WANA (Nov 02) – In southeastern Iran, the port city of Chabahar is rapidly emerging as a pivotal hub in the expanding trade network across Eurasia. With more than 84% of the Chabahar–Zahedan railway project completed and the second phase of Shahid Beheshti Port under development, Tehran is taking its final steps toward linking the Makran coast to the country’s national rail grid — a move that could shift Iran’s role from a local transit route to a regional logistics powerhouse.

 

Analysts say the completion of these projects could elevate Iran’s position in global trade corridors, connecting South Asia to Central Asia and Europe, and opening a new chapter in regional economic cooperation.

 

National-Scale Infrastructure Transformation

Chabahar — Iran’s only oceanic port — has seen a surge in infrastructure and logistics investment over recent years. More than 240 trillion rials (around $4.5 billion) in public and private funding has been channeled into expanding storage, unloading, and cargo-handling capacities.

 

According to the Ports and Maritime Organization of Iran, the construction of new mechanized silos and covered warehouses will increase the port’s operational capacity by at least 50% by next year. Meanwhile, the 634-kilometer Chabahar–Zahedan railway has become one of Iran’s fastest-moving infrastructure projects, with a record pace of 50 kilometers of track-laying per month. Officials describe it as “a turning point in the country’s transport development.”

 

The line — now over 84% complete — is expected to be operational by the end of 2025, linking Chabahar to Iran’s national rail system and shortening the trade route between the Indian Ocean and Central Asia.

 

 

India’s Strategic Role

India has played a crucial role in Chabahar’s development since 2018. Under a 10-year agreement, India Ports Global Limited (IPGL) has committed to investing $370 million and extending a $250 million line of credit for port equipment and expansion.

 

Since India’s involvement began, more than 8.7 million tons of goods have been handled through Chabahar, with over 450 vessels docking at the port. Container activity has surged by 650% in 2024 alone, with annual capacity reaching 90,000 TEUs and expected to rise to 130,000 TEUs once the second development phase is complete.

 

The Islamic Republic of Iran Shipping Lines (IRISL) has also expanded its operations by 153%, launching regular shipping routes between Chabahar, India, and China.

 

 

A Strategic Crossroads of Corridors

Experts see the Chabahar railway as the “missing link” of the International North–South Transport Corridor (INSTC) — a route connecting South Asia to Europe via Iran. The port’s proximity to the China–Pakistan Economic Corridor (CPEC) and the Istanbul–Tehran–Islamabad (ITI) rail route further enhances its strategic significance.

 

For landlocked Central Asian countries such as Uzbekistan, Turkmenistan, and Kazakhstan, Chabahar represents one of the few direct gateways to open seas. Turkmenistan’s formal accession to the INSTC in 2023 has further strengthened Iran’s regional position as a logistics hub.

Chabahar–Muscat Shipping Line to Officially Launch Next Week. Social media/ WANA News Agency

Chabahar–Muscat Shipping Line to Officially Launch Next Week. Social media/ WANA News Agency

Economic and Social Impact

Chabahar’s expansion is viewed not only as an infrastructure project but also as a catalyst for economic revitalization in Iran’s underdeveloped southeast. The volume of goods handled at the port in the first half of 2025 has tripled compared to the same period last year — a sign of accelerating commercial activity.

 

However, analysts note that achieving the port’s full potential — an annual capacity of 500,000 TEUs — will require deeper hinterland development, streamlined customs procedures, and stronger foreign investment incentives.

 

International observers view Chabahar as more than a trade port; it symbolizes Iran’s broader ambition to reintegrate with the global economy. As its railway and maritime connections expand, Chabahar is positioned to become a key node in the global supply chain — the gateway through which Iran seeks to re-enter the center of Eurasian trade.