The India-funded Chabahar port in Iran experienced a remarkable 600% increase in container traffic year-on-year (y-o-y) in FY24, handling 64,245 TEUs (twenty equivalent units), according to data from India’s Shipping Ministry. This is a significant jump from the 9,126 TEUs managed last year.
Ministry officials revealed that in the first two months of FY25 (April and May), Chabahar port handled 9,973 TEUs, already 10% higher than the total for FY23. “Operations at Chabahar are now commercially viable and we expect it to turn profitable soon,” a Shipping Ministry official stated.
Over the past four years, container cargo handling at Chabahar has shown a generally upward trend. It started from 225 TEUs in FY19, increased to 5,782 TEUs in FY20, and further to 8,110 TEUs in FY21, before a dip to 1,478 TEUs in FY22. In FY24, bulk cargo traffic also rose by 2% y-o-y to 2.12 million tonnes, compared to 2.08 million tonnes in FY23.
Chabahar Port, located in the southeastern Sistan-Baluchestan province on the Gulf of Oman, is Iran’s only deep-draft port with direct access to the Indian Ocean. India operates a terminal at the Shahid Beheshti port through the special purpose vehicle India Ports Global Ltd (IPGL).
India plans to further invest in Chabahar to enhance its infrastructure and operations. According to the contract agreement, Iran will procure equipment for the port with Indian financial assistance. “We will be providing funds for procurement of equipment,” said a Ministry official. Approximately $120 million will be allocated for equipment procurement over the next three years, up from the previously decided $85 million. Additionally, India plans to support infrastructure development with about $250 million.
In May, the Embassy of India in Iran announced a $250 million credit window for mutually identified projects aimed at improving Chabahar-related infrastructure. Earlier this year, India and Iran finalised a 10-year contract for terminal operations.
Chabahar port, located about 1,000 km from Gujarat’s Mundra and Kandla ports, will serve as a vital connector to the International North-South Transport Corridor (INSTC), a 7,200 km multi-modal network for freight movement spanning India, Afghanistan, Azerbaijan, Iran, Russia, and Central Asia, extending to Europe.
