India is planning to significantly expand the capacity of Iran’s Chabahar Port despite global trade instability and geopolitical threats. The Centre aims to increase the port’s capacity fivefold over the next decade.
A capital expenditure of ₹4,000 crore is underway to acquire modern cranes, leading to mechanization and modernization at the terminal. [cite: 60] The current capacity at the port is 100,000 twenty-foot equivalent units (TEUs), and the target is to expand this to 500,000 TEUs. The Shahid Behesti terminal at the port, operated by state-owned India Ports Global (IPGL), is expected to handle 75,000 TEUs of container traffic in the current financial year.
The project has faced concerns over its viability, particularly after former US President Donald Trump’s administration indicated a review of sanction waivers related to the port. However, India is proceeding with the expansion, recognizing the port’s strategic importance as a critical gateway for the proposed International North-South Transport Corridor (INSTC), a multi-modal route between India, Central Asia, and Russia, aimed at reducing transit time for trade between the three regions.