It's a first: India takes over management of overseas port with Chabahar deal

May 13, 2024, has become a historic day for India after the country signed a “long-term” contract for the operation of the Shahid Beheshti Port in Chabahar.

With this, it is the first time India has taken over the management of an overseas port.

According to India’s Ministry of External Affairs (MEA), the contract was inked between India Ports Global Ltd & Ports and the Maritime Organisation of Iran.

“The contract will give a boost to regional connectivity and India’s linkages with Afghanistan, Central Asia and Eurasia,” MEA Spokesperson Randhir Jaiswal said in a post on X (formerly Twitter).

Union Minister Sonwal travelled to Tehran on Monday. As per the Embassy of India in Iran, the Indian shipping minister held a “fruitful meeting” with his Iranian counterpart.

Both the leaders “discussed furthering the shared vision of making Chabahar Port a regional connectivity hub connecting India to Afghanistan, Central Asia, and Eurasia,” the embassy said in a post on X.

About Shahid Beheshti

Shahid Beheshti is one of the two distinct ports in the Chabahar project. The other port is Shahid Kalantari.

The long-term contract has been inked for the operation of the Shahid Beheshti Port in Chabahar as India’s investment is only restricted to this port.

The first phase of Shahid Beheshti port was inaugurated in December 2017. India had sent its first consignment of wheat to Afghanistan through Chabahar that same year.

In December 2018, India Port Global Limited (IPGL) took over a part of the operations at Shahid Beheshti.

Also Read: India to manage Iran’s Chabahar Port for 10 years, how New Delhi cracked strategically important deal

As per reports, the deal signed on Monday (May 13) is for the next 10 years and is said to be extendable automatically.

It is said to replace the original contract signed in 2016 which has been renewed on a yearly basis.

The agreement will help India to operate the port, the expansion of which it has financed.

Importance of Chabahar Port for India

Chabahar Port holds strategic importance for both India as well as Iran and is believed that it can potentially help Tehran ward off the effect of Western sanctions and offer New Delhi an alternative route that bypasses Pakistan

India has been persistently pushing for the Chabahar Port project to boost regional trade, especially for its connectivity to Afghanistan.

Chabahar Port serves as a counterbalance to Pakistan’s Gwadar Port and China’s Belt and Road Initiative (BRI).

There are plans to integrate Chabahar with the International North-South Transport Corridor (INSTC) which will help facilitate India’s access to Afghanistan and Central Asia without any dependency on Pakistan.

With inputs from agencies