranes, which are towards berth modernisation have been placed. These would be delivered over the next three to five years,” the first official said.
‘Investment mode’
Chabahar port continues to be in “investment mode” and the Indian operator – India Ports Global Ltd (IPGL) – is hoping to bring-in Indian shipping lines to start operations “soon”. Marketing activities have also been taken up to ensure operational viability of the port.
India’s Economic Survey 2024-25 noted that Shahid Beheshti Port at Chabahar connects Mumbai to Eurasia via the INSTC, reducing transport costs and time, leading to a 43 per cent increase in vessel traffic and a 34 per cent rise in container traffic for FY24.
Orders for new cranes have been placed with the Ports and Maritime Organisation of Iran.
Last year in May, IPGL signed a 10-year contract with the Ports and Maritime Organisation there equipping and operating the Shahid Beheshti Terminal of Chabahar Port.
The grant assistance for the supply of equipment was enhanced to $120 million. India has also committed to provide a Line of Credit of $250 million in rupee equivalent for the development of Chabahar Port.
India has already supplied port equipment worth about $24 million to develop the Chabahar Port.
“The process for procurement of remaining port equipment for Chabahar Port is underway,” the second official said.
India previously secured a waiver on US sanctions for Chabahar, in recognition of its role in delivering humanitarian aid to Afghanistan and creating an alternative Central Asian trade route. However, Trump’s renewed hardline stance raises doubts about the waiver’s future – putting at risk India’s investments in the port.
When asked, an official said: “The situation is still somewhat fluid. But orders have been placed and the entity there is looking into it.”
Neighbourhood Plans
According to Ministry officials, in Myanmar, IPGL has assumed control of operations at Sittwe Port. This port is a vital component of the Kaladan Multimodal Transit Transport Project, linking Bangladesh, Thailand and Kolkata.
By enhancing connectivity through Myanmar, India aims to establish a seamless trade corridor to South-East Asia, reinforcing its Act East Policy and strengthening regional economic partnerships.
Down South, India is expanding its influence in Sri Lanka with the development and operation of Kankesanthurai Port by IPGL. This initiative not only boosts bilateral trade but also revives maritime passenger connectivity, with a regular ferry service planned between Nagapattinam (India) and Kankesanthurai (Sri Lanka).
