Chabahar Port

The United States has revoked the sanctions waiver linked to Iran’s Chabahar Port, effective September 29, impacting India’s connectivity and trade plans in the region.

About the Chabahar Port

• Introduction: Chabahar Port is a strategic seaport jointly developed by India and Iran.
• Location: Situated in the Gulf of Oman, east of the Strait of Hormuz, in Iran’s Sistan-Baluchestan province.
• Significance for India:
  • Provides direct access to Afghanistan and Central Asia, bypassing Pakistan.
  • It is a crucial part of the International North–South Transport Corridor (INSTC).
  • Used for humanitarian aid deliveries, including wheat to Afghanistan and pesticides to Iran.

Timeline of Chabahar Port Development

• 2003: India and Iran sign an MoU to develop Chabahar Port.
• 2016: India, Iran, and Afghanistan sign a trilateral agreement for regional connectivity.
• 2018: India Ports Global Limited (IPGL) begins operating the Shahid Beheshti terminal; US grants waiver under IFCA citing Afghan reconstruction.
• 2019–2021: Port used for Indian humanitarian aid shipments to Afghanistan.
• 2024-2025: India signs a 10-year pact with Iran to operate Chabahar, committing $120M investment plus $250M in financing.
  • Ongoing expansion includes increasing port capacity to 500,000 TEUs and connecting it via a 700 km rail line to Zahedan.
• 2025 (Sept 29): Trump administration revokes Chabahar sanctions waiver, aligning with “maximum pressure” on Iran, putting India’s operations and strategic trade route at risk.

Implications of the Sanctions

• Affections Operation: It will directly impact India’s state-operated India Ports Global Limited (IPGL), which has managed the Shahid Beheshti terminal at the port since 2018.
• Impact on India’s Projects: Threatens India’s ongoing development of the terminal, railway connectivity, and planned expansion.
• Geopolitical Setback: Weakens India’s outreach to Afghanistan and Central Asia, undermining an alternative trade corridor bypassing Pakistan.
  • Chabahar functioned as a strategic counter to Chinese regional dominance, particularly in relation to the China-supported Gwadar Port in Pakistan.
    • These ports are positioned merely 170 kms apart.

Conclusion

• The revocation of the Chabahar waiver undermines India’s strategic connectivity goals, weakens regional outreach, and heightens dependence on volatile geopolitics, challenging its counterbalance to Pakistan and China’s influence.

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