Chabahar Port : Overview, Significance, Progress & Updates of Port Deal

The Chabahar Port is located in Iran at the mouth of the Gulf of Oman. The Chabahar Port is also considered the ‘Golden Gateway’ as it connects Indian Ocean countries to Central Asia. It is an important port because it is situated in a strategic location. It is a connecting point between Central Asia and South Asia. It provides Iran with direct access to the Arabian Sea. This port is located to the west of Iran’s border with Pakistan. In this article, we will discuss more about the significance of the Chabahar port and its importance to India.

What is Chabahar Port? – Overview

Port Name	Chabahar Port
Location Country	Iran
Sub-Ports	Shahid Beheshti and Shahid Kalantari
Ocean	Arabian Sea
Gulf	Gulf of Oman
Uniuqe	First Deepwater port of Iran

What is the Meaning of Chabahar?

The word Chahbahar is taken from Persian words Chahar that means four. In the same way, the word bahahr means spring. Therefore, the meaning of the name of Chahbahar is the place that witness the four spring or the seasons in a year. It is the only oceanic port of Iran that is located in Sistan and Baluchistan province. The Chabahar port is the first deepwater port of Iran because of which it is an important port for the country in global trade through the ocean. It has strategic importance for India and Iran.

What is the Geopolitical significance of Chabahar port?

Geographically, the location of Chabahar port is in South eastern Iran in the Gulf of Oman. Iran has only this port for the direct access to the ocean. Therefore, it is considered as the golden gateway for the Central Asian Countries to trade with India and other countries .

After the partition with Pakistan, India’s connection with the Iran and Cental Asia has weakened. Therefore, India,was leading a search for alternative trade routes with this area. The Chabahar port fulfils India’s search and provides a strategic location for its tardewith Afghanistan and the Central Asia.It is also an important element in theInternational North-South Transport Corridor (INSTC) which links the Indian Ocean and persian Gulf to the Caspian Sea and Europe.

India’ involvement with Iran in case of Chabahar port started in 2002 through the discussion under the predentialiship of Khatami of Iran. Later, in 2003, a strategic cooperation roadmap was signed between the President Khatami of Iran and Prime Minister Atal Bihari Vajpayee.

There are two ports on the Chabahar named Shahid Kalantri and Shahid Beheshti. Indian company had taken the responsibility to take over the operations at the Shaheed Behehti port.

However, the instability in the relations between India and Iran has raised doubts about the development of the port many times.

Why is the Chabahar Port important to India?

The Chabahar port is located in a strategic position in Iran. It is an important connecting point between central Asia to south Asia including India, through the ocean route. Threfore, it serves many role that are significant for India. These roles are described below.

• Trade Route Alternative: India needs access to the central Asia for various purpose such as trade, aid, and development. But the problem is the route through the Pakistan to the Afghanistan that too by the land. Therefore, to reduce the reliance on the Pakistan to connect with Aghanistan, India need a different route that is fulfilled by the chabahar port.
• Part of International North-South Transport Corridor – Chabahar port is the key point in the INSTC route that includes sea, rail and road route between India, Iran, Russia, Central Asia, and Europe.
• Economically Useful: The central Asia is a resource rich area that can help Inida to lead a potential economic growth. The Chabhar port offers the means to fulfil it.
• Counterpar tof China: Growing influence of China in the Indian ocean has been a worry point for India. Therefore, presence of India in Chabahar is to counter the dominance of China in Indian Ocean.
• A Platform for Diplomacy: Chabahar Port serves as a diplomatic hub, facilitating coordination for humanitarian operations across Central and South Asia. Its integration with the International North-South Transport Corridor further amplifies its diplomatic significance, fostering regional connectivity and cooperation.

Progress and Updates Regarding the Chabahar Port Deal

Trilateral Agreement

• India, Iran, and Afghanistan signed a trilateral agreement in April 2016 to develop Chabahar port.
• Indian Shipping Ministry worked rapidly towards port development post-agreement.

Phase-wise Development

• Shahid Beheshti port, where India’s investment is concentrated, was inaugurated in December 2017.
• Indian consignments, including wheat shipments to Afghanistan, started passing through Chabahar port.
• India Ports Global Limited (IPGL) took over a part of port operations in December 2018.

Current Status

• Shahid Beheshti port development is ongoing in four phases, with planned capacity of 82 million tons per year upon completion.
• Construction of a modern cruise terminal in the first phase increased port capacity to 5.8 million tonnes in December 2019.

Challenges and Issues:

India’s difficulty in implementing infrastructure projects in neighboring regions due to various reasons, including geopolitical complexities.

• US-Iran relations impacting project progress, especially under sanctions regimes and changing administrations.
•  Varying dynamics in US-Iran relations, including sanctions and policy shifts, affecting India’s involvement in Chabahar.
• Uncertainty surrounding future developments based on US policy decisions and Iran’s responses.
•  Ongoing crisis in the Red Sea region and volatility in the Middle East pose challenges to Chabahar port development.
• Escalation of tensions between Iran and Pakistan and its implications for regional stability and transit routes.

What is the Status of Economic Ties Between India and Iran?

The trade between India and Iran has been fluctuating significantly over the years. In 2019-20, India’s imports from Iran, primarily crude oil, declined by approximately 90% to USD 1.4 billion from USD 13.53 billion in 2018-19. Iran has witnessed a depletion of its rupee reserves in the vostro account, impacting its ability to import key Indian commodities like basmati rice and tea.

Recently, the meeting of Indian PM Modi and Iranian President Raisi has emphasised the future cooperation through coordination in organisations like Sanghai Cooperation Organisation and BRICS.

Conclusion

In conclusion, India’s involvement in the development of Chahbahar port shows the strategic planning to make better connections in the area and finding news way to trade with the Cetram Asian countries. Despite challenges, active diplomacy and efficient project implementation can help India and Iran overcome obstacles. Chabahar port remains a viable transit hub and link, with potential to enhance regional connectivity and trade.

Frequently Asked Questions on Chabahar Port?

Is Chabahar port owned by India?

One of the two ports at the Chabahar ports are owned by the India.

Where is Chabahar port?

The Chabahar port is located in Iran.

What are the names of the two ports within Chabahar?

Shahid Kalantari port and the Shahid Beheshti port.

Which country has taken responsibility for operations at Shahid Beheshti port?

India has taken responsibility for operations at Shahid Beheshti port.

Why is Chabahar Port important to India?

Chabahar Port provides India with an alternative trade route to Central Asia, reducing reliance on transit through Pakistan.